Question

Someone please help me with this case study.

Sammy’s Motor Repair Shop: In the Beginning

At age 26, Samuel Bugarin established his motor repair shop along the highway, one kilometer away from the commercial district of his town. He holds a degree in Mechanical Engineering and just after graduation, he started working as an apprentice in his uncle’s motor repair shop. He prodded his uncle expand his business but his advice was not heeded.

He thinks that the motor repair business is growing steadily. He noticed that the new car models are operated with electronic systems installed in them. Sammy believes that repair and maintenance of the new car models cannot be served adequately by repair shops existing in the area.

Sammy immersed himself into learning the care and maintenance of electronic installations in cars. He also acquired the skills necessary for maintaining efficient performance of cars. When he thought he already possessed the required training, he decided to become a motor repair shop entrepreneur.

Sammy gathered relevant information he thought would be necessary in the preparation of a business plan. He considered hiring at least five experienced mechanics. He started constructing the building where his office and service facilities will be housed. He made sure that customers can contact him through the telephone he installed in his office. In addition, he maintains a handyphone so he can serve those whose cars get stalled somewhere.

Sammy stuck to his business plan and business was very encouraging during the first three years. On the fourth year of his operation, a new motor repair shop opened just across the highway from his shop. It was inevitable that some of his customers would move over to his new competitor. Sammy did not anticipate the threat now confronting his business. He was already entertaining the idea of putting up another shop at the other end of the commercial district. But now, it seems that his dream of opening

another shop is slowly drifting away. With the entry of the competitor, he is beginning to lose faith in the usefulness of a business plan. He is apprehensive and he wants quick advice.

1. If you were a friend of Sammy, what would you tell him. Explain why you need to tell him those things?

2. Based on the given information, Is Sammy’s situation hopeless? Support your answer.

3. Explain what did Sammy miss regarding his business plan? 60pts​

Answer 1

1. If I were a friend of Sammy, I would tell him to stay calm and assess the situation carefully. I would advise him to analyze the strengths and weaknesses of his competitor and try to find ways to differentiate his services from the competition. I would also suggest that he review his business plan and identify areas where he could improve or adjust his strategies to adapt to the changing market conditions. It's important for Sammy to keep his focus and not lose faith in the usefulness of a business plan as it serves as a guide for his business operations.

2. Sammy's situation is not necessarily hopeless, but it is challenging. With the entry of a new competitor, he may lose some customers, but he still has a loyal customer base and his reputation for quality service can help him retain his customers. He needs to find ways to stay competitive and improve his services to attract new customers.

3. Based on the given information, Sammy may have missed the potential threat of new competitors entering the market. In his business plan, he may have assumed that he would be the only motor repair shop in the area, but he did not anticipate that new businesses would open nearby. Therefore, he should have included a contingency plan in his business plan to address competition and other external factors that could affect his business.

-chatGPT