Essay on Bennett's Machine Shop

1968 Words 8 Pages
Bennett's Machine Shop Inc.

In 1975, Pat Bennett made a life changing decision. His entrepreneurial spirit drove him to leave a stable career and convert his part-time engine reconditioning business into a full-time endeavor. He moved from a shack next to his trailer home to a small hut that he rented for one month. After renting the hut he moved to a stall in a service station. With neither a business name nor a business license, Pat had little control over parts and profit. When the opportunity came to rent a larger space from a garage owner Pat took it. Here his business continued to grow and there was a need for him to hire a helper. Although he was in the business of engine reconditioning, he hired a premed
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Most of the individuals that Pat employed were not hired because they possessed the knowledge, skills, and abilities to do the job. Pat was very hands off when it came to his employees. They worked odd schedules, and many times did what they wanted. Pat was only interested in the bottom line. There wasn't a problem as long as there was money in his pocket.
With the desire for more money in his pocket, Pat borrowed most of the money for his machines and equipment instead reinvesting the money. Most of the loans that he borrowed were not in the company's name but in his and his wife's names. By 1987 Pat was downsizing and seeing red.
Bennett's Machine Shop Inc. does not have much strength, but they are aware that having service/product diversity is essential and this has given them a competitive advantage in their industry. This notion was apparent when Pat Bennett first expanded his services from engine rebuilding to installations, and then again by undertaking the tool sharpening and modifications contract with Boeing. In addition to recognizing the value of his services and market share, Pat Bennett is also aware of the necessity to perform market research and invest in advertising.
Bennett's lack of strength is offset by several weaknesses. Although many businesses begin with just one person having an idea for a service or good just as Pat Bennett did, it is not a given

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