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Case Study Of Midas

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When expanding a business through the addition of services offered organizations may be more prone to error or risk; however, they may also be able to satisfy additional customer needs, increase loyalty and increase their market opportunity.
Anticipated impacts (both positive and negative) upon operating efficiencies, and recommend solutions to minimize the negative impacts.
One of the larger risk that Midas can face for expanding their organization is that they are not designed for mass scale quantity of products on hand. Anybody who has seen or been to a Midas would see that their square footage is not very large. By taking on additional services with tune-ups, Midas would need to expand on their square footage based on the scale of services …show more content…

Our text states that for consumers “a lower price means that more people will be able to buy the product. In addition, consumers will have more money remaining for other purchases. This provides the opportunity to design, produce, and sell new goods and services.” Midas is already offering lower prices than competitors like Ford because they are able to keep cost low through a narrow range of services and reduced overhead. By already offering lower prices in muffler services and brake jobs, Midas can offer the tune-ups as a service line expansion. By convincing the customer that because they are already having one job done they can get a second service complete in the same time frame. This allows Midas to take advantage of opportunities by meeting customers additional …show more content…

For the environment, Midas first should consider the external environment threat such as competitors and government regulations. For internal environmental considerations the organization should consider their material resources, people and products. The internal considerations can also be considered weaknesses as well is the organization is currently lacking. The business process should include its strategy development, product development, developing systems and order fulfillment. An organizations competitive capability will rely on its flexibility which our text states is defined the “ability to modify production from one product to another in response to customer demands with minimal costs and delays” as well as it productivity which the organizations outputs to inputs. (Vonderembse & White 2013). If Midas does not get enough customers who wat tune-ups then they would be operating at a negative efficiency. The last input would be meeting the specific customer needs. At some point in time, all vehicles will need a tune-up and if they can meet the price and service that the customer wants, then they can have the competitive advantage over organizations like

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