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Fix Auto

Decent Essays

Fix Auto is an auto body repair company based in Montreal that is looking for rapid worldwide expansion. The external task environment in which Fix Auto operates in is one which has many opportunities for Fix Auto, but also many threats.

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Politically, governments are changing how Infrastructure spending is allocated. More taxpayer dollars are being spent on mass transit initiatives such as the City of Calgary’s green line project which aims to create a new train corridor with the municipal and federal governments guaranteeing a cumulative $3.08 Billion towards the project (“Green Line”, 2016). The implications for the auto industry, including fix auto is that the transit projects aim to reduce emissions by having less cars on …show more content…

A set of guidelines that works in Canada will not work elsewhere. European cities for example, are historically different than North American cities. For starters, the rich aristocratic citizens; that is those who can afford vehicles, live in different areas of the city. In the United States, the prestigious communities tend to be found in the suburbs, whereas in Europe, the city centers are where you find the wealthy. On top of that, in the United States, the automobile has encouraged people to spread into the outskirts through the diminishing attractiveness of the center for communal activities (Melosi, n.d. Para. 5). This is a weakness to all auto industry companies in the regard that while the United States has a driving culture, more densely populated regions of the globe rely more heavily on public transport and walking to destinations. This means that the same organizational structure cannot be used effectively worldwide to maximize the global …show more content…

It is mentioned earlier that there are no locations in Saskatchewan, Manitoba and much of their target market in the United States. Fix Auto needs to focus on their primary objective of becoming the North American auto body repair chain. Fix Auto is experiencing overexpansion. “Overexpansion often occurs when business owners confuse success with how fast they can expand their business” (Schaefer, 2006, Overexpansion.). In a 2005 study done by the Law School at the University of Chicago, It was found that of the chapter 11 small business Bankruptcies issued in the United States, overexpansion contributed to a “non-trivial” (Baird & Morrison, 2005, Pg. 7, Para. 1) number of cases. The best method for expansion is steadily and to move to new countries one at a time. (Schaefer, 2006, Overexpansion). Fix Auto should capitalize on their existing regions such as the United States, Canada, and the United Kingdom before moving into new markets such as Australia, South Africa and Turkey.

If Fix Auto desires to maximize corporate efficiency, they need to begin operating the differing regions as separate companies with unique management and hubs. This way, each region is able to have expertise in local legislation and cultural standards. They need to implement regional strategies, offices, and management before opening branches in new countries and

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