Mrs Musonda recently graduated from CBU with a degree in Business Administration. Her husband bought her a light truck as her graduation present. She lives on a farm in the outskirts of Solwezi where they get water from 3 boreholes to ensure their livestock (cattle, pigs, rabbits and chickens) and a variety of crops are well catered for. They have excess water tanks which are in the storeroom for future use. Mrs Musonda decided to open up a car wash business at an area in town which the local authority made available for this line of business and related activities. The area is enough for 6 such companies. Before applying for the premises, she conducted a research into this and found that there were 4 other companies in the car wash business who were using ordinary hose pipes and water from the water utility company in the province. In addition, they were using ordinary soap to wash cars and brushes to clean inside the vehicles. With the new mining houses and increased business in the district the 4 companies appeared to be struggling and most customers expressed dissatisfaction with the services from the 4 car washers. Most vehicle owners have even complained about the damp smell in the vehicles after wash. Going against her husband who discouraged her saying there was too much competition, she confidently told him that she would apply what she learnt with regard to competitive advantage and work at how she would sustain this taking into account the five basic factors of competition. 1. What is competitive advantage? 2. Give competitive strategies she should consider to gain competitive advantage 3. What are the basic competitive factors she should look out for? 4. Define offensive and defensive strategies - how can Mrs Musonda use these in this business? After some months in operation, the car wash business has recorded super profits. Mr Musonda who is a mining Engineer has obtained a license for a quarry and is considering expanding his wife's business as he is nearing retirement. Mr Musonda will be making paving stones, building construction blocks and selling crushed stones in Solwezi; he believes this will be good business in view of the rapid infrastructure developments in the town. He plans to expand the car wash at the same premises and outside Solwezi-specifically in Chingola and Kasempa. He has not spoken to his wife yet. He has engaged you as a Consultant to advice on whether or not he should proceed on this path based on the good results in Solwezi for the car wash. The first thing that comes to your mind is a SWOT analysis for both businesses. Explain to him what this SWOT is and it entails. Explain what PEST is and how it relates to business

Mrs Musonda recently graduated from CBU with a degree in Business Administration. Her husband bought her a light truck as her graduation present. She lives on a farm in the outskirts of Solwezi where they get water from 3 boreholes to ensure their livestock (cattle, pigs, rabbits and chickens) and a variety of crops are well catered for. They have excess water tanks which are in the storeroom for future use. Mrs Musonda decided to open up a car wash business at an area in town which the local authority made available for this line of business and related activities. The area is enough for 6 such companies. Before applying for the premises, she conducted a research into this and found that there were 4 other companies in the car wash business who were using ordinary hose pipes and water from the water utility company in the province. In addition, they were using ordinary soap to wash cars and brushes to clean inside the vehicles. With the new mining houses and increased business in the district the 4 companies appeared to be struggling and most customers expressed dissatisfaction with the services from the 4 car washers. Most vehicle owners have even complained about the damp smell in the vehicles after wash. Going against her husband who discouraged her saying there was too much competition, she confidently told him that she would apply what she learnt with regard to competitive advantage and work at how she would sustain this taking into account the five basic factors of competition. 1. What is competitive advantage? 2. Give competitive strategies she should consider to gain competitive advantage 3. What are the basic competitive factors she should look out for? 4. Define offensive and defensive strategies - how can Mrs Musonda use these in this business? After some months in operation, the car wash business has recorded super profits. Mr Musonda who is a mining Engineer has obtained a license for a quarry and is considering expanding his wife's business as he is nearing retirement. Mr Musonda will be making paving stones, building construction blocks and selling crushed stones in Solwezi; he believes this will be good business in view of the rapid infrastructure developments in the town. He plans to expand the car wash at the same premises and outside Solwezi-specifically in Chingola and Kasempa. He has not spoken to his wife yet. He has engaged you as a Consultant to advice on whether or not he should proceed on this path based on the good results in Solwezi for the car wash. The first thing that comes to your mind is a SWOT analysis for both businesses. Explain to him what this SWOT is and it entails. Explain what PEST is and how it relates to business

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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