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Running head: SITUATION ANALYSIS AND PROBLEM STATEMENT: BURNS AUTO CORPORATION
Situation Analysis and Problem Statement: Burns Auto Corporation
Scott Watson
University of Phoenix
Professor: Murray Pyle
MBA 510
Table 1
Issues
Issues
Issue: Increased inventory cost.
Details: Recent to an average of $360 million in vehicles in inventory on a daily basis; a cost of $10,800,000 to finance.
Issue: No systematic approach in place to forecast sales. Details: Richard Settle relies on manufactures forecasts for each model car including sedans, coupes, sport cars, SUVs and trucks.
Issue: Conflict to use or not use an outside consultant. Details: Richard Settle does not believe in using an outside consultant to forecast sales.
Issue: Push down approach or individualized forecast. Details: Thomas Burns believes corporate should "push down" the forecast to each independent dealership; Lisa Hopkins believes each dealership should develop its own independent forecast.
Table 2
Opportunities
Opportunities
Opportunity: Adopt a systematic approach to forecasting sales. Details: Utilize linear regression.
Opportunity: Revamp sales efforts. Details: Focus on sales efforts.
Opportunity: Utilize regression analysis. Details: Compare variables to predict future sales.
Table 3
Stakeholder Perspectives and Ethical Dilemmas
Stakeholder Perspectives and Ethical Dilemmas
Stakeholder Group Interests, Rights, and Values Ethical Dilemmas
Customers Want competitively priced automobiles. Being over charged for an automobile.
Employees Far working conditions with competitive compensation. Being treated unfairly in the workplace.
Stakeholders Want a profitable company with security. Be unethical in order to become profitable.
Manufactures...
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