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...