Business Plan

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Executive Summary
“…At Cars and More we don’t sell cars only, we also make loyal friends…”
. Cars and More is a young dynamic entity aiming to offer the best in automotive sale and after sale. Cars and More
will be established on an already existing dealership located on the Dbayeh highway that only sells cars and nothing
more which means it will be practically starting from zero and reaching its way up with its innovative ideas and
unique services.
The dealership will be run by the current owner along with a managing partner. The current owner will provide the
financial support whereas the managing partner will provide the know-how, innovative ideas and new trends.
“Cars and More” offers a new experience that will take customers far beyond the regular car shopping experience.
Cars and More will handle customer’s car purchase from A-Z, from choosing the right car, obtain the best loan deals
and finish all papers to a comprehensive after sale service that includes all aspects of automotive maintenance.
“Cars and More” large collection of cars includes major car brands and major car types to satisfy all needs. All cars
are in mint condition since they are thoroughly inspected before being bought and imported.
“Cars and More” complete services are offered to all customers irrespective of their purchase. “Cars and More” loan
packages are the best in town. The call center and 24 hours road assistance services are there to assist each and
every customer with special care in hours of need. “Cars and More” prices are unbeatable. A qualified staff is there
to help customers and answer any inquiries be it car financing schemes, car specifications or even mechanical and
technical issues. “Cars and More” will even have its own driving school that will also work towards promoting best
and safe driving practices.
“Cars and More” will thrive to be the best in its domain. With the support of its skilled leadership, a customer based
approach and a vision for the future, chances of success are good, motivation is at its top and spirits are high.

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Mission
“Cars and More” offer
its clients a thrilling
experience by
providing premium auto
services
2010 MBAIP Promo 12 GRH
Goals/Objectives
1-Increase our market share by
30% in the upcoming 3 years
2-Increase sales figures by 35%
through the following services:
•1 free year warranty as well as
extended warranty for used cars
•Special loans (reduced rates:
1% less than standard rates)
•After sales complete
maintenance.
•Establishing a driving school
Entrepreneurship1
 Our Industry

•Selling and buying new and used cars.

•After sales services:
• Maintenance
• Major Repairs
• Road Assistance
• Car Insurance
• Official Papers
• Car Wash
•Driving School

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Business Background
•a car dealership with a main activity of selling and buying new and used cars as well as offering a
multitude of after sale services.
•Historical Background: started as a hobby and turned into a full-time job
•Currently one of the oldest car dealerships.
•Our vision

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Potential Customers
•Driver’s license holders
•Potential car buyers
•Corporations

Products
Our selection of cars starts from 10000$ and reaches up to 500 000$ (new and used cars)

All our cars will benefit from our comprehensive services

Car brands offered: Mercedes, BMW, Porsche, Jaguar, Ferrari, Chevrolet, Jeep, GMC, Nissan,
Toyota, Honda, Renault, Peugeot, Hyundai, Kia, Mazda, Suzuki, and Hummer.

This diversity implies that our company targets everyone (all budgets).

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Competitors
•Other dealerships/showrooms
•Agencies selling both new and certified pre-used cars

Market Segmentation
•Our dealership will cover selling and buying new and used cars, paper clearance as well as after
sales services such as maintenance, major repairs and other services required by the customer.

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Barriers to Entry Faced
•Licensing: Government can only provide a limited and conditional license
•Location: Not to allow more than one car mall to open in the same area
•Shipping costs: high shipping costs on imported cars
•Customs rates: high in general on all cars
•Training and skills: gathering a qualified team that is knowledgeable in all aspects of car
maintenance as well as major repairs and the use of new technologies

2010 MBAIP Promo 12 GRH Entrepreneurship1

 New Technologies
•Computerized inventory of cars both used and new showing detailed specifications for each car
as well as other important data such as carfax history reports (for US imported cars), mileage,
current condition (interior, exterior, mechanical) as well as price.
•Computerized customers database with full contact details allowing us to remind our customers
of their annual inspection as well as inspection fees. Also, this will allow us to inform our
customers of our special offers and deals as well as other important notifications.
•Call center providing our customers with road assistance around the clock in case of emergency.
•State of the art workshops staffed with the best mechanics and equipped with the latest
technology in automotive maintenance: scanners, factory diagrams for electrical and mechanical
repairs and toolkits

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Services
In addition to buying and selling cars, what really differentiate us from other players will be mainly
our services in terms of quality and price:

•Free warranty and extended warranty on all used cars at low costs
•A complimentary 24 hours road assistance service offered by our call center
•An after sale service Including: regular car maintenance, a workshop for major repairs (electrical,
mechanical, body work) with reduced rates on parts and labor, a car wash service
•A replacement car provided to our customers in case of major repairs
•People specialized in preparing legal documents (driving license, registration, insurance) as well
as people dedicated to facilitate the yearly inspection
•Good relationship with several banks allowing us to offer our customers reduced interest rates
on car loans.
•Driving school within our dealership offering private driving lessons for teenagers as well as
workshops on safe driving practices and road awareness.
•special car deals for fresh university graduates
•Agreements with well known gas station chains providing us with reduced rates on large
quantities of fuel purchased allowing us to provide each sold car with a fuel coupon valid for 1000
L of free gasoline

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Competitive Analysis
Importance to
Factor Me Strength Weakness Competitor A Competitor B
Customer
Products 1 x 1…>5 1…>5 1
Price 1 X 3 2 2
Quality 1 X 1…>5 1…>5 1
Selection 1 X 3 2 1
Service 1 X 5 5 1
Reliability 1 X 3 2 3
Stability 1 X 3 3 3
Expertise 1 X 3 3 1
1 X 3 3 1
Company
Reputation

Location 2 X 4 4 1
2 X 4 4 1
Appearance

2 X 2 2 2
Sales Method

Credit 1 X 4 4 2
Policies
2 X 4 4 2
Advertising

Image 1 X 4 4 2

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Promotion/Marketing Campaign

• Advertise on the internet: company’s website

• Advertise in specialized monthly published automotive
magazines
• Advertise on TV during auto shows
• Sponsoring automotive events: racings, rallies,
paper-rallies, Karting
• Sponsoring safe driving workshops as well as other
related events.
• Advertise special deals in local newspapers and
magazines
• Word of mouth

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Operational Plan
Entity: Showroom/Dealership

Location: Dbayeh Highway, Cars and More, a 3 story building in an area known for its
accessibility and ease to get to.

Operating hours: Monday-Friday, 8-5, Saturday, 8-2, closed on Sunday

Legal Environment:

Construction permit is required to build on the existing lot

Import license allowing ease of importing cars from US and/or Europe

All cars will be insured as a standard procedure in addition to shipping insurance for
imported cars

Current trademark will be changed to become Cars and More

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Operational Plan (cont’d)
Personnel:
Number of Employees: 60
Labor: Skilled: 10
Unskilled: 20
Professional (Sales, accounting/finance, clearance, driving school): 30
A Recruitment campaign will be launched
Payment structure for each category of employees will be set
Clear job descriptions will be provided

Inventory:
Spare parts, oils and lubes will be purchased directly from the car brand dealership.

Suppliers:
Our suppliers are ourselves

Credit Policies:
Fresh university graduates.

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Management and Organization
General Manager

Deputy General Manager/ managing partner

Legal Division Sales Accounting/Finance Customer Service Administrative

Insurance
Lawyer New Cars Used Cars Accounting Loans Maintenance: Engineers/Technicians

Customs Clearance Support: Workers/Assistants Car Papers

Shipping /Handling

Driving
School

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Financial Planning

Microsoft Excel Microsoft Excel

Worksheet Worksheet

2010 MBAIP Promo 12 GRH Entrepreneurship1

 SWOT Analysis

Strengths Weaknesses
Innovation (new idea in Lebanon) After Sale Service: Inability to service all
Focus on training for skilled staff brands of cars
Old player in the market Required to stay up to date with the
latest technologies and resources: Cost
impact
Opportunities Threats
Promising market in Lebanon  Alternatives : Car rentals, advanced taxi
Demographic increase in young services
population willing to buy a car High customs and import charges
Increase in the number of household Political instability
requiring more than one car

2010 MBAIP Promo 12 GRH Entrepreneurship1

 Questions?

2010 MBAIP Promo 12 GRH Entrepreneurship1