Business Plan of Mobile Car Care Limited (MCCL)

Mobile Car Care Limited (MCCL) provides mobile car care services in India, catering to cars facing breakdown, tourist cars, and personal car owners. The company aims to solve the problem of inadequate car servicing firms in the country. The business model includes key partners, activities, value proposition, customer relationships, resources, channels, customer segments, cost structure, and revenue structure. The pricing model is price skimming and premium pricing. The competitors are divided into direct and indirect competitors. The product portfolio includes major and minor repair products under three main divisions. The presentation also includes market analysis, stakeholder mapping, idea or technology proposed, prospect feedback, and portfolio analysis.

Business Plan of Mobile Car Care
Limited(MCCL)

Description of entrepreneurship
research activities
 Problem or opportunity landscape: Mobile Car Care
Limited would be serving cars suffering from breakdown.
The Indian road network is the second largest in length
as per global ranking. The Indian consumers are
demanding and purchasing more cars. However, the
number of service stations to serve these cars in the
event of breakdown is far from adequacy. It is against this
landscape of disparity between the breakdown rate and
the available car servicing firms MCCL would function.
 Problem that MCCL would solve:MCCL would provide
breakdown repair services to cars. The company would
also provide cars with authentic parts like wheels and
headlights as well as petrol from reputed companies like
IOCL.
 Existing landscape:The number of servicing firms
serving breakdown cars are insufficient in the existing car
servicing landscape. There are dearth of car repair
services in the interior parts of the country.
 Stakeholder mapping(Figure)
Influence/power
Meet their
needs(managem
ent, employees,
government)
Key
Players(Custome
rs, investors)
Least
important(emplo
yees of
suppliers)
Show
consideration
(Society)
Interests of stakeholders

Idea or technology proposed
 The business idea would
revolve around a mobile car
care service which would
enable change of tire and light
as well as refilling of mobile
oil. The name of the company
would be Mobile Car Care
Limited (MCCL) which would
be based in Mumbai,
Maharashtra, India.

Idea or technology proposed contd…
 Division 1: Inland mobile care repair services: The
inland mobile care repair services would cater to cars
facing breakdown. The drivers upon facing breakdown in
cars can use a helpline number or an application accessible
on smart phones. The customer care would receive the
calls and upon knowing the location of the cars would
divert the call to the office of MCCL serving that particular
area. The concerned regional office would then contact its
suppliers like MRF and Indian Oil Corporations for tyres and
petroleum respectively.
 Division 2: Tourist mobile car care repair services:
The tourist mobile car care repair services would cater to
the tourist cars which may face breakdown on the ways to
sightseeing trips. MCCL would in this case tie-ups with
hotels which would use the breakdown services of the
company. This would be ensured by tie-ups only with three
star properties and upwards.
 Division 3: Personal mobile car care services: MCCL
would provide on-demand car care services catering to
owners of trucks, buses and cars. The owners of these
vehicles can call the customer care service operator for car
care services at their homes, offices and garages. The
customer care executive would redirect the calls to the

Business Model for production/service delivery
Business Model of Mobile Car Care Limited (MCCL)
Key Partners Key activities Value proposition Customer relationship Customer segments
1. Suppliers of tyres like MRF.
2. Suppliers of mobile oil like
IOCL.
3. Suppliers of head lights and
spare parts.
4. Suppliers of mobile and
internet connection namely
Vodafone.
5. Suppliers of finance like
State Bank of India
6. Suppliers of stationary etc
1.Providing mobile car care services to
cars.
2. Providing mobile car care services to
intermodal networks.
3. Personal car care services.
4. Customer care services via telephone,
applications and email.
1. Superior car care
services on broken
down cars, buses and
trucks.
2. Intermdodal and
doorstep car
breakdown repair
services.
3. Round the clock
customer care to
attend to calls.
4. An extensive fleet of
trucks to cater to
multiple customers
simultaneously.
5. Trained staff to
attend to needs of
customers promptly.
1. Strong relationship with customers by
providing superior breakdown rescue
services to vehicles.
2. Providing authentic spare parts, Tyres
and headlights.
3. Providing a wide range of mobile oil
from different brands.
4. Giving advices to customers on
vehicle maintenance.
5. Continuous communication with
customers on social media platforms.
6. Offering discounts.
1. Indivdiual car
owners.
2. Logistics
companies.
3.Tourist carriers.
4. Companies owning
their own cars
Key Resources Channels
Financial resources, technology, fleet of
rescue cars, knowledge, employees,
fixed assets
1. Chain of service centres, offices,
website accessible on smart phones,
laptops and desktops.
2. Mobile apps
3. Helpline numbers
Cost structure Revenue structure
Fixed costs(taxes and rent on property etc)
Variable costs(salaries, rescue vehicle maintenance costs, stationary
etc)
Semivariable costs(electricity, telephone, internet etc)
Generation of revenue providing mobile car care services all over India

Market analysis and Segment
structure
 Political factors
 Political stability: India is a politically stable country with a strong central government and is the largest democracy in the
world. The country has a parliamentary government with the Indian Constitution at its helm.
 Bilateral relationships: India has strong bilateral relationships with most of the countries in the world which is one of
the biggest driving factors encouraging market developments. Torney (2015) opines that bilateral relationships between
countries pave ways for expansion of multinational companies. This is because multinational companies expand into host
countries to get access to new consumer base, capital base, supply chains and talent bases to increase their efficiency of their
operations. As as India is concerned, the country has strong relationships with countries across Asia, Africa, Europe, North
America, South America and the Asia-Pacific region. Moreover, the country has a strong relationship with regional organisations
like the European Union.
 Laws and regulations: The Government of India makes laws and regulations for the entire countries while the state
governments form laws for the respective states. The laws direct the operations of the business organisations and have to be
incorporated with their strategies (Nankervis et al. 2016).
 Taxation: Taxation is a one of the most area of corporate strategy making which is directly under government control. The
graph below shows that the corporate taxation rate in India is 35 percent at present. The Hindu, one of the leading English
dailies read in India reports that the several Indian business conglomerates Hinduja Group of Companies have suggested a slash
in the tax rate to 25 percent. However, the government declined to accept the proposal of corporate tax rate deductions
 Terrorism: Terrorism is one of the biggest political threats which India faces which has significant negative impacts on the country.
 Internal political threats: India experiences political threats which lead to strikes and economic closedowns giving way to
vandalism.

Market analysis and Segment
structure contd…
 Economic factors
 Gross Domestic Product and per capita
income: Gross domestic product is one of the
most important economic factor affecting the
economic activities of a country.
 Exchange rate of INR: The second important
economic factor which would come into play
while analysing the economic factors affecting a
business organisation is exchange rate of the
domestic currency against foreign currencies.
 Supply chain: The third economic aspects which
companies should take into account while
operating in the market is supply chain. Singh
(2016) mentions that automobile service
providing companies required acquisition of
immense amount of automobile parts like screws
of different sizes, parts of while and component
of car engine. It can be pointed out in this respect
that India owing to its booming automobile
sector; already has a strong supply chains of
automobile parts.

Market analysis and Segment structure
contd…
 Social factors:
 Income and lifestyle of the people: The
income and lifestyle of the people residing in a
country have direct impact on the demand of
goods and consequently on the sale of products.
As far as India is concerned, the per capita income
of the country is showing (Tradingeconomics.com.
2019). This means that the disposable income
available to the people residing in India has
increased.
 Social customs: MCCL would be required to
consider the salient features while providing car
servicing services to its customers in India. The
Hofstede graph shown below shows that there
exists a very high power distance among the
Indian families, most of which are joint families.
This means that service providing personnel of
MCCL should consider this hierarchical structure
while serving customers.

Market analysis and Segment
structure contd…
 Technological factors:
 Advancement of automobile technology:
Provision of mobile car care services of MCCl would be
directly affected by advancement of automobile
technology. Wieland, Vargo and Akaka (2016) mention
that automobile industry is undergoing immense
levels of advancement due to continuous innovation
which is commencing both in large and small scale
firms in the industry.
 Advancement in information and
communication (ICT) technology: The
advancements in the Indian information and
communication technology have heralded the
advancements in the automobile industry which
would enable MCCL to conduct business efficiently in
the country.
 Cyber theft:The third factor which MCCL needs to
consider while making its business strategies would
be cyber theft.

Prospect feedback
 Customers: The company must encourage the customers to give their
feedbacks regarding their service experiences on the app and the on
page of the official website of the company dedicated to gain
feedbacks. The company would also encourage the customers to
express their feedback on the social media sites like Facebook and
Instagarm.
 Employees: MCCl would similarly aim to gain feedbacks from
employees on regular basis to ensure they experience high levels of
customer satisfaction. This would enable the company to bring about
changes in the working methods of the employees and also bring
about changes in the compensation methods to ensure high level of
employee retention.

Prospect feedback contd…
 Suppliers: The company should send mails and if possible arrange
for face-to-face conferences with prospective suppliers. Then the
company should obtain quotes from them on prices of different types
of automobile parts. Then the company should enter into procurement
contracts with the suppliers which qualify according the to the supplier
codes set by the company.

Analysis of one, three and five year
customer base
 One year customer base analysis: The MCCL should analyse the customer feedback in
the first year since it would be in the initial phase.
 Three years customer base analysis: As far as MCCL is concerned, the company would
face competition from new firms owing to the growing lucrativeness of the sector. Thus, at
this stage, the aim of MCCL would be gaining customer feedbacks to ensure it is able to
meet their expectations. They firm simultaneously should ensure that its competitors are
not able to poach its customers with their products.
 Five years customer base analysis:The aim of five years analysis would be pointing out
gaps in the market which MCCL can fill by expanding its product line. The company should
integrate the customer feedbacks to bring about innovation and also identify the gap in the
market. The company should aim to bring about innovative products to ensure higher levels
of customer satisfaction. The company should also aim to acquire to brands, if required to
respond to the customers’ feedbacks more appropriately (Pan, Huang and Gopal 2017).

Pricing model
 The pricing model of MCCL should be price skimming and premium
pricing. The company should use price skimming in order to price
minor repair services. The company should at first charge high prices
from customers for minor repair services to take advantage of the
absence of competitors in the initial stage. Then, as the new firms
would enter the market and the rate of competitiveness would
increase, the company should then lower the prices of the
commodities. As far as the pricing model for major repairs is
concerned, the company should use premium pricing model. MCCl
would charge premium pricing rates to offer services to high profile
customers which the company would serve.

Competitor analysis
 Direct/Indirect: The competitors of Mobile Car Care Limited would be divided into two
main categories, direct competitors and indirect competitors. The direct competitors of
MCCL would consist of the major car manufacturing companies like Tata Motors and
foreign companies like Honda. The secondary competitors of MCCL would be the new
mobile car servicing companies which would enter the Indian market.
 Shift in power and position:
 Mobile Car Care Limited keeping in pace with its expanding markets would be
required to expand its organisational structure which would in turn require shifting in
power and position of employees especially at the middle and upper level (Ogden et al.
2016). Kraakman and Hansmann (2017) support the previous authors and mention that
expansion of businesses with tenure increases complexity in operations, especially at the
top levels. This often leads to competition for power and influence among them. The shift
of power mechanisms and methods including documentation of the same should be
clearly laid down in the memorandum of association and articles of association.

Portfolio (Product/Services) analysis
 The product portfolio of MCCL would be
divided into major repair products and
minor repair products. The two
categories would be available under the
three main divisions namely, inland
mobile care repair services, tourist
mobile car care repair services and
personal mobile car care services. The
company in addition would provide
round the clock customer care services
on the official website of the company,
on the smart phone based app and on
the helpline numbers.
Product umbrella of Mobile Car Care Limited
Variants
(Divisions)
Types of
services
Inland
mobile car
repair
services
Tourist mobile
car care
repair
services
Personal
mobile
car care
services
Pricing
Major
repairs(INR
)
10000-
100000 20000-200000 10000-
100000
Minor
repairs(INR
)
2000 2000 3000
Note: Major repairs show the upper limit and the lower limit. For
example, if the rate is 10000-1000000, the lower limit is INR
10000 while the upper limit is INR 100000.

IP/technology/Patents etc.
 Mobile Car Care Limited should acquire patents for the intangible
assets it would acquire to operate in the market. The product umbrella
of the company already shows that the company would use three main
service variants namely, inland mobile car repair services, tourist
mobile car care repair services and personal mobile car care services
(Bettig 2018). The company should acquire trade marks for each of its
products. The company must apply according to the rules laid down in
Trade Marks Rules, 2017 under the direction of Controller General of
Patents, Designs & Trade Marks (Ipindia.nic.in. 2019). The company
should protect its IPRs against infringement using legal methods.

Funding
 MCCL should use crowd funding to fund its business in the initial stage. The
company can approach a group of investors who would invest in small
amounts in the shares of the company. This would enable the company to
generate a huge capital by using crowd funding (Kuppuswamy and Bayus
2018). Belleflamme, Lambert and Schwienbacher (2018) opine that crowd
funding can also be obtained by the directors and the top managers of
companies from their own business networks. As far as MCCl is concerted, the
company’s directors and CEO can approach their acquaintances for initial
investments in the shares of the company. This would have two advantages.
First, the company would be able to acquire immense capital form several
investors. However, since the amount of principle per investor would be
small, the amount of dividend payable to each investor would also be small,
which is the second advantage. of crowd funding.

Incubators
 MCCL can approach business incubators to provide support in business
management and human resource management in the initial stage.
Mas-Verdú, Ribeiro-Soriano and Roig-Tierno (2015) while speaking on
business incubators mention that business incubators support in
development of start-ups by providing them assistance in terms of
knowledge and training their human resources. They further go on to
say that incubators play immense role in regional development by
encouraging entrepreneurial ventures. The company namely, MCCL
can approach incubators like Tata ( Lall 2018). This would enable MCCL
to provide its employees the training which they would require to carry
on their professional duties efficiently.

Cash flow
Cash Flow statement of MCCL for 1 year
Particulars INR INR
Cash flows from operating activities
Cash received from customers 101000000
less: cash paid to suppliers 1000000
less Interest paid 200000
Less: income tax paid 1000000
Net cash flow from operating expenses 98800000
Cash flows from investing activities
Dividend received 100000
Net cash flows investing activities 100000
Cash flows from financing activities
Dividend paid 2000000
Net cash flow from financing activities 2000000
Net increase in cash and cash equivalents 96900000
Add: Opening balance 200000
Closing balance 97100000

Schedule for investors’ returns
Investors' rate of return of MCCL Quarterly returns(INR) Quarters
Month Principle Interest (%) Interest (GBP) Total(GBP)
April 2000000 100 2000000 4000000
11200000 Q1May 2000000 120 2400000 4400000
June 2000000 40 800000 2800000
July 2000000 70 1400000 3400000
12600000 Q2August 2000000 150 3000000 5000000
Sept 2000000 110 2200000 4200000
Oct 2000000 115 2300000 4300000
14800000 Q3Nov 2000000 125 2500000 4500000
Dev 2000000 200 4000000 6000000
Jan 2000000 10 200000 2200000
6600000 Q4Feb 2000000 -10 -200000 1800000
Mar 2000000 30 600000 2600000
Total 2000000 21200000 45200000 45200000

Profit and Loss account
Profit and loss statements of MCCL for 1 year
Particulars Amount(INR)
Income
Sales 505000000
Discount received 200000
Interest on investments 1000000
Profit from sales of assets 2000000
Total 508200000
Expenses
Accounting expenses 1000000
Licensing costs 100000
Discount allowed 100000
Legal expenses 200000
Advertising costs 5000000
Interests on bank 1000000
Cost of goods sold 500000
Electricty 1000000
Rent 1000000
Salary 139000000
Free sample 1000000
Telephone 200000
Repairs and maintenance 500000
Miscellaneous 1000000
Total 151600000
Net Profit before tax 356600000
Less: tax @ 20% 106980000
Net profit after tax 249620000

HRM STRATEGY
Human Resources of MCCL Total Salary per
head(INR) Total salary
Human resources Nos
CEO 1 1 1000000 1000000
CFO 1 1 900000 900000
Company secretary 2 2 700000 1400000
Departments and directors 6 6 650000 3900000
Western Region(Mumbai) 2
Northern Region(New Delhi) 1
Eastern Region(Kolkata) 1
Southern Region(Chennai) 1
Central Region(Bhopal) 1
Managers 14 14 500000 7000000
Finance 2
HR 2
Marketing 2
IT 2
R&D 2
Procurement and manufacturing 2
Legal 2
Administrative 2
Assistant managers 24 24 400000 9600000
Finance 3
HR 3
Marketing 3
IT 3
R&D 3
Procurement and manufacturing 3
Legal 3
Administrative 3
Lower level employees 64 64 1800000 115200000
Finance 8
HR 8
Marketing 8
IT 8
R&D 8
Procurement and manufacturing 8
Legal 8
Administrative 8
Total 112 139000000

Skills requirements
 Functional skills
 Flexibility in behavioural style: The managers at MCCL show flexibility
in behavioural style while leading and managing subordinates reporting to
them. The population of India consist of people from different cultural
backgrounds having their own traditions, life styles and perceptions (Jyoti and
Kour 2015). The country in addition have a huge population of people of
foreign origin like the UK, China and Bangladesh having their own cultural
attributes as shown in the graph below.
 Training skill: The managers at MCCL should exercise high level of training
skills while leading subordinates.
 Change management skills: The management of MCCL right from its initial
should always form a strong change management strategy.

Skills requirements contd…
 Management skills:
 Technical skills: The managers at MCCL would be required to possess
and exhibit several technical skills.
 Planning and decision making skills: The managers of MCCL would
have to show great deal of planning and decision making skills. Kotabe,
Jiang and Murray (2017) point out that the mangers of business
organisations have to acquire market information to take decisions.

Conclusions
 It can be concluded from the study that Mobile Car Care Limited should enter the
Indian automobile. The large number of findings from the study has made it prudent to divide
the conclusion section into two divisions
 Conclusions arising from the project evaluation: It can be concluded from the project
evaluation that MCCL should enter the Indian market. The company right from its inception
acquire, develop and manage a very strong knowledge base about the market conditions of
India. The apex management should view the market conditions very minutely to recognise
both the opportunities as well as threats.
 Evaluation of project viability: It can be evaluated from the study that project of
MCCL would be viable. As far as human resource and operational viability is concerned, both
are positive. Firstly, as shown in the HRM strategy attached, the company would be led by an
able team of leaders who would take prudent business decisions. The company would be
headquartered in Mumbai with its regional offices in New Delhi, Kolkata, Chennai and Bhopal.
This operational location strategy would make it possible for the company to control
operations all over India, thus making the operational viability possible. The cash flow
statement shows that the company would have sufficient closing balance of cash. The profit
and loss statement clearly shows that the company would derive high profits thus,
establishing its financial viability.

Recommendations
 Future actions for potential investors: The management of MCCL
on regular basis communicate with the potential investors. MCCL is a
new company and it is normal for investors to be anxious about the
financial stability of the company to give back positive returns.
 Further research required: The company should carry on continuous
market research to ensure alignment of the business decisions with the
market trends in the future. The company should keep on amending its
business decisions to adapt with the changing market conditions.
 . Growth scenarios: three years and five years: MCCL in three
years should aim to expand into China and exploit its booming market.
The company in the next five years the company would enter Europe.

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