Automotive Business Structural Composition
Added on 2020-04-21
7 Pages1538 Words283 Views
RUNNING HEAD: Structural Composition of an Automotive BusinessStructural Composition of an Automotive Business
Structural Composition of an Automotive Business 1ContentsIntroduction......................................................................................................................................2Finance (Rates and Charges)...........................................................................................................2Labor Requirements.........................................................................................................................2Remuneration...................................................................................................................................3Banking and Loans..........................................................................................................................3Accounting.......................................................................................................................................4Insurance..........................................................................................................................................4Conclusion.......................................................................................................................................4References........................................................................................................................................5
Structural Composition of an Automotive Business 2IntroductionIn order to achieve new heights, an automotive business requires input from other organizations. In the same way, Europa parts workshop requires collaboration with other similar organizations with a view to take its service to the next level. This report highlights the structural composition of Europa Auto Service and examines the various requirements that balance an automotive industry.Finance (Rates and Charges)The owner of Europa Auto Service Workshop takes proper steps to ensure that the business is capable to arrange the required funds and is ensuring sustainability (Europa Auto Service, 2017).In an automotive business, management of finances is necessary from the moment capital is introduced into the business to the point when profit is accrued (Medina, 2007). Various costs are incurred while starting an automotive business like operation costs, wages and salaries, licensing costs and research and developments costs and such costs must be taken into consideration (Dlabay & Burrow, 2007).Europa Auto Service takes into account various factors like availability of spare parts andthe specific issues that a car is facing before charging the customers. The customers are billed as per the prevailing market rates in conformity with the applicable laws and taxes. As labor charges is the most important as well as expensive component of an automotive business, it increases with the increase in complexity of the work. The owner makes the estimation of profits accurately after considering rental expenses at the prevailing market rates. The spare parts are priced according to the benchmarks set by other dealers and depending upon the year of manufacture of a particular vehicle and other factors. Several strategies have been adopted which enable the customers to troop into their workshop to look for spare parts and service. The company also provides discounts to its customers when purchases are made in bulk, performs the function of reconditioning and rebuilding and trade in of spare parts.Labor RequirementsThe basic requirement for the success of an automotive business is skilled labor to cater the needs of the customers with proper inspection, repair and maintenance of the cars (Gobetto,
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