Detailed Case Study: UK Car Repairs - Business Startup and Operations

This case study analyzes the startup of UK Car Repairs, a car mechanics shop in London. It examines the business model, target customers, and visual identity, including the creation of core business values like social, environmental, and equality. The case study delves into market research, using primary and secondary research methods, including quantitative and qualitative approaches. It also addresses ethical business dilemmas, such as potential website partnerships and the Volkswagen emissions scandal, emphasizing the importance of ethical practices. The case study further explores compliance with equality and diversity laws, employee rights, and presents forecasted financial statements, including balance sheets and income statements. Finally, it discusses strategies to avoid cash flow problems, ensuring the business's financial stability and success.

CASE STUDY

Table of Contents
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Summarising how business will operate.....................................................................................1
Name of business........................................................................................................................2
Deciding visual identity..............................................................................................................2
Creating values for promoting business......................................................................................2
TASK 2............................................................................................................................................2
Conducting market research to help develop business...............................................................2
TASK 3............................................................................................................................................4
Ethical business dilemmas faced by companies..........................................................................4
TASK 4............................................................................................................................................5
Complying with Equality and Diversity law when selecting candidates....................................5
Rights of new employees............................................................................................................5
TASK 5............................................................................................................................................5
Describing business assets, liabilities, expenses and gains.........................................................5
Providing how business will avoid cash flow problems.............................................................7
REFERENCES................................................................................................................................9

MAIN BODY
TASK 1
Summarising how business will operate
Industry-
The car and auto repair industry of UK have effectively picked up a good pace in
maximising profits in the best manner possible. The industry offers essential and non-essential
auto repair services to commercial and private customers quite effectually. Registered cars are
increased as new car sales have considerably maximised. Reduction in oil prices have supported
more sales growth of automobiles (Motor Vehicle Maintenance & Repair - UK Market Research
Report. 2018). It can be analysed that industry in 2018-19 is projected to increase at 3.3 % and to
reach £27.5 billion with yearly rise of 3.7 %.
Location-
The location of UK Car Repairs will be London, UK which will attract customers as
location is within the reach of customers. Location of store is quite useful as people would easily
reach for availing services as London is major city of UK. People will avail services at
affordable charges leading to maximisation in satisfaction level.
Target Customers-
The target customers of UK Car Repairs will be both commercial and private customers.
They will be provided with effective and reliable services at affordable cost. The target
customers will be transport companies, school transportation system and individuals, thus
collectively, private and commercial clients will be targeted for availing services.
Business Model-
Business model being adopted by firm is Pay-as-you-go which means that customers will
be provided services and they will be imparted with bills, need to be paid after availing services
(Pakroo, 2018). This model will enhance liquidity of business as cash flow problems will be
eased in a better manner. Moreover, UK Car Repairs will also provide credit facilities so that
credit customers are not dissatisfied.
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Name of business
UK Car Repairs is the name of business start-up that will operate car mechanics shop in
London by repairing cars and automobiles of customers. The business will be able to attain good
growth since its inception as sales growth of cars have been increased up to a major extent. This
makes the market suitable for the firm so as to accomplish desired profits by providing quality
repairs services in effective manner. The firm will provide repair services of automobiles and is
one of the fastest growing industry that would be beneficial for firm in attaining good quantum
of profits within few years of operations.
Deciding visual identity
The logo of the store has been made clearly indicating automotive repair services will be
provided to customers. This will be beneficial for the customers as higher prices charged by
rivalries leads to dissatisfaction but they have to pay price for repairing cars as it become
essential services (Hafner, O'mara and Williamson, 2017). This will be resolved by UK Car
Repairs as it will provide superior quality services within the reach of each and every customers
be it private or commercial ones. Hence, adequate services will be made available by the
business for enhancing satisfaction level.
Creating values for promoting business
The values that will be created by UK Car Repairs for promoting business will be social,
environmental and equality. This is evident that for attaining desired growth in the market,
quality services are required which will be imparted by repairs engineers and technicians
promoting social value. Workforce will be committed to offer services in ethical manner to
customers. On the other hand, environmental value is extremely important for keeping in mind as
harmful gases leads to destroy nature (Cohen, 2017). For eradicating this, Eco-friendly tools will
be used and store would be promoted. Equality is major one of all values as making
discrimination among male and female will certainly reduce workforce to provide reliable
services. Thus, equal pays will be offered to employees on grounds on position in store.
TASK 2
Conducting market research to help develop business
Primary Research-
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The primary research has been conducted for analysing whether customers requires repair
services or not. This means that primary research is first-hand data which is collected for the first
time and not been used by any other researcher. Survey conducted of people both private and
commercial ones by taking sample of 40 shows that business will be conducted in effective
manner as demand of services is found in the market. It implies from primary research that
business would be able to accomplish good growth by initiating operations quite effectually.
Secondary Research-
This type of research is already undertaken by researcher which serve as the purpose of
current research to assess trend. For secondary research, it can be analysed that repairs and
maintenance industry of UK will be ascertained so that current trend in the market may be
analysed in a better manner. This will provide clarity regarding business whether it need to start
its operations or not. The repairs and maintenance industry provide that businesses are profitable
and will continue to grow in coming years.
Quantitative Research-
Quantitative research as the name suggests that numerical facts and figures will be
collected from the market (Daily and Quinn, 2018). This will show effectiveness of market and
through conducting quantitative research, UK Car Repairs would be able to ascertain how much
profitable is the industry and need to start business for achieving goals with ease. The
quantitative facts will be gathered for attaining clarity regarding growth analysis of the market
and industry attractiveness which will serve for accepting business to initiate operational
activities.
Qualitative Research-
The qualitative research will be conducted that is completely different from that of
quantitative research. This is because firm will analyse customer's taste, needs, demand and
behaviour in proper conclusive way. These key elements will be scrutinized in the deepest way
possible so that viability of business could be judged and better decisions may be arrived thereof.
This is essentially required in order to attain desired profits without being compromising with
anything and incurring losses. Hence, qualitative factors will be carried out with ease.
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TASK 3
Ethical business dilemmas faced by companies
The business dilemmas are to be resolved in a better manner so that it may not harm
business in any way. It can be analysed that business has an opportunity to be promoted by
popular website and will offer website services at a discounted rate. This will gain enough
attention from customers as Internet is within the reach of people. However, this firm is accused
of bullying, harassment, discriminating and treating employees badly. It can be referred to
business values discussed previously such as social, environmental and equality (Falkenstein,
2017). This means that equality among employees is important factor in attaining and retaining
best talents. In addition to this, justification can be provided regarding website is that business
should shake hands with popular website only discrimination and treating unethically with
workers are eradicated.
It will provide firm with dual benefits as employees will not be dissatisfied and target
audience will be reached through promotions on website. Benefits will be attained by store and
will get good growth in near future. The relevant case in this aspect can be enumerated which
deals with reference to Volkswagen emissions scandal was one of the important one which firm
used a software for giving out false results for passing emission tests because it was failing to
pass test under the normal conditions. This was an unethical behaviour being done by firm for
eradicating trust among customers. It should have been passed under normal conditions by not
fooling people. IT professionals should not implement such code which is meant for misleading
actual results and as such, similar incidents would not take place.
Moreover, it can be said that business should provide ethical practices and avoid similar
dilemmas in the best manner possible (Schlarbaum and et.al., 2018). This will be fruitful for UK
Car Repairs as it will be able to initiate healthy operations and provide quality repair services to
customers quite effectually. The website will be useful for the promotional purpose and business
would also offer discounts such as on first 50 services, 60 % off on normal charges will be
offered. Hence, customer satisfaction will be accomplished.
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TASK 4
Complying with Equality and Diversity law when selecting candidates
The Equality Act 2010 states that equal opportunities should be provided to employees
and no discrimination should be made between male and females. Both employees in full-time or
part-time have the right to have equal pays which implies in law 'no less favourable' pay,
benefits, terms and conditions of employment where they initiate regular work in effective
manner (The Equality Act 2010. 2010). On the other hand, equality should be made with
reference to selecting candidates for the suitable post and no discrimination shall be made by
employing only male in more numbers in comparison to females. This provides clarity that there
should not be any type of discrimination among workers on the basis of sex, salary i.e. equal
pays should be offered. UK Car Repairs has to follow this law while hiring and selecting
employees and to start its operational activities by complying with rules inscribed in the same.
Diversity Law is also to be followed by company when it takes it operations in effective manner.
It means to recognise, respect and value differences among individuals being hired. Hence,
employees will be treated equally be they from different backgrounds.
Rights of new employees
The rights of employees with regards to zero-hour contracts will be provided to them
irrespective of any discrimination and biasness. This will include maintaining healthy relations
with employees even they are not permanent employees. This will promote Equal rights in the
store. Proper health and safety work practices will be provided for enhancing satisfaction level of
employees (Jackson, 2018). Moreover, they will be provided with equal wages and deductions
similar to other workers. Thus, all rights will be imparted to workers for attaining desired
productivity.
TASK 5
Describing business assets, liabilities, expenses and gains
Forecasted Balance sheet of UK Car Repairs
Particulars 2019
Assets
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Current Assets
Cash 6138
Trade Receivables 3245
Stock 1818
Total Current Assets 11201
Equipment 10000
Land & Building 10000
Total Assets 31201
Liabilities
Current Liabilities
Trade Payables 7000
Other liabilities 3201
Total Current Liabilities
Long-term Borrowings 21000
Total Liabilities 31201
Forecasted Income Statement of UK Car Repairs
Particulars 2019 2020
Sales (Repairs) 28000 30000
Less: Cost of sales 2000 2200
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Gross Profit 26000 27800
Expenses
Salaries 6000 4500
Office supplies 3000 3100
Tool box and repair equipment 8000 8200
Website charges 1400 1500
Advertising and promotion
expenses 1600 1700
Total Expenses 20000 19000
Net Profit 6000 8800
It can be analysed from the above financial statements describing assets, liabilities,
expenses and gains which will be made by UK Car Repairs in coming year. These financials are
prepared keeping in mind budget of £20000 and as a result, good profits will be accomplished.
This means that healthy growth will be accomplished by firm in the market leading to be
profitable in UK market of car repairs and mechanics.
Providing how business will avoid cash flow problems
The cash flow problems are to be avoided so that business may have good liquidity
position in effective manner. The cash flow management is required so that £20000 should be
adhered to and no extra expenses are incurred. UK Car Repairs can avoid cash flow problems by
following steps mentioned below-
Keeping up-to-date accounting records-
It is the foremost and important point which highlights that business should record all
amounts which leads to inflow and outflow of cash (Parvaiz and Weiss, 2017). Keeping an eye
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on it will definitely warn store in order to fulfil demand and take into account, cash management
in effective manner.
Controlling overheads-
Various overheads are to be analysed by firm so that it may initiate control on overheads
in effective manner. This will save on expenses and cash outflow will be reduced up to a major
extent. Moreover, taking cheaper overheads would also be beneficial for managing cash in
business and cash flow problems could be avoided.
Stock Management-
The efficiency in stock management is fruitful for seamlessly managing cash flow with
ease. Reconciling stocks on weekly or monthly basis will be beneficial for reordering desired
items or parts for making proper repairing of cars and automobiles.
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REFERENCES
Books and Journals
Cohen, T., 2017. HTM Departments Should Operate like a Business. Biomedical instrumentation
& technology. 51(4). pp.301-305.
Daily, F. W. and Quinn, J. A., 2018. Tax Savvy for Small Business: A Complete Tax Strategy
Guide. Nolo.
Falkenstein, N., 2017. BUSINESS PLAN Pregnancy Treasures & Boutique.
Hafner, J. L., O'mara, M. W. and Williamson, P. S., International Business Machines Corp,
2017. Generating energy transaction plans. U.S. Patent 9,751,416.
Jackson, A. J., 2018. Brand Management creating a powerful brand. Pdf.
Pakroo, P., 2018. The small business start-up kit: A step-by-step legal guide. Nolo.
Parvaiz, O. and Weiss, E. N., 2017. Progressive Insurance Concierge Program. Darden Business
Publishing Cases. pp.1-10.
Schlarbaum, K. and et.al., 2018. Standardization of ISU Transportation Services Maintenance
Shop.
ONLINE
Motor Vehicle Maintenance & Repair - UK Market Research Report. 2018 [Online] Available
Through: <https://www.ibisworld.co.uk/industry-trends/market-research-reports/wholesale-
retail-trade/repair-of-motor-vehicles-motorcycles/motor-vehicle-maintenance-repair.html>
The Equality Act 2010. 2010 Online] Available Through: <http://www.acas.org.uk/index.aspx?
articleid=3017>
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