Human Activity System - Competitive Strategy of the Car Service Business - Management Assessment Answer

Management Assessment Task

Scenario
The car service business is associated with an automobile dealership, and many cars that are booked for service are under warranty from a purchase from the car dealer. Other car owners of the same manufacturer (for example Toyota) are able to have their cars serviced at this business too. However, car servicing is highly competitive and expensive. To secure new and repeat business, the repair / service arm of the dealership offers after-sales service in the form of a free courtesy car when the car is being repaired or serviced for the day. To secure bookings for a service, car owners are able to book in their car via a new online service booking system. This system enables the owner to specify any ‘problems’ with the car’s running, and to choose extra services such a car wash, and/or internal clean. The new online system also gathers
details of the customer such as email address, telephone number, insurance company, annual premium paid, odometer reading, and insurance rating. From this information, the new information is able to generate specific email to the car owner offering competitive prices on insurance, motoring holidays, and provides information for car salesmen to ring the owner offering a trade-in and new cars for sale.

Question 1
Describe the competitive forces in the car service industry, and rate each ?force as either High, Medium, or Low.

Question 2
Describe the competitive strategy of the car service business

Question 3

Using Porter’s Value model, what is the Human Activity System described in the scenario, and classify it as either primary or secondary. Justify your decision.

Question 4
What type of knowledge does the new information system provide

Question 5
What decision-making does the new information system support, and for whom?

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