Question

ShineCar is on-demand car wash and detailing company, allowing users to schedule a wash within minutes using their website or mobile application. Once a wash is booked, a trained team of experts arrive, place the car on a proprietary mat, then perform the selected service. As the skilled workers are performing the service, they use a technician application to update customers on the status of the service. When the service is complete, customers are alerted and their keys are returned.

            Business is good but Serena, the manager, has noticed that customers complain because there are streaks on their vehicles at pickup. ShineCar warrants that each vehicle will sparkle at delivery and charges $35 for each vehicle. ShineCar washes 90 vehicles each day and last month, 50% of them required a hand finish. Each hand wash costs $15 per vehicle. Serena believes the problem can be eliminated by a prewash (costing $2 per vehicle) and an equipment calibration at the start of each day, which will reduce the number of vehicles washed each day by 10, but will decrease the vehicles requiring a hand finish from 50% to 5%.

            Besides the streak’s incidences, the company has been dealing with an increase in number of quality failure incidences. The types of incidences include service complaints by customers on the waiting time, quality of the wash, malfunction at the tunnel carwash due to lose of tunnel controller and slow flow in the process causing a long line of vehicles.

Required:

1. Evaluate whether ShineCar should consider implementing Serena’s idea. Show appropriate computation.                                                                                         

b.State FIVE nonfinancial factors that ShineCar need to consider in deciding whether to implement the new design to achieve competitive advantage.                    

Answer 1

from the question we hsve that ,

TO FIND :-(a)Evaluate whether ShineCar should consider implementing Serena’s idea. Show appropriate computation.

. Meaning of implementing serenas plan on shine car per day:
Particulars   $     
Reduction in revenue due to recalibration needed for articles (10 cars *35$)per day   -350     
Improved cost due to prewash per car (80cars *2$) per day   -160     
Gains in handwash costs (45*15) per day   675     
Net profits due to implementation of serenas plan per day   165     

TO FIND:-

State FIVE nonfinancial factors that ShineCar need to consider in deciding whether to implement the new design to achieve competitive advantage.?   The following will five non-financial circumstances affecting the shine cars choice to complete serenas idea
a) influence on popular waiting time,
b) influence on the nature of the wash,
c) influence on line of wheels.
d) influence on consumer fulfillment
e) problems resulting from the effective implementation of an idea