Case 10 Bennett’s Machine

Shop, Inc.


 Submitted By:
 AnkurGupta 91124
 Madhur Chawla 91140
 Anupama Talwar 91141
 Simranjit Virdi 91159
 GunashritNag 91168

CASE INTRO…
 Bennett’s Machine Shop – 1977
 Pat Bennett-- Mechanical Engineer &
Entrepreneur
 Business flourished –Earned huge profits
 Expanded from engine rebuilding into
engine installation– Failed
 By 1987– Three types of work
 Engine Rebuilding
 Over-the-fender Work
 Tool Sharpening and Modification (Boeing
Contract)
Bennett’s Current Mission
 Constantly finding new ways of repairing
and renewing mechanical equipments
and operating systems of all kinds
especially auto engines


 Pat Bennett’s self interest– Entrepreneur

by heart-- exploit his core competence

Levels of Strategy
 Strategy : Patterns of decision and actions
that management take to use core
competence to achieve a competitive
advantage
 Four Levels
 FunctionalLevel
 Business Level
 Corporate Level
 Global Expansion
Bennett’s Business Level
Strategies
 Select & manage the domain in which the
organization uses its value creation
resources


 Three dimensions:
 Low cost business-level strategy
 Differentiation business –level strategy
 Focused Strategy
Business Level Strategy
 Differentiated Focused Strategy

Specialization in rebuilt engines and
 installations
 Distinct and way ahead of the
competition
Competition were mere resellers


 Offering new products to new customers

Over the Fendor works



 Over the time…
 1975
-
 Initially no name, no business license
- Customers gave money for parts , Pat only charged
for
 labour
1977
-Incorpated Benett Machine shop Inc.
-Moved into a commercial building in the
1979
city on rent
-
 Sales and profits rose through 1979
-But landlady forced him to move out
-Took a loan of $ 80,000 from Gulf national Bank

-Later in the year, bought a 2 acre land at Old

Chennault air base
 1981
 - Back to making Profits
 1985
 Bought property for installation
 1986
 The problem starts
 1987
 Recovers losses by the Boeing contract
SWOT Analysis
Plan Suggested-Strategy
 Strengthen its core competence first


 Improvise on its marketing strategy



 Advertising and customer feedback



 Bennett should continue to work for

Boeing



Structure
Structure
 Redesign the organization structure
 Supervisors or team leaders
 Incentive Structure ( productivity,
customer service and cleanliness)
 Monthly or yearly bonuses


 Standardization and Formalization

 Purchasing and inventory control
 A person to handle the financial books

Conclusion
 Pat Bennett should focus on strategy
issues and long term planning


 Main focus -- strengthen its core business



 Procedures and structure in place



 Exploit the owner’s talent and abilities

THANK


YOU !!