Good morning, ladies and gentle men!

Today, our group is pleased to present you Suprema Cars case and then analyze 4 possible
solutions to handle existing problems. Firstly, I’m going to introduce the background of Suprema
Cars. Secondly, Mr. Thuan will mention the 1st solution. After that, Ms. Thuy will continue with
the 2nd solution. Fourthly, Mr. Trung will discuss the 3rd option to handle the problems. Next, I
will look into the 4th solution. Finally, Ms. Thuy will summarize main ideas of the presentation.
Let us start with the background of suprema cars. Suprema Cars is a manufacturer of a classic
English sports car in northern England. All the Suprema cars are handmade with high quality.
About 5 years ago, the company began to lose sales and market share, and in the last 2 years it
has made a loss. In addition, there have some problems with labor force. Its workers have
demanded higher wages and better working condition. Fortunately, the company has still kept
many loyal customers who love the classic design and excellent performance of suprema sport
cars.

Thank you, Mr. Trung. Now let us move on the 4th solution for suprema cars. We suggest that the
firm keeps producing the classic cars model with no change in price, cuts price of the new
automated car models by 10%.

On one hand, there are some advantages while applying this solution. As you know, the existing
customers of suprema cars are attracted by classic design and high quality, in order to maintain
the sales and customer loyalty, the classic cars are sold with the same price. Moreover, the sales
and market share declined in recent years, so we recommend that the firm cuts price of new
designed cars by 10%. The new car model targets the middle-class customers, between 20-35,
who like the suprema sport cars but at an affordable price. The new-designed car is produced by
automated machinery; therefore, this decreases the working hours and increases the productivity.
This will enhance the morale of workforce.

On the other hand, there exist some disadvantages which need to particularly consider. The first
difficulty is that by producing both the classic model and new designed model, the costs go up
substantially. The second obstacle is that when the firm launches a new automated line, this has
inverse effects on existing customers’ loyalty. From the beginning, all cars are handmade. They
now might think that concentrating on automation will decrease the quality and brand’s
recognition of handmade cars. And therefore, loyal customers will leave the company.