STRATEGIC MANAGEMENT

FINAL PROJECT: ALMACEN MIMOTO S.A.S

PRESENTED BY:
Diana
Daniela Gara

PRESENTED TO:
Patricia Márquez Rodríguez

UNIVERSIDAD DEL NORTE

BUSINESS SCHOOL
ADMINISTRACIÓN DE EMPRESAS
BARRANQUILLA, OCTOBER 22, 2018

Tabla de contenido
1. IDENTIFICATION AND BACKGROUND OF THE ORGANIZATION................................................. 4

1
 1.1. GENERAL INFORMATION OF THE ORGANIZATION ........................................................... 4
1.2. BACKGROUND OF THE ORGANIZATION ........................................................................... 4
2. STRATEGIC POSITION OF THE ORGANIZATION ........................................................................ 6
2.1. EXTERNAL ANALYSIS ....................................................................................................... 6
2.1.1. ANALYSIS OF THE MACRO-ENVIRONMENT .............................................................. 7
2.1.2. INDUSTRY ANALYSIS ................................................................................................ 9
2.2. INTERNAL ANALYSIS ...................................................................................................... 13
2.2.1. ANALYSIS OF THE VALUE CHAIN: ................................................................................. 13
2.2.2. ANALYSIS OF THE STRATEGIC CAPABILITIES ................................................................. 14
2.2.3. SWOT STRATEGIES ...................................................................................................... 16
2.3. STRATEGIC PURPOSE ........................................................................................................ 17
2.3.1. STAKEHOLDERS’ EXPECTATIONS................................................................................ 17
2.3.2. MISION ..................................................................................................................... 18
2.3.3. VISION ...................................................................................................................... 18
2.3.4. STRATEGIC OBJECTIVES ............................................................................................. 19
2.3.5. CONCLUSION REGARDING THE STRATEGIC POSITION ................................................ 19
3. STRATEGIC CHOICES OF THE ORGANIZATION........................................................................ 20
3.1. BUSINESS-LEVEL STRATEGY ........................................................................................... 20
3.2. CORPORATE STRATEGY ................................................................................................. 21
3.3. INTERNATIONAL STRATEGY........................................................................................... 21
3.4. COOPERATIVE STRATEGY .............................................................................................. 22
3.5. INNOVATION STRATEGY................................................................................................ 22
4. EVALUATION OF STRATEGIC CHOICES OF THE ORGANIZATION ................................................. 23
4.1. EVALUATION OF STRATEGIC OPTIONS ............................................................................... 23
4.2. SUMMARY OF THE ORGANIZATION STRATEGY................................................................... 24
5. STRATEGY IN ACTION ............................................................................................................... 26
5.1. ORGANIZATIONAL STRUCTURE .......................................................................................... 27
5.2. THE BALANCED SCORECARD .............................................................................................. 29
5.2.1. STRATEGIC MAP.......................................................................................................... 29
5.2.2. KEY PERFORMANCE INDICATORS ................................................................................ 30
5.2.3. TARGETS FOR INDICATORS.......................................................................................... 31
5.2.4. STRATEGIC PROJECTS .................................................................................................. 32

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 5.2.5. PRIORITIZATION OF STRATEGIC PROJECTS................................................................... 33
Bibliography ................................................................................................................................. 34

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 1. IDENTIFICATION AND BACKGROUND OF THE ORGANIZATION

1.1. GENERAL INFORMATION OF THE ORGANIZATION

BUSINESS NAME ALMACEN MIMOTO S.A.S

NIT 900493009
ADDRESS Cra 2 N° 11-88 Calle el Salto Barrio Centro

PLACE Magangué- Bolívar

BRANCH OFFICES 3 En Magangué, 1 Pinto; 1 Guaranda, 1
Ahí, 1 Pinillos, 2 Aguachica
ARL Positiva
REPRESENTANTE LEGAL Milton Botero
ECONOMIC ACTIVITY Motorcycle sale and motorcycle financing

1.2. BACKGROUND OF THE ORGANIZATION

At the beginning of the 1990s, the current founders Raúl and Milton Botero of MI MOTO
SAS saw the need for a cheap, accessible, and useful main transport. They joined their
ideas and economic power to turn their main activity (agriculture) into distributors of
HAMAHA motorcycles. In 1994, they moved to the Costa Atlantica and opened two
warehouses: one selling HAMAHA motorcycle in Magangué and other selling AUTECO
motorcycle in Cartagena. Among the year, they got the distribution of HONDA and
SUZUKI. Searching in each city, where they open a third partner. In this way, they
expanded their business not only in La Costa Atlantica but throughout the country as a
multi-brand company. It was the beginning of ORGANIZACIÓN BOTERO.

In 2011, ORGANIZACIÓN BOTERO made a strategic alliance with the assembler

AUTECO, who is lead in the market. The strategic alliance was stopped selling another
motorcycle brand different to AUTECO. It became ORGANIZACIÓN BOTERO in the
largest distributors of AUTECO motorcycle in the country with more than 100 warehouses.

Within this Organization is born ALMACEN MIMOTO S.A.S at the beginning of the year
2012, with headquarters in Magangué and 9 branches (3 in Magangué, 1 in Guaranda, 1 in

4
Ahí, 1 in Pinto, 1 in Pinillos and 2 in Aguachica). Thus, it is consolidated in the region as a
local distributor.

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 2. STRATEGIC POSITION OF THE ORGANIZATION
2.1. EXTERNAL ANALYSIS

The impact has

Describe the influence (think Is this impact positive or
been identified at
Type of factor about data o facts to support negative? Is the impact
global, local or
the assumption) high or low?
national level?
The maximum legal interest
POLITICAL rate in Colombia is the usury Positive/high National
rate of 30.5%.

83% of the Colombian

ECONOMIC population does not have Positive/high National
access to a microcredit.
• Motorcycles are 56.2%
of the country's vehicle
fleet.
Positive/high
SOCIAL • AUTECO is one of the Negative/?
National
most stolen
motorcycles

EL CAZADOR- technology
TECHNOLOGICAL that gives you peace of mind Positive/? National
and protects your vehicle.
The four-stroke motorcycles,
with a contribution of 15.56%,
ENVIRONMENTAL Negative/? National
occupy the third place among
the pollutant vehicle categories
In Colombia is legal that
Individuals offer credits if they
meet two requirements:

LEGAL • Do not overpass the Positive/high National

usury rate
• The money belong to
they

6
 2.1.1. ANALYSIS OF THE MACRO-ENVIRONMENT

Perceived key Related Uncertainties Relationship between

trends in the trends and
industry uncertainties

T1 Reduction of U1 Will Colombia culture keep Colombia culture can

intermediaries need an intermediary for influence in the way that
sales? people prefer buying
among intermediary that
directly with the
suppliers.
T2 New stores with U2 Will the legal condition shape The legal requirements
credit facilities a hyper- competition? for lending money can be
a business opportunity
and a temporary
competitive advantage.
T3 Growth of U3 Will motorcycles continue to The unbridled sale of
motorcycle sales be the main transport vehicle motorcycles is taking
in Colombia? over the market and
creating more need of
them. However, there is a
decrease in sale of
motorcycle in the las few
years.
T4 Environmental U4 Will people look for greener There are other
awareness means of transportation? transportation options for
major clients in cities,
such as bicycles.
However, the level of
awareness they have
about the environment is
unknown.

Correlation Matrix
U1 U2 U3 U4
U1 X + + X
U2 X X + ?
U3 X X X -
U4 X X X X

7
 (+) Positive
(-) Negative
? Unknown

SCENARIO PLANNING

OPTIMISTIC

The best case motorcycles will keep like the main transport system in Colombia. That´s
mean selling this product can be an excellent business idea. Moreover, the Colombian
economic condition can help that the market keep growing because there are a lot of
informal workers that their mains tool for job is a motorcycle. Also, the legal condition of
lending money can help the company to growth among the competitors (another
warehouses of AUTECO) because they can take advantage and expand their customers
giving convenience credits to them.

PESIMISTIC

The worst case is that the industry is going to has troubles because it will reach to the limit
possible of growing. The sales will be decline like was the case in 2016-2017, the total sold
motorcycle was less in 13% in 2017 than in 2016.

EXPECTED

The most like case is that the industry continues grow but the competitors grow too. The
company can take a temporal advantage giving convenience credit to buy a motorcycle but
this strategic is easy to copy for competitors. Therefore, the company should to diversify its
business and to take over more market share in finances issues. They can offer credits for
other low value acquisition products. Thus, the company can change its main economic
business incorporating other suppliers for selling home appliances.

In motorcycle industry like a distributor there are no many barriers for entrance but a lot
incentive. That´s why there is a hyper-competition. Also, the legal and economic issues in
Colombia promotes that many of the warehouses start turning into “banks”.

8
The company will survive as long as they diversify its main business and exploit their
capabilities dipping their toes first that the competitors in financial issues and offering what
the customer need even before them.

2.1.2. INDUSTRY ANALYSIS

Motorcycle assemblers belong to the automotive industry according with ANDI (La
Asociación Nacional de Empresarios de Colombia).

AUTECO is the sole supplier of MI MOTO SAS, for that reason it is developing the next
market study focused on AUTECO.

MARKET SHARE

AUTECO has different lines like: Kawasaki, Bajaj, KYMCO, and KTM. All of them
belong to the ranking Top 20 brand in Colombia, according to Andemos, in its report about
motorcycles sales in Colombia January 2017-january2018. We can conclude that AUTECO
has the 29.7% of the market. Its best brand in sale is Bajaj, which participation is 24, 3% of
the market. That´s mean that it only brand represents 81.8% of totally AUTECO sales.

MARKET SIZE

According Andemos:

Total motorcycles 2016 2017 variation

sold 574.481 499.692 -13,0%

AUTECO COMPETITORS

Brand Market Share

Yamaha 17,6%
Honda 17,6%
AKT 13,9%
Suzuki 7,8%

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According Andemos in its report about motorcycles sales in Colombia January 2017-
january2018

TECHNIQUES USED BY THE COMPETITION

Yamaha: Yamaha Company has a strategy that is supported by the differentiation in the
massive market; in which through the quality of products with quality, guarantee and
confidence. Yamaha´s know that currently the consumer doesn’t define his purchase based
on low prices, but is an increasingly informed user seeking personalized attention;
technology design, innovation, and those qualities are characteristics of Yamaha
motorcycles.

Honda: This Company has many advantages in the automotive market that made it the best
option for a large segment of buyers. Honda´s vehicles exceed expectations every year are
still being presented.

§ Reality: Honda´s Company has a remarkable reputation in the construction of

quality parts. According to Consumer Reports, clients know it as a quality product.
§ Fuel Efficient: This makes it a leading product among high fuel efficiency models.
For example, the Honda CRX HF was one of the first cars sold on its low mileage
engines. More recently, Honda was one of the first companies to launch a hybrid
vehicle, the Honda Odyssey.
§ Value: Honda is usually one of the best vehicles brands that mean "a return on
investment". Undoubtedly, this value is significant with the lifestyle of your target
audience.

AKT: This Brand has an accessible and competitive price. The vehicles in this company
have a lot of characteristics to make AKT an attractive motorcycle because have the perfect
high and size.

Suzuki: This Company has a variety of products which all of these; present differences
between prices, guarantee, quality, characteristics, etc. Clients’ loyalty is a result about the
expectation that people have in this vehicles.

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PORTER’S FIVE FORCES

MI MOTO SAS- warehouse that selling AUTECO motorcycles and leading money to
customers that want to buy the products.

RIVALRY BETWEEN COMPETITORS

There is high level rivalry in this business because:

• Competitors are of roughly equal size.

• Competitors are aggressive in seeking leadership in order to be one of the largest
distributors of AUTECO or other associative brand and receive the benefits relative
that.
• The market is mature.
• Thera are a high fix cost like employee’s payment and Warehouse rental.
• There is a low differentiation.
• Industry growth rate is low. Even, it decreased from 2016 to 2017 in 13%

THE THREAT OF ENTRY BARRIERS

Entry threats are strong because there are not a lot of government’s restrictions. According
“EL CODIGO DE COMERCIO” every Colombian can be a trader if they have legal
capacity. Moreover, the access to supply and distribution channel is not difficult if the
potential competitor has the resources.

THREAT OF SUBSTITUTES

Threats of substitutes are strong because there are different warehouses that offer the same
product and even the same band (AUTECO). For that reason buyer have low cost switching
to substitutes. And also, the substitutes have comparable features that buyers would
appreciate.

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 THE BARGAINING POWER OF BUYERS

Buyer bargaining is medium-low because the buyers have low cost switching but they are
not concentrated and they cannot be their own supplier.

THE BARGAINING POWER OF SUPPLIERS

Suppliers bargaining is medium, never mind if MI MOTO SAS has a sole supplier because
there are a lot of other motorcycle suppliers that provide the same products with low cost
switching for the company. Even though, the suppliers can integrate forwards. It can
eliminate the intermediators like MI MOTO SAS.

COMPLEMENTARY PRODUCTS-SIXTH FORCE

The motorcycle is the main product that gives shape to the sale of complementary products
such as helmets.

FIVE FORCE ANALYSIS

Rivalry The Threat Threat Of The Bargaining The Bargaining Complementary

Between Of Entry Substitutes Power Of Buyers Power Of Products
Competitors Barriers Suppliers

high level Weak level Strong level medium-low level Medium level Weak level

Due to the high competitive level among the industry, the company must differentiate itself.
The credits for the purchase of motorcycle could be a great impulse to start to differentiate.
However, it will be a weak strategic in the long term, for that reason the company must
expands its line of products and credits in the near future.

The company must have a vertical integration. So, they should to become in their own
suppliers: they can either produce motorcycle or some tools like complementary product.

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 2.2. INTERNAL ANALYSIS

2.2.1. ANALYSIS OF THE VALUE CHAIN:

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 2.2.2. ANALYSIS OF THE STRATEGIC CAPABILITIES

Primary activities Description of Capabilities VRIO CRITERIA The activity

the activity (Resources + Valuable Rare Costly to Exploited by the depends on a
Competences) imitate organization relationship with
external
organization.
Which one?
Inbound Logistic Being a direct Not having
Auteco intermediate
reseller, companies
vehicles can makes more
be storage effective the Yes, with
and delivered logistics of the Yes No No Yes Auteco that is
all around the stock in the the supplier
coast to the stores
different
stores as
requested
Outbound Logistic Deliver the Direct sale to
customer the the customer
vehicle on the and self-
time finance (non-
requested and banks
Yes No Yes Yes No
in optimal intermediate)
conditions makes the
relation with
customer can
be more close
Operations Auteco Wholesale
supplies them purchase
motorcycles capacity Yes, with
wholesale which reduces Yes No Yes Yes Auteco that is
the price of the supplier
the raw
material
Services Sell Auteco They offer a
motorcycles full service to
and finance the customer
them i.e. they sell
Yes No Yes Yes No
the
motorcycle
but they also
finance it
Marketing sales The sale is They have
Yes No Yes Yes No
made directly 300 stores all

14
 with the along the
company, due coast,
to they sell that allows
you the them to cover
motorcycle a greater
and you public
finance it at
the same time
SUPPORT ACTIVITIES
Procurement From the No Yes No Yes Yes Yes, with
direct intermediarie Auteco that is
supplier s the supplier
(Auteco)
Human Resources Let the Better climax Yes Yes No No No
Management workers (sales on the
area mostly) company and
feel free to disposition of
make the employees
improvement
s and took
desertions in
order to
create a
better work
environment
Firm Infrastructure Little and Yes No Yes Yes No
large stores
all along the
coast
Technology Upgrade to a Reduce the Yes No Yes No Can depend of
virtual system risk to lose the software
for the loans the developer
to know the investment to somehow
credit life and bad
capacity of customers
payment of
the potential
customers

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2.2.3. SWOT STRATEGIES

STRENGTH WEAKNESS OPPORTUNITIES THREATS

• It is the only • The most • Legal • The market
multi-brand strong brand condition to size had a
assembler losing offer credits reduction
• Recognition for market share • Many
customer • Another Colombians
• They sales two brands do cannot access
of the most not have a credit
sales products enough among banks
market share

SWOT Analysis

Strength/ Opportunities (SO)

The company must take advantage of the images of its supplier offering credits for the
purchase of Auteco motorcycles and they must also show interest in the community where
it is located with the idea that each motorcycle is a work tool.

Strength/ Threat (ST)

Keep the alliance with Auteco because it is one of the most sold and the market have been
in troubles.

Weakness/Opportunities (WO)

The company should offer special credits for the purchase of motorcycles with low
participation in the market and make a deal with Auteco in the price and payment term.

Weakness/Threat (WT)

Support the bad time with the cash cows products.

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 2.3. STRATEGIC PURPOSE
2.3.1. STAKEHOLDERS’ EXPECTATIONS
Level of interest
Low
High

A B
Government Lenders
Power

C D
Community Owners
Customers
Suppliers
Competitors
Employees

High

A. Minimal effort: The government has low power and low interest owing to
the company fulfills its work of paying taxes and generating jobs every year,
thanks to the fact that the company complies with these tasks without any
effort has low power of influence within it and the interest of the
Government is low in the company because they fulfill their duty to society.
B. Keep informed: the lenders have high interest in the company due to their
job is to lend money and the business has been a possible customer, so
frequently search information or look inside to the company for a possible
necessity, nowadays the company has a sufficient liquidity to fund its
operation and to invest with its own resources so the power is low.
C. Keep satisfied: the community has a high power for the company because
they want to achieve a social responsibility to gain a good reputation and
establish a relationship with all the parts that the company is present without
all these factors the business can be successful, for gain this kind of trust the
company has to maintain the community satisfied. The community has a low
level of interest due to nowadays the company provides jobs and solution for
a big problem that is the unemployment, but not the whole community has
interest in this kind of services.

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 D. Key players: In this part of the matrix we can observe a big group of
stakeholders because they are the focus for the company if some of these it
will miss the business it wouldn’t be the same and they are the key players
for the company due to the has a high power and interest.

2.3.2. MISION

Conformamos un equipo de talento humano que trabaja siempre pensando en los

clientes, proveedores y colaboradores. Ofrecemos productos de alta calidad,
desarrollando un sistema de movilidad adecuado para la región.

Pertenecemos a una organización que respeta el individualismo, que estimula

permanentemente la innovación, los ascensos y por ende la capacitación de
quienes la conforman. Utilizamos métodos de comunicación informales,
abiertos, claros y participativos.

Aceptamos nuestros errores, los tomamos como fuente de información para

mejorar nuestro desempeño. Buscamos soluciones ágiles y apropiadas.

Participamos del desarrollo económico, haciendo común la responsabilidad de

mejorar los resultados obtenidos. Consideramos el respeto al ser humano como
parte fundamental dentro y fuera de la empresa, siendo tarea de cada uno de
nosotros sentirse solidariamente responsable. Conocemos la satisfacción que
ofrece el éxito y estamos comprometidos en lograrlo.

2.3.3. VISION

Seremos una empresa líder en la distribución de motocicletas Auteco, en

Magangué, y zonas donde participamos, buscando satisfacer a nuestros clientes
con productos de alta calidad, ofreciendo soluciones de movilidad y economía,
donde la rentabilidad sea atrayente y sostenible en el tiempo para los socios a
través del manejo integral de los recursos, que exista una búsqueda constante
por el mejoramiento en la calidad de vida de nuestros empleados facilitando el

18
 desarrollo integral y social logrando así contribuir con el crecimiento de la
región.

2.3.4. STRATEGIC OBJECTIVES

1. Open five more stores in coastal towns in the next 3 years.

2. Establish ourselves as the largest distributors of motorcycles in the
towns of the coast in the next 5 years
3. Increase from 20% to 50% the number of credits offered for the
financing of motorcycles in the next 3 years.
4. Make strategic alliances with different motorcycle suppliers to increase
the variety of products offered by 60% in the next 5 years.
5. Increase the sales level of motorcycles from 50% to 75% in the next 3
years.

2.3.5. CONCLUSION REGARDING THE STRATEGIC POSITION

Understanding the strategic position depends on its competitive advantage

which must be sustainable over time, we find that the company Mi Moto S.A.S
presents important factors that allow it to obtain a competitive advantage in the
cities where it is located.

According to Porter, the strategic position of the company can be achieved

through three different sources that are (Campos Climent, N.A):

• Positioning based on variety: My Moto SAS has a variety of products

and services offered to customers in order to offer solutions to the needs
of customers, on the one hand, offers a variety of prices that cover a
niche of the larger market and on the other hand it offers the financing
service that facilitates the purchase process of the customers.
• Positioning based on customer needs (customer segmentation): The
Company Mi Moto SAS is based on the needs of customers as it offers a

19
 variety of prices in the products offered that are tailored to the needs of
each client.
• Positioning based on access: this premise is based on the customer's
valuation through geographical location. The company Mi Moto SAS
has different points of sale which are chosen and opened knowing the
needs of the place where they are established, most of all we can find
this type of products and services in the towns due to the work is
presented more frequently Informal thanks to the fact that the products
offered by the company are motorcycles, points of sale are opened in this
kind of towns where informal work predominates, making it easier and
faster to obtain this type of products and services.

In conclusion, the company has built a strategic position based on a competitive

advantage of quality which focuses on the good reputation of the company and its
ability to offer solutions to its customers by having easy access, variety of products
and prices as also offer the possibility of financing their products with the lowest
market interests, which makes it more difficult for competitors to replicate this type
of strategy.

3. STRATEGIC CHOICES OF THE ORGANIZATION

3.1. BUSINESS-LEVEL STRATEGY

Currently the company does not have a strategy designed by them. That is why,
based on internal and external analyzes, among others, we will give an opinion on
which strategy fits with the company. Basically, the company is at a point where its
strategy keeps them in the market with a target profit, and little as a company
differentiated from others to demonstrate a certain performance over the
competition. Every company is capable of over exploding its type of business to
project and grow within the same market to increase profits.

20
 MI MOTO SAS, a company responsible for the sale of low-cost motorcycles for
workers of medium, low-middle and lower socio-economic strata, has a simple
aspect that differentiates them from their counterparts as credit lenders to obtain a
motorcycle. It is very simple how this company survives in the market in
correlation of its customer segment. They have the advantage of being a lender to
capture the ease of buying from their customers who normally look for a form of
advance payment (loan) and then pay it off over time, having a long-term debt for
the purchase of the motorcycle.

3.2. CORPORATE STRATEGY

In this level of strategy, the company has a strategy called Unrelated

Diversification, this strategy corresponds a highly diversified firm that has not
relationship between its businesses. In this case, Mi Moto SAS has two principals
focus of business, the principal is sell Moto´s Auteco and the second one lend
money through loans that end up being a different business because it generates
profit without being the core business.
This allows the company to finish most of its sales with the help of loans. This is
possible because when customers arrive for an inquiry and within their plan, due to
lack of economic resources, they cannot make the purchase, the company offers
them the service of loans and so on both sides the company can generate income.

3.3. INTERNATIONAL STRATEGY

In this moment, the company does not have an International strategy, due to his
point of business is only localize in Magangue Bolivar, maybe the company could
expand to another cities in Colombia but we doubt that the company could expand
internationally because the focus or the principal idea does not innovate as to get
another markets.

21
 Given that its main idea is to sell to a segment of people with low economic
resources, we temporarily do not believe that an international expansion by the
company is possible. When it decides to modify its segment of people or start
selling all types of motorcycles, of different prices, both high and low, it is possible
that the company can see further and decide to expand to another country.

On the other hand, they can think about making the same types of sales to people
from lower strata in other countries that also have a high tendency to motorcycle
mobility. This is why it can adapt a multidomestic strategy because in each country
they show distant needs to each other.

3.4. COOPERATIVE STRATEGY

At the moment, this company does not have a cooperative strategy, but it has a
strategic alliance with Auteco. That is to say, it is a low level of strategy because
Auteco is the one who supplies this distributor for the different sales of
motorcycles at an economic price.

It is proposed that the company can acquire another distributor, a little smaller and
thus increase or expand their sales. This would help them in large part to gradually
grow inside the country. Currently the company intends to obtain more strategic
allies to expand its catalog of motorcycles to customers.

On the other hand, as it has a part of motorcycle financing for the public, these can
be merged with a fiduciary that has a larger or firmer system, in order to
collaborate with this company and make more loans to its customers of low socio-
economic stratum.

3.5. INNOVATION STRATEGY

Nowadays it is to be known that any company can have a competitive advantage

thanks to the internet and innovation. At the moment, this company does not have
22
 an innovation or technology strategy, but they have in mind to develop their
website to start making online sales and acquire a competitive advantage.

It is important that they have this technological strategy in mind for their use.
Given the current circumstances with the digital era and the internet, it is an
excellent idea to develop a web page for the convenience of the user when making
purchases. Adding to this, an online loan service as do the current banks, which is
quick and easy to acquire.

4. EVALUATION OF STRATEGIC CHOICES OF THE ORGANIZATION

4.1. EVALUATION OF STRATEGIC OPTIONS

Suitability Acceptability Feasibility
Type of Strategic Why this option might be suitable in Is this option acceptable in terms Do the resources and competences
Strategic Choice terms of of currently exist to implement the
Option strategy effectively? I
If not, could they be obtained?
Environment Capabiliti Stakeholders Return Risk Stakeholde Financial Other Timing to
es Expectations rs Feasibility Resour acquire the
Reactions ces required
Feasibil resources
ity
Corporate Unrelated They Money, They identify The Lack of data The clients They need Human, If the timing
Strategy diversificati recognized human that this new returns see this as a to invest on new is correct
on that there talent activities is are higher big this line wareho with the
were people trustworthy for the opportunity use current
with problems current to buy the strategy
to finance the company motorcycles
motorcycles. , the
community
see a
moment for
work
options and
the owners
are waiting
revenues
from this.
Business Integration They sale Money, The owners The Easy to The clients They need New The timing
Strategy of low cost cheap human expected returns imitate see this as a to invest in mainten to integrate
and motorcycles talent medium are big R&D to ance a
differentiati with a good returns with medium oppotunity differentiat service maintenanc
on quality this kind of due to the to buy the e the posts e service
(Auteco) and strategy, and investmen motocycles, company could be in
the company the clients ts the 1 year
have a lender assumption required community

23
 part good interest for the see a
rate differentia moment for
tion work
options and
the owners
are wating
revenues
from this.
Internatio N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
nal
Strategy
Cooperativ Strategic They realized Money, Customer: High Company Customer They need human It would
e Strategy alliance the need of human good prices return for might be might we to make a talent take time
an accessible talent and features. the losing expect market for the
motorcycle Employees: company market more research in research
with excellent competitive and share variety. order to and
features. That salaries. Auteco. because Auteco study if is implementi
is way they Community: Both can they are expect better keep ng it.
made the more increase only selling loyalty. with their Around 1 or
alliance with opportunities their sales one brand unique 2 years.
AUTECO, who of job. and their of alliance or
is leader in unrelated motorcycle. might be
the market business. Too seek
with low specialized. another
price. one.
M&A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Strategy
Technolog Digital Changing Money Customer: Sales There are Employees Investment Employee around 1
y and transforma environment easily way to should no culture might meet in programs training. year
Innovation tion force to buy. increase for buying the idea
Strategy discover new Employees: on internet. with resist
ways to grow. job challenges Customer because it
They are might not could cut
going to sell prepared some jobs.
on internet. for it.

4.2. SUMMARY OF THE ORGANIZATION STRATEGY

THE FIVE MAJOR ELEMENTS STRATEGY

24
Arena
Mi Moto S.A.S offers Motorcycle Auteco with an excellent quality and low prices.
The distribution channels are the different storefronts, due to the company does not
have web page o social media. The storefronts are localize in Magangue, Pinto,
Guaranda, Ahí, Pinillos, Aguachica.
Which businesses should be included in the portfolio?
Mi Moto should include more bikes and more electrics motorcycles to help with
the environment. Also a web page and social media in order to generate more
satisfaction to the customers and generate more sales.

Differentiators
The principal aspect of differentiation of Mi Moto with respect of his competences
is the strategy of sales for people with low resources, offer solutions to its
customers by having easy access, variety of products and prices as also offer the
possibility of financing their products with the lowest market interests.
How should business units compete?
Mi Moto business units will acquire a competitive advantage through the customer
service. This aspect is very important in any business and in some cases the
accessibility and the quickness of the loans should be better.

Vehicles
The principal key partner is the Auteco Company, due to it supplies its motorcycle
so that the company can distribute them. MI Moto currently has alliances with
strategic suppliers that allow him to monopolize the needs of the clients; likewise it
has allied mechanical workshops that allow answering the needs of the consumers
in terms of performance and maintenance.
Where should the organization compete internationally?
In the same way, my motorcycle does not have the capacity to compete
internationally since its business idea is focused on offering Auteco motorcycles to
low-income people in different Cesar towns through financing. The size and
25
business model of the company also hinders its international expansion, since this
business idea is easy to find anywhere.

Staging and Pacing

The movements of Mi Moto of new initiatives is a little slow, the company is
outdated, since it currently does not present a web page and you do not see any
initiative to create it. We propose to create digital content where interested people
and their current clients can find the different products that are offered, at this time
not being found on the internet is as if you did not exist.

How does the organization need to innovate?

As we mentioned before, My Moto needs to innovate in terms of technology,
creating its website and social networks where they can be seen and surely their
sales with this innovation will increase.

Economic Logic

Like any business without taking into account the product and service offered, the
purpose of any company is to generate economic value. Mi Moto SAS generates
income through the sale of motorcycles and with the credits it offers its customers
with low financing rates compared to other companies.

Should the organization buy other companies, form alliances or go alone?

In our opinion if the company wants to maximize its portfolio of motorcycles of
another brand if it should create a strategic alliance with another company to
optimize times and resources, if the company wishes to continue offering Auteco
motorcycles we thought that it could create an alliance with other distribution
companies to continue expanding and opening sales venues.

5. STRATEGY IN ACTION

26
5.1. ORGANIZATIONAL STRUCTURE

27
DISADVANTAGES:

1. Actually the company have a bureaucratic organizational structure.

2. They have a lot structural levels.
3. All the sellers are just connected with administrative management and human
resources.
4. The administrative management is fully loaded with functions.
5. It seems to have a hierarchical structure.

ADVANTAGES:

1. The company have the necessary personal for the strategic that we want to
implement.
2. This structure is clear in terms of organization.

28
5.2. THE BALANCED SCORECARD

5.2.1. STRATEGIC MAP

Financial 1. Increase from 20% to 50% the number of credits offered for the financing
of motorcycles in the next 3 years.
2. Increase the sales level of motorcycles from 50% to 75% in the next 3
years.
Customers 1. Increase the satisfaction of the customer throughout an after sales service.
2. Establish ourselves as the largest distributors of motorcycles in the towns
of the coast in the next 5 years.
Internal 1. Make strategic alliances with different motorcycle suppliers to increase the
variety of products offered by 60% in the next 5 years.
performance
2. Create a new business opportunities selling the electric bikes of Auteco.
Learning 1. Increase the knowledge about the market.
2. Attract, develop and sustain human talent
and growth

29
5.2.2. KEY PERFORMANCE INDICATORS

FINANCIAL
1. Number of credits provided per month.
2. Total earnings obtained by the credits paid.
3. Quantity of motorcycles sold.
4. Rate of motorcycles sold:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑜𝑡𝑜𝑟𝑐𝑦𝑐𝑙𝑒𝑠 𝑠𝑜𝑙𝑑
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑜𝑡𝑜𝑟𝑐𝑦𝑐𝑙𝑒𝑠 𝑜𝑓𝑓𝑒𝑟𝑒𝑑

CUSTOMERS
1. Measure the level of satisfaction in our clients through constant surveys.
2. Know the level of sales of the competitors for measure our position in the
market.
3. Fulfillment of the delivery period:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑖𝑒𝑠 𝑤𝑖𝑡ℎ 𝑑𝑒𝑙𝑎𝑦
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑖𝑒𝑠
4. Loyalty degree:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑟𝑒𝑔𝑖𝑠𝑡𝑒𝑟𝑒𝑑 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠

INTERNAL PROCESS

1. Number of products offered

2. Number of partnerships made per year
3. Number of sales of the electric bikes
4. Income variation:
𝐼𝑛𝑐𝑜𝑚𝑒 𝑎𝑓𝑡𝑒𝑟 − 𝐼𝑛𝑐𝑜𝑚𝑒 𝑏𝑒𝑓𝑜𝑟𝑒
× 100
𝐼𝑛𝑐𝑜𝑚𝑒 𝑏𝑒𝑓𝑜𝑟𝑒

30
 LEARNING AND GROWTH

1. Variation in the number of hours for training:

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠 𝑎𝑓𝑡𝑒𝑟 − 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠 𝑏𝑒𝑓𝑜𝑟𝑒
× 100
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑢𝑟𝑠 𝑏𝑒𝑓𝑜𝑟𝑒

2. Rate of certified workers:

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑐𝑒𝑟𝑡𝑖𝑓𝑖𝑒𝑑 𝑤𝑜𝑟𝑘𝑒𝑟𝑠

𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑤𝑜𝑟𝑘𝑒𝑟𝑠

3. Personal rate of return per unit invested:

𝑁𝑒𝑤 𝑖𝑛𝑐𝑜𝑚𝑒
× 100
𝐿𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑐𝑜𝑠𝑡
4. Increased productivity:

𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝑎𝑓𝑡𝑒𝑟 − 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝑏𝑒𝑓𝑜𝑟𝑒

5.2.3. TARGETS FOR INDICATORS

FINANCIAL

1. For 2019 increase the number of credits offered by 4% per month.

2. For 2019 increase by 5% the number of profits obtained for each credit sold.
3. Increase the number of motorcycles sold by 5% per month.
4. Increase the percentage of motorcycles sold from 20% to 50% by the end of
2019.

CUSTOMERS

1. Decrease the number of complaints from customer surveys.

2. Create a competitive advantage in relation to customer service in order to
establish ourselves as the largest motorcycle dealers in the towns.
3. Reduce delivery time with delays by 10%.

31
 4. Create a relationship of loyalty between the company and the customers
through positive experiences.

INTERNAL PROCESS

1. Increase the number of products offered by 5% per quarter.

2. Increase the number of strategic alliances by 6% by the end of 2019 to cover
more needs of customers.
3. Create a new business unit in which electric motorcycles are distributed to
expand our target market by 20% by the end of 2019.
4. Increase the number of profits obtained through the new business unit by
40% in the next 2 years.

LEARNING AND GROWTH

1. Increase the number of hours of training of employees to be able to provide

a better customer service.
2. Increase the level of certified employees for their jobs in order to have more
prepared employees.
3. Increase the level of preparation of our employees in order that they can
perform more efficiently in their jobs.
4. Increase the productivity of our employees by 10% through training and
growth within the company

5.2.4. STRATEGIC PROJECTS

INTERNAL PROCESS

1. Make a strategic planning team in order to create partnerships with different

companies and distributors to improve our customer service and our image
in the market.
2. Create a website where all our products are offered in order to cover more
target market.

32
 LEARNING AND GROWTH

1. Invest in research and development to gain more information about the

market
2. Attract new human talent with the help of professional participation
programs. Develop training courses to enrich human talent within the
company.

5.2.5. PRIORITIZATION OF STRATEGIC PROJECTS

INTERNAL PROCESS PROJECTS

1. When preparing a plan to ally with new commercial motorcycle dealers,

the company will benefit from the growth as we can find another
company with new products to offer and thus obtain a demand for other
types of motorcycles different from those already sold.
2. By creating a web page, we will obtain more attraction from our public
through an online route. This would allow to obtain greater visibility of
the company, since nowadays with the help of the digital era, we tend to
search everything on the internet and the different web pages.

LEARNING AND GROWTH PROJECTS

1. It is important that companies are constantly updating the market.

Positive changes will be found when investing in research and
development, to increase the knowledge of our market niche, among
others to explore.
2. Normally, companies should be interested in their employees, since
these are those who are part of any project or work carried out by the
company. We will find a positive effect if we keep our employees
constantly improving their talents, so these are used to guarantee an
excellent and impeccable work within the company.

33
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