Case 10 Bennett’s Machine Shop, Inc.

Submitted By:
Ankur Gupta 91124
Madhur Chawla 91140
Anupama Talwar 91141
Simranjit Virdi 91159
Gunashrit Nag 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 city on rent
 1979
- 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

STRENGTHS
1) Distinctive
WEAKNESSES
Competence 1) Inadequate
2) Complete Engine operating structure
Service-No 2) Poor new
duplication from the venture management
competition 3) No fit between
3) Pricing below
competition
strategy and structure

OPPORTUNITIES THREATS
1) Unique
Competence 1) Competition
2) Boeing 2)Too
Work-even at lower much
profits
3) Exploit General
dependence on
Skills Boeing
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

JACK BEARD
(SHOP COORDINATOR)

AUTOMOTIVE MACHINE SERVICE DEPARTMENT

TOOL GRINDING (5)
SHOP (5 +1) (5)
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 !!