IPO for Smart Drive International

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    Business
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    Assignment
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    Masters
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IPO FOR SMART DRIVE INTERNATIONAL 21

IPO for Smart Drive International

Table of Contents

31. Background

42. Business Model

6Researching and Picking the Features

8Getting Pre-Approved for a Car Loan

10Planning for the Trade-In Strategy

13Locating and Test-Driving the Car

15Settling on a Sale Price and Asking for Ideal Warranty

17Checking for the Dealer Financing

18Closing the Deal

20Taking the Delivery

23References

IPO for Smart Drive International

1. Background

Smart Drive International (SDI) is the leading seller of smart, economical and modern cars and trucks in Atlanta, Georgia. The customer service is top notch, and clients enjoy the privilege to negotiate the prices. The client adopted IPO (Input-Process-Output) business model five years ago. The new design has helped the firm triple the volume of sales in the last three years. The IPO is globally accepted in the analysis of systems and comprehensively describes the framework of information processes in a given company (Pavitt 2014, 710). The business model allows SDI to receive input from customers and other sources. The inputs typically include information, money, human resources, and materials transformed into outputs such as money, new data, services, and consumables. Research shows that firms that follow their business model strictly usually enjoy a competitive edge, high sales volume, register high-profit margins, and maintains high customer satisfaction levels (Browning 2014, 237). SDI ensure its vibrant sales department always follow a simple business model that clearly defines the IPO and system relationship for every step involved in meeting an identified customer need.

2. Business Model

Purchasing a new car is not an easy task for many clients. Prospective customers must learn how to research, locate, negotiate, and place an order. Cloud computing technology has remarkably revolutionized the ordering system.

IPO for Smart Drive International

Fig. 2.1. System Relationship

IPO for Smart Drive International 1IPO for Smart Drive International 2IPO for Smart Drive International 3IPO for Smart Drive International 4IPO for Smart Drive International 5

Researching and Picking the Features

Getting Pre-Approved for a Car Loan

Planning for the Trade-In Strategy

IPO for Smart Drive International 6IPO for Smart Drive International 7

IPO for Smart Drive International 8

IPO for Smart Drive International 9

IPO for Smart Drive International 10IPO for Smart Drive International 11

Dealer Financing

Locating and Test-Driving the Car

IPO for Smart Drive International 12

Sale Price and Warranty

IPO for Smart Drive International 13IPO for Smart Drive International 14

IPO for Smart Drive International 15

IPO for Smart Drive International 16

Closing the Deal

IPO for Smart Drive International 17IPO for Smart Drive International 18

Taking the Delivery

IPO for Smart Drive International 19IPO for Smart Drive International 20

Researching and Picking the Features

The SDI customer app provides prospective buyers will all crucial information they need to know. They can also visit the company’s site to learn more. The brand and expert reviews are also provided to guide the new customer. The customers can also view more offers by using the available features. The customer then proceeds to explore the payment methods that best suits his needs.

Table 2.1 Customer Researching and Picking Features IPO

Researching and Picking Features

Customer checks features on the SDI App or SDI Website

Feature Checking (START)

Satisfied

Picks the features

Satisfied with features

Not satisfied

Repeat feature checks

Satisfied with features

Still not satisfied

Schedule manual ordering

Manual ordering

Checking brand and expert reviews

Ascertain the quality and affordability

Brand Verification

Satisfied

Picks the brand

Selects the brand

Not satisfied

Repeat brand checks

Satisfied with features

Still not satisfied

Schedule manual brand checks

Manual brand check

Checking for more details

Customer searches for additional features on SDI App or SDI Website

Critical design specification

Satisfied

Picks the brand

Brand selection

Not satisfied

Repeat additional features check

Brand selection

Still not satisfied

Schedule manual checks

Thorough manual feature checks

Exploring the payment methods

Customer searches for suitable payment method on SDI App or SDI Website

Choosing an Appropriate payment method.

satisfied

Picks payment model

Picking the payment model

Not Satisfied

Repeat payment model check

Picks the payment model (END)

Still not satisfied

Schedule a manual check

Manual payment model check (END)

Fig. 2.2. Customer Researching and Picking Features System Progress Flow Chart

IPO for Smart Drive International 21IPO for Smart Drive International 22IPO for Smart Drive International 23IPO for Smart Drive International 24IPO for Smart Drive International 25

Researching and Picking features

satisfied

IPO for Smart Drive International 26IPO for Smart Drive International 27IPO for Smart Drive International 28

IPO for Smart Drive International 29IPO for Smart Drive International 30IPO for Smart Drive International 31IPO for Smart Drive International 32IPO for Smart Drive International 33

Not satisfied

Checking for brands and expert reviews

IPO for Smart Drive International 34IPO for Smart Drive International 35

Not Satisfied

IPO for Smart Drive International 36IPO for Smart Drive International 37IPO for Smart Drive International 38IPO for Smart Drive International 39IPO for Smart Drive International 40IPO for Smart Drive International 41

Manual Feature checks

Checking for more details

IPO for Smart Drive International 42IPO for Smart Drive International 43

IPO for Smart Drive International 44

Still not satisfied

IPO for Smart Drive International 45IPO for Smart Drive International 46

Exploring the payment methods

IPO for Smart Drive International 47IPO for Smart Drive International 48

Getting Pre-Approved for a Car Loan

Having a pre-approved loan to buy a car assist potential customers to purchase the vehicle of their choice. Customers check what they can afford and the associated interest rates and then compare the financing plans offered by the dealer. Most clients opt for the lowest yearly percentage rate. Customers can also seek for pre-approved loans from third-party lenders, credit union, and the bank. Each client should select a bank that provides the best services.

Table.2.2 Customer Getting Pre-Approved for a Car Loan IPO

Getting Pre-Approved for a Car Loan

Customer checks dealership financial plans on the SDI App or SDI Website

Examining available financial plans (START)

Satisfied

Financial Plan Checks

Affrodable Financial Plans

Not Satisfied

Rechecks financial plans

Satisfied with Financial plans

Still No Satisfied

Scheduled Financial manual checks

Manual financial checks

Checking Affordability and Flexibility

Evaluating affordability and flexibility of payment

Comparing processes

Satisfied

Affordabiliyty and Flexibity Checks

Satisfied with affordability and flexibility

Not Satisfied

Recheking flexibility and affordability

Satisfied with affordability and flexibility

Still No Satisfied

Selecting a Financial Plan

Customer selects the appropriate financing plan on SDI App or SDI Website

Choosing a favorable financial plan

Satisfied

Selecting ideal financial plan

Chooses a financial plan

Not Satisfied

Rechecking ideal financing plan

Rechecking the financial plan

Still Not Satisfied

Filling the loan application form and sending complete form

Customer applies for the ideal payment plan on SDI App or SDI Website

Loan Application

Satisfied

Applying for ideal repayment plan

Completes loan application

Not Satisfied

Rechecks the loan application process

Rechecking then loan application

Still Not Satisfied

Seeks Manual Assistance

Manual assisted loan application (END)

Fig. 2.3. Customer Getting Pre-Approved for a Car Loan Flow Chart

IPO for Smart Drive International 49IPO for Smart Drive International 50

Applying for a car loan

IPO for Smart Drive International 51IPO for Smart Drive International 52

IPO for Smart Drive International 53

Satisfied

IPO for Smart Drive International 54IPO for Smart Drive International 55IPO for Smart Drive International 56

IPO for Smart Drive International 57IPO for Smart Drive International 58IPO for Smart Drive International 59IPO for Smart Drive International 60IPO for Smart Drive International 61

Not satisfied

Affordability and flexibility checks

IPO for Smart Drive International 62IPO for Smart Drive International 63

IPO for Smart Drive International 64IPO for Smart Drive International 65IPO for Smart Drive International 66IPO for Smart Drive International 67IPO for Smart Drive International 68

Manual loans checks and assistance

Selecting a financial plan

IPO for Smart Drive International 69IPO for Smart Drive International 70

IPO for Smart Drive International 71

Still not satisfied

IPO for Smart Drive International 72IPO for Smart Drive International 73

Filling the loan application form

IPO for Smart Drive International 74IPO for Smart Drive International 75

Planning for the Trade-In Strategy

Trade-in strategy is essential to all customers who have a trade-in deal. Prospects need to know the trade-in value before visiting the dealership. Such an approach helps the customer to have reference points for all offers. The SDI client app helps customers to know the typical trade-in value. The prospective buyer also gets the chance to check other components that would affect the value of the cars such as sunroof and seats. The “Outstanding” cars are quite expensive compared to the “Fair” category. The value provided by the dealer is the trade-in value. The private-party value represents what the seller should expect after selling the car. The dealer value shows what the customer will pay after buying the car from the dealership.

Table .2.4 Customer Planning for the Trade-In Strategy IPO

Trade-In Strategy

Customer checks the trade-in value on the SDI App or SDI Website

Checking the trade-in value (START)

Satisfied

Checking the trade-in value

Comparing trade-in value

Not Satisfied

Rechecking the trade in value

Comparing the trade-in value

Still Not satisfied

Checking for essential features

The customer checks whether important features are available of using SDI App or SDI Website

Determining the presence of all integral features

Satisfied

Checking for critical features

Confirming critical features

Not Satisfied

Rechecking for critical features

Rechecking for essential features

Still Not satisfied

Comparing the brand with other close-related brands on either the “Fair” or “Outstanding” categories

Customer selects the “Fair” or “Outstanding” categories to compare the prices

Determining whether the prices is reasonable

Satisfied

Comparing the cost of close-related brands

Price comparisons

Not Satisfied

Schedules a manual check

Scheduling for a manual check

Still Not satisfied

Choosing the ideal brand

Customer selects the ideal brand using the SDI App or SDI Website

Choosing the brand

Satisfied

Selecting the preferred brand

Brand selection

Not Satisfied

Re-selection of the brand

Re-selecting the brand

Still Not satisfied

Scheduled manual selection

Scheduled manual slection ( END)

Fig. 2.4. Customer Planning for the Trade-In Strategy Flow Chart

IPO for Smart Drive International 76

Trade-in- strategy

IPO for Smart Drive International 77IPO for Smart Drive International 78IPO for Smart Drive International 79

IPO for Smart Drive International 80

Satisfied

IPO for Smart Drive International 81IPO for Smart Drive International 82IPO for Smart Drive International 83

IPO for Smart Drive International 84IPO for Smart Drive International 85IPO for Smart Drive International 86IPO for Smart Drive International 87IPO for Smart Drive International 88

Checking for essential features

IPO for Smart Drive International 89IPO for Smart Drive International 90IPO for Smart Drive International 91IPO for Smart Drive International 92

Not satisfied

IPO for Smart Drive International 93IPO for Smart Drive International 94IPO for Smart Drive International 95IPO for Smart Drive International 96

Annual Checks and assistance

Comparing close related brands

IPO for Smart Drive International 97

IPO for Smart Drive International 98IPO for Smart Drive International 99

Still not satisfied

IPO for Smart Drive International 100IPO for Smart Drive International 101

Choosing the ideal brand

IPO for Smart Drive International 102

IPO for Smart Drive International 103

Locating and Test-Driving the Car

After evaluating the available offers, the customer visits the dealership to see and test the car before making a purchasing decision. The SDI app provides clients with a unique opportunity to sort by features, trim level, and color. SDI website provides prospective buyers with various alternatives. The majority have a locked-in value that helps the prospect to compare with other stores.

Table 2.5 Customer Locating and Test-Driving the Car IPO

Locating and Test-Driving the Car

Customer visits the dealership shop to test-drive the car

Checking the status of the car (Start)

Satisfied

Test-driving

Checking the car condition

Not Satisfied

Repeating the test-drive

Re-checking the condition of the car

Still Not satisfied

Repeating the test-driving process

Repeating the test-driving process (END)

The customer confirms other features such as color and trim level

The customer visits the dealership to confirm the color, trim level, and other features

Establishing the presence of all crucial features

Satisfied

Confirming the features physically

Conforming the presece of essential features physically

Not Satisfied

Re-checking the features

Re-confirming the features

Still Not satisfied

The customer confirms the presence or absence of essential features

The customer physically confirms the presence or absence of critical features

Making the ultimate decision to take the offer or drop it

Satisfied

Deciding whether to take the offer or not

Making the final decision

Not Satisfied

Rechecking vital features

Taking the offer (END)

Still Not satisfied

Rechecks for the last time

Final rechecking

Approving the brand

Confirming the brand

Brand confirmation

Fig. 2.5. Customer Locating and Test-Driving the Car Flow Chart

IPO for Smart Drive International 104IPO for Smart Drive International 105

Test-Driving the Car

IPO for Smart Drive International 106IPO for Smart Drive International 107

IPO for Smart Drive International 108

Satisfied

IPO for Smart Drive International 109IPO for Smart Drive International 110

IPO for Smart Drive International 111IPO for Smart Drive International 112IPO for Smart Drive International 113IPO for Smart Drive International 114IPO for Smart Drive International 115

Confirming other features

IPO for Smart Drive International 116IPO for Smart Drive International 117IPO for Smart Drive International 118

Not satisfied

IPO for Smart Drive International 119IPO for Smart Drive International 120IPO for Smart Drive International 121IPO for Smart Drive International 122IPO for Smart Drive International 123

Further feature checks

Confirming the presence or absence of features

IPO for Smart Drive International 124IPO for Smart Drive International 125

IPO for Smart Drive International 126

Still not satisfied

IPO for Smart Drive International 127IPO for Smart Drive International 128

Approving the ideal brand

IPO for Smart Drive International 129IPO for Smart Drive International 130

Settling on a Sale Price and Asking for Ideal Warranty

The prospective customers first choose the vehicle before deciding on the price. The buyer can use the SDI app to check the locked price that allows the customer to compare with other averages from other stores in the area. The prospective buyer can also email, text or call the sales department to learn more on how to complete the ordering process.

Table 2.6 Customer Settling on Price and Ideal Warranty IPO

Sale Price and Ideal Warranty

Customer settles on a price and checks for warranty

Checking the final price and warranty (START)

Satisfied

Selecting the right price and warranty

Choosing the final price and warranty

Not Satisfied

Rechecks the price and the warranty

Rechecking the price and warranty

Still Not Satisfied

Scheduled manual price and warranty check

Scheduled price and warranty re-checking

Learning more about the ordering process

The customer checks more details regarding the ordering process on the SDI app or site. The customer can also email, text or call the sales department

Additional details about the ordering process

Satisfied

Checking for more ordering details

Further checks on the ordering process

Not Satisfied

Re-checking for more ordering details

Further re-checks on the ordering process

Still Not Satisfied

Settling on the financing option

The customer checks for the available financial options on the SDI app or site. Or other online sources. The customer can also email, text or call the sales department

Selecting the best financing option

Satisfied

Settling on a financial option

Choosing the best financial options

Not Satisfied

Scheduled and manual checking

Selecting the financial option

Still Not Satisfied

Re-scheduling another manual check

Choose the best option ( END)

Sealing the deal

Final price confirmation

A sealed deal (END)

IPO for Smart Drive International 131IPO for Smart Drive International 132

Settling on the costs and warranty

Fig. 2.6. Customer Settling on Price and Ideal Warranty Flow Chart

IPO for Smart Drive International 133IPO for Smart Drive International 134

IPO for Smart Drive International 135

Satisfied

IPO for Smart Drive International 136IPO for Smart Drive International 137

IPO for Smart Drive International 138IPO for Smart Drive International 139IPO for Smart Drive International 140IPO for Smart Drive International 141

Learning more about the ordering process

IPO for Smart Drive International 142IPO for Smart Drive International 143IPO for Smart Drive International 144IPO for Smart Drive International 145IPO for Smart Drive International 146

Not Satisfied

IPO for Smart Drive International 147IPO for Smart Drive International 148IPO for Smart Drive International 149

Settling on the final cost

IPO for Smart Drive International 150

Further price re-checks

IPO for Smart Drive International 151IPO for Smart Drive International 152

IPO for Smart Drive International 153

Still not satisfied

IPO for Smart Drive International 154IPO for Smart Drive International 155

Sealing the deal

IPO for Smart Drive International 156IPO for Smart Drive International 157

Checking for the Dealer Financing

SDI uses APP (Average Price Paid) to give customers the opportunity to check whether the prices are competitive. The APP can be compared with the values other stores are offering in the same area and for the same equipped vehicle. The SDI’s shopper advice team also provides further counseling and guidance to customers who need additional assistance.

Table. 2.7 Customer Checking for the Dealer FinancingIPO

Checking for the Dealer Financing

Customer checks whether the prices are competitive using the SDI app or site, and other online sources

Reviewing the available financing options ( START)

Satisfied

Comparing price competitiveness

Comparing the price competitiveness

Not Satisfied

Rechecking price competitiveness

Rechecking the competitiveness of prices

Still Not Satisfied

Comparing the APP value with other dealerships

Comparing the APP value with other dealers on the SDI app or site, and other online sources

Checking whether the prices are competitive

Satisfied

Comparing the APP value with rivals

APP value comparison

Not Satisfied

Re-comparing the prices with rivals

APP value re-comparison

Still Not Satisfied

Seeking further guidance from SDI’s shopper advice team

The customer seeks further advice from SDI’s buyer advice team using the SDI app or site. The customer can also email, text or call the sales department

Seeking additional expert advice

Satisfied

Seeking future advice from the dealer

Further advice from the seller

Not Satisfied

Checking from other dealers

Confirming the APP value

Still Not Satisfied

Using other online sources to check

Making the final decision ( END)

Accepting the APP value

Checking the APP personally from other dealers

Confirming the APP value

IPO for Smart Drive International 158IPO for Smart Drive International 159

Checking the dealer financing

Fig. 2.7. Customer Checking for the Dealer FinancingFlow Chart

IPO for Smart Drive International 160IPO for Smart Drive International 161IPO for Smart Drive International 162

Satisfied

IPO for Smart Drive International 163IPO for Smart Drive International 164IPO for Smart Drive International 165

IPO for Smart Drive International 166IPO for Smart Drive International 167IPO for Smart Drive International 168IPO for Smart Drive International 169

Comparing the app value

IPO for Smart Drive International 170IPO for Smart Drive International 171IPO for Smart Drive International 172

Not satisfied

IPO for Smart Drive International 173IPO for Smart Drive International 174IPO for Smart Drive International 175IPO for Smart Drive International 176IPO for Smart Drive International 177

Further app check

Seeking further advice from the dealer

IPO for Smart Drive International 178

IPO for Smart Drive International 179IPO for Smart Drive International 180

Still not satisfied

IPO for Smart Drive International 181IPO for Smart Drive International 182

Accepting the app value

IPO for Smart Drive International 183IPO for Smart Drive International 184

Closing the Deal

The client is ready to accept the deal once the fees, financing and the price look right. The customer may opt to have the paperwork and car delivered at home or purchase at the dealership. The majority of the clients choose to complete everything at the dealership. SDI sales team is always willing to assist the customers by guiding them to the appropriate insurance and finance offices. The customer then signs the contract and buys additional products like an extended warranty. Clients with a busy working schedule can still endorse a sale contingent to have the new car delivered at the office or home.

Table. 2.8 Customer Closing the Deal IPO

Closing the Deal

Customer checks whether the price, fees, and financing is okay using the SDI app or website

Making the ultimate decision to buy or not (START)

Satisfied

Checking the final details

Checking the closing details

Not Satisfied

Re-checking the finances, fees, and the price

Re-checking the final details

Still Not Satisfied

Buying at the store or sealing the deal online

The customer decides whether to finish all transactions at the dealership or have the car brought home or workplace with all the relevant documents

Buying online or at the dealership

Satisfied

Deciding where to buy

Buying online or at the store

Not Satisfied

The customer reconsiders where to buy

Deciding where to buy

Still Not Satisfied

Reconsidering to buy at the dealership or online

Reconsidering where to purchase

Signing the contract

The customer signs the contract at the store or online

Signing the agreement

Satisfied

Signing the contract online or at the store

Signing the contract

Not Satisfied

Deciding whether to sign the contract

Signing the contract

Still Not Satisfied

Choosing where to sign the contract

Signing the contract (END)

Asking for the warrant

The customer the asks and pays for an extended warrant either at the dealership or through a sales representative

Acquiring an extended warranty (END)

IPO for Smart Drive International 185IPO for Smart Drive International 186

Closing the deal

Fig. 2.8. Customer Closing the Deal Flow Chart

IPO for Smart Drive International 187IPO for Smart Drive International 188IPO for Smart Drive International 189

satisfied

IPO for Smart Drive International 190IPO for Smart Drive International 191IPO for Smart Drive International 192

IPO for Smart Drive International 193IPO for Smart Drive International 194IPO for Smart Drive International 195IPO for Smart Drive International 196IPO for Smart Drive International 197

Not satisfied

Buying online or at the store

IPO for Smart Drive International 198IPO for Smart Drive International 199

IPO for Smart Drive International 200IPO for Smart Drive International 201IPO for Smart Drive International 202IPO for Smart Drive International 203

Signing the contract

IPO for Smart Drive International 204

Further personal considerations

IPO for Smart Drive International 205IPO for Smart Drive International 206

IPO for Smart Drive International 207

Still no satisfied

IPO for Smart Drive International 208IPO for Smart Drive International 209

Asking the warrant

IPO for Smart Drive International 210IPO for Smart Drive International 211

Taking the Delivery

The client checks whether the car is in the right shape by examining if it has any scratches or other malfunctions. The car should also be clean, and the gas or petrol tanks should be full. The sales person then guides the customer on how to use the different features of the car like safety devices and pairing the smartphone through Bluetooth technology. Additional and detailed information is found in the user’s manual. This is the final stop, but the customer has the right to ask for additional assistance in case the product develops problem within the warranty period. Customers usually keep the contacts of the dealership for further assistance in the future.

Table. 2.9 Customer Taking the Delivery IPO

Confirming whether the car is still in the proper shape

Customer checks whether the gas tank is full, presence of any dents and scratches

Receiving the product in the right shape (START)

Satisfied

Checking the status of the car

Checking the condition of the product on delivery

Not Satisfied

Asking confirmation from the sales representative

Confirming the status of the car

Still Not Satisfied

Further guidance from the sales representative

The sales representative trains the buyer on how to use different features of the car like safety features and pairing Smartphone through Bluetooth. The customer is also free to ask any other questions regarding operating the vehicle.

Learning how to use other features

Satisfied

Analyzing the reasons given

Assessing the reasons given

Not Satisfied

Seeking further explanations

Asking for more explanation

Still Not Satisfied

Learning how to use the user’s manual

The buyer and the sales representative goes through the user’s manual

The customer learns how to use the user’s manual

Satisfied

Checking the user’s manual

Evaluating the user’s manual

Not Satisfied

Asking further questions from the salesperson

Verifying the contents of the user’s manual

Still Not Satisfied

Receiving the Product

Accepting the product

Receiving the product( END)

IPO for Smart Drive International 212IPO for Smart Drive International 213

Confirming the status of the car

Fig. 2.8. Customer Taking the Delivery Flow Chart

IPO for Smart Drive International 214IPO for Smart Drive International 215

IPO for Smart Drive International 216

Satisfied

IPO for Smart Drive International 217IPO for Smart Drive International 218IPO for Smart Drive International 219

IPO for Smart Drive International 220IPO for Smart Drive International 221IPO for Smart Drive International 222IPO for Smart Drive International 223IPO for Smart Drive International 224

Not satisfied

Further guidance from the salesperson

IPO for Smart Drive International 225IPO for Smart Drive International 226

IPO for Smart Drive International 227IPO for Smart Drive International 228IPO for Smart Drive International 229IPO for Smart Drive International 230

Further details about the product condition

IPO for Smart Drive International 231

Learning how to use the user’s manual

IPO for Smart Drive International 232IPO for Smart Drive International 233

IPO for Smart Drive International 234

Still no satisfied

IPO for Smart Drive International 235IPO for Smart Drive International 236

Receiving the product

IPO for Smart Drive International 237IPO for Smart Drive International 238

References

Browning, T. R., 2014. Managing complex project process models with a process architecture framework. International Journal of Project Management32(2), 229-241.

Moon, S., Zekavat, P. R., & Bernold, L. E., 2016. Dynamic Quality Control of Process Resource to Improve Concrete Supply Chain. Journal of Construction Engineering and Management, p 04016130.

Pavitt, C., 2014. An interactive input–process–output model of social influence in decision- making groups. Small Group Research45(6), 704-730.