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What is wrong with this strategy?

January 14, 2022
Christopher R. Teeple

Case Scenario
ANSWER QUESTIONS A THROUGH D BELOW.
It’s been a tough week at Paul’s Discount Tires & Repairs business, and the week is not over! The global COVID Pandemic has hit the business hard, and you saw several people working there laid off this week. You feel lucky to be still working as their business consultant!
The business is family-owned and has been in business for over 21 years. The founder of the company, Paul Wilford, started the company as a small tire shop then expanded into service repairs. Now Paul’s grandson, Steve Wilford, runs the company, which has grown to several million in annual revenues over the past couple of years.
Steve Wilford stops by your cubicle. He looks worried and worn out from the long workday. Despite that, he greets you warmly.
“You are taking a course in Strategic Management right now, aren’t you?” Steve asks you.
You reply yes.
“Well, that is great timing,” says Steve, “because I just drafted a 10-year strategy for our business! If I get you a copy, would you mind looking it over during the weekend and giving me your thoughts?”
You tell Steve that you’d be happy to give your input. Within 5 minutes, a one-page document is on your desk. At the top of the page is written “Paul’s Discount Tires & Repairs Strategic Plan.” You start to read it in your remote work office at home.
The basics of the plan are highlighted with the following three (3) bullet points:
• Paul’s Discount Tires & Repairs core business will continue providing tires and minor vehicle repair services to our retail customers over the next ten years.
• Paul’s Discount Tires & Repairs will beat its competitors by providing the lowest price discount tires, vehicle repairs, exceptional customer service, and quality work.
• Paul’s Discount Tires & Repairs culture is rooted in its 21-year history. Paul’s will overcome the setbacks caused by the COVID Pandemic by sticking to its core values and cutting costs wherever necessary. Our people will help get us through these tough times.
You look at the bottom of the page and see a post-it note with questions posed to you by Steve.
A. What is wrong with this strategy?
B. What is right about this strategy?
C. We are the market leader in discount tires and repairs in our city, indicating that we currently have a competitive advantage. Will we sustain it with this strategy?
D. What is one thing we could do to improve on this strategy?

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