A Decision Report

on
Colins Car Detailing
(Managerial Communication)

Submitted to
Dr. Rahul Kumar Shukla

Submitted by
Rubina Dey(H16099)
Section: B
HRM 2016-18

On
December 02, 2016

XLRIXavier School of Management

Letter of Transmittal

Rubina Dey
External Consultant to Colins Car Detailing
December 1, 2016
Colin Ford
Founder,
Colins Car Detailing
West Vancouver, British Columbia

Sir,
Subject: Decision report for best possible course of action to be adopted for the company in the
upcoming summer.
Please find the enclosed decision report that presents a comprehensive analysis of the current crisis, lists the key
options and evaluation criteria used and suggests key recommendations with an action plan for the future.
I recommend Mr. Ford should go with franchising his business. He does not need to give up his business. It
would act as a source extra income which would be helpful for colleges tuition fees and personal expense.
Yours sincerely,
External Consultant to Colins Car Detailing

Executive Summary

Mr Ford has to take a decision regarding his business in the light of his college education at University of
British Columbia in Vancouver. For CCDs future, Mr. Ford is considering whether to sell/wind up the business,
expand the services, become the mobile-detailing company, go with a partnership with a golf-course or franchise
the business. While deciding he should consider the option that complements his ultimate priority of pursuing
higher education.
It is recommended that Mr. Ford should go with franchising his business which would act as an additional
income to support his tuition fees and other personal expenses.
Number of Words: 99
Table of Contents
Content
Executive Summary
Situational Analysis
The Problem / Objective
The Options
Criteria for Evaluation
Evaluation of Options
Recommendation
Action Plan

Page Number
3
4
4
4
4
5
5
5

Situational Analysis
Colins Car Detailing, an auto-detailing business was founded by Colin Ford. In a time of four years, it had a
customer base of around 150 customers with a profit of $5,000 profit per year, owing to its lower prices($80$120), loyal customers and word of mouth publicity. His profit margin was 35% which was higher than others
since he was running CCD from home that saved the overhead costs and got discounts on detailing materials
owing to influential connections. But because of high demand and less efficiency of the process, backlogs were
getting created which was resulting in customer loss. There were three other competitors in the area out of
which the major competitor was Blitz Auto Spa as its prices ($295-$395 + up to 25% discount) were closed to

that of CCDs. Because of its lower prices, CCD could attract new category of customers in addition to resale
customers who are not able to afford higher prices for vehicle-detailing. Since Mr. Ford was planning to go for
college education in September, so he was considering the future course for his business. Mr. Ford has to choose
either one of the options among selling/winding up the business, expanding the services, becoming a mobiledetailing company, going with a partnership with a golf-course or franchising the business.

The Problem
What should be Mr. Fords suitable course of action regarding the future of his business in the light of his plans
for college education at University of British Columbia being of topmost priority.
The Options

Sell/Wind up his business and pursue summer internship

Expand the services and include cut polishing
Purchase a truck and convert CCD into a mobile detailing company
Partnership with a near-by golf course
Franchise the business

Criteria for Evaluation

Criteria in decreasing order of importance
a. Funding of college education
b. Encourage the entrepreneurship nature of Colin Ford
c. Should not cost his already existing customer base
Evaluation of Options
Option 1:
Evaluation of Options
1.

If Mr. Ford sells CCD and pursues the internship, then he will be earning the same money as he had earned
running CCD in summers, so the first will get fulfilled. But the internship work is less flexible and more
tedious than CCDs and he may not like working there as he likes it in CCD and would also stand to lose his
customer base and thus the second and third criteria will not get fulfilled.

2.

If he considers expanding the services of CCD and includes the cut polishing in the services, then his
second and third criteria gets fulfilled but not the first given he would have to invest more time and money
on this.

3.

If he purchases a truck and converts CCD into mobile detailing company, he needs to buy additional
equipment and increase the price and thus stands a chance of losing his loyal customers and thus the third
criterion will not get fulfilled. Also he needs to invest time and money into this and thus the first criterion is
will not get fulfilled.

4.

If he engages in a partnership with a near-by golf course, there can be challenges of double booking and
handling of payments from golf course clients. The golf course would take 10% of the sales booked in
exchange of CCDs advertisements, thus price hike would be needed to offset the commission. In this case
both the first and the third criteria are not getting fulfilled.

5.

If he franchises the business, he may tap the new market of North Vancouver with population of 130,000.
He will earn monthly royalty in exchange of CCDs name. Thus he could earn extra income to fund his
education without increasing the price and reducing customer base. So all the criteria will get fulfilled.

Recommendation
Mr. Ford should go with franchising his business. His entrepreneurship spirit will be maintained as he does not
have to give up his business. Also he would be able to support the funding of his college by earning the
additional income as royalty to CCDs name.
Action Plan
1.
2.
3.
4.

Contact career services departments of North Vancouvers seven secondary schools.

Share the idea of franchising CCD and select the deserving students who will be able to implement it.
Provide adequate training of complete detailing of vehicles.
Open the franchise and run it for a month.

Number of Words: 727