Managing Resources: Week 7

Final Project Paper

Asbury Automotive Group: In depth financial analysis

Figure 1: Front Picture (courtesy of Asbury Automotive Group, Inc.)

Inga Willis Student ID: 15703635 Word Count: 4,493 July 22, 2011

Table of Contents
Executive Summary .4 1. Accounting Function ....5 1.1 About Asbury Automotive ..5 1.2 Key Resources .6 1.3 Stakeholders..6 1.4 Corporate Governance ....6 1.5 Role of Accounting ..6 1.6 Organization of Accounting .7 2. Financial Accounting Analysis ...8 2.1 Financial Statement Analysis ..8 2.2 General Aspects of the financial Statement..12 2.3 Strategy of ABG...12 2.4 Competition..12 2.5 Social and Ethical Responsibility.13 3. Management Accounting Analysis...13 3.1 ERP System ...13 3.2 Budgeting .....14 3.3 Pricing ......15 4. Financial Management Analysis...15 4.1 Financial Management Strategy...15 4.2 Capital Budgeting.....15 4.3 Success of the Financial Management System....16 5. SWOT Analysis, Suggestions and Conclusion............16 Reference Listing.19

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Index of Tables
Table 1: 8 Table 2: 9 Table 3: 10 Table 4: 10 Table 5: 11

Table of Figures
Figure 1: Front Picture Figure 2: Corporate Structure - 6 Figure 3: Free Cash Flow Target - 8 Figure 4: Dividend Development - 9 Figure 5: Detailed Client Ratings- 12 Figure 6: Kellys Blue Book- 15 Figure 7: Drivers of Gross Profit-17

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Executive Summary

This report will provide an overview of ABG with respect to their financial, accounting , and strategic positioning. Financial statements as of 31 December 2010 as well as previous years performance comparisons have been analyzed in an effort to clearly determine current company posture and make future recommendations. In addition to the financial overview, a SWOT analysis and consideration of the Five Forces Model are discussed with regard to the market positioning of ABG and future outlook. The financial statements of ABG are dispayed in chapter 3 of this report and are illustrated in the chapters tables. Recommendations Include: 1. acquire low cost and green brands that are industry leaders in producing battery or hybrid power
vehicles.

2. Due to the impact of Tokyos natural disasters, which caused inventories to shrink and impacted
the import of vehicles, it is suggested to diversify the domestic brand portfolio.

3. Explore expanding to international territories 4. implement community programs of social responsibility

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1 Accounting function in ABG About ABG Asbury Automotive Group, Inc. (NYSE: ABG), is an automobile retailer headquartered Duluth, GA, employing roughly 7,000 people throughout the United States of America. Founded in 1995 by a group of investors, the company aggressively expanded its corporate management team in 1999 to move toward broader retailing platform. The venture, backed by Toronto investment group Onex Corporation, was a means to build a chain of "megadealers," or automobile retailers (ABG, 2011). Asbury Automotive is not a car dealer, it is an umbrella retail business housing a diverse portfolio containing new and used car dealerships, service, financing and insurance. ABGs mission is to merge multiple visions, the industry knowledge of hundreds of veteran car dealers, the business savvy of world-class automotive and retailing executives, and aspirations of successful dealers we'd like to acquire (ABG, 2011). ABGs objective is to foster further growth by the continued acquisition of multi-location dealerships in prospering US metropolitan areas. Its ten regional "platforms," or dealership groups, are locally branded and comprise 120 dealerships in ten states: Arkansas, California, Florida, Georgia, Mississippi, Missouri, North Carolina, Oregon, Virginia, and Texas. ABG does not currently have international territories, and each of their regional dealer groups are branded as individually owned dealerships, catering to their own target markets. Managers are given the charge of running the individual dealerships as their own business, encouraged to make decisions and their customers are considered their own. There are several competitors within the automotive retail industry, and after an impressive survival of the US economic downturn, ABG is currently the 6th largest auto retailer in the country. With a major focus on continued downsizing and eliminating less profitable facets of the business, ABG maintains a strong focus on dealership acquisitions and centralizing operations. The Condensed Corporate Structure is illustrated below:

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Figure 2: Condensed Corporate Structure (ABG, 2011)

The Corporate structure of ABG has undergone a major shift, reducing corporate staff by 25% as the company has continued to aggressively become more lean in operations. Leanness is a business philosophy focused on reducing cost while continuing to improve product performance. Firms striving to be better, faster, and cheaper than their competitors are characteristic of a "lean" enterprise (Comm & Mathaisel, 2000). This adaptation is a snapshot of many drastic changes made in a valiant effort to save a sinking ship. 1.1 Key Resources

The key resources of ABE include human capital and the immeasurable contribution of goodwill. Goodwill covers attributes such as the skill of the workforce and the relationship with customers (Atrill & Mclaney, 2011). The model of acquisition that ABE has sustained often purchases dealerships while allowing the seller to maintain the management position of the dealership. This posture ensures that the longstanding customer relationships are maintained and that each regional business continues the thumbprint of proven best practices. The brand of the product portfolio has been strengthened over time and the assurance of quality to customer is paramount. Brand image and the quality of the product, that have been generated internally by the business (Atrill & Mclaney, 2011), are key resources for ABE as well. Stakeholders The key stakeholders for ABG are its customers who seek to purchase new and used quality vehicles, receive efficient and cost effective service and competitive financing options. ABGs Employees seek stable employment and contribute the human capital necessary to ensure the perpetuity of the organization. ABGs owners maintain the objective of strong financial positioning, ensure positive returns on investment and offer optimal stockholder position. Stockholders simply want to receive positive returns on investment. Outside lending institutions seek to provide lines of credit for expansion, development and system improvements and to repaid based up agreed terms.

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Corporate Governance
Defined as Matters concerned with directing and controlling a company (Atrill & Mclaney, 2011), ABEs Board of Directors adheres to the poicy that corporate governance is to ensure that we maximize stockholder value in a manner consistent with legal requirements and the highest standards of integrity (ABE, 2011). The Board has adopted and adheres to corporate governance best practices, which are continually reviewed in alignment with Delaware law (the state in where ABE is incorporated), the listing standards of the New York Stock Exchange and SEC regulations (ABE, 2011). These guidelines are in line with the authors expectations and the consistent modification of them are encouraging.

1.4

The Role of Accounting

ABE has a separate financial reporting department. By the retail stores working as independent entities, there is a natural separation between corporate financial reporting and management accounting. As a result of successful ERP implementation, the financial accounting division is able to now produce more time sensitive and detailed information to assist managers and VPs make pertinent decisions based upon current company performance.
The accounting role is now more efficient, in providing the accountants with a snapshot of individual and group retailer performance. By moving to a centralized approach, accountants are now able to produce reports for upper level management based upon financial position. Each stores operating expenses and overhead can now be tracked in real time which has greatly improved the accounting efficiency and its role in the firm. ABG underwent a general ledger (GL) conversion in 2010, resulting in all stores being on a common ledger as opposed to the former process which seperated each dealership and fragmented informational access.

A more detailed overview of the financial and managerial separation is provided in Chapter _ 1.5 Organization of Accounting

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The financial structure is as follows:

Figuere 3: Financial Structure (ABG, 2011)

ABG recognized after the ERP implementation of their current software ADP, that they could not only centralize accounting, but in addition billing and payroll could be centralized by adding an additional module. The transition to the ADP system was predicated by the failure of the Arkona in December of 2008. ABG continued to search for the right fit in software choices which landed them with ADP in 2011. The software has successfully streamlined communication between multiple tiers of the firm and has fully integrated their systems.
The recent and effective change to the ADP system should only be changed if ABGs needs are no longer effectively met and all options of module additions have been explored.

2. Finacial Accounting Analysis The financial statements of ABG will be assessed and weighed against performance of the organization. 2.1 Financial Statement as of 31 December 2010 (with comparison of 2008-2009)

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Table 1: Condensed balance sheet of ABG (ABG, 2011)

Figure 4: Illustrates the profitability of ABG from 2008-2001 (ABG, 2011)

As reflected above, in the fiscal year 2008, the automobile industry was crippled as a result of US economic downturn and ABGs working capital decreased by 50%. This decrease placed ABG in severe financial hardship, and in the 2008 external audit performed by Deloitte and Touche, ABG was found to have a future outlook of going concern. Going Concern is defined by Deloitte and Touche as the Corporations recurring losses from operations, stockholders deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue (ABG, 2011). ABG took the following steps to survive the economic downturn: Restructured credit facilities Endured the bankruptcies of GM and Chrysler brands Sold multiple stores Placed a hold on all acquisitions Suspended $29 million in dividend payments Reduced capital expenditures by 75% Decreased new inventory by $255 million Eliminated 1,500 field positions Reduced corporate staff by 25% Final Project Paper Inga S. Willis 9

Relocated headquarters from NYC to Atlanta Reduced operating expenses by over $100 million In 2010, working capital increased 13% and as a result, the firm gained more financial flexibility toward investments which may include the purchase of additional franchises, buying down exising debt or buying back exisiting shares of stock. Based upon this increase and investment options ABG in a current financial position of solid growth.

Table 2: Detailed Liabilities (ABG, 2011)

ABG has substantial obligations of debt. As of December 31, 2010, the total debt was $550.7 million, including assets held for sale. In addition, ABG has the ability to obtain additional debt to finance acquisitions, purchase of property and capital expenditures which borrowings are subject to the terms of existing revolving credit facilities (ABG, 2011).

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Table 3: Detailed income (loss) statement (ABG, 2011)

Due to steps taken to ensure a more lean approach to business, net income increased 50% from 2009 to 2010. As previously mentioned some of these adjustments included decreasing workforce and relocating headquarters to Atlanta, Ga. These two modifications along with several others ultimately created a net savings of nearly $100 million dollars in operating expenses.

Table 4: SGI detailed expenses (ABG, 2011)

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Table 5: Detailed Statement of Cash Flow (ABG, 2011)

ABG was on the cusp of bankruptcy in 2008 with a net income loss of $343.7 million, yet by 2009 reflected an increase in net income of 266% placing the company back on solid financial ground. 2009 displays a strong performance as well, with an additional 64% increase in net income.

Profitability trends indicate that ABG has made a strong transition to a much leaner, more efficient firm doing much more with less. New Vehicle Revenue includes sales of new vehicles and lease transactions arranged by ABG dealerships with third parties. Fixed period lease terms have created a trend of customers returning to ABG more frequently than non-lease customers. Lease ending vehicles are also an additional source for the ABG used vehicle inventory. Because leased vehicles typically remain under manufacturer warranty for the term of lease, ABG generates additional parts and service revenue by providing warranty repairs.

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Used Vehicle Revenue includes sales to individual retail customers and the sale of used vehicle inventory to auction. The results of sales are measured by unit volumes and gross profit per vehicle sold. Used vehicle sales have historically had higher gross margin sales than the new vehicle inventory and accounted for 225 of total revenues and 14% of total gross profit for the fiscal year ending on 31, December, 2010. 2.2 General Aspects of the Financial Statement

ABG is audited quarterly by independent firm Delloitte and Touche. The financial statements provide a wholistic view of operations, profits and losses. 2.3 Strategy of ABG

The successful positioning of ABG has been earned through a combination of natural expansion and strategic acquisitions illustrated in the following timeline:

Figure 5: Aquisition trends (AGB, 2011)

The ability to continually acquire dealerships ensures rapid expansion. ABGs leadership is clear that any expansion must represent existing footprints and brands. In addition, where less profitable dealerships have been sold, ABG often retains the property ownership and secures additional revenue streams from issuing leases (ABG, 2010). 2.4 Competition Currently ranked as the 6th largest auto retailer in the country, ABG competes amongst various strong and diversified brands. Sonic Automotive- a Fortune 500 company and member of the Russell 2000 Index, is among the largest three automotive retailers in the United States. Operating over 100 dealerships spread across 15 states in 26 major

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metropolitan markets. Representing approximately 30 different automotive brands with the majority of our dealerships being luxury and import brands. Auto Nation (AN)- the largest automotive retail company in America. With 370 dealership franchises in 17 states, AN received the 2002 Global Shareholder Value Award which recognizes excellence in shareholder value creation over one and three-year periods among, manufacturers, suppliers and retailers. In 2007, AN introduced their fuel efficient E-Vehicle program and in 2011, AN stock reached an all time high of $35.76 (www.corp.autonation.com). Penske Automotive Group (PG)- is the second largest publicly traded automotive retailer in the United States as measured by total revenue. As of December 31, 2010, PG owned and operated 172 franchises in the United States and 151 internationally (www.penskeautomotive.com). PG continues to expand its international territories, strengthening its ability to prosper in multiple economies. 2.5 Social and Ethical Responsibilities

Aside from the dealership level of operations and adhering to the legal emmissions limits, and the corporate governance adherance, there is no program in place targeted at community improvement or environmental awareness. This is an area that ABG has room for great improvement by embracing green initiatives, and establishing a community service platform. Considering the proven health effects of emmissions, ABG could position itself and the first Green automobile retailer agressively providing community initiaves that provide health, wellness and environmental target programs to its customers communities. Simple adherance to government and emmission standards does not equate to the level of social responsibility embodied by a business powerhouse such as ABG.
Chapter 3: Management Accounting Analysis 3.1 ERP System

Ideally, the enterprise resource planning (ERP) system is provides integrated programming support for manufacturing, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of the organization communicate by sharing data, reducing costs, and improving the overall management of business processes. In spite of their numerous benefits when successful, at great expense to firms, many ERP systems fail (Aladwani, 2001) and ABG was apparently no exception. The first ERP effort was the Arkona software system in December of 2008, which ABG hoped would centralize their operation, making them more efficient and cost effective, but proved to be Final Project Paper Inga S. Willis 14

ineffective in going paperless and communicating between multiple departments. The Arkona system was implemented company wide at great expense, yet the glitch- filled transition proved inefficient and incapable of handling company needs. Timing could not have been worse, as 2008 was when ABG hit rock bottom. After the firing of the CIO one year later, ABG moved toward implementing the ADP system under new IT leadership. Prior to the success of the ADP implementation, each acquisition at first would have its own individual accounting system which proved to be problematic because the various systems could not communicate nor exchange information. Data was frequently lost as well as time in bridging the communication gap, and in essence, the systems were not congruent. In an effort to streamline and adapt to the struggling US economy and to make reporting a fluid process, ABA switched to the ADP system in 2011, which allows accounting staff at all levels to upload monthly inclusive statements that are accessible to all. In an attempt to centralize billing, ABG transitioned to a paperless billing system that placed the responsibility with a company wide accounts payable system in one location. This greatly improved the accuracy of reporting due to the collective transparency achieved by the transition. An additional issue existed in accounts
payable where due to the high number of stores, receiving individual bills from each store was inefficient. Centralization was again the solution, yet an overwhelming number of invoices began flooding the central office. ABG reached out to vendors such as Auto Trader that could provide one consolidated bill for all national accounts. This improvement was implemented as a result of the accounts payable staff expressing the need for a streamlined billing approach (ABG, 2011). ADP was even more expensive,

yet over time has proven a beneficial investment. In additon, ADP also centralized payroll systems. The previous system (UltiPro) was a stand alone billing system that sent salary information seperately to the corporate office, preventing maximum efficiency. Hyperion remains the accounting system for corporate office, it is a reporting system for upper level use only, and receives and inteprets the information from ADP. ABG credits successful ERP implementation with migrating them to a common dealer management system (30% of stores), implementing a national CRM system (100% of stores), creating the ability to share best practices across stores, re-launching updated, customer focused store websites (95% of stores) and automating payment processes and bank and inventory reconciliations (ABG, 2011).
3.2 Budgeting

After successfuly survivng near fiscal ruin, ABG made adjustments to budgeting proceedures as well. Currently, the majority of budgets utilized are for the advertising arm of the firm. In the retail automotive business, advertising is critical. ABG takes a flexible budgeting approach towards its advertising needs, which provides organizations with a picture of current expectations as the year

evolves. This is a useful tool to compare changes in performance levels as well as expectations throughout the year (Halliman, 2006). The ability to modify the budget as the advertising changes are taken into consideration, comparing actual results against budget expectations are critical to future planning and allows an organization to evolve in the moment (Halliman,

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2006). Advertising costs, methods and needs are ever-changing, and the ability for ABG to modify and adapt as needed is greatly beneficial. ABG is not a target based budgeting company. It is not built upon traditional control budgeting but rather gives branch managers the authority to run, problem solve and make decisions on their branches (ABG, 2011). UK based Beyond Budgeting Round research director Jeremy Hope asserts that traditional target budgeting is archaic and irrelevant in todays world mainly because they encourage dysfunctional behavior by encouraging an unethical approach for managers to meet the numbers (Hope, 2003). Some of the organizations now supporting the BBRT are Volvo, Coors and Philips. The beyond budget approach argues that a new model is needed that empowers front-line management to make decisions in alignment with the modern business world (Hope, 2000). This approach best aligns with ABGs approach and practices. Handelsbanken, a Swedish firm in existence since 1972 that successfully operates absent an annual budget or target setting agenda. Handelsbanken has dominated its competition with an approach of Branch Managers not being controlled but rather encouraged to take control of their facet of the business (with no target initiatives), higher level managers only interfere in decision making where deemed inarguably necessary, and managers are given the freedom to act. The organization has on online information interface; available to all group managers (all levels) that measures productivity and branch profitability. The culture designed gives individual branches the ability to own their own customers and the firm repeatedly tops customer service surveys (Hope, 2000).
ABG follows the approach and design of Handelsbanken, in that branch managers within all ten regions have decision making power, their customers are their own, branches are individually marketed and unless there is an issue that cannot be rectified on the branch level, corporate does not intefere. With the successful ERP implementation of the ADP system, accounting staff on multiple levels have real time access to progress and status, timely reports and manager concerns. Each employee is provided with a computer and internet access, assisting in the efficient approach of real time reports (ABG, 2011). 3.3

Pricing

Figure 6: Kellys Blue Book

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In 1926, Les Kelley published the first Blue Book of Motor Car Values. He showed factory list price and cash value on thousands of vehicles. Les Kelley effectively made the Kelley Blue Book the authoritative source for car values and is still the most major reference to date (www.kbb.com). Market value, economic trends and marketing impact also play a role in pricing.
Chapter 4: A financial management analysis of the organisation

4.1

Financial Management Strategies

ABGs financial strategy is to consistently become as lean as possible, building a platform of more by using less. The organization has successfully come from the pit of financial ruin to a top contender. There is something to be said for the relentless reconfiguring, downsizing and overhauling that it took to eliminate the Deloitte and Touche finding that ABG had a future outlook of going concern. It is

further evident that the benefits of successful ERP imlementation have assisted ABG in finding solutions and an interface that make it more fiscally efficient. 4.2 Capital Budgeting

Capital allocation is considered and undertaken as follows: ABG invests in business and technology, maintains capital expenditures and IT infrastructure investments at approximately $35 million a year. Stock buyback, opportunistically returning value to shareholders utilizing board approved $25 million share repurchase authorization and acquisition in existing geographies to maintain targeted brand mix. With this approach ABG successfully made the following capital investments: Invest capital where risk-adjusted returns are expected to exceed our cost of capital Generated a $26 million pre-tax gain on the sale of heavy truck business Sold sub prime consumer loan portfolio Paid down $7 million in mortgage debt Spent $17 million on property lease buy-outs with another $14 million under contract Repurchased $4 million of Asbury common stock

In 2010, ABG made the strategic decision to sell a non- core business and entered an agreement to sell their heavy truck business. The strategy was to redeploy capital into the core automotive retailing business. Will be a pure play super regional automotive r In addition, ABG acquired five franchises (Jaguar,Lexus,Porsche,Toyota,andVolvo) with estimated annualized revenues of $125million. This purchase expanded firm presence in Greenville, SC, a major and strong market within the existing geographic footprint. As a result of the Greenville, SC acquisition and Heavy Truck divestiture, Asbury anticipates an increase in annualized pre-tax income from continuing operations of approximately $2 million (ABG, 2011).

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4.3

Success of the financial management system

Flexible adverising budgets, identying and investing in an effective ERP software system, as well as a non targeted approach to budgeting give ABG a transparent and communicating financial management platform of success. Further, the commitment to the Lean philosophy identified by Comm & Mathaisel,

2000 displays a constant pattern of elimination of non core facets of business as well as reduction of operating expenses. Although it is evident that ABG suffered tremendous financial hardship, what is most notable is the resilience with which the firm rebounded even after their auditor determined their future unlikely. The impact of the ADP system across all levels and platforms of ABGs organizational structure proves that the ability for a firm to fiscally communicate in real time on all levels is paramount to success. Overall, the financial system in place appears sound and evolving to suit company growth, demand and needs.
Chapter 5: SWOT analysis, Suggestions and Conclusions The SWOT analysis of ABG provides insight toward Strengths, Weakenesses, Opportunities and Threats. In addition, Porters theory of 5 forces are integrated into the analysis as well. Conclusions are drwan based up upon total report findings and suggestions made based upon conclusions. Strengths -This company can endure hardship that would obliterate most businesses -Human capital -felexible budgeting approaches -branch control as opposed to targeted budgeting

Additional Strengths:

Figure 7: Drivers of Gross Profit

As indicated in table 7, parts and service sales accounted for 46% of revenue but for 80% overall gross profit. Although 54% of revenue was generated from the sale of new vehicles, these sales only represent

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20% of the gross profit. Operations provide a diverse base of revenue which mitigates the fluctuation of new car sales volumes. Used vehicle sales, finance and insurance (F&I) and service sales account for 40% of revenue but generated the majority revenue at 80%. These percentages indicate that ABG is not soley dependent upon one facet of its business to generate profit, but rather a combination of services and product offerings. This is also a strength. Weaknesses -The fact that one of AGBs main competitors continues to expand their international footprint and their green initiatives, places ABG behind the innovation curve. -There isnt an advertising angle that seperates ABG from its competitors Opportunities -Green inventory aquisitions -International aquisitions Threats: -Internet auto retailers -Possibility of being bough out -Competitors being more agressive toward international markets -Competitors being more aggressive toward green vehicle acquisitions -Alternative fuel sources -Continued rise in petroleum prices -Buyers moving toward greener vehicles -Buyers moving toward economy cars Parallell to the SWOT analysis are Michael Porters five competitive forces including rivals, customers, potential entrants and substitute products. Rivalry ABG has major rivals that provide the same service, with equal or more resourcesand more expansive territories. High Rivalry is known possibly to limit the profitability of an industry and drive down profits depending upon the intensity of the rivalry. According to Porter, rivalry is particularly destructive if it gravitates to pricing because price competition transfers profits directly from an industry to its customers (Porter, 2008). Customers ABG has establishes customer loyaly and a pattern of repeat buyers, but in economic uncertainty, that pattern can not be depended upon. Perhaps a further diversification of ABGs mixed brand portfolio to include economy cars, which it currently doesnt would give ABG an appeal to less luxury inclined customers. Potential Entrants Michael Dell was looking to buy ABG a few years ago and the fact that the entire portfolio can be purchased places the possibility of entrants at a premium price but ABG could easily become an aquisition for an investor in the righ position (ABG, 2011). With 120 dealerships in ten states

(Arkansas, California, Florida, Georgia, Mississippi, Missouri, North Carolina, Oregon, Virginia, and Texas) ABG has an attractive and proven portfolio. Because automotive retailers are conglomerates, as opposed to single dealerships, the only way that entrants enter as real threats is with multi franchised dealerships and advertising innovation. Final Project Paper Inga S. Willis 19

Substitute Products Within the luxury brands, quality craftmanship in automobile is honestly a matter of preference. The strategic dealership aquisitions of ABG have indeed streengthened their portfolios, yet havent distinguished them completely from their competitors. Automobile retailers purchase dealerships in massive quantities and each possess a brand mix to satisfy buyer preference. AMG can be imitated and is being imitated by other firms. It is a successful firm yet not one of rareness. Conclusion and Suggestions: ABG is a company of enduring qualitites and a financial portfolio that continues to grow. Their approach to a mixed brand, regionally marketed brand portfolio has postured it as a contender. The non targeted approach to budgeting and strong corporate governance have created a culture that rewards performance, encourages decision making on the dealership level and continues to grow through strategic acquisitions that expand exisiting footprints. The investment in a successful and well aligned ERP has not only increased efficiency overall, but it has allowed all facets of the firms accounting levels to share and exchange information in real time. Due to the consistent rise in fuel prices and increasing emissions regulations, it is suggested that ABG consider the following in their aquisition strategy: acquire low cost and green brands that are industry leaders in producing battery or hybrid power vehicles. The US Government has mandated that domestic brands create more fuel efficient vehicles and alternately powered vehicles such as hybrids. Due to the impact of Tokyos natural disasters, which caused inventories to shrink and impacted the import of vehicles, it is suggested to diversify the domestic brand portfolio. It is further suggested that in an effort to be more environmentally and socially active, ABG add a social responsibility target to their corporate governance committees. One of the keys to success as a business is being able to survive a storm, reinvest in the business, contribute to the supporting community and change with the times. ABG appears to be well on its way to doing all of the above.

References: Adel M. Aladwani, A, 2001, Change management strategies for successful ERP Implementation, Business Process Management Journal, 7, 3, pp. 266-275, Business Source Premier, EBSCOhost, viewed 12 July 2011. Asbury Automotive Group, inc., 2011. Annual Report 10k. [online] (Updated ) Available at: http://www.asburyauto.com [Accessed 22 July 2011]. Autonation Automotive, inc., 2011. Annual Report [online] Available at: www.corp.autonation.com [Accessed 21 July 2011].

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Atrill, P. & McLaney, E. (2011) Finance and accounting for managers. Laureate Online Education custom ed. Harlow, UK: Pearson Custom Publishing. Barney, JB 1995, 'Looking inside for competitive advantage', Academy of Management Executive, 9, 4, pp. 49-61, Business Source Premier, EBSCOhost, viewed 17 July 2011. Comm, C, & Mathaisel, D 2000, 'A paradigm for benchmarking lean initiatives for quality improvement', BENCHMARKING -BRADFORD-, 7, pp. 118-127, British Library Document Supply Centre Inside Serials & Conference Proceedings, EBSCOhost, viewed 16 July 2011.

Hallinan, E 2006, 'Budgeting and Cost Control', Reeves Journal: Plumbing, Heating, Cooling, 86, 2, pp. 24-26, Business Source Premier, EBSCOhost, viewed 4 July 2011.
Hope, J, (2003) 'Hope abandons budgets', New Zealand Management, 50, 11, pp. 10-11, Business Source Premier, EBSCOhost, viewed 8 July 2011. Hope, J, & Fraser, R (2000), 'beyond budgeting', Strategic Finance, 82, 4, pp. 30-35, Business Source Premier, EBSCOhost, viewed 2 July 2011. Jensen, MC 2003, 'Paying People to Lie: the Truth about the Budgeting Process', European Financial Management, 9, 3, pp. 379-406, Business Source Premier, EBSCOhost, viewed 1 July 2011. Kellys Blue Book, 2011. [online] Available at: www.kbb.com [Accessed 19 July 2011]. Porter, M.E. 2008, The five competitive forces that shape strategy, Harvard Business Review, January: 23-41, Business Source Premier, EBSCOhost, viewed 22 July, 2011.

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