Tire City Inc. Case Study

Improved Essays
Tire City Inc. is a retail automotive distributor in northwestern United States. The company was rapidly growing with 10 different shops, throughout the U.S. Jack Martin, Chief Financial Officer of Tire City, was preparing for a meeting with the bank, he is requesting a bank grant for a five year loan for an expansion of the companies warehouse. At the end of 1995 had $23,505,000 in sales and had $1,190,000 in net income. During the past three years sales have grown 20% compounded annually. This record proves the success of the business, and excellent reputation for service and great customer satisfaction.
In 1991 Tire City borrowed funds from MidBank to build a warehouse. The loan was being paid in equal installments of $125,000. At the

Related Documents

  • Improved Essays

    The founders do not plan to sell the product directly to consumers, so they are currently beginning to reach out to businesses that would be potential distributers of the product. The firm would ultimately like to form a partnership with an outdoor sporting store such as REI, Gander Mountain, Cabela’s, or Eastern Mountain Sports. This would be the best way to reach the target market of consumers age 18-35 who are active campers and hikers. Additionally, being placed in an outdoor sporting goods store delivers the message the brand hopes to send, as it is being marketed as a product specifically for this demographic. There is additionally a possibility that a partnership could be beneficial as many of these companies have shipping materials…

    • 912 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Midas is one amongst the highest automotive service suppliers in North America. With a dominant share of the market in exhaust and brake product, franchise has distended its line of product and services to handle all upkeep desires. Franchise currently offers brake service, exhaust service, state emissions inspections, beginning and charging systems, tire sales, steering suspension service, heating and air-conditioning service, and preventive maintenance. If the franchise is a failure then, it would additionally create a falldown in the robust business client base by promoting Fleet Maintenance Services, which is another multi-billion greenback chance destroyed. The motor vehicle repair business is poised for growth as a result of additional…

    • 601 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Dalla L. Myers Summary

    • 307 Words
    • 2 Pages

    On February 25, 2008, the United States District Court saw a case between Darla L. Meyers and LHR, INC. Plaintiff Darla L. Myers financed a vehicle sometime prior to February 9, 2001. The financing responsibility was then transferred to LHR, Inc. sometime before February 9, 2005 with S & P for collections. Myers is alleging there is a violation of the Fair Debt Collection Practices Act, the Rosenthal Fair Debt Collection Practices Act, and for violations of California’s business and Professions Code § 17200.…

    • 307 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Marshall is the purchasing agent for the DigitoolArt Corporation. His duties require him to negotiate and execute contracts to purchase office supplies and equipment for the corporation. Assume that Bronson, a computer salesperson, pays Marshall a $20,000 kickback to purchase from him computers needed by the DigitoolArt Corporation. What breach of the duty of loyalty has Marshall committed here? A) competing with the corporation B) making a secret profit C) self-dealing D) usurping a corporate opportunity 4.…

    • 992 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    While in the meanwhile Discount Tire as a whole tends to utilize micromarketing most frequently. Discount Tire takes precedence in allowing for maximized customization for their consumer’s. They attempt to create an experience for their customers to differentiate themselves from their competition. This experience that I am talking about is how they offer mass customization to each consumer in a sense that makes the overall experience more personable and more pleasing to the consumers (they are able to see what they are getting, you know what to expect when it’s all…

    • 914 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    At the time Bradley offered to borrow $175,000 on a term loan basis from the bank to repay an existing term loan from Commercial Mortgages. The bank agreed to the proposal, but increased the rate on the operating loan from prime plus one-half per cent to prime plus three-quarters per cent. The bank held receivables and inventory as security for the operating line and a mortgage on the property for the term loan. In addition, there were covenants that RLBS had to maintain a working capital amount of $330 thousand and stockholder’s equity of $275…

    • 4596 Words
    • 19 Pages
    Great Essays
  • Decent Essays

    As a consultant to AutoZone, examining their strengths, weaknesses, opportunities, and threats through a comprehensive SWOT analysis would be an appropriate first step. First, AutoZone encompasses a far-reaching footprint through its many US based locations, which provides for quick delivery, easy in-store pickup options, and an overall superior distribution option. Additionally, its strengths include expert level customer service, proprietary product offerings, and continued strong financial performance. Perceived weaknesses in the organization incorporate the slow growth experienced in their commercial division and the extensive product inventory they maintain which leads to a protracted turnover rate. Opportunities are potentially gained through additional proprietary product offerings to assist in maintaining low price points.…

    • 458 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Business US Highway 41 was a state trunkline highway and business loop off US 41/M-28 in Marquette, Michigan, along Washington and Front streets. Serving the downtown area, the two streets originated with the founding of the city in the mid-19th century. The original city hall was built in 1895 on Washington Street. In 1910 the city started paving its streets, replacing wooden planks with asphalt; later that decade, Washington and Front streets were included in the state highway system. In 1926 they were included in the United States Numbered Highway System.…

    • 166 Words
    • 1 Pages
    Decent Essays
  • Great Essays

    Fat Tire Case Study

    • 2400 Words
    • 10 Pages

    First, in order to acquaint New Belgium products into new markets, the company should employ a specialized sales team that will go into local bars and pubs and buy New Belgium products for locals. This will begin the grassroots campaign which New Belgium has thrived upon throughout their history. In order to keep the company culture in the new eastern brewery, the co-founders Jeff and Kim Lebesch should be sent to head the new branch. Because the culture and values are already entrenched in the Colorado brewery, the New Belgium culture would be more easily maintained there without the founders being present. Then the founders could personally oversee the implementation of the culture in the new…

    • 2400 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    By how much do your recommendations for these two items reduce annual cycle inventory, stock out, and ordering costs? Summary This case portrays the issues confronting Sue McCaskey, the new materials administrator of a wholesale merchant of car parts. She looks for approaches to cut the bloated inventories while enhancing client administration.…

    • 1101 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    AutoZone celebrated while some businesses deteriorated in the past economic recession. The customers stop spending money and no customers was buying cars due to the recession. The customers depended on their automobiles. The older cars could be fixed easily such as the batteries, headlights, and fuses to make sure they had reliable transportation. The macroeconomic factor could not thrust the stock alone due to the demand of auto parts which makes it the foundation.…

    • 224 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    The ethical problem in the case against Ledbetter vs. Goodyear Tire and Rubber Company is that the company unfairly paid Lilly Ledbetter while working there for 19 years due to her gender. Unfortunately, women have had a hard time gaining respect. They only wanted to be treated fairly and received the same pay as others. In some cases, it states that women will not be able to get paid equally regardless if it is for the same job function.…

    • 1043 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The Treadway Tire Company Job Dissatisfaction and High Turnover at the Lima Tire Plant The Treadway’s Lima, Ohio, tire plant has a severe problem that out of 50 foremen at the facility, 23 had a turnover in 2007. Ashley Wall, Director of Human Resources at Lima tire plant had a meeting with Brandon Bellingham the plant manager to present the projected year-end turnover. Wall knew that the turnover rate in Lima was higher than at other plants in the division. Wall’s recognize it was now November 28, 2007, has almost one month before Christmas to give her recommendation to the plant manager on January 2.…

    • 1090 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Michelin as one of large tire companies has picked differentiation competitive strategy in order to dominate market. I consider two major determinations of why it has chosen this strategy that drive profit for Michelin in the rapidly changing world. Firstly, Michelin has attempted to have positive influence in customers via brand image. Michelin has worked on making brand image for long time, and the firm did it via investment in Research & development. Now Michelin has a diversified brands portfolio.…

    • 1036 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Dubai Logistics city project is the world 's first integrated logistics and multi-modal transport platform - with the new Dubai Logistics City (DLC), Jebel Ali Port and Free Zone and the new Jebel Ali International Airport (JXB) at its core. It is set up as another free zone in the desert, for reasons of vast expansion possibilities and close proximity of Jebel Ali International Airport which benefits companies for the perfect tri-modality within a single customs bond. Furthermore it is very easy to change freight from air, sea, or land transportation to neighboring countries as well as further locations. The reasons that have led to this project was although the existing facilities in the Dubai cargo village are considered to be the best…

    • 740 Words
    • 3 Pages
    Improved Essays