Assignment Introduction
This assignment provides a method of assessing evidence of your ability to understand and apply the issues addressed in this unit. You are to consider the issues discussed in this assignment in a context related to automotive industry management standards and practises.
On completion of this assignment you will be able to satisfy the learning outcomes for Unit 17 'Managing Used Vehicle Sales Operations', detailed below:
Learning Outcomes
The learner will:
1. Be able to use management, sales and financial information in a used vehicle sales operation (Assessment Criteria 1.1, 1.2)
2. Be able to organise vehicle stock and resources to achieve used vehicle sales objectives (Assessment Criteria 2.1, 2.2, 2.3, 2.4, 2.5)
3. Be able to set objectives for used vehicle sales and profit (Assessment Criteria 3.1, 3.2, 3.3, 3.4, 3.5)
4. Be able to create awareness of the sales facility and vehicle for sales in the catchment area (Assessment Criteria 4.1, 4.2, 4.3)
Completing the Assignment
The structure of this assignment requires you to respond, in writing, to each question or situation as directed. If you would prefer to respond using an alternative method to record your understanding and ability then please discuss this with your assessor.
Read each question or statement thoroughly before you begin constructing your answer. The requirements for responding to each exercise are clearly laid out. You should ensure that your answers are concise, detailed and factual containing supporting evidence to ensure that your assessor can gain an appreciation of your understanding and ability.
You are to answer each question in the context of your own employment experience. Assignment tasks should be related to the functions of your management role and the issues that you experience when carrying out that role. Responses are to include improvements, changes and amendments that you consider appropriate and correct for the task, function or issue you are discussing.
This assignment is not a timed test and you may find it useful to refer to the unit content and your notes when responding to the tasks. Your responses are to be structured in your own words however you may seek information from reference material, manuals, articles and the Internet. It is your responsibility to ensure the accuracy of the information you provide.
Task 1
1 Describe the procedures you would adopt to:
a. Assess the status of authenticity and provenance of a used car you plan to offer for retail sale
b. Apply a fair market value to the vehicle to be retailed.
(Assessment Criteria 2.2)
Key Words: Check, Confirm, Precautions, Compare, Review, Cost, Price
2 State three examples that illustrate elements of risk, a used vehicle sales manager must accept as part of their role for each of the following responsibilities, 2a, 2b and 2c. (You may use a bullet point style answer this section)
a. Used vehicle stock
b. A used vehicle sales objective
c. Sales staff employed to achieve sales objectives
d. From your responses given in answer to 2a, 2b and 2c above, select one of the risk aspects given for each responsibility. Described an action or strategy that could be applied to minimise each of the risk aspects selected.
e. List the most important rules that need to be complied when advertising and selling used vehicles (Assessment Criteria 2.1, 2.3, 4.2)
Key Words: Investment, Cash Flow, Responsibility, Authority, Stock
Explain the importance of Key Performance Indicator (KPIs when applied to the used vehicle sales operation (Assessment Criteria 3.3)
Key Words: Information, Control, Analysis, Performance
State five critical used vehicle sales department Key Performance Indicators that should be measured daily in used vehicle sales operations and explain for each one:
a. what each of the five KPIs measures
b. select one of your five KPIs and describe by bullet point list the actions you would take when the KPI reports underperformance for:
i. one week
ii. four consecutive weeks
(Assessment Criteria 3.3 1.1, 1.2)
Key Words: Measurement, Review, Revise, Plan, Action, Trend
What methods or systems can a used vehicle sales manager use to monitor and control the performances of the used vehicle sales department and individual members of the used vehicle sales team?
Key Words: Measure, Control, Records, System, Reports, Standards
6 Explain the importance of presenting and maintaining a used vehicle display to a high standard.
a. State four actions that can be taken to present and maintain a high standard used car display
(Assessment Criteria 4.1)
Key Words: Presentation, Appeal, Value, Stock, Movement, Information
Task 2
Project Scenario
The dealer principals of a franchised dealership are in the process of conducting the half year department performance reviews with each departmental manager. The two dealer principals are both from an aftersales background and have asked you to contribute your sales expertise to assist them in the review of the used vehicle sales department performance. At the end of the last year the dealership lost its experienced used vehicle sales manager and the current senior sales executive was appointed to the role of used vehicle sales manager.
The used vehicle sales operation achieved reasonable results in the previous trading year when taking into account a small decline in demand for used vehicles due to financial constraints stemming from economic recession. When the current year's budgets were planned at the end of last year the market forecast was for a stable vehicle market that would experience little, if any, growth during the forthcoming 12 months. The management team agreed that to maintain trading stability, budgets would seek marginal growth year-on-year.
You have received the half year management accounts for the used vehicle sales department and have been asked to carry out an in-depth study of them and report your findings and recommend actions to improve negative trends and capitalise on positive performances.
1. Examine the attached Half Year Management Report. Identify the aspects which indicate the strengths of the department performance and those that report under-performance. Investigate the connections and indicators that suggest possible causes of the strong and less strong aspects of the department's results. When you have completed your study you are to prepare a brief report that must include:
a. a minimum of three individual and unrelated aspects of under-performance
b. a minimum of three strengths identified in the department's performance
c. logical reasons extracted from the account to explain a possible cause for each of your identified aspects of strength and aspects of under-performance.
d. Prepare a proposal of action to:
i. rectify the areas of under-performance.
ii. capitalise on the aspects of strong performance
e. Assess the number of operational sales staff and support staff required to achieve the annualised budget objectives and explain the process employed for assessing the staff requirement. (If you wish to include the used vehicle sales manager in your operational team you must justify the balance in the role between vehicle selling and the management of the department.)
f. From the Management Report, identify two potential needs for staff training and briefly explain:
i. the source of the identified need
ii. the rationale supporting the need for training
(Assessment Criteria 1.1, 1.2, 3.3,)
Key Words: Review, Assess, Plan, Action, Improve, Identify, Development
8 Briefly describe Stock Turn Ratio and explain:
a. The effects of a high stock turn ratio on the sales and profitability of the department
b. Over-aged stock
c. The effects of over-aged stock on the stock turn ratio and profitability
d. The systems or methods that are available for reporting the age of individual used vehicles and the collective used vehicle stock
e. Actions that the used vehicle sales manager should take when a stock vehicle is approaching over-age. (Assessment Criteria 1.1, 1.2,2.3)
Key Words: Measure, Project, Assess, Control, Liquidate
a. From the accompanying management information, forecast the used vehicle stock requirement you would recommend as necessary to support the used vehicle sales objective. Briefly explain your rationale for the proposed used vehicle stock holding.
b. State the stock turn ratio you plan to achieve from the proposed stock holding and show the working formula employed in calculating your stock turn ratio.
(Assessment Criteria 1.2, 2.2)
Key Words: Plan. Control, Turnover, Clearance, Policy
10. Briefly explain the following:
a. The term 'Catchment Area' (also known as the 'Sales Area')
b. The socio-demographic variance a catchment area may contain
c. How you will set your vehicle sales targets.
d. How a socio-economic analysis can influence your sales target and the type of stock you will offer for sale. (Assessment Criteria 3.2, 4.1)
Key Words: Assess, Plan. Control, Volume, Value, Policy
11. Describe, using a bullet point sequence, the factors that enable the structure and preparation of an effective marketing plan. Your list may start with 'A clearly stated plan objective' and should include the factors for achieving and controlling the plan.
(Assessment Criteria 4.3)
Key Words: Plan. Strategy, Timing, Responsibility, Control
Attachment:- Managing Used Vehicle Sales Operations.pdf