Question
i need help solving this case using mission,vision,segmentationand case analysis (swot analysis): case: Bob Ross has been approached by a friend / business associate (Carlos)
i need help solving this case using mission,vision,segmentationand case analysis (swot analysis):
case:
Bob Ross has been approached by a friend / business associate ("Carlos") for a loan or to invest in "another" taxi cab.
Bob has been relatively successful in his career in business, growing one tire store to a small chain of 8 retail tire stores / basic service centers in the GTA under the banner of Champion Tire & Auto Centers. Bob has personally amassed a net worth of approximately $5.5 million. While he is not retired, he has stepped back, having sold his business to his son-in-law, and stayed on as more of an advisor with many business contacts accumulated over the years. His stipend for these services is $7,500/month + car + $1,000/month for business expenses that are at his discretion.
His assets are A) $2.2Mil house with only $250k remaining in his mortgage B)
$750k in a cottage C) approximately $2.6Mil in RRSPs and D) $200K in cash.'
Bob met Carlos years ago when Carlos would come in for basic service and tire changes. Over the years, Carlos has gone out of his way to steer other cab owners to Bob's business. Carlos has been in the taxi business and with the BECK cab company in Toronto for a number of years. Initially as a driver, renting a licensed cab as a second driver from the owner. Then buying that license from the owner in the 80's for just under $100k and renting that cab to second drivers for years.
More recently, he drives less often and rents his cab out more often.
Carlos has been very good at finding more "responsible" drivers to rent the 2nd shift and has been able to monitor "responsibility" more closely, as he also drives the vehicle. Carlos frugality has continued as he purchases "used" vehicles and takes them off the road for a day or two every month for maintenance. He owns a $1.2Mil House in Scarborough with $86K remaining in a mortgage. His only other extraordinary expenses are his twin daughters' tuition, as they have just entered their 1st of 4 year programs with future goals of one becoming a lawyer and the other becoming a CA.
Carlos now believes that he can take his experience and ability to find good drivers and expand his business to two vehicles. He believes he can buy another
Toronto Taxi license plus another reliable gently used vehicle for the $100k investment. Then rent both vehicles more often.
While Bob has the "cash", but he is at a point in his life where he doesn't want to make uneducated or high risk decisions. He also doesn't know enough about the Toronto Taxi or "For Hire" business to confidently assess and make this decision.
Bob has come to me as the "principal" of this this advertising and marketing company (John Ross and Associates) for help. Having gained his trust when he opened his first tire & service center, his first and successive advertising campaigns, we have further proven our business acumen when we helped advise in his growth of new store locations, openings etc. We have been the shoulder Bob has leaned on for learning or knowing the market(s) and being able to make the right recommendations. I believe segmentation, targeting, positioning and analyses are key here. As Bob steps back, I want to be sure we prove our worth, in part because of my friendship with Bob, but also for our ongoing business relationship with his son-in-law.
1 (John Ross) have picked you, an employee but rising start at my advertising and marketing company (John Ross and Associates) give me your insights,
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