The Franchise System of the Car Wash Guys Company - Case Study Example

Name : xxxxxx Tutor : xxxxxxx Title : The Boat Wash Guys Co. Institution : xxxxxxx @2009 Introduction The car wash guys company is a renowned franchise firm that was started as a car washing facility. The company first started in 1977 in California under contractors who worked independently before growing in to a number of units. The founder of the company Lance Winslow iii is credited for a number of achievements. The growth in to a number of units led to the decision to move in to a franchise system. At the onset of this decision, no similar attempts in to the same had emerged or been attempted. It was clear that the founder and the entire team at this time had numerous ideas which made it hard for one to exactly figure out what was happening. The decision to venture in to washing other vessels other than cars saw the emergency of a boat washing unit. The boat washing under the subtitle of the boat wash guys was a subsidiary associate of the mother company. Boat washing was geared at enhancing the utilization of the available operational costs offered by the Franchise system. The decision to venture in to boat washing was also geared at using the same franchise system to run a number of other units concurrently with minimal expenses on the administration. Discussion The founder of the company insisted on low costs as the best mechanism of enhancing the stability of the franchise team associates. The mother company under chairmanship of its founder was initially operated without any other employee on the basis of lowering expenses. The reduction of costs with such measures was a strategy that was geared at making maximum use of digital technology .It took the company three years down the line from inception to recruit an employee. “This does not imply that the company was at any point run singly.”1 All the other associates involved with the company were independent contractors or consultants to the company. The founder established ideal strategies and is known to have never drawn a pay. Management strategies used in this type of company were very unique and only common to this franchise firm. These management strategies later enabled the firm to afford a very large marketability for its services. With the launch of boat washing for instance, marketability of the car washing unit was further enhanced as majority of those who brought their boats for washing brought their cars as well. The boat washing facility was a decision that emerged as an opportunity. This was one case of an entrepreneurial venture whose decision was not based on any plan2 . The venture in to boat washing came as a result of a friendly encounter with a client from the boat detailing industry. The exchange of views with yet another two clients from the boat detailing industry then became the basis of the decision to invest into boat washing. The founder on meeting these friends was excited at the height of their magnificent ideas and jointly moved in to boat washing. While on Newport Beach, the founder Lance Winslow met yet another client who at the time dealt with designing the inside of a number of boats. This later client whom the founder sought to jointly work with was also linked to an oil company. The oil change seemed to be the only thing that the founder might have needed to venture further. The car wash guy Lance Winslow then moved in to the boat washing venture that started on Lake Mead. The very first launch was disastrous as every thing turned in to a disgrace. The first boat sank in to the lake and there came a number of emergency costs to meet. This disaster implicated the lack of a proper business plan as the company was not prepared to meet such a case3. There was the investigation in to the accident to be conducted by a safety officer from the lake enforcement authority that was very costly. The company found itself in a very awkward position an aspect that compelled it to seek safety measures. Selling franchise at this time became very difficult. This was in a quest to improve safety in the design of boats that could withstand sinking. The joint decision beared good fruits and the project came back to existence. The only unique strategy that enabled the boat wash guys to return to the limelight was marketing. Every independent associate of the company at the moment was making an enormous a hundred and fifty thousand dollars every year. The founder was better placed owing to his marketing skills. A number of potential clients who came in the cash wash guys model also owned boats. Lance Winslow thus managed to market the boat wash facility to a number of clients in different capacities. The company thus used the car wash customer link to get clients to bring their boats for washing. The come back was later based on offering franchise to already established franchisees of other systems. The growth of the company at this time was very rapid and there was a goal to launch yet another 100 units at the onset of the next financial year4. An aspect that greatly boosted the come back of the wash boat guys was the financial credit from a friend of the boat manufacturer. This financial credit was such a great boost to the company and was just what any other company would go for. The company was making a very good progress but realized that the cost of meeting insurance cover was demanding. Because of the need to promote safety by the government, a number of companies greatly competed against the wash boat guys. This competition coupled with the government push for safety was very harsh on the boat wash guys. At some point, the company could no longer stand the wrangles and its operations came to a halt. At this point, many jobs were lost and none were created. Potential clients were not as many as before an aspect that greatly contributed to the sinking of the boat wash guys. This is one aspect that yet again implies the lack of an ideal business plan. When this happened, the founder Lance Winslow came clear and acknowledged the need to have a prior plan that can accommodate any misfortunes especially when based in a place like Washington D.C. The project is currently operational again but as the founder acknowledges, a lot has been learnt from the progress and the mishaps. The need to critically examine a project arises. The boat wash guys venture is one major prospect that was embarked on without prior planning. The company might never have suffered the many obstacles it endured during its operations. A business plan is an ideal business aspect that helps an entrepreneur to establish a number of aspects before venturing in to the deal. With a proper business plan, a number of items that are bound to disrupt the progress of the venture can be identified in time. It becomes easier to deal with problems that have previously been cited as they will always be an identified solution. A number of problems that the boat wash guys faced had never been anticipated since there was no prior planning that would have identified them. The role of marketing was properly utilized in the progress of the boat wash guys company. The founder Lance Winslow had prior marketing skills form the car washing facility. Luckily for them, a number of potential clients that brought their cars for washing also owned boats and would thus bring their boats along. It is demanding for any entrepreneur to identify and associate them selves with a certain goal in any venture. An investment where no mission exists is hard to mould. The need to change from one business prospect requires proper assessment of both the current position and the future5. There is need to identify a number of factors in the same line of operation. The business trend followed by other investors in the same operation if established is very ideal for any new entrepreneur. Competition is a factor that needs to be critically examined. A number of investors have severally failed to achieve their best with competition. Competion like what the boat wash guys faced is not an aspect to be viewed as an obstacle. It is through competion that quality production is attained. Fair competition if properly faced is an aspect that can greatly influence the progress of a company. It is advisable for entrepreneurs to strategically identify whatever makes the opponents top. Competition calls for a clear analysis of the failures and successes of prospective opponents. This is an aspect that will in turn enable the new entrepreneur to establish strategies that can overcome the established shortcomings and later emerge on top. Fair competition through quality production also boosts consumer confidence6. A company that does not stand competion risks losing its customers to the competitor. The boat wash guys did not identify any aspects that enabled its competitors to emerge over them. This led to their disappointment and failure when their customers sought to be served by other companies. Change management from one venture in to another venture of any capacity calls for assembly of a number of factors. There is need to adopt a clear model that can be used in any change process. The Burke –Litwin model of organizational change is one among many models that can be used7. Any change process calls for a great involvement of the leadership. The type of leadership in the boat wash guys company is responsible for all that became of the company. The decision to move in to other vessels from what was only a car washing and franchise company was made by the founder Lance Winslow. This is an aspect that needs to be exemplary and calls for the need to acquire good leadership skills. The type of leadership in any firm determines the type of culture in the firm. Conclusion The car wash guys company is one company that has invested in a number of sectors other than what it was initially involved with. The company under leadership of Lance Winslow changed drastically over time with the quest to shift from one venture in to several ventures. The change process especially with the launch of the boat washing unit may not have been properly planned. This saw the company rise and fall severally. These challenges offered opportunities for the leaders to learn from at some point. Change in any organization can prove very disastrous if a proper plan is not identified. Lack of planning in the boat wash Guys Company is an aspect that can be attributed to the many challenges the company suffered. Bibliography Charles Merle et al, New products management, Cambridge University Press, Cambridge, 2000. Read More