LCBS5058 Developing Enterprise Assignment Sample
1.0 Key Partners
Figure 1: Smart art of Key Partners of Saturn
(Source: In MS Word Self created)
In the name of Saturn LLC the Saturn Corporation is also known. This company is one of the major American manufacturers of automobiles. In the year 1985 for the month of January 7, the establishment of this organization is done (Pasley and MacCarthy, 2020). The Key partner of this company is general motors. The competitor of this company is also in the automobile industry. This company also merged with its partner General Motors in 2008 on the month 2nd December and on to the four core brands this company has put its major focus on with the sale, closure of Saturn, consolidation, and with the remaining brands. The remaining brands also the key partners of this company are Hummer, Pontiac, Oldsmobile, and Saab. But later on, these companies discontinued their individual services also (Ali and Hingst, 2018). The companies that are owned by Saturn are Onstar, General Motors, and the Motors Liquidation Company. In form of the subsidiary company of general motors’ this company also works. In the year 2010, the disbanding of Saturn also happened which is the reason for the current situation no current model is found of Saturn nowadays. In spite of the disbanding, there are some of the models of Saturn that are still maintained by one of the partners that is general motors. Despite having many partners this company has failed majorly because the extension of the initial cost is done. The initial cost of the setup of this company was $5 billion. The covering of the huge costs failed to be done by this company of its subcompact prices with the huge cost of operating a dedicated plant. In this regard with other brands of general motors’ very few parts are produced by this company through the cars that are already produced. That is the in the sales of its cars this company was losing around every day basis $3000. In the Saturn corporation, the electronics segment of this company is the German company and this company has its stores electronics there (Hebert et al. 2019). By the ceremony of the retail trade ceremony, Media Saturn Holdings are constituted with Media Markt. In 2017 the metro group it was a spin-off. The car makers of VUE, AURA, Outlook and more is the Saturn and regarding the reappearance of this company no major responses are provided by General Motors (Juden 2022). With Pontiac, Hummer, and Saab the restructuring is done by this company from 2008 to 2009 when Saturn was axed. The release of Vue Red line is done. The transmission of Honda is received by the Hinda and Honda J35S1 engine is received by the V6 models of this company. It has become one of the important points of sales for this company also.
2.0 Key Activities
Depending on the case study of the Saturn corporation regarding the plant retailer link improvement in the auto industry supply chain the key activities of this company are going to be discussed. Regarding the finished vehicle transportation to the Saturn retailers in the United States from Saturns Spring Hill this route is chosen. Regarding the process of delivery, insight is going to be provided. The objective of the current system performance and the processes of the stakeholders are also going to be discussed (Kasmir and Gill, 2018). To compete with the most prominent imports of foreign on a head-to-head basis regarding small cars general motors’ have begun their work on a formal basis. To high tech, the auto industry of the US is losing its grounds constantly which also include high quality and the reasonable image prices of several auto manufacturers of foreign. In 1985 in the month of January, the process of planning comes to an end result of the Saturn Corporation. In form of the subsidiary of General Motors, the formation of Saturn happened. From the parent company for operational reasons this company is provided with operational independence. This step was taken because by this it will get ensured that the in form of a creative company and innovative company this company will emerge broadly. From the rigid corporation structure of General Motors, this was a significant departure for this company, Because of this for the entire corporation family of General Motors; this has become a risk considerably. For the project of Saturn, the $5 billion allocation is done by GM in the automobile industry of the US (Bray et al. 2019). For the suitable location search that is publicized highly an extensive amount of expense is borne by Saturn. After an extensive search, the location was chosen as Spring Hill. Only 1100 people population was present at that time in Spring Hill. From Nashville, this was only 30 miles south. From the population of the nation that is 60% of the site is within 600 miles. The significant concession on tax is not provided to Saturn by the State of Tennessee (Стоянова et al. 2020). To Saturn, the state agreed that it will provide this company with around $50 million for the training of employees and for the improvements of the highway. For the construction of the parkway of Saturn from $50 million around $30 million are used. With interstate 65 four lanes are present in it that divide the highway and between the facilities and plants, this makes a major connection. In 1989 the completion of this project was done. By the CSX at that time from the, to and from the site, the services of Rail are provided and in this regard in 1988, the construction of the rail spur is done through this by Saturn. Significantly located at Spring Hill the proximity to the relative abundance and to a large number of potential customers the options of transportation have appeared and regarding it decision is also influenced significantly.
3.0 Key resources
In order to minimize the in-transit inventory and the in-plant inventory the deployment of the just-in-time method of inventory is done the Saturn. On the transportation of the truck primarily that’s why the Saturn relies on mostly. To reduce the cycle time of the order this company also relies on the excellent highway (Keeley et al. 2019). The time wherever a component is required at that time to maintain that arrival and keep the inventories the cost of inventory is calculated by this company. The time when the system of the vehicle makes the exit at that time by Saturn at that time for loading purposes is staged and inspected within the area of rail loading or in the area of loading of trucks. To meet the specific customer and order of retail the production of each vehicle is done by this company. In this regard before reaching the area of staging the transportation, the final destination is known way before that. With the customers, the final link that is established by Saturn is concerned with the corporate philosophy of Saturn and it is also one of the major or important aspects of innovation for this company in terms of the dealer of the automobile sector. In the name of the market, area approaches the retail strategy of Saturn is known. In form of a retailer, the dealers of the Saturn are referred. A well-defined area of the market is present for each retailer of this company. Rather than the brands that are very popular the inventory of this company is very much lower (Wong 2020). The inventory is very limited of this company which is the reason the demand for the products of this company is maintained constantly. To the information on product scheduling, the integrated information system of Saturn provides quick access (Cocciò 2021). Completing the order of a customer is very much helpful and handling the customers also it is very much helpful. Various queries of the customers are also solved by this company through this process. The exact date of delivery is not provided to the customers, in spite of that a scheduled date of production is provided to them for the order of every vehicle. By the retailers of Saturn, the prices of retail are not set up. It is set up by Saturn itself. That is the reason in form of a one-price policy is present with no presence of haggling. For the same vehicles that are equipped for the customers, a similar price is taken from the customers regarding that product and in the same manner; every customer is treated also accordingly. To the first-time buyers of Saturn products the special attention that is provided is very much appreciated by them. The low-pressure situation that is provided by Saturn to its customers is very much preferred by its customers. A picture is taken of the first-time buyer whenever a new vehicle is picked up one of their first-time buyers.
4.0 Value propositions
4.1 Gain creators
The decision regarding the scrapping of the Saturn brand is taken by General Motors in recent times and because of this various retailers have got triggered significantly in which the opportunity of recasting is missed by General motors’ on a larger scale and this opportunity is also missed by the auto industry of the US also (Andreola et al. 2021). Some of the innovations of the Saturn company are adopted by the other manufacturers. What is required to be done and what is not required to be done regarding it the roadmap is provided by Saturn as the auto industry of the US making the adjustment with the world from the post-financial crisis. To the brand with an emotional connection the strategy of Saturn is to build the community. In the early days of its business, this company made various types of innovation following the corporate strategy. On the right foot, the journey of the Saturn Company has started with a market focus in form of an autonomous division (Grimes et al. 2019). In the starting days, this company has also focused on the quality of its products and they have not let it go down in its course of business, Regarding sustaining that effort the parent company of the Saturn and the Saturn Itself have failed drastically, That is the reason later on it ended on the wrong foot with the production and the internal squabbles that also includes the cost-driven focus (Sung and Goebel, 2018). Just a few years later the efforts of Saturn started to be tied up by General Motors. Regarding the boldness of the ideas, the story of Saturn is not very effective but in this regard, the following through is unable to be done by General Motors.
4.2 Products and services
Figure 2: Products and services of Saturn
(Source: In MS Word Self created)
The products and services of the Saturn Company all revolve around its cars. In the year 1997, the first North American General Motors Vehicle was Saturn. With right-hand drive, this car is fully built. The assembly line is followed by the left-hand vehicles of the Saturn the same assembly line is followed by the Saturn for its right-hand-drive vehicle also. During its course of business, Saturn has provided valuable services to its customers and various cars have also produced by this company and these are Saturn Prototype 1984, Saturn Prototype 16988, Saturn CV-1 2000, Saturn SCX 2001, Saturn LST, etc.
4.3 Pain relief
The customers are very well treated by this company. By maintaining the quality of the product this company has provided many valuable products or cars to its customers and in the long run, has provided major services to its customers also (MacCarthy and Pasley, 2021). That is the reason the customers have major faith in the business of this company and continued to buy the products of this company. But due to some issues regarding logistics and transportation this company has got shut down and GM is trying to scarp this part of this company from its brand.
5.0 Customer relationships
For many companies, the satisfaction of customers and a better relationship with the customers are very much important. For Saturn also it remains the utmost priority that in its course of business this company has continuously maintained a better relationship with the customers.
The customer relationship is maintained by this company by following some financial aspects and these are more with a company the people who will remain are the customers who are loyal. With loyal customers, the margin of profit will also get increase. To the price shop, the customers who are loyal are least interested (Dahlgaard et al. 2019). A great force in the market is served by loyal customers and by those customers the best advertisement is done. The advertisement strategy that is adopted in this regard is the word of mouth. The likes and dislikes are openly said by loyal customers without any hesitation. That is the reason Saturn always maintains a better relationship with its customers and strives towards building loyal customers. The time when correct behavior or treatment is gathered from others at that time it feels very much better.
These are the aspects of loyal customers that are very well known by Saturn that is the reason during its course of business Saturn always maintained a better customer relationship and loyal base of customers.
6.0 Channels
Through various channels, the operation is conducted by Saturn, and those Channels are manufacturing, logistics and travel.
7.0 Customer segments
Figure 3: Customer segments
(Source: In MS Word Self created)
The customer segments that are maintained by the Saturn Company are geographic segmentation, behavioral segmentation, psychographic segmentation, and demographic segmentation. Depending on those segments customer segmentation is also present for this company depending on income, gender, age, marital status, and education.
8.0 Cost structure
| Hourly payment | Average artwork size | A piece of artwork cost | Using the two tier method the cost of the painting | Using the three-tier method the cost of the painting | The overhead required to create an artwork | Average size of the piece of work |
| $30 | 80 | $2400 | $400 | $4200 | $4600 | $7030 |
| Simple art working time | 5 Hours | Doing painting using clay | 90 Hours | Doing painting using clay | 90 Hours | Hour difference 0 |
| Detailed art working time | 8 Hours | Doing painting using paint | 40 Hours | Doing painting using pain | 60 Hours | Hour difference 20 Hours |
| Intricate art working time | 18 Hours | Doing painting using other products | 50 Hours | Doing painting using other products | 200 Hours | Hour difference 150 Hours |
| Total | 31 Hours | 180 Hours | 350 Hours |
Table 1: Cost structure
(Source: In MS Excel self created)
9.0 Revenue Stream
The major revenue stream is coming from this company by selling its cars. Through huge investments from the government of Tennessee, this company has earned a huge amount of revenue through which during its course of business have expanded its business throughout the United States. Another major revenue stream is acquired by this company through its customers. Throughout the years this company has maintained its customer base those are loyal to them and they also maintained a better relationship with its customers by providing various new and affordable services. Through advertising fees and through brokerage fees, through the advertisement fees, through the revenue of the various projects, licensing and copyrighting, service revenue, and transaction-based revenue this company earns its revenue and this is the major revenue stream of this company those works majorly for this company.
Reference list
Journal
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Andreola, M., Pianegonda, A., Favargiotti, S. and Forno, F., 2021. Urban food strategy in the making: Context, conventions and contestations. Agriculture, 11(2), p.177.
Bray, R.L., Serpa, J.C. and Colak, A., 2019. Supply chain proximity and product quality. Management science, 65(9), pp.4079-4099.
Brondoni, S.M., 2019. 4.0 IR, Oversize Economy and the Extinction of Mammoth Companies. Symphonya. Emerging Issues in Management, (2), pp.8-24.
Cocciò, W., 2021. Analysis of 5 automotive companies: how the financial markets are responding to a rapidly evolving sector.
Dahlgaard, J.J., Reyes, L., Chen, C.K. and Dahlgaard-Park, S.M., 2019. Evolution and future of total quality management: management control and organisational learning. Total quality management & business excellence, 30(sup1), pp.S1-S16.
Grimes, M.G., Williams, T.A. and Zhao, E.Y., 2019. Anchors aweigh: The sources, variety, and challenges of mission drift. Academy of Management Review, 44(4), pp.819-845.
Grimoldi, A. and SWAMINATHAN, S., 2022. The role of infrastructure in the automotive value chain.
Hebert, M.G.B., 2019. From the arsenal of democracy to 0% financing: Promotional communication at General Motors (Doctoral dissertation, University of Illinois at Urbana-Champaign).
Jennejohn, M., 2019. Braided Agreements and New Frontiers for Relational Contract Theory. J. Corp. L., 45, p.885.
Juden, R.P., 2022. A Cautionary Tale from Nevada’s Desert-People Before Company: A Case Study on Economic Development Approaches in Nevada.
Kasmir, S. and Gill, L., 2018. No smooth surfaces: the anthropology of unevenness and combination. Current Anthropology, 59(4), pp.355-377.
Keeley, K.O., Wolz, K.J., Adams, K.I., Richards, J.H., Hannum, E., von Tscharner Fleming, S. and Ventura, S.J., 2019. Multi-party agroforestry: emergent approaches to trees and tenure on farms in the Midwest USA. Sustainability, 11(8), p.2449.
MacCarthy, B.L. and Pasley, R.C., 2021. Group decision support for product lifecycle management. International Journal of Production Research, 59(16), pp.5050-5067.
Pasley, R.C. and MacCarthy, B.L., 2020. Group decision support for product lifecycle management. International Journal of Production Research.
Sung, E. and Goebel, T., 2018. International expansion of retailers: the role of technical expertise, alliances and allocation of resources in economic crises. International Journal of Technology Marketing, 13(1), pp.51-82.
Wong, T.W.D., 2020. The effects of supply chain innovation, dynamic capabilities on supply chain performance in fashion industry.
Стоянова, О., Лёзина, Т. and Иванова, В., 2020. The framework for assessing company’s digital transformation readiness. Вестник Санкт-Петербургского университета. Экономика, 36(2), pp.243-265.
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