Final Recommendations



organizational communicationFinal RecommendationsTom Henry ChevroletKate Henry – Joel Richardson – Brian Pell – Carlen Barnett – Shelby Mander – Erica Keith – Zach Butler4/30/2013Throughout the course of this semester, it has been our assignment to study an organization in order to learn about the issues of the business and give our recommendations for improvement. We chose to study Tom Henry Chevrolet, a local car dealership. We made this choice because the business had an interesting and extensive history, was close by, and was unique compared to other groups. It also gave us the benefit of seeing the inner workings of a small locally-owned business, as well as the chance to look at a broader national company. Throughout this process, we’ve learned about the history of this business, studied its organizational structure, analyzed the issues of the car industry at large, and gotten to know some great business leaders along the way. You cannot fully understand an organization in the present if you do not know its past. In order to fully grasp the culture of Tom Henry Chevrolet, we began our project with a profile of the organization. Next, we analyzed the issues of the automobile industry at large; specifically, General Motors. Finally, we interviewed two key leaders at Tom Henry Chevrolet. After gathering this information, we applied our studies of organizational communication and made recommendations for the dealership. Chevrolet was founded in Detroit, Michigan in November of 1911 by racecar driver Louis Chevrolet and General Motors founder William C. Durant. In 1918 it was fully acquired by Durant and General Motors, when Chevrolet sold his share of the company. Today it is the world’s fourth leading automobile brand due to Durant’s emphasis on performance, durability and value. The logo for Chevrolet has many origins, all differing and none of them verified. The most likely explanation is that it is based on wallpaper that Durant once saw in a French hotel. Chevy’s immediate appeal was largely due to the electronic innovations included in their cars and trucks that were usually reserved for more high-end luxury cars. The first Chevrolet, the Series C Classic Six, featured an electric starter and electric headlamps, both of which were rarities for even luxury cars. These electronic and technological advancements are what defined Chevrolet as an affordable luxury car. Chevrolet has continued to push the boundaries of what cars can do with each decade and has recently been pushing for more “eco-friendly” cars such as the Volt and the Spark. Tom Henry Chevrolet was founded in 1958 in Bakerstown, Pennsylvania by Thomas B. Henry, a returning war veteran. Tom’s interest had always been in cars. As a child, he spent much of his time at his grandfather’s gas and service station. After high school, he joined the army as a supply truck driver and emergency mechanic. When he returned from the war, it seemed natural to open a dealership of his own. Within four years of opening, Tom had moved his dealership to a prime location on Route 8 and added on to his building three times. In the coming years, he would turn his small dream into a successful business. In 1982, his son, Thomas G. Henry, took over the family business, and remains the owner today.Chevrolet has created several types of cars to appeal to various target markets and demographics, including trucks, sedans, SUVs, small cars, and sports cars. The most common target market of this automobile company is that of the middle class consumer, specifically White and Hispanic. Statistics show that more males purchase Chevrolet than females. Additionally, majority of buyers are between the ages of 25 and 44.Tom Henry Chevrolet is located in Bakerstown, PA which is a small, close knit town. Approximately 18% of the population is between the ages of 31 and 40. Around 25% of the Bakerstown population is between the ages of 11 and 20, which means they will soon be within the age bracket that buys the most Chevys. Of the residents of Bakerstown with an income, 20% are earning between 65 and 75 thousand a year, another good target market.The staff structure of a car dealership is generally the same across the board. However, it can vary depending on the size of the dealership and the range of services it provides. The dealership owner manages the entire dealership, while another manager works directly with the various departments. The most obvious department is sales, which may be split up into used-car and new-car sectors. Another department is finances, which arranges the financial portion of the sale with the customer. An accounting and billing department works with tracking the deals as well as service and repair bills, but does not typically interact with the customer. Finally, the service department, or “fixed operations,” includes repairs, service advisors, porters, and drivers who work directly with the maintenance of the vehicles. On top of all this, there is also the ever-important marketing and advertising team that promotes the dealership and its campaigns.Tom Henry Chevrolet largely sticks to this structure. Tom Henry is the owner and dealer, while Corey Holland is the general manager of the dealership. The dealership breaks their structure down into “teams.” The first team is the “office team,” made up the office manager, who is also in charge of accounts receivable, and the title clerk, who heads up accounts payable. Next is the “sales team”, consisting of a general sales manager, a used car manager, and five sales consultants. Tom Henry also has an “internet department,” made up of an internet sales manager and a digital media coordinator. A sole business manager makes up the finances department, presumably working with the aforementioned office team. Finally, the GM service department is broken down into advisors, the service team, parts team, and collision team. Tom Henry also boasts an employee that is the wrecker driver and “everything else.”Tom Henry Chevrolet also offers a wide variety of services. The dealership sells high quality American-made vehicles in a highly comfortable and accessible facility. Maintenance, repairs, collision, emergency, and quick lube are all jobs Tom Henry is more than capable of fulfilling. The dealership has a service center with twenty-two bays, all manned by Chevrolet certified technicians. In addition to the car dealership, Tom Henry is well-equipped in the racing world, specializing in Camaros and other Chevy performance vehicles. Tom Henry Racing (THR) can furnish your Camaro with new performance or cosmetic upgrades of all kinds, like a recent vehicle made to resemble Bumblebee, a car from the Transformers series. It is this quantity and quality of services provided that sets Tom Henry apart from other dealerships.However, the car world is not always as fun as it may seem. In May 2009, General Motors sent letters to 1,100 dealerships announcing the termination of their contracts between the privately owned dealership and the corporation. This decision was largely based on sales volume and location in relationship to other GM dealerships. The letters were sent before GM officially declared bankruptcy, but after the federal government became involved in in “bankrolling GM’s ongoing losses”. Three months later, The Huffington Post reported that 2,100 GM dealerships would be closing. After the initial cut in dealerships, GM then announced their intention to standardize the appearance of dealerships. GM wanted dealerships to update to a modern look that was preset by the corporation. The corporation hoped that a new, modern feel would attract customers away from the competition. Because these changes were announced during the end of the financial crisis, many owners did not have the financial means to revamp their dealerships to meet corporation standards. Tom Henry Chevrolet was lucky enough to have the opportunity to make the changes, but some local dealerships like Sullivan Chevrolet were not so fortunate and forced to close their doors. Tom Henry presented building plans for a new dealership to Richland supervisors in September 2011. He was planning to build a 20,000 square-foot dealership with GM required amenities such as a drive-in service area as well as ADA approved bathrooms. The new building will replace the over fifty year old 17,700 square foot dealership. The obvious goal with the new dealership would be to provide more incentives to new Chevrolet customers. Just last week, the old building was knocked down, with paving plans to commence within the month. The new store will have its grand opening in the spring, most likely at the beginning of May. Though no one can predict the future for certain, Tom Henry Chevrolet has proven itself to hold a certain resilience, a critical yet intangible asset. It is their hope that this resilience, combined with strong family values and a commitment to integrity, will lead their business for many years to come. At the same time, this unpredictable future stems from problems in the corporate structure at large rather than the abilities of individual dealerships. The auto industry is no stranger to organizational scandal and misunderstanding, especially within the span of the last several years. Around 2008, GM slowly began the path to bankruptcy. The causes for this cannot be traced back to a singular problem. It was likely the amalgamation of poor management, inability to change with economic tides, and failure to recognize when to file for Chapter 11 that sent GM running to the government for a bailout. Many economists see the collapse of GM’s finances as the result of poor business management when the company was run under Durant and later by Alfred Sloan. Upon its formation, General Motors was not a congruent and universal company, but rather a fife of 39 different companies including the powerhouses of Cadillac, Pontiac, Oldsmobile, and of course, Chevrolet. The company never quite figured out how to operate as one unit, leaving these individual makers to decide what was best for their own brands. It was no secret, either, that these separate branches all fought and competed against each other, leaving GM in a state of financial instability.Another problem that General Motors faced was their advertising campaigns. They were known for their unbelievable deals and rebates. This was due in part to such a competitive market and the threat of new Japanese cars entering the scene. The downfall of this tactic was that the company began selling their deals rather than their cars. Of course, there were many more reasons as to why GM failed in their finances, but by and large, the inability to unify the numerous sections of their company as well as galvanizing a fruitful campaign to sell cars all led to the bankruptcy that confronted them in 2009.It was at this time of bankruptcy that GM decided to terminate the contracts of approximately 1,100 of their 6,000 Chevrolet dealers. The goal of this decision was to cut out the weak sellers in order to strengthen the ones that were doing well, although many blamed it on the bankruptcy. Tom Henry describes what it was like to wait for one of these termination letters:“We were told on a Monday that we would receive a FedEx package on Thursday if GM decided to terminate us. It was hell week for us. All that was running through my mind was ‘What if it’s over? How can we turn this into a viable business?’ When Thursday rolled around, we all just sat waiting. The package never came, but we didn’t get that sense of relief- you didn’t get a letter saying you were safe, only a package saying you were terminated. I even called FedEx to see if we had any scheduled deliveries. After about a week we figured we were safe, but the uncertainty didn’t go away for a while.” This industry decision affected the dealership in a very major way. In this time, it was important for Tom Henry to remain a strong leader for his employees. “Just because there was a possibility we would get cut didn’t mean we could stop working for the week. It wasn’t over yet,” he stated wisely.The next step GM took was to renew the contracts of the dealers they kept. This contract had dealers agree that they would keep up with GM specs in the future. These specs, which were released soon after, included adding a service drive, new car delivery area, and recognizable blue arch to all dealerships. Since they were not out of federal bankruptcy, these contracts were once again under state law. This gave dealers three options. First, they could simply not update their building. Though this was an option, this would put them at a disadvantage, because neither corporate workers nor customers would take them seriously. Secondly, they could update their current building. The final option was to build a completely new building entirely up to specs. Tom Henry Chevrolet was stuck between the last two options. On one hand, it seemed ridiculous to build new, as Tom would want to retire within the next 10-20 years. Eventually though, he decided this was the right option. “If we had updated the current building, sure, we’d look a lot better. But we’d still have only 14 bays in the shop, electrical problems, and energy inefficiencies of the 50’s. It cost us more to build new, but in the long run we would make so much more,” he explained. From this logic, Tom Henry Chevrolet departed into a transition to a new building, as did thousands of other dealers across the nation.There are always difficulties with a new building project, especially when dealing with outside companies to render new services. In the case of Tom Henry, Rossman Henley Inc. was hired as the contractor, and luckily, their work was both efficient and effective. Even so, the building process took its toll on the sales for the dealership. The plot of land dedicated to the new building forced the company to move much of the new car inventory up the street, minimizing the effectiveness of the salesmen. It also decreased the amount of customer parking, which left people feeling confused or neglected. However, many of the consequences of this new transition have been beneficial for Tom Henry. First, the transition did not require a large amount of time, which meant a quicker adjustment for the company and its constituents. They broke ground in late March of 2012 and started operations at the beginning of December in the same year. Secondly, the new facilities were both larger and more modern than the previous facility, which has reaped some obvious rewards. It has opened up more vocational opportunities, as the mechanic shop has nearly doubled in size, and it will require a new receptionist as well. Thirdly, since the completion of the new building, sales have increased considerably. In fact, new car sales in the first two months of this year have been up 55%, according to Tom Henry. For example, February is usually one of the slowest months for car dealerships. It is not unusual to sell fewer than ten cars during this month. However, this February the dealership sold 32. The new facilities have revitalized the image of the dealership and attracted plenty of new customers. Tom Henry adhered to a form of Human Relations Theory during this process, which places an emphasis on the role of communication. Many of the authoritative qualities of classical theories are maintained by Human Relations Theory, but it stresses open and available communication between the workers, including subordinates. While Tom Henry and his general manager bore much of the responsibility for the transition, the input of various other employees was taken into account. It was highly indicative of the power structure and open communication lines that exist in the Human Relations Theory.As a broader institution, the decisions made by General Motors have not all been mistakes. In 2011, Chevrolet took a step towards developing a focus to reduce the environmental impacts of the vehicles and facilities. This effort began as a pledge to reduce carbon dioxide emissions and has grown into an environmental impact campaign entitled “EcoLogic”. Two Tomorrows North America Inc. assessed the campaign for accurate environmental claims and endorses Chevrolet’s efforts.Beginning in 2012, Chevrolet vehicles displayed a special “EcoLogic” label which details the environmental impacts and benefits of the vehicle. Chevrolet has outlined three stages of commitment to the betterment of the environment: before the road, on the road, and after the road. Chevrolet worked to reduce environmental costs at all three stages through building energy efficient manufacturing facilities, working to reduce CO2 emissions and improve fuel efficiency and increase the percentage of weight that can be recycled when a Chevrolet vehicle is no longer fit for the road.General Motors also released a fact sheet detailing the goals of the corporation to become more environmentally friendly. The report includes many recycling feats that other automobile manufacturers cannot claim including the fact that GM “recycled or reused more than 2.6 million metric tons of waste materials at our plants worldwide in 2011- enough to fill 6.8 million extended-cab pickup trucks that end-to-end would stretch around the world.” GM also has LEED certifications on two buildings and has been named an EPA Energy Star Partner of the Year. These initiatives are not only in America, but worldwide. GM CEO and Chairman Dan Akerson spoke at an energy conference and urged consumers to work towards developing a national energy policy. Akerson believes that President Obama needs to establish a committee to develop an energy policy that is renewed every five years for a total of 30 years. Currently, GM is doing its part by entering year two of a commitment “to saving 12 billion gallons of fuel over the life of the vehicles built between 2011 and 2017.” Tom Henry Chevrolet follows suit in the movement towards environmentalism mainly through the sale of environmentally-friendly vehicles. However, the new dealership facilities were also built with environmental impact in mind. In the past year, Chevrolet has made some organizational changes within its marketing and advertising departments as well. Two competing marketing agencies, Goodby, Silverstein & Partners and McCann Erickson Worldwide, have come together collaboratively to create most of Chevy’s ads. All of Chevrolet’s advertising will be handled in Detroit except for a few countries that have separate GMC advertising structures in place. Goodby will be handling the commercials specifically aimed at America while McCann will focus on international advertisements. In the past, Chevrolet has struggled with creating a good tagline that would resonate with its consumers and adequately represent the brand. The tagline ‘Chevy runs deep’ had great successes but did not always achieve its intended goal. Older commercials focused on facts about Chevrolet vehicles, and this was often viewed as a disconnect in relation to the tagline. It started to make more sense when Chevy started to market the sense of family and tradition more than facts about vehicles. Consumers reported having a warm emotional feeling after watching these new commercials. Chevy learned through this example that while catchy taglines are important, what consumers feel and think about a brand needs to be portrayed by the advertisements in order to have the desired effect.Ironically, Chevy has now decided to move away from its tagline altogether and the sentimental advertisements that have developed with it. Instead, the new campaign aims to make consumers laugh and feel light-hearted. The new campaign is called “Under the Blue Arch” and is a ‘mockumentary’ depicting the day-to-day activities of a Chevy dealership. The director of these new commercials, Randall Einhorn, has directed the very shows that this idea was inspired by, including but not limited to Modern Family, The Office, and Parks and Recreation. There are some employees, however, who find this new direction inappropriate because they feel these advertisements portray salespeople as silly and unprofessional, but in the world of marketing, there is rarely a decision made that satisfies everyone. Only time will tell if Chevy has made successful choices and changes in its marketing strategies.Though the future of Chevrolet and General Motors still remains shaky, it seems they will be able to survive. On a smaller scale, Tom Henry Chevrolet appears to be taking the right steps towards not only surviving, but thriving.Our first interview at Tom Henry Chevrolet was with the owner and President, Tom Henry. We chose him because he is the owner of the company, so he would have a good idea of how the organization runs as a whole. We also thought that as a leader of a company, he would be able to pinpoint some important leadership qualities and management techniques for us. In our interview, we discussed both organizational challenges and successes as well as what he thought made a successful member of an organization.The first question we asked Tom Henry was predictable, but we felt it important to put into perspective the commitment he has to his dealership. We wanted to start off knowing how Mr. Henry got into the car business. His father, also named Tom, was a car salesman when Chevrolet recognized his skills and dedication to the company. In 1958 Tom Sr. bought and rebuilt an old Chevrolet dealership that was offered to him by corporate. Tom Henry Jr. was born into the business then and grew up working at the dealership. He first went to Furman University in South Carolina but discovered that it was not for him. He then attended Northwood Automotive School with the intention of working in the car business just like his father. After graduating, Tom Henry began working in the business side of his father’s dealership. He mentioned that he wished he had worked in a different dealership at some point in his life, to see how other dealers handled certain situations. In 1982, Tom Henry signed the contract to become a dealer with Chevrolet and the official owner of the dealership. It was not until about 1989 that he began really running things. The passion and excitement that Tom Henry expressed throughout the entire interview may be explained by his being raised into the business. He is without a doubt a dedicated, hard-working Chevrolet dealer just as his father was.Next, we asked Mr. Henry about his relationship with corporate Chevrolet. We chose this question because we have learned about various types of relationships that employees and franchisers have with their corporate divisions and felt it an important thing to discuss. Mr. Henry expressed that corporate does pressure its dealers but he is given certain freedoms at the same time. He said that he gets to make some of his own decisions about the specific dealership he operates, but there are decisions made by Chevrolet that are company-wide. Every Chevrolet dealership is given quarterly performance reviews and ranked in five different categories determined by corporate. When a dealership falls within the bottom 15% of all Chevrolet dealerships based on this ranking scale, corporate will begin to increase its pressure. The dealership will then need to take extra measures to improve in any and all areas in which it was not ranked very highly. Tom Henry briefly showed us what these performance review documents look like. Tom Henry Chevrolet has consistently performed well and has not needed much interference from corporate.Since not many can relate to being the president of an organization, it seemed appropriate to get a feel for what it is like to spend a day in Tom Henry’s shoes. What does a day in his life look like? The first and arguably most essential point that Tom Henry emphasized when discussing his day was flexibility. When one is the leader of an organization that deals so heavily with people, distractions and unexpected events can occur with regularity. Customers and vendors can throw curveballs on any given daily plan, so it is important to be able to adjust on the fly and roll with the punches. The first item on the agenda for Tom is to check his computer and map out the appointments he has and see what the business volume is for the day. As he expressed, it is important to have a quantifiable understanding of what will be coming throughout the day. Additionally, it is valuable for him to consider anybody with whom he would like to speak or encourage. Then, he works directly with the sales manager to come to an agreement on the daily plan, as it is critical they are on the same page. Following that process, he meets with the finance manager to figure out when and how many deliveries will be taking place that day. He also mentioned how important it is to utilize individuals within their area/s of expertise and skill. An obvious example would be trying to work the most gifted salesmen at opportune times. This concept plays an integral part in his day as well because he longs to fit people into positions that they enjoy and in which they are gifted. In the end, however, it is about sales. He creates a list of priorities geared toward that end and crosses things off throughout the day. This list also includes some mundane activities like voicemail logging and checking up with vendors. Henry works hard each day as a living example of what he expects and desires from his employees.Next, we asked Tom Henry to discuss some of his likes and dislikes of his job as the owner of Tom Henry Chevrolet. Tom mentioned he liked having the ability as to prioritize his daily tasks and have flexibility to focus on certain areas of the business on any given day. Tom also said he enjoyed analyzing dealership financial data. Once this is done, he can utilize the data to make new policies that would potentially better the company. Tom Henry also mentioned the importance of returning to assess the changes to make sure he had created a positive solution to the original problem. The fact that Tom mentioned he enjoyed dissecting financial data showed that he was not only had a passion for Chevy vehicles, but also had a strong sense of pride in the success of his business overall.We also asked Tom to discuss some of the things he disliked about being the owner of a Chevy dealership. He mentioned that there are a lot of risks associated with being an entrepreneur and being responsible for a business. He discussed this in light of the new dealership. Tom Henry took a risk with financing the project against the value of his personal assets. Henry believed in the future success of his business enough to take a large risk. It was very clear from the way Tom explained his feelings on pressures & risks as an entrepreneur that he truly understands all the possible benefits and consequences that can arise in such a business venture.The next question we asked Mr. Henry was “What strengths do you possess that make you a good leader”? Mr. Henry humbly replied by saying “I don’t see myself as a great leader, but instead I am able to easily read people and situations”. He has an incredible sense of humor, which each of interviewers were able to detect while we spoke with him. This trait allows him to make light of any situation and gives him the ability to relieve tensions both on the floor and behind the scenes in the work place. Clichés are more than just an overused expression at Tom Henry Chevrolet; they are part of the everyday plan. To some, clichés seem so mundane and silly, but according to Mr. Henry and his employees, they work. They are easy to remember and they get the point across.Mr. Henry’s ability and interest in identifying problem areas is another strength he possesses. Granted, he admits that identifying the problem is not nearly as difficult as fixing them. He is an avid fan of details which is another positive leadership trait he possesses. According to him, “details are what make or break a lot of things”. Overall, Mr. Henry tries to manage the business with a soft and friendly appearance. He tries to keep everything friendly and people oriented all while throwing in a little bit of humor with professionalism.We next asked Mr. Henry to describe his leadership style. His answer was similar to the last. He said that he liked to use humor and sarcasm. If things are always serious and heavy, nobody will have fun at their job- and enjoying your job often brings you to put forth your best effort. He balances his humor with clear and high expectations, heavily emphasizing that he hates fixing the same thing twice. This question of leadership style led to a discussion of how Mr. Henry motivates his employees. He explained that he does not do an employee of the month program. He felt that even though it provides recognition to one of the employees, it usually leaves the others feeling inadequate. Mr. Henry prefers more unconventional methods of motivation. For example, on the first day of business in the new store, he called a morning meaning. There, he handed each of the salespeople a fresh twenty-dollar bill. He told them that they would each have to give their bill to whoever sold the first car in the new building. It motivated them all to get that first sale, and made it into a fun contest at the same time.In a suffering economy that has affected both buyers and dealers, it is impressive for a dealership to find continued success. We wondered what set Tom Henry Chevrolet so far apart from other dealerships that it was able to stay on top of the game. First, Tom Henry Chevrolet has a first class facility. The brand new building appeals to the customers, and Tom looks for employees with personalities and work ethics that match. Second, Tom continually asks himself and his staff to seek to “wow” customers with their attitude and service. Sometimes, employees are not quick to comply with this standard. In those situations, Tom weeds out the chaff in an effort to focus on positive customer service. Finally, Tom Henry does not do high-pressure sales. Instead, they structure the sale to the customer’s desire so that no customer leaves unhappy.It is evident that Tom Henry Chevrolet has a customer-focused environment. In retail, it is important to maintain such a focus because the customer determines the success of the business. Not only do they themselves purchase from the dealership, they can recommend others to the dealer if they have a positive experience. The way Tom Henry structures sales is particularly interesting. Often, when one thinks of a car salesman, they think of someone doing their best to swindle you into spending more money. This is not the case with Tom Henry Chevrolet. They specifically structure their sales to suit the customer and their preferences. This is the most appealing technique when considering making such a large purchase.Going into this interview, we were aware that GMC and Chevrolet have been faced with tough decisions during the hard economic times, and that Tom Henry Chevrolet has been affected by these difficulties as well. We asked Mr. Henry how the recent corporate change affected him and his dealership, particularly in regards to the construction. He replied that the sheer amount of things that had to be done during that time period distracted him from the way he usually ran the business. Mr. Henry also said that in addition to the time requirements this building presented, there was a pretty significant financial strain. The cash flow was slow with the addition of the new building and spending money was tight during this time. Yet, through the strain on the economy and stress of the construction, Mr. Henry was able to stay in the black in January rather than the red with his own finances. This can be seen as a blessing as well as the mark of an experienced businessman and one who knows how to handle obstacles when they present themselves.We concluded our interview by asking Mr. Henry about his recent decision to hire a new marketing company. He explained that this decision was made because the new dealership that was just built was higher quality than before and therefore Mr. Henry felt that their advertising campaign needed refreshed as well. We asked Mr. Henry to elaborate on what it was like to hire a new marketing company. One of the key things that he continued to bring up was money. He did not seem to enjoy putting money into marketing and advertising. He said that sometimes ad agencies tried things that ended up failing and so he felt he wasted money. Tom Henry Chevrolet tested a couple different ad agencies but just did not feel they fit stylistically with the dealership. While corporate often creates company-wide advertisements, Tom Henry gets to determine the marketing direction that his dealership will personally take. After much deliberation, Mr. Henry told us that he chose an ad agency located in Dallas, TX that has worked and continues to work with other dealerships. This company knows how to market a dealership to its target markets. Mr. Henry seemed positive about his new investment and told us that he was eager to see what growth would come from this marketing endeavor. The new dealership was built for expansion and growth and so Mr. Henry hopes that this new agency will provide just that.Overall, we think we had a wonderful interview with Mr. Henry. It is evident that he is very knowledgeable in not only the ins and outs of the car business, but in how to lead a company and motivate staff. Though life may not lead any of us into the automotive industry, we all feel as though we learned a few practical lessons from this interview, no matter where we may end up working.For our second interview, we had lots of good options to choose from. Originally, we intended to talk to the general manager of the store, because we had learned that he was a pivotal right-hand man in the construction and functioning of the new store. However, he was unfortunately busy on the day we were able to visit. Instead, we decided to talk to Jeff Blough, who was another candidate we had discussed for the interview. He is the sales manager at the dealership. We decided that he would be a good person to talk to because he is also in a position of leadership at the store. He would be able to tell us what it was like to lead other people, as well as what it was like to work for someone else.First, we asked Jeff to talk to us about his personal feelings on the ability of the Tom Henry sales force to complete a vehicle sale. He discussed with us the 20-80 principle, which is often called the Pareto Principle in the business world. This principle is a statistically sound notion that 20 percent of the workforce is going to complete 80 percent of the work. Jeff explained that this principle was not unique to Tom Henry Chevrolet, but was a universal concept that happens to also be true at this dealership. As a sales manager, Jeff is available to the sales forces when there is a struggle to close a sale. Jeff recognizes the top 20 percent and will often steer customers struggling with a decision towards the more effective salespeople. Jeff’s ability to recognize the effective salespeople shows that he understands his position at the dealership and can direct his focus to closing sales. This made it clear to us that Jeff was not only a manager, but a salesman as well. Knowing this, the next question we asked Jeff was “What are some skills you find necessary to be a successful salesman?” Jeff told us that an outgoing personality used to be the most crucial skill when it came to being a successful salesman, but nowadays one must combine that characteristic with basic internet skills and exceptional phone skills. According to Jeff, a successful salesman “should sell about half of those phone calls”. The person who calls in should be able to recognize a friendly personality over the phone in order to be drawn into the deal. In general, we learned that being successful in sales relies on one’s outgoing personality as well as their ability to connect with many different types of people.To close our interview, we also wanted to discuss what it was like to move into the new store. From Mr. Henry, we were able to hear what it was like to be in charge of this shift and how he had to run things from the owner’s perspective. However, we also wanted to know what this was like on a smaller level. Did it create any shifts in sales or personnel issues? According to Jeff, the closing and remodeling of Chevrolet dealerships did not produce a major shift in sales. The shift that did occur was positive, particularly because Tom Henry Chevrolet absorbed market areas that closing dealerships gave up. What produced a greater increase, though, was the addition of a full-time internet sales manager in 2008. The internet sales manager is on call at all times. This different tactic, according to Jeff, results in more sales because it brings in customers the dealership may not have previously had. The internet sales manager continuously ranks as the best producing salesperson.What is most striking about Jeff’s discussion of sales shifts is what has impacted the dealership most. While the closing of dealerships and vast changes made in the physical building did have some positive effect, it was not drastic. The internet, however, continues to be a great source of sales for both car sales and the racing business. This reveals the impact the internet and internet sales have on the world of retail. A competing store down the road can close and your store will see a slight increase, but when your store gets access to the internet, the number of sales climbs significantly higher.Overall, we feel as though we had a very productive day at Tom Henry Chevrolet. We learned many applicable lessons for our own futures within professional organizations, and it was interesting to get the perspective of people in different roles at the store. We also feel as though our chance to see the new dealership and the rubble where the old dealership had been was an edifying part of our experience. We are very appreciative to the staff at Tom Henry Chevrolet for welcoming us and answering all of our questions.After taking in this wealth of information, we have decided upon a few recommendations for the organization of Chevrolet as a whole. It’s clear that the organization at large needs to make a few changes if it wants to stay out of bankruptcy, and we think that General Motors is on the right track. The biggest problem we see is that all the various companies under the GM umbrella compete against each other. We think it would be beneficial to differentiate between the different companies a bit more. As it stands now, the branches of General Motors tend to run together. We think it would be beneficial to clearly identify the personalities of each brand. For instance, Cadillac is considered the ‘high class’ brand of GM. But what are the personalities of Buick or GMC? Most importantly, what is the personality of Chevrolet? We recommend that General Motors clearly defines the goal of each sub-company, and then emphasizes that goal through marketing and image design. The ideal situation would be for each company to be its own entity- as in, dissolve General Motors and let each company fend for itself. Since we don’t see this happening in the near future, our most viable idea is to emphasize the individual personalities of each sub-company in order to differentiate them from each other. Coming up with recommendations for Tom Henry Chevrolet is no small task, as the dealership has been consistently successful. The only serious dip in sales took place during the rebuilding process, but that has largely evened out. Furthermore, employees at Tom Henry earn fair wages for their work and possess longevity in their roles. So, the dealership has a myriad of strengths, and it would be a disservice to them to not recognize that truth.The primary concern of the group regarding Tom Henry’s business lies in potential ideological differences. As should be the case, the dealership strives to serve the customer in a profound and unique way that sets it apart from other competitors. In order for such service to become feasible, the employees must fully buy into that vision. The emphasis must be placed on the word fully, because a halfhearted attempt at great service is noticeable. Tom Henry said in his interview that the move to the new building creates an even greater urgency to produce and maintain a higher quality of customer service. He aims to “be the Ritz-Carlton of car dealerships.” So, how can he rightly motivate his employees to pursue such a consequential vision for the dealership? We suggest that the vision be revisited clearly and frequently. We would also like to emphasize the importance of hiring the right people from the start- perhaps by making the application and interview process more rigorous.Based on other elements of the interview, it can be rightly inferred that Tom Henry tends to incorporate his personality into a classical leadership style. He takes on much of the leadership responsibility and is clearly the head of the business. He also takes steps to motivate his workers in unique ways, such as small financial rewards given in atypical ways. After looking into his leadership style, the most relevant analysis of the dealership can be found in Human Resources Theory. In Rensis Likert’s theory of management, Tom Henry’s Chevrolet possesses many qualities in System II: Benevolent Authoritative and System III: Consultative. However, Likert argues that System IV: Participative is the strongest and most effective way to lead an organization. This group finds that Tom Henry’s dealership has many of the strong qualities that are evident in Systems II and III and is content to maintain those strengths. Those systems lack the optimal level of motivation for the employees, which would mean a higher level of input from the employees themselves. The workers on the lowest payroll would be more motivated if they had the ability to take ownership of their work. Letting them cast the vision for their work would inspire the work, and working with them through that would create open communication lines. These are the traits that will create a truly motivated worker, one that can think for himself in his area of expertise. Once a worker gains this feeling of ownership and creativity, he will feel and be able to commit to the overall vision for excellent customer service. The issue with this, obviously, is that those lowest on the pay scale are those who are doing menial tasks, such as detailing cars and rearranging stock on the lot. How does one ‘take ownership’ of such menial work? Perhaps this is another area where Mr. Henry’s unique and creative take on motivation would be helpful. Overall, we are very pleased with our experience this semester. Tom Henry Chevrolet is a great organization that was built on family values and a passion for cars and sales. It was a dream that Tom Henry made a reality by utilizing his leadership skills and surrounding himself and his business with reliable and well-qualified people. By sticking to a loose top-down structure with groups of "teams" within the different divisions of the company, this organization operates efficiently through the ever changing economic climate. Even in the face of the General Motors bankruptcy, Tom Henry Chevrolet adapted and changed along with the new policies. It's a business that strives to provide a variety of services to their customers in order to make customers feel as if they are a priority. Tom Henry Chevrolet has proven itself to be resilient and a critically intangible asset to both the community as well as those working within the organization. We are very pleased to have worked with Mr. Henry and his business, and feel as though we all learned a few valuable and applicable lessons along the way. Works Cited"Akerson Calls for Consumer-Driven National Energy Policy."?GM News. General Motors, 06 Mar. 2013. Web. 06 Mar. 2013.Bennett, Jeff. "GM Names New Chevy Marketing Chief."?. The Wall Street Journal, 25 Feb. 2013. Web. 6 Mar. 2013. , Mike. "Chevy Revamps 'Blue Arch' Dealer Spots."?. Advertising Age, 21 Jan. 2013. Web. 07 Mar. 2013. Motors. GM beyond now.?GM Environmental Fact Sheet. General Motors, 4 Sept. 2012. Web. 6 Mar. 2013. . "Introducing Ecologic."?Chevy Culture. Chevrolet - General Motors, n.d. Web. 05 Mar. 2013. <;.“Jeff Blough.” Personal Interview. 21 Mar. 2013. Krisher, Tom. "Chevy To Combine Advertising From Goodby Silverstein, McCann Erickson, Base New Agency In Detroit."?The Huffington Post. , 27 Mar. 2012. Web. 07 Mar. 2013. , Graeme. "Best Slogans: How Chevy Created a Meaningful Advertising Slogan."?602 Communications. 602 Communications, n.d. Web. 07 Mar. 2013. ."Tom Henry." Personal Interview. 21 Mar. 2013. ................
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