Domestic Auto Parts Case Analysis

                        DOMESTIC AUTO PARTS – CASE ANALYSIS

Case Name

Domestic Auto Parts

Case Questions

Part A

Q1. Who are the customers of DAP, what do customers want and how does DAP create value for its customers?

The two key customer segments of DAP are Direct and wholesale. The direct segment channel focuses on original equipment automakers and wholesale segment channel serves large retail chains.

Both key segments want new innovative products with improved performance. They want their suppliers to upgrade technology continuously and provide specifications as needed by them. Customers want their transaction to be less risky and therefore they need a supplier with superior reputation.

DAP creates value for its customer by building better network of wholesalers and distributors that sell its high value products. It creates value with the help of its world class workforce committed to understand customer needs through continuous communication and developing innovative products. It uses just-in-time technology that benefits both customer and organisation in terms of financial results.

Q2. Who are the shareholders and what the shareholders ‘expectations are?

• Shareholders of US Auto parts manufacturing company (Parent Company) are the shareholders for DAP company.
• Shareholders are mainly categorized into two types: Short term shareholders and Long-term shareholders.
• Short term shareholders have their interest fixed on short term profits of the company. They prefer high retained earnings for the current financial year. This would lead to higher dividend payouts
• Long-term shareholders are interested in the company’s performance. They believe higher market share would translate to higher revenue thus increasing the market perception of the company. This would help enhance the investors sentiment.
• To be able to increase the ROCE of the company, DAP must focus on improving high productivity and growth. This can be achieved with the company focusing on cost minimization, improving the capital asset utilization for both existing and new assets and finally emphasizing on new product roll outs.
• Training within different department and learning processes needs to be facilitated in the organization.

Part B

Q1. Which conceptual element of the pre-reading can be identified in the case and how was it helpful/ relevant in analysing the case?

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