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QUESTION

Exotic Cars Inc. (ECI) is a company specializing in sales and maintenance of the exotic cars.

Exotic Cars Inc. (ECI) is a company specializing in sales and maintenance of the exotic

cars. The cars that ECI sells come from multiple sources

Shipped directly from factories

Purchased from private collectors

Traded-in by customers of ECI

ECI also provides a regular maintenance service of the exotic cars, such as engine

tune-up, tire rotation, oil change, etc. You do not have to buy a car from ECI to use its

maintenance service; consequently, some owners of the exotic cars purchased

elsewhere also use ECI maintenance service.

ECI appreciates the continued business of its patrons. Consequently, the company

wants to maintain as much information about each valued customer as possible.

As a result, ECI diligently records how much money each customer spends on buying

cars (more than half have purchased two cars and about third bought three or more), on

maintenance service (how much customer spends overall, and per car), and whether or

not a customer ever traded a car in.

Similarly, ECI maintains detailed data on all the dealers, companies, manufacturers,

and other sources that provide the company with needed services, parts, or cars.

ECI is not a "backward" organization, but things have been done there pretty much the

same way since ECI was founded in 1966.

The owners of ECI feel like it is about time

not just to move forward, but "leapfrog" the competition.

You, along with the members of your team, have been hired by ECI to find a way of

dramatically increasing the level of performance of ECI.

There are three operational locations of ECI

Washington, DC,

Richmond, VA,

Virginia Beach, VA.

The corporate headquarters are located in Charlottesville, VA. Every location has a

general manager who is responsible for authorizing/rejecting requests area managers

may have. Normally, area managers only handle the issue relevant to their area. For

example, sales/trade-in area has its own manager, body shop/repair shop has its own,

and service area has its own area manager. Every area manager is authorized to make

financial decisions up to $10,000.00. If the amount exceeds the limit of an area

manager, then the general manager of that location must authorize it-the general

manager has discretion of making financial decisions of up to $100,000.00.

If the amount exceeds this number, a request is send to the headquarters, where it is

approved or rejected by the VP of the area (e.g., service, sales, and repair). The VP of

the area is authorized to make financial decisions of up to $250,000.00. If the request

exceeds this amount, it must be addressed by the CEO of ECI.

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