This week I have just submitted the second assignment after researching into the external factors that affect the workshop. After partaking in the assignment, I now have a deeper understanding of how the workshop not only needs expertise in the field and a basic business acumen. There must also be a consideration on a wide variety of areas such as education factors, advertising, insurance, finance and laws. These all interplay with one another to help the workshop business achieve its maximum potential to be successful.
While it is never a guarantee for success, but good preparation and thorough research can definitely help the workshop business much more than it hastily going into the industry without proper development. The presentation of the learnings of this semester will shown next week in front of peers.
Tuesday, 23 June 2015
12/06/15 - Blog Entry #12
This week's topics of research delves into the external factors of insurance and finance. These factors have a profound effect on how the business operates, charges for services and provides salaries.
The insurance side of the business covers two main areas. The first is to financially cover the business in case of equipment damage, accidents or even theft. This can give the business a peace of mind knowing that should the unsavoury situation occur, it can safely recover financially as it is provided for in case of the emergency.
The other side is that dealing with insurance companies also allow partnerships to be established. By establishing a partnership with the insurance company, the workshop is able to have an extra stream of potential customers. Personal insurance customers who insure their vehicles with the insurance company can be referred to the workshop as a viable and trustworthy vehicle repair site should the vehicle of the customer require repairs.
Lastly, because of the partnership and the benefits that come with it, the workshop's services, charges, and costs can then be regulated on a realistic basis. This ensures laws are abided by, no corners are cut, and ethical practices are upheld.
The last big external factor to consider is the finance side of matters. For the life cycle of the workshop, it has to consistently deal with financial situations and organisations. The initial organisation that it deals with is the bank where it looks to obtain a business loan in order to have startup capital to start the business.
Once the business is established and the loan is being repaid, the Inland Revenue Department (IRD) is the next organisation that the business has to deal with. Taxes must be paid to keep balance of the economy of the nation and is paid in a number of ways. The first way is the goods and services tax (GST) where services rendered or parts sold must be sold with GST accounted for.
The other way is through employee taxes. The owners of the workshop hold this responsibility and have to calculate and deduct the pay as you earn (PAYE) employee taxes to the government. On a side note, there is also the added factor of retirement schemes such as KiwiSaver that employers and the government must contribute financially to staff.
To make sure that the employer is on top of things, an accountant has been appointed in the case study to ensure that all the financial obligations are met. This is to minimise and negate unnecessary fines and penalties and for the workshop to attain maximum profit and benefit from business operation in accordance with the law.
The insurance side of the business covers two main areas. The first is to financially cover the business in case of equipment damage, accidents or even theft. This can give the business a peace of mind knowing that should the unsavoury situation occur, it can safely recover financially as it is provided for in case of the emergency.
The other side is that dealing with insurance companies also allow partnerships to be established. By establishing a partnership with the insurance company, the workshop is able to have an extra stream of potential customers. Personal insurance customers who insure their vehicles with the insurance company can be referred to the workshop as a viable and trustworthy vehicle repair site should the vehicle of the customer require repairs.
Lastly, because of the partnership and the benefits that come with it, the workshop's services, charges, and costs can then be regulated on a realistic basis. This ensures laws are abided by, no corners are cut, and ethical practices are upheld.
The last big external factor to consider is the finance side of matters. For the life cycle of the workshop, it has to consistently deal with financial situations and organisations. The initial organisation that it deals with is the bank where it looks to obtain a business loan in order to have startup capital to start the business.
Once the business is established and the loan is being repaid, the Inland Revenue Department (IRD) is the next organisation that the business has to deal with. Taxes must be paid to keep balance of the economy of the nation and is paid in a number of ways. The first way is the goods and services tax (GST) where services rendered or parts sold must be sold with GST accounted for.
The other way is through employee taxes. The owners of the workshop hold this responsibility and have to calculate and deduct the pay as you earn (PAYE) employee taxes to the government. On a side note, there is also the added factor of retirement schemes such as KiwiSaver that employers and the government must contribute financially to staff.
To make sure that the employer is on top of things, an accountant has been appointed in the case study to ensure that all the financial obligations are met. This is to minimise and negate unnecessary fines and penalties and for the workshop to attain maximum profit and benefit from business operation in accordance with the law.
05/06/15 - Blog Entry #11
This week, I have been exploring the notion of how education and advertising can play a crucial role in shaping the workshop business.
In education, there are currently no laws that require technicians to be registered or be part of a council body like that of nurses or other engineering disciplines. What is needed to be able to enter in the industry is a solid science foundation and logical outlook on problem solving tasks.
Despite the lack or registry requirements, workshops and dealerships still prefer prospective technicians to hold a basic qualification such as certificates in engineering or automotive studies. By being able to attain such qualifications, the technician would be able to demonstrate a sound degree of knowledge, competency and commitment to the field. This is where training organisations like Unitec and Motor Industry Training Organisation (MITO) come in.
The next factor is advertising. This factor is directly responsible for bringing in potential customers to the workshop. There are a variety of mediums to achieve this which include television or radio commercials, or newspaper ads. The workshop chose the internet medium for one of their choice of advertisement strategies. By operating a website and having its information listed at reviewer websites, this medium can allow 24 hour access to information about the workshop. This can then increase exposure to a wider community and not just the one in close proximity to the workshop.
The other strategy employed is the word of mouth advertising. This is one of the cheaper advertising options. This strategy allows your work and quality to do the talking. By providing a high standard of service, the workshop is able to build a loyal customer base. These happy returning customers are then more inclined to tell their friends and family about the workshop which brings in more potential customers as a result.
The next facets to explore are the insurance and finance factors which will be researched and discussed next week.
In education, there are currently no laws that require technicians to be registered or be part of a council body like that of nurses or other engineering disciplines. What is needed to be able to enter in the industry is a solid science foundation and logical outlook on problem solving tasks.
Despite the lack or registry requirements, workshops and dealerships still prefer prospective technicians to hold a basic qualification such as certificates in engineering or automotive studies. By being able to attain such qualifications, the technician would be able to demonstrate a sound degree of knowledge, competency and commitment to the field. This is where training organisations like Unitec and Motor Industry Training Organisation (MITO) come in.
The next factor is advertising. This factor is directly responsible for bringing in potential customers to the workshop. There are a variety of mediums to achieve this which include television or radio commercials, or newspaper ads. The workshop chose the internet medium for one of their choice of advertisement strategies. By operating a website and having its information listed at reviewer websites, this medium can allow 24 hour access to information about the workshop. This can then increase exposure to a wider community and not just the one in close proximity to the workshop.
The other strategy employed is the word of mouth advertising. This is one of the cheaper advertising options. This strategy allows your work and quality to do the talking. By providing a high standard of service, the workshop is able to build a loyal customer base. These happy returning customers are then more inclined to tell their friends and family about the workshop which brings in more potential customers as a result.
The next facets to explore are the insurance and finance factors which will be researched and discussed next week.
29/05/15 - Blog Entry #10
This week I've been looking into the laws which affect workshop business operation. The laws that were researched and discussed during the previous assignment are also applicable in this current assignment.
This is because they establish and provide a structure that the workshop can practice in. For example, with the Consumer Guarantees Act 1993 and Fair Trading Act 1986, they ensure that the workshop operates in the interest of the consumer with fair, honest and high standard of services. This can help protect both the customer and the workshop itself as guarantees and warranties will help ensure that both sides are in mutual understanding and agreement with one another of services rendered before a transaction takes place.
This whole process subsequently helps establish an ethical and professional framework that the workshop can practice in which then in turn provides a quality service. The next week, the aim is to look into other potential factors that also affect the successful operation of the workshop. These include education and advertising.
This is because they establish and provide a structure that the workshop can practice in. For example, with the Consumer Guarantees Act 1993 and Fair Trading Act 1986, they ensure that the workshop operates in the interest of the consumer with fair, honest and high standard of services. This can help protect both the customer and the workshop itself as guarantees and warranties will help ensure that both sides are in mutual understanding and agreement with one another of services rendered before a transaction takes place.
This whole process subsequently helps establish an ethical and professional framework that the workshop can practice in which then in turn provides a quality service. The next week, the aim is to look into other potential factors that also affect the successful operation of the workshop. These include education and advertising.
Monday, 1 June 2015
22/05/15 - Blog Entry #9
Not so much learning this week other than reading more into the financial requirements and responsibilities of a business. I will look more into laws of starting a business in the coming week to understand how a business works in the New Zealand context.
15/05/15 - Blog Entry #8
Just a short entry this week as further research is still being made on how the workshop functions in more detail. It has been of worthy note though, that I am slowly getting to know how difficult it is to operate a workshop. This is not because of the technical skills required to carry out diagnostics, servicing and repairs, but it is the financial side and how a business operates as a whole.
The plan in the next few weeks is to gain more insight into how the model workshop functions in being a viable and sustainable business.
The plan in the next few weeks is to gain more insight into how the model workshop functions in being a viable and sustainable business.
25/04/15 - Blog Entry #7
Today was the handing in of the group written assignment and the panel discussion session. It was great to finally get a sense of how the industry currently functions and how it can improve to further consolidate it as an established and sought after profession.
What me and my partner learned theoretically and observation-wise during our group work was just one example of an automotive workshop, and a good one at that which adheres to all that is needed to promote responsible automotive practice.
However, upon hearing other people's experiences, it can be seen that not all workshops practice in such a strict manner. Some other workshops have either cut corners or not adhere to professional protocol. This was found to be both intentional and un-intentional. Some workshops have been found to knowingly cut corners in the way they dispose of their wastes or carrying out their servicing in order to make or save money. Meanwhile some workshop owners, coming from other countries are not aware of the local industry practices and this is further exacerbated with the relatively lax laws.
It is therefore our responsibility to help put into practice the professional principles we have learned so far when we eventually take over the helm of the automotive industry. Further exploration is being made still on how the workshop case study and industry functions in more detail in the coming weeks.
What me and my partner learned theoretically and observation-wise during our group work was just one example of an automotive workshop, and a good one at that which adheres to all that is needed to promote responsible automotive practice.
However, upon hearing other people's experiences, it can be seen that not all workshops practice in such a strict manner. Some other workshops have either cut corners or not adhere to professional protocol. This was found to be both intentional and un-intentional. Some workshops have been found to knowingly cut corners in the way they dispose of their wastes or carrying out their servicing in order to make or save money. Meanwhile some workshop owners, coming from other countries are not aware of the local industry practices and this is further exacerbated with the relatively lax laws.
It is therefore our responsibility to help put into practice the professional principles we have learned so far when we eventually take over the helm of the automotive industry. Further exploration is being made still on how the workshop case study and industry functions in more detail in the coming weeks.
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