Title

Feasibility study for setting a business (modern workshop faculty) : dealing in sales, service and spare for the heavy vehicles in Karachi (Pakistan)

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2018

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Trucks--Aerodynamics | Business strategy | Mechanical engineering

Executive Summary

The time has arrived for emphasis on the modern & effective repair and service station facility for heavy vehicles in Pakistan. The urgency for this new direction is underscored by the fact that the repair/service and after sales is the backbone of automobile industry by which clients can enjoy the product through its life cycle without much worrying and organizations reap good profits and can survive in recession Period as well. it constitutes strategically important location for service station with technically superior and efficient resources, highly trained human resources• proper marketing, putting after sale service as the core of selling vehicles and some incentives for customers. The concept of repair and service facility is a systematic process based on multiple disciplines (engineering, finance, operations and supply chain, etc.), to make the proper assessment for repair. according to SOPs for better quality of vehicle repair over its service life. This study is based on the assumption that the service center will be opened / operated by a heavy vehicle manufacturer in Karachi. The study provides an idea of setting up a modern service center. It includes the project scope and objective in detail and encompasses repair and service facility in Karachi with a support from literature review which include the global scenario and local scenario. The economy which is largely focused at CPEC in Pakistan in general & heavy vehicle in particular is, expected to grow rapidly in upcoming years. Methodology used is also described for the study. Different research papers & journal books were sifted and meetings with industry professional were arranged to analyze the current situation of the local market and impacts of CPEC on heavy vehicle industry. Statistical analysis is also done, which shows that the most appropriate location of project should be at the Super highway / National highway for providing after sales support. A general overview of repair center, requirements of tools, machinery & equipment & its cost is also elaborated. The detailed cost analysis which includes the project cost, tools and equipment required is done after cumbersome deliberation and hectic surveys. The financial analysis with balance sheets, income statements and payback period are carried out. At last the term report is concluded and it is established that the major highway used by heavy vehicles is Super highway & National highway, and therefore facility should be located at these routes. Moreover, the cost incurred is also comparatively less than other fully developed areas like SITE, Korangi, etc. thus our initial investment turns comparatively less. The recommendations were established based on the feedback that there is much requirement of a proper repair workshop with all allied facilities. This is also necessary if truck industry must progress in keeping in view the future demands.

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