Change 'N Clean Your Ride Clinic

Case Study: Change' N Clean Your Ride Clinic
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Case Introduction
The Change 'n Clean Your Ride Clinic business that was started by two friends from high school, Josh and Niles, is the focus of the case study. One of their part-time businesses involved interior automobile detailing and "on-rim" winter tire changes. The two individuals discovered their potential while working on "on-rim" snow tires and cleaning cars in Josh's parents' driveway in Gatineau, Quebec, one Saturday morning in November 2019. This was observed right after they completed when a neighbor contacted them and requested their help for two automobiles parked in the driveway. The neighbor was happy with their job after receiving excellent service at a fair price and additional benefits such as free interior car cleaning. Therefore, Josh and Niles discovered a superb business opportunity after graduating from high school, and after careful consideration, they chose to launch Change 'n Clean Your Ride Clinic.
They registered the business with the government as a sole proprietorship, in which partners were formally recognized as equals. This would imply that they could divide the company's earnings and expenses equally. They also equally split the company's costs and earnings. They then made the decision to offer their services via a mobile strategy, whereby, depending on the area, they would serve a client at their doorstep as opposed to having clients bring their automobiles to them. The approach was dissimilar from other businesses in the area that also provided interior detailing services and changed winter tires while customers waited in their stores. A substantial benefit of this system was that clients could be served at their convenience. The company invested in tools for changing tires, commercial vacuum cleaners, and other cleaning supplies. As the firm expanded, the partners were kept quite busy. It did not take long for their company to become well-known, and word of its existence swiftly spread throughout the neighborhood.
The company had significant success when lockdowns were allowed due to the COVID-19 pandemic. The Change 'n Clean mobile service appealed to customers. The two partners would physically make themselves available whenever they were needed to change snow tires or clean dirt cars. This was their best opportunity because other businesses could deal with restrictions and closures, and people could not travel easily to other enterprises. Josh and Niles decided to create a website with a calendar so that customers could schedule appointments or notify them when they needed services like tire changes or car detailing as the company became more successful. The website would include the name of the business, a list of the services offered and their associated costs, as well as a QR code that users can scan to see more information about the website. Customers who made a reservation on the internet had to specify the type of car and provide specifics about tire replacement before choosing the company's retrieval services. Along with designing the website, they also created T-shirts and business cards that had a QR code and the company's name.
The business partners hoped to expand their offering of auto repair services as their clientele developed. Change 'n Clean has been a busy business for Josh and Niles for the past two years doing tire changes and car washing. In the same area where the two partners operate, several small independent companies that provide mobile tire change services have recently developed. Despite this, Change 'n Clean continues to deliver top-notch services that please its clients. Sage L' Argent, the owner of Upscale Auto Resales Incorporated (UAR Inc), was inspired by the work of Change 'n Clean because of its high customer satisfaction and developing reputation. Sage L' Argent made the decision to work with Change 'n Clean partners so that they could merge and conduct business jointly. The former intended to work with the latter to expand UAR Inc.'s mobile auto detailing and tire changes capability. UAR Inc. is a privately held "pre-owned" truck and car dealership in the same area. It focuses primarily on high-end luxury cars from other countries as well as classic and vintage cars. Wealthy clientele from Canada, the United States, and several countries make up the majority of this business's clients.
Change 'n Clean received certain offers from UAR Inc. that served as cooperation agreements. Its ownership will be split, with 51% going to UAR Inc. and the remaining 49% going to the two partners. Change 'n Clean would state that it is now a branch of UAR Inc. along with its name. Josh and Niles would have access to information, operations, technology, sales, and marketing resources from the other website because the website for Change 'n Clean would be transferred to UAR Inc. In addition, UAR Inc. would be qualified to receive 9% of Change 'n Clean's future gross revenues. The former would handle all administrative tasks, such as purchasing, collections, and accounting.
However, Josh and Niles would only get a limited number of advantages. The supply chain connections and purchasing power of UAR Inc. would be beneficial to Change 'n Clean. Josh and Niles received assurances that UAR Inc would not interfere with their independent operation of the company. Moving forward, an organizational structure that includes Change 'n Clean members was proposed. Josh and Niles must now choose between this offer from UAR Inc. and the constantly expanding interests of their firm.
The Primary Problem
Businesses are essential to a society's economic development. They enable entity owners and employees to make a living. Numerous advantages of starting a personal business inspire many people to do so. Most entrepreneurs are drawn to beginning their firms due to the desire to be in charge of their success and give it a personal touch by dealing directly with their customers, employees, and staff. Additionally, some people want to run their businesses and be in charge of everything, while others do not want to get sidetracked by people's worries. Therefore, they choose to focus on their own objectives. (Shane, 2008). Some also want to create businesses to enhance their wealth and to feel more successful.
Independent businesses are typically recognized to be successful and productive. The reason is that they can establish realistic goals and make sure they are achieved. This encourages business owners to put in endless hours of labor and use their imagination to ensure their company outperforms any other firm that may be providing similar services. Business owners that operate independently will also benefit from the ability to determine their operating hours and freely select their target markets. This means owners will have the freedom to choose the company's location, management style, and the rate of expansion. Individual ingenuity would therefore have more excellent opportunities due to independent entrepreneurship.
Companies that work together and merge are also known to be successful. The prosperity and success of any commercial activity would be guaranteed by two different firms that are entirely operating independently and have superior management. Generally, combining the operations of two businesses will result in higher earnings than if they run separately. In addition to reducing other costs of expenses like advertising prices of goods and services, a merger between companies helps to eliminate competition between them. This price cut would have a major positive impact on consumers and ultimately increase sales (Speith et al., 2019). Mergers may also result in improved planning and use of financial resources.
Choosing the appropriate strategies to combine two companies with independent primary goals remains challenging. Since each company has its own aims and objectives that it wants to achieve, combining the businesses would prevent them from achieving their targets for market share. Similar to this, merged organizations face multiple difficulties, including collaborating with the incorrect firm, being exposed to external risks, and possibly losing the trust of important clients and customers. Others may struggle with issues such as poor acquisition, inadequate motivation, insufficient due diligence, and an inability to back out of a deal once it has been entered into.
In weighing the benefits and drawbacks of combining two businesses into one, some might gain while others could lose out on higher market share and production levels. Therefore, one can argue that the decision to merge Change 'n Clean and UAR Inc. from the aforementioned case study would be the primary problem. Josh and Niles would have trouble working with UAR Inc. as a single organization despite their business being already well-known and successful. Such firms may not succeed in being viable unless optimal solutions are supplied on how to merge the two companies' operations so that they would still achieve part of their aims.
Secondary Problems
The secondary issues would be contributing elements and consequences of the main merging problem. According to the case study, the growth of small, independent companies that provide mobile tire replacement services in the Ottawa-Gatineau region is one of the key problem's causes. Others included the development and growth of Change 'n Clean business, the advantages of the company's purchasing power and supplier networks, the fact that both UAR Inc. and Change 'n Clean are among the most successful enterprises, and the fact that the two offer different services. In elaboration, research revealed that many small firms that provided mobile tire change services, like Josh and Niles, were launched at the same time as small independent businesses. Due to the difficulty in obtaining clients, it led to intense rivalry in the sector. As a result, the possibility to combine with a larger company existed so that they could readily find clients to whom they could offer their services in a more straightforward method.
The expansion of the Change 'n Clean Company is also a fact, as it may have been because of its growing notoriety and popularity throughout the entire region that UAR Inc. wanted to associate with it so that they could jointly provide a variety of services to the majority of their clientele. Additionally, Josh and Niles would benefit more by joining larger and more expansive supply and purchasing networks. In addition, the fact that both businesses are extremely productive suggests that merging was necessary to position the company at the top in its field. Additionally, as the businesses dealt in providing various services, it would be beneficial for them to unite, function as one, and succeed in each of their individual service-related activities.
Furthermore, Change 'n Clean becoming a franchisee would be the principal outcome of the main issue. This would entail that moving forward, Change 'n Clean will use the trademark, brand name, and business system of UAR Inc. A new organizational structure would also emerge, with Josh and Niles included as additional stakeholders in the newly established business.
Analysis
Key Stakeholders
Stakeholders are people with access to the company's direct or indirect interests. Their participation is crucial for the business to implement a long-lasting change (Becker et al., 2010). The key stakeholders include the company's shareholders, employees, clients, and rivals. It is possible for an enterprise to make informed decisions and receive practical and financial assistance from stakeholders for long-term viability (Becker et al., 2010). Josh and Niles are the primary stakeholders of the Change 'n Clean business in the case study mentioned above. The two members work to raise the return on investment and boost the company’s profitability. Since they can act quickly to improve circumstances, shareholders always need to make sure an entity never fails. The shareholder's mobile service clinic became more productive than its competitors due to the partners' hard efforts. Therefore, Josh and Niles must be given the opportunity to participate in decision-making in the newly created combined company to increase its profitability.
The newly merged business should be ...