Group Presentation Coversheet

To be attached to the front of the assessment.

Campus: EAST LONDON CAMPUS

Faculty: COMMERCE AND LAW
Module Code: COBMB2-33
Group: YONELA MBUSI, MBALI NJIKELANA AND CAMERON LAWRENCE
Lecturer’s Name: MR CHRISTOPHER CHIZONDO

Indicate Yes No
Plagiarism report attached

Declaration:
We declare that this assessment is our own original work except for source material explicitly
acknowledged. We also declare that this assessment or any other of our original work related to
it has not been previously, or is not being simultaneously, submitted for this or any other course.
We also acknowledge that we are aware of the Institution’s policy and regulations on honesty in
academic work as set out in the Eduvos Conditions of Enrolment, and of the disciplinary
guidelines applicable to breaches of such policy and regulations.

Eduvos (Pty) Ltd. (formerly Pearson Institute of Higher Education) is registered with the Department of Higher Education and institution under the Higher Education
Act, 101, of 1997. Registration Certificate number: 2001/HE07/008 Training as a private higher education

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 % Participated
1 Student Full Name MBALI NJIKELANA

Student Number EL.2022.S1J6Z0

Contact Number 067 032 1385

2 Student Full Name CAMERON LAWRENCE

Student Number EL.2021.K9P0D5

Contact Number 062 840 7038

3 Student Full Name YONELA MBUSI

Student Number BWNY5KT88

Contact Number 063 134 6631

Lecturer’s Comments:

Marks Awarded: %

Signature Date

Group Assignment Coversheet 2021 | V1.1 Page 2 of 2

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 TABLE OF CONTENTS

1.Introduction to the company.................................................................................................... 4

1.1 What is the product and company name? ............................................................................ 4
1.2 What does our company produce? ...................................................................................... 4
1.3 In which industry do we operate? ......................................................................................... 5
1.4 Who are our competitors? ..................................................................................................... 5

2.Management team and Organisational structure ................................................................... 4

2.1 Roles of our management team............................................................................................ 5
2.2 Departments in the company ............................................................................................... 5
2.3 Structure and design of our company ................................................................................... 6
2.4 Reasons why our structure and design are like this .............................................................. 6

3.What is the business environment of our company? ............................................................ 6

3.1 Explanation of the management environment ...................................................................... 7
3.2 Which technology do we use? ............................................................................................... 7
3.3 Examples of change and innovation in our organization ....................................................... 7

4.Decision making and managerial issues ................................................................................ 8

4.1 Examples of important decisions taken ................................................................................ 8
4.2 How managers make decisions ........................................................................................... 8
4.3 Explanations of decisions of innovation and change in the organization .............................. 9

5.Conclusion: What strategies do we use? ............................................................................. 10

6. Bibliography ........................................................................................................................... 12

7. Appendix ................................................................................................................................ 13

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 1. Introduction to the company

1.1. What is the product and our company name?

Our company name is Let’s Torque Detail which is a car detailing private company that was
founded by business partners, Cameron Lawrence, Yonela Mbusi and Mbali Njikelana. Let’s
Torque Detail was founded on 1 August 2018. The company name Let’s Torque Detail derived
from a smart play on words, since we substituted talk for torque, given we are in the car detailing
industry.

We are a service business; however, we have our specialty product that we manufacture and
produce. The product that we offer is our very own engine oil called the Let’s Torque Engine Oil.

In addition to selling engine oil, our company also offers services such as car wrapping, car
modifications such adding spoilers, tints, mag alterations and interior transformations.

1.2 What does our company produce?

The Let’s Torque Engine Oil is a unique engine oil product which allows the pistons to work in the
engine thoroughly. Our engine oil product has received positive reviews so far, by local
mechanics and car servicing companies. Our engine oil is the perfect thickness and viscosity for
our client’s car engines. Our engine oil also provides a sense of relief to your car, which is to
lubricate your engine, as it’s in constant friction (Brown, 2015). Therefore, our product reduces
friction which tends to increase wear and tear of engine parts. Our product solves vehicle
owner’s problem of engine oil accessibility, because our product is easily available because we
have a factory that manufactures the product, and we have a very reliable and affordable
supplier of crude oil, from Ukraine.

However, we do ask our customers for their consent at first, and therefore we offer a free sample
of the product to satisfy and try to encourage them to purchase the product. We also offer
product-service discount packages, that allow our customers to pay lesser for the detailing, if
they purchase our best-selling engine oil.

The interior and exterior detailing services that we offer at Let’s Torque Detail include services
such as:

• Hand and automatic washing and drying

• as well as paint correction and protection
• Car styling and modifications according to customer requests,
• and engine oil changes
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1.3 In which industry do we operate?

Let’s Torque Detail operates in the car detailing industry. We found a gap in the car detailing
industry because, there are very few businesses that offer car detailing, in conjunction with an
engine product that they produce themselves. This opportunity gives us a competitive advantage
over the other car detailing firms in the same industry and also over the sole engine oil sellers.
Car detailing industry entails a top-to-bottom, deep clean of your car. The process focuses on
both the interior and exterior of your vehicle and aims to restore your car to factory finish (or as
close as physically possible), giving it a shine once again, and making ready for your next
adventure (Carver, 2018).

1.4 Who are our Competitors?

Let’s Torque Detail’s competitors are those that offer similar product/services of which may be
cheaper, companies such as DCM Auto Detailer, Grant’s Car Wash & Valet Center are our
biggest competitors in our geographical area.

Our newly emerging competitors are also petrol stations that offer car-washing services in
conjunction with their engine oil products, that compete with our Let’s Torque Detail engine oil
product.

The reason why petrol stations such as BP garage are our competitors, is because they have
established engine oil brands that have been existing for quite some years, in comparison to our
engine oil product which is new in the market, and is trying to win over the majority of the market
share.

2. Management team and Organisational structure

2.1 The roles of our management team

According to Canadian author and businessman Henry Mintzberg, managerial roles can be
divided into three main categories, namely: Informational, Interpersonal and Decisional roles.

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Cameron Lawrence – Top Manager – Chief Operating Officer – has the decisional role in the
company and is responsible for making decisions about the direction of the organization and
establishing policies that affect all organizational members (Robbins, A.Coulter, & Cenzo, 2019).
The decisions include which products we could introduce in our company to increase our profits.
Other vital decisions would be the addition of more employees and also decisions on expanding
into more geographical locations and not only operating in East London. The top manager is also
responsible for the strategic planning in the organisation.

Mbali Njikelana- Middle manager – Managing other managers – has the informational role in the
company and represents levels of management between the first line supervisor and top
management – responsible for translating the goals set up by top management into specific
details (Robbins, A.Coulter, & Cenzo, 2019). Mbali is responsible for bridging the gap between
top level management and lower-level management, by communicating the operational
objectives to be achieved for the current financial year. The middle manager is responsible for
tactical planning in the organisation.

Yonela Mbusi – First line manager - supervisor – has the interpersonal role in the company and
is responsible for directing the day-to-day activities of non-managerial employees. (Robbins,
A.Coulter, & Cenzo, 2019). Yonela’s duties as a frontline manager include making sure that the
frontline employees concerns are heard and that something is done by top management about
them. Another duty is to make sure that the frontline employees know what is expected of them
by top management. The first line manager is responsible for operational planning.

The decision making will be made by Cameron (top manager) but if he isn’t available during a
crucial time, the authority will be handed over to the middle manager which is Mbali.

2.2 Departments in the company

In our company we use product-service departmentalization – which divides our workforce and
employees based on major product-service areas in the corporation (car detailing, car wash,
modifications) (Robbins, A.Coulter, & Cenzo, 2019). The car detailing department has it’s skilled
and competent employees, just like the car washing department and modifications department
does. So our functional departments are founded on the basis of work specialisation.
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 The other departments of Let’s Torque Details also consist of:

 The finance department- deals with our budgets, revenue and costs incurred.

 The operations department- deals with the materials and technology that we use to detail
the cars.

 The human resources department- looks at the well-being of our workforce and manages
the payroll and remuneration systems in the organisation.

 Administration department- consists of our receptionist who takes care of appointments.

2.3 Structure and design of our company:

Let’s Torque Details’ encompasses a formal structure, meaning that the structure of our
organization is a structure having precisely defined jobs, tasks, responsibilities, and authority.
Our structure supports our main strategy in our organisation, which is the differentiation strategy.
The formal structure is frequently documented on paper as an organizational chart. And
organizations follow rigorously specified and enforced rules and procedures. The formal structure
that we have in-place means that we have a well-defined hierarchical authority system.

2.4 Reasons why our structure and design are like this

One of the main reasons why we have a formal structure is to ensure clear lines of authority
within in our organisation, because that helps employees know who their subordinates are and
who their superiors are, in the workplace.

The second, reason is to ensure a rigid and stable internal work environment in a volatile,
uncertain, complex and ambiguous business world.

In addition, a formal structure is vital in our organisation, as it enables better management as the
company grows. Activities are growing increasingly complicated. Furthermore, organizations
must manage additional resources and personnel.

Furthermore, our company's direction is clearer and more integrated. A company's aims are
documented through its vision and mission. It is then split down into lower-level goals and
targets, spanning from departments to people. Thus, the various goals and targets eventually
assist the firm in meeting its objectives.

Lastly, the formal structure of the organization explains power and responsibility across units and
positions. This may result in improved communication and decision-making. (Nasrudin, 2022)

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 3. What is the business environment of our business?

3.1 Explanation of the management environment

The management that this company falls under is volatile, uncertain, complex and ambiguous.
This is because our company is affected by constantly changing factors both externally and
internally (Nasrudin, 2022). One of the internal factors we face, is having to constantly change
our strategies and contingency plans. Therefore, we do not perceive our manage environment as
being stable, since we are always finding ways gain a competitive advantage by benchmarking.

An example of an external factor that influences our management environment is competition

from nearby petrol stations. An example of such competition are the lucky draws and shopping
rewards being offered at petrol stations, in conjunction with their services and products. This
competition then results in us having to change organisational strategies in order to gain a
competitive advantage. The internal factor that influences our management environment is the
type of products and services that our company produces, in the sense that, are our products
quality products that help us win return customers or not. Another external factor that may be
influential to our management environment are social trends and environmentally friendly
products that we use to clean the cars, the better the quality of your products as a business in
this industry the more customers you attract because people are influential to each other that’s
where external social factors come in, the more people know and trust your work the more
people entrust you to take care of their most treasured possessions, their cars.

3.2 Which technology do we use?

We are now in a digital world, where the use of technology gives a firm a major competitive
advantage over rival firms. The technology that we use for our company includes computers at
reception and at management in order to keep track of daily services rendered and products
sold. We also make use of modern vacuums that don’t emit too much noise, we use license plate
readers as well, in order to record the vehicle into our cash receipts journal and be able to issue
a receipt accordingly (Evans, 2013). The license plate reader system mitigates human error,
when we do our bookkeeping activities. We also have a high-pressure automatic water gun, that
washes tyre and hard to reach rim and mud flap stains. We have a user-friendly App and website
for scheduling appointments, however we still do take phone call appointments, since not
everyone is able to operate online systems with the same ability. Lastly, we have a solar energy
system installed. This system helps us combat the uncertainties of the energy crisis in South
Africa.

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3.4 Examples of change and innovation in our organisation

The 3 main things that we change in our company are the goals, the people and the structure. In
this industry change is very important, both internally and externally. When change and
innovation is implemented both internally and externally we are presented an opportunity to
change consumer wants and needs and introduces them to new technologies that are age and
environmentally friendly. In terms of technological changes, we have introduced a service called
steam-washing in our organisation.

This new service in a nutshell uses steam to wash the car, the benefit is that it preserves car
paint for longer and they are very environmentally friendly, because they don’t use chemicals.
We have also developed in-bay automatic lights that help our customers navigate the course,
once inside our car-washing area (Johnson, 2016). We have designed better water nozzles for
our car body water guns. An innovation that is in the works is a touch-less carwash, where we
will use machines for most of the car-washing services that we offer. There are yearly mental-
wellness workshops that we have developed, to help employees because if we do not take care
of our employees their health becomes bad and it reflects poorly not only to their work
performance but to the employers who don’t mind their staff.

In terms of changing our goals, we still have one goal which we are working towards, which is to
become the leading engine oil seller and car detailing company in the Eastern Cape. We have
certain objectives, that we have structured, in order to help us achieve our goals, gradually.

4. Decision making and managerial issues

4.1 Examples of important decisions taken

1) The decision to hire more employees for human capital

2) The decision to introduce a new product in our product line, or to modify an existing
product by innovation

3) The decision to offer a new service or improve on an existing service that we offer

4) Another important decision taken is developing the yearly budget for our operations

5) Furthermore, the decision to set the monthly revenue projections and short-term objectives

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4.2 How managers make decisions

Our managers use a 7-step process to make decisions in the company:

1- They first identify a problem

2-They then develop and identify a decision criterion

3- Allocation of weights to the criteria identified, in terms of what we deem as being vital

4- Develop alternatives, in other words, contingency solutions and plans

5- Analyse alternatives, by looking at the feasibility of these alternatives

6- Selection of an alternative takes place, meaning a decision has been made

7- Implementation of the alternative, refers to enforcing, regulating and assessing the decision.

4.3 Explanations of decisions of change and innovation in the workplace

As we know, the by-product of change and innovation in an organisation is stressful, because

some changes can make it difficult to maintain the work-life balance. Top management is
responsible to make the non-programmed decisions, whilst lower level management makes
programmed and repetitive decisions (Hughes, 2012).

We manage decisions of change in our company in the following ways:

We have management and employee team-building camps on an annual basis

We also have mental-wellness seminars that take place monthly
We have introduced a friendly organisational culture that encourages employees to
speak to management about their concerns
We have also introduced a notice board where people can write anonymous
recommendations to management
There are also performance appraisals that help us gauge whether or not the
employees are adjusting to innovation within our internal environment

5. Conclusion: What strategies do we use?

American business analyst and strategist, Michael Porter coined the various strategies that
businesses can use in order to gain a competitive edge over rival firms. In Our organisation we
make use of some of his strategies.

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We use the following Porter’s strategies:

❖ Cost-leadership strategy

This strategy helps us achieve economies of scale, in our organisation. This is because we incur
lower opportunity costs, which results in cheaper and lower average costs when we are
producing our engine oil. This strategy is successful because we do not exceed our operations
budget.

❖ Differentiation strategy

Our company also uses this strategy, because we are a unique product-service company in the
detailing industry. This means that we offer something new and convenient in the market. This
strategy will yield success because we will be distinguishable from the rest of the firms in the
same industry.

❖ Corporate strategy

We also make use of a corporate strategy, which helps us in terms of the bargaining power of
suppliers. Suppliers are saturated; therefore, we have many choices of suppliers. This means
that they cannot just raise their prices out of the blue.

❖ Functional strategy

We also make use of a functional strategy that helps to support our corporate strategy. Our
functional strategy describes how the different departments in the organisation interlink and
communicate. It also describes the duties and roles of the different levels of management in our
company.

❖ Growth strategy

In conclusion we also have a growth strategy, which focusses on the direction of the firm as a
whole. The growth strategy of our organisation is to expand geographical locations through
franchising agreements with interested parties. However, our growth strategy is more long term.

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 6. Bibliography

Adams, T. (2010). The Complete Guide to Car Detailing: For Beginners and Professionals. Auto-
Care Publications.

Brown, J. R. (2015). Environmental Impact of Car Washing: A Case Study. Journal of

Environmental Management, 160, 132-141.

Carver, S. (2018). Waterless Car Washing Techniques: A Comprehensive Review. International

Journal of Vehicle Systems Modelling and Testing, 13(4), 317-332.

Davis, M. W. (2009). The Art of Car Washing: Techniques and Tips for Professionals. Car Care
Publishing.

Evans, R. S. (2013). Car Washing and Water Conservation: Strategies for Sustainable Urban
Development. Sustainable Cities and Society, 8, 90-97.

Garcia, A. B., & Smith, L. P. (2017). Economic Analysis of Automated Car Wash Systems.
Journal of Applied Economics, 20(2), 245-259.

Hughes, S. F. (2012). Car Wash Chemistry: The Science Behind Vehicle Cleaning. Chemical
Publishing.

Johnson, K. L. (2016). Consumer Preferences in Car Wash Services: A Market Analysis. Journal
of Marketing Research, 42(3), 287-299.

Miller, P. D. (2011). Water Recycling in Car Wash Businesses: Benefits and Challenges. Water
Resources Management, 25(10), 2567-2579.

Nasrudin, A. (2022, May 16). Formal Organizational Structure: Characteristics, Advantages,

Disadvantages. Retrieved from Penpoin.: https://penpoin.com/formal-organizational-structure/

Robbins, S. P., A.Coulter, M., & Cenzo, D. A. (2019). Fundamentals of Management. Pearson

Smith, R. A., & Williams, E. D. (2014). Comparative Analysis of Manual and Automated Car
Washing: A Lifecycle Assessment Approach. International Journal of Life Cycle Assessment,
19(8), 1453-1465.

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7. Appendix

Below is the logo of our company that we created

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