Classic Cars (CC)
CC is a large public limited company that manufactures a range of cars which it sells through
its own retail outlets. Each car is developed to meet the needs of a specific target market
. Production takes place in several large factories using flow production methods. James is the
Managing Director and he has been studying the revenue and profit data shown in Table 1.
Table 1: Revenue and profit data for CC
James believes that the success of CC depends on the following 2 key factors.
• Being price competitive – mainly achieved through a business objective of keeping costs
low.
• High level of investment in research and development to ensure that CC produces
modern and technologically advanced cars.
James is working with Bilal, Director of Research and Development, to plan the investment of
an additional $500m in developing a new car. This will be aimed at the family market. James
also needs to meet with the Marketing Director to develop a pricing strategy for the new car.
He will then present his overall plans to the Board of Directors at the next meeting.
Kevin, the Human Resources Director, knows that labour turnover has increased from 5% to
7% in the last 2 years. This has been caused by low rises in wages and salaries and a poor
range of perks (fringe benefits) for employees. Kevin wants CC to concentrate more on triple
bottom line targets and not just profit.