Clay Woodward, Josh Hartle, Kaleb Shannon, Rand Stinson, Ben Novak

AutoZone's Current State

Strengths

  • Currently holds largest market share within the industry at 16.6%
  • Operations in Puerto Rico, Mexico, and Brazil
  • Total company revenue amounted to $10.6 billion including 84,000 employees and 59% of them being full time

Weaknesses

  • Increasing Debt
  • Legal Proceedings due to water contaminations and safety violations
  • Total company revenue amounted to $10.6 billion including 84,000 employees and 59% of them being full time

Opportunities

  • Positive increase in revenue over the past seven years
  • Expanding global vehicle fleet and the rapid rise in the average age of vehicles on road
  • Growth of Web-based store and online sales

Threats

  • Intense Competition
  • Legal Proceedings and Issues likely to affect Reputation and Cash Structure
  • Macroeconomic and geo-political conditions could adversely affect the sales growth, margins and overhead

NPV and IRR Analysis

Npv and IRR were not easily attainable with a training strategy. Due to lack of a major initial investment IRR and NPV were substantial above normal due to quick and efficient returns.

EBIT/EPS

EBIT and EPS increased year after year at a greater rate with the new strategy in place.

STRATEGY FOR IMPROVEMENT

  • Create and update policies which create, encourage, and support a diverse organization culture and work environment. Training will not only review and explain policies, but also provide solutions and support to have a diverse work environment.

Strategy Benefits

  • Mitigates the risk of lawsuits
  • Increases Cash Flow by 2.3 times per employee over a 3 Year period (Bersin, 2015)
  • Employees are 1.8 times more likely to be change-ready (Bersin, 2015)

Alternative Strategies

  • Annual organizational background checks:
  • Implementing automotive workshops at AutoZone locations:

References

  • Advance Auto Parts. (2017). Home Page. Retrieved from Advance Auto Parts: http://shop.advanceautoparts.com/home?utm_source=ACQ&utm_medium=cpc&utm_campaign=brandexact&utm_content=home&jt=1&jap=1t1&js=1&jcpid=8a8ae4cd3da42a79013da77890bf6067&jkId=gcp:se_34339:t_aud-62603320895:kwd-1769703699:ag_18183476245:cp_116172445:n_g:d_c:cr
  • Bersin, J. (2015, Dec 6). Why Diversity And Inclusion Will Be A Top Priority For 2016. Retrieved from Forbes: https://www.forbes.com/sites/joshbersin/2015/12/06/why-diversity-and-inclusion-will-be-a-top-priority-for-2016/#552ddc362ed5
  • Canadean Company Reports. (2014). AutoZone, Inc.: Retail - Company Profile, SWOT & Financial Report. Retrieved from https://search.proquest.com/docview/1553147904?accountid=12085
  • Ellis, K. M., & Keys, P. Y. (2015, Feb). Workforce diversity and shareholder value: a multi-level perspective. Review of Quantitative Finance and Accounting, 191-212. Retrieved from https://search.proquest.com/accountingtaxbanking/docview/1649060735/B4E1CE0E9D0E4B13PQ/14?accountid=12085
  • Genuine Parts Company. (2017). Home Page. Retrieved from Genuine Parts Company: https://www.genpt.com/
  • GlobalData. (2016). AutoZone, Inc. - Financial and Strategic Analysis Review. GlobalData. Retrieved from AutoZone Inc.: http://bi.galegroup.com/global/search?u=vic_liberty#displayGroup=swot&q=company^130877
  • Herring, C. (2009). Does Diversity Pay?: Race, Gender, and. American Sociological Review, 74(2). Retrieved from http://www.asanet.org/sites/default/files/savvy/images/journals/docs/pdf/asr/Apr09ASRFeature.pdf
  • Kamery, R. H. (2004). AN ANALYSIS OF A REGIONAL LEADER IN THE DIY AUTO REPAIR MARKET. Allied Academies International Conference. Academy of Legal, Ethical and Regulatory Issues. Proceedings, 8(2), 103-108. Retrieved from https://search.proquest.com/abicomplete/docview/192409431/32ABD9630D8540C4PQ/2?accountid=12085
  • Keller Rohrback L.L.P. Announces Reinstatement of Wage Lawsuit Against AutoZone. (2014, May 20). NASDAQ OMX's News Release Distribution Channel. Retrieved from https://search.proquest.com/abicomplete/docview/1526006537/33D48B5EB7BC44DBPQ/3?accountid=12085
  • Kranc, J. (2014). DIVERSITY'S ESSENTIAL POINT. Financial Executive (30), 34-39. Retrieved from https://search.proquest.com/accountingtaxbanking/docview/1513231754/DB087F1194E347D8PQ/4?accountid=12085
  • Lanham Lanham. (2014, May 9). EEOC Sues AutoZone for Fourth Time for Violating Americans with Disabilities Act. Federal Information & News Dispatch, Inc. Retrieved from https://search.proquest.com/abicomplete/docview/1523704664/3DE91A3FC7A545A9PQ/2?accountid=12085
  • Lanham Lanham. (2014, Sept 26). EEOC Sues AutoZone for Harassment Based on National Origin. Federal Information & News Dispatch, Inc. Retrieved from https://search.proquest.com/abicomplete/docview/1566164796/3DE91A3FC7A545A9PQ/8?accountid=12085
  • Lanham, L. (2014, Sept 19). EEOC Sues AutoZone for Sexual Harassment. Federal Information & News Dispatch, Inc. Retrieved from https://search.proquest.com/abicomplete/docview/1566348494/3DE91A3FC7A545A9PQ/5?accountid=12085
  • MarketLine. (2016). AutoZone, Inc. MarketLine Company Profile. Retrieved from http://advantage.marketline.com/Product?ptype=Companies&pid=D3D81108-2BF2-4CB5-ADB5-F18482BBDFD0
  • Mondaq Business Briefing. (2014, Nov 22). Retaliation for Filing a Pregnancy Discrimination Claim: $185 Million Buys A Lot of Diapers! Gale Business Insights: Global. Retrieved from http://bi.galegroup.com/global/article/GALE%7CA391317946/90210fc76778178cb8c3104a504aeb9b?u=vic_liberty
  • NuData security joins forces with the national anti-organized retail crime association. (2016, May 24). PR Newswire Retrieved from http://ezproxy.liberty.edu/login?url=https://search.proquest.com/docview/1790594339?accountid=12085
  • O'Reilly Auto Parts. (2007). 2007 Annual Report: Making Connection for 50 Years. Retrieved from http://www.annualreports.com/HostedData/AnnualReportArchive/o/NASDAQ_ORLY_2007.pdf
  • O'Reilly Auto Parts. (2017). Home Page. Retrieved from O'Reilly Auto Parts: http://www.oreillyauto.com/site/c/home.oap?gclid=Cj0KEQiAot_FBRCqt8jVsoDKoZABEiQAqFL76L5LVdF3xAXZ6eekWeoznOP3h8wByRXC1GP6uqniA90aAsqk8P8HAQ
  • Peter, I. (2017, Feb.). Competitive Landscape. Retrieved from IBISWorld: http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=1012
  • Peter, I. (2017, Feb.). Industry at a Glance. Retrieved from IBISWorld: http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?entid=1012
  • Peters, I. (2017, Feb). Major Companies. Retrieved from IBISWorld: http://clients1.ibisworld.com/reports/us/industry/majorcompanies.aspx?entid=1012#MP9409

Credits:

Created with images by time_anchor - "local_markets_nlv_auto-zone_signage_1" • Steve A Johnson - "Car Parts" • time_anchor - "local_markets_nlv_auto-zone_storefront_1" • pasa47 - "Auto Zone" • Random Retail - "Auto Zone" • pmsanders65 - "sunset"

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