Advance Auto Parts Executive Summary
Executive Summary
Advance Auto Parts Incorporated
MGM 1304 A
Rhondalyn Wright
Colorado Technical University
Dr. Erick Agular
11/11/2013
It is the end of the third financial quarter and some exciting news is being reported. Here is an excerpt from The Miami Herald: Posted on Thu, Oct. 31, 2013
Advance Auto Parts 3Q profit up 16 percent
By MICHAEL FELBERBAUM
AP Business Writer
Advance Auto Parts says its third-quarter net income rose 16 percent as it benefited from its acquisition of a Northeast car parts supplier and its profit margins expanded.
The company on Thursday posted earnings of $103.8 million, or $1.42 per share, for the quarter ended Oct. 5. That 's up from $89.5 million, or $1.21 per share, a year ago. …show more content…
Revenue increased 4.3 percent to $1.52 billion. But revenue at stores open at least a year fell 2 percent. That 's an important measure for retailers because it excludes the volatility from newly opened or closed stores.
Analysts expected earnings of $1.43 per share on revenue of $1.53 billion.
Advance Auto Parts Inc., based in Roanoke, Va., operates more than 4,015 stores in the U.S., Puerto Rico and the Virgin Islands.
Its shares rose 28 cents to $100.28 in morning trading.
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With the newly appointed Chief Executive Officer at the helm of this Fortune 500 Company and the Deputy Chief Executive Officer following in the ranks, the pair obviously made some correct decisions as to how to further propel this company forward as the newness of the acquisition wears off.
It is this type of strategic decision making that keeps this company moving forward. Assessing the staff, placing them in the correct positions, and allowing them to do what they do best has become the situational norm for this company. Referring back to the mission statement, Advance Auto Inc. made the decision to place the most knowledgeable and professional individual in charge of this newly expanded company who possessed knowledge in both manufacturing of automobile parts as well as the clerical duties associated with being a Chief Executive Officer (C.E.O.)
The existing C.E.O.
retained the seat at corporate headquarters and still performs the clerical tasks associated with that position, but now is known as Deputy Chief Executive Officer. This purchase created a position that was non-existent prior to the acquisition. By maintaining key individuals in those positions, Advance Auto can ensure that they can maintain sales and standards previously attained, allowing for some room to make adjustments in the new area and thereby minimizing the threats or risks to the existing contracts and projected sales of the initial business. We have learned that Advance Auto Inc. is a highly adept and capable company who is vibrant with life, thriving and growing through the changes in structure to expansion of processes, all the while maintaining a happy workforce who continues to learn, educate, and serve the public in a professional manor. This again proves that with the mission statement in mind, all parties think about the customer and their needs first! With the change in C.E.O.s, the entire staff recognizes from the top down that all employees of Advance Auto must perform in a professional manner at all times. This ground-breaking decision to retain the former C.E.O. and create the position of Deputy C.E.O. tells the staff that Advance Auto does care about its employees and will find a way to utilize your skills in every capacity they can as they become available. This offers a tremendous amount of job security to lower level …show more content…
employees, a necessary ingredient for maintaining company morale during a major change. This was accomplished by the use of Hershey and Blanchards’ Situational Leadership Theory that assumes that people are willing and able to do what is asked of them and by utilizing an organizational element of Formalization which refers to the degree to which the jobs within the organization are standardized and to the extent to which employee behavior is guided by rules and procedures; or in this case, adherence to the company’s vision and mission statement. These standards are important to follow especially during a major change to a company as focus can be changed to the day-to-day operations necessary to carry out customer orders. How was keeping the employees happy during all of the changes accomplished? Many companies have failed at this one simple thing that occurred at Advance Auto Inc. during all of this. Give the employees what they need and want, they in turn will give the company what it needs and wants. Advance Auto Inc. made provisions for employees to still be able to earn their wage by the retention of the original C.E.O. maintained a growth potential for the employee stocks.
By instituting the mission statement into all phases of the process that each employee handles, it ensures the company will maintain its vision and be able to live up to its mission statement. (MGMT 307 GROUP PROJECT Organizational Structure and Designs with Case Study:QUALCOMM, 2013)
By purchasing this manufacturing plant, Advance Auto Inc. plans to reduce costs of purchasing manufactured parts and accessories and be able to pass that savings along to its stakeholders and shareholders.
As we can see from the excerpt, the net income rose 16 percent ($166,080) from the benefits of owning the manufacturing company and its profit margins were expanded. Revenue increased 4.3 percent to $1.52 billion, but revenue at stores open at least one year fell 2 percent. That’s important measure for retailers because it excludes the volatility from newly opened or closed stores. Why is this important? If a store has been open less than one year, it has not reached a fiscal year end as yet. It will only do so after a full four quarters of operation. As Advance Auto Inc. became larger and now has 4,015 stores in the United States, Puerto Rico, and the Virgin Islands. Changes were implemented such as span of control. In store managers were now leaders of employees who worked in their location only, but had to have a corporate representative to approve new employees or to remove others who were no longer holding the vision and mission statement. Here again, the mission statement ensures the customer of the quality of not only the product that they purchase, but whom they will be purchasing it from.
Stockholders and stakeholders are confident in Advance Auto Parts Inc. team and the financial decisions that the team makes. More people want to open stores with Advance Auto Inc. and do so yearly; stockholders are making money with current shares selling for $100.28 each. The stock rose $.28 in one day! Many are sold on a vision and a mission statement that began this vibrant entity. Mission Statement
It is the Mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and knowledge that fulfill their wants and needs at the right price. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our customers.
(Advance Auto.com, 2013)
As we can see, the project planners were setting a standard from the very beginning, even before the company was in existence. The planners decided on the product that they wanted to provide, to whom they were going to provide to, and how economical they wanted to be. Next, they decided what kind of people were going to be necessary to see this same vision and possibly be able to assist in the company’s goals. They planned to hire friendly, knowledgeable, and professional people to help them provide their product to their customers in the way in which they wanted to do it. This is known as controlled criteria. It really provides a backbone for measuring other standards.
In this summary we have evidence that with a vision, controlled criteria, knowledge about your products, educating your customers about those products or services, such as how to read an OBDII Scanner, how to interpret the codes and where to find that information, what that information means, and how to correct the problems associated with it; presenting videos on how to identify and repair your vehicle, how to install after-market products, asking for feedback; acting on that feedback; locating and acquiring a means to control costs to be passed on to your customers (stakeholders) and investors (stockholders) ; maintaining a professional attitude while still being friendly you can become a success just as Advance Auto Parts Inc.
has.
Living up to their motto: “We’re ready in advance!” They have more than proven themselves for the projected earnings in the upcoming year of 2014. Analysts expected of $1.43 per share on revenue of $1.53 billion.
Utilizing current technologically advanced webpages that interacts with visitor seeking advice or just wanting to gain information, manned by knowledgeable staff ready and willing to answer any question asked, or lead one to the information, Advance Auto Parts Inc. employees are on the frontline ready to assist the average auto owner and auto enthusiasts alike, they are there to assist you in purchasing the correct auto parts or accessories at a fair
price. REFERENCES
Advance Auto.com. (2013, October 12). Retrieved October 12, 2013, from http://shop.advanceautoparts.com/webapp/wcs/stores/servlet/home___?cm_mmc=ACQ-_-BING-_-Enhanced-_-Brand_Terms_AAP_aaz&jadid=2815132482&jk=advance%20auto%20parts&jkId=mc:a8a8ae4cd3ecef237013efb7eebd77b8b:i18580028762:te_be&js=3&jsid=34837&jt=1#utm_source=a
Business pages. (2013, October 31). Retrieved November 11, 2013, from Miami Hearld.com: http://www.miamiherald.com/2013/10/31/v-print/3722700/advance-auto-parts-3q-profit-up.html#storylink=cpy
MGMT 307 GROUP PROJECT Organizational Structure and Designs with Case Study:QUALCOMM. (2013, October 16). Retrieved October 17, 2013, from http://www.emaytrix.com/mgmt307/section2.php
Missionstatements.com. (2013). Retrieved October 3, 2013, from missionstatements.com: http://www.missionstatements.com/fortune_500_mission_statements.html
Six Key Elements In Organizational Design. (2013). Retrieved October 17, 2013, from emaytrix.com: http://www.emaytrix.com/mgmt307/section2.php
Wright, R. (2013). Phase I Individual Assignment. Indianapolis: CTUO.
Advance Auto Parts Incorporated
MGM 1304 A
Rhondalyn Wright
Colorado Technical University
Dr. Erick Agular
11/11/2013
It is the end of the third financial quarter and some exciting news is being reported. Here is an excerpt from The Miami Herald: Posted on Thu, Oct. 31, 2013
Advance Auto Parts 3Q profit up 16 percent
By MICHAEL FELBERBAUM
AP Business Writer
Advance Auto Parts says its third-quarter net income rose 16 percent as it benefited from its acquisition of a Northeast car parts supplier and its profit margins expanded.
The company on Thursday posted earnings of $103.8 million, or $1.42 per share, for the quarter ended Oct. 5. That 's up from $89.5 million, or $1.21 per share, a year ago. …show more content…
Revenue increased 4.3 percent to $1.52 billion. But revenue at stores open at least a year fell 2 percent. That 's an important measure for retailers because it excludes the volatility from newly opened or closed stores.
Analysts expected earnings of $1.43 per share on revenue of $1.53 billion.
Advance Auto Parts Inc., based in Roanoke, Va., operates more than 4,015 stores in the U.S., Puerto Rico and the Virgin Islands.
Its shares rose 28 cents to $100.28 in morning trading.
________________________________________
________________________________________
With the newly appointed Chief Executive Officer at the helm of this Fortune 500 Company and the Deputy Chief Executive Officer following in the ranks, the pair obviously made some correct decisions as to how to further propel this company forward as the newness of the acquisition wears off.
It is this type of strategic decision making that keeps this company moving forward. Assessing the staff, placing them in the correct positions, and allowing them to do what they do best has become the situational norm for this company. Referring back to the mission statement, Advance Auto Inc. made the decision to place the most knowledgeable and professional individual in charge of this newly expanded company who possessed knowledge in both manufacturing of automobile parts as well as the clerical duties associated with being a Chief Executive Officer (C.E.O.)
The existing C.E.O.
retained the seat at corporate headquarters and still performs the clerical tasks associated with that position, but now is known as Deputy Chief Executive Officer. This purchase created a position that was non-existent prior to the acquisition. By maintaining key individuals in those positions, Advance Auto can ensure that they can maintain sales and standards previously attained, allowing for some room to make adjustments in the new area and thereby minimizing the threats or risks to the existing contracts and projected sales of the initial business. We have learned that Advance Auto Inc. is a highly adept and capable company who is vibrant with life, thriving and growing through the changes in structure to expansion of processes, all the while maintaining a happy workforce who continues to learn, educate, and serve the public in a professional manor. This again proves that with the mission statement in mind, all parties think about the customer and their needs first! With the change in C.E.O.s, the entire staff recognizes from the top down that all employees of Advance Auto must perform in a professional manner at all times. This ground-breaking decision to retain the former C.E.O. and create the position of Deputy C.E.O. tells the staff that Advance Auto does care about its employees and will find a way to utilize your skills in every capacity they can as they become available. This offers a tremendous amount of job security to lower level …show more content…
employees, a necessary ingredient for maintaining company morale during a major change. This was accomplished by the use of Hershey and Blanchards’ Situational Leadership Theory that assumes that people are willing and able to do what is asked of them and by utilizing an organizational element of Formalization which refers to the degree to which the jobs within the organization are standardized and to the extent to which employee behavior is guided by rules and procedures; or in this case, adherence to the company’s vision and mission statement. These standards are important to follow especially during a major change to a company as focus can be changed to the day-to-day operations necessary to carry out customer orders. How was keeping the employees happy during all of the changes accomplished? Many companies have failed at this one simple thing that occurred at Advance Auto Inc. during all of this. Give the employees what they need and want, they in turn will give the company what it needs and wants. Advance Auto Inc. made provisions for employees to still be able to earn their wage by the retention of the original C.E.O. maintained a growth potential for the employee stocks.
By instituting the mission statement into all phases of the process that each employee handles, it ensures the company will maintain its vision and be able to live up to its mission statement. (MGMT 307 GROUP PROJECT Organizational Structure and Designs with Case Study:QUALCOMM, 2013)
By purchasing this manufacturing plant, Advance Auto Inc. plans to reduce costs of purchasing manufactured parts and accessories and be able to pass that savings along to its stakeholders and shareholders.
As we can see from the excerpt, the net income rose 16 percent ($166,080) from the benefits of owning the manufacturing company and its profit margins were expanded. Revenue increased 4.3 percent to $1.52 billion, but revenue at stores open at least one year fell 2 percent. That’s important measure for retailers because it excludes the volatility from newly opened or closed stores. Why is this important? If a store has been open less than one year, it has not reached a fiscal year end as yet. It will only do so after a full four quarters of operation. As Advance Auto Inc. became larger and now has 4,015 stores in the United States, Puerto Rico, and the Virgin Islands. Changes were implemented such as span of control. In store managers were now leaders of employees who worked in their location only, but had to have a corporate representative to approve new employees or to remove others who were no longer holding the vision and mission statement. Here again, the mission statement ensures the customer of the quality of not only the product that they purchase, but whom they will be purchasing it from.
Stockholders and stakeholders are confident in Advance Auto Parts Inc. team and the financial decisions that the team makes. More people want to open stores with Advance Auto Inc. and do so yearly; stockholders are making money with current shares selling for $100.28 each. The stock rose $.28 in one day! Many are sold on a vision and a mission statement that began this vibrant entity. Mission Statement
It is the Mission of Advance Auto Parts to provide personal vehicle owners and enthusiasts with the vehicle related products and knowledge that fulfill their wants and needs at the right price. Our friendly, knowledgeable and professional staff will help inspire, educate and problem-solve for our customers.
(Advance Auto.com, 2013)
As we can see, the project planners were setting a standard from the very beginning, even before the company was in existence. The planners decided on the product that they wanted to provide, to whom they were going to provide to, and how economical they wanted to be. Next, they decided what kind of people were going to be necessary to see this same vision and possibly be able to assist in the company’s goals. They planned to hire friendly, knowledgeable, and professional people to help them provide their product to their customers in the way in which they wanted to do it. This is known as controlled criteria. It really provides a backbone for measuring other standards.
In this summary we have evidence that with a vision, controlled criteria, knowledge about your products, educating your customers about those products or services, such as how to read an OBDII Scanner, how to interpret the codes and where to find that information, what that information means, and how to correct the problems associated with it; presenting videos on how to identify and repair your vehicle, how to install after-market products, asking for feedback; acting on that feedback; locating and acquiring a means to control costs to be passed on to your customers (stakeholders) and investors (stockholders) ; maintaining a professional attitude while still being friendly you can become a success just as Advance Auto Parts Inc.
has.
Living up to their motto: “We’re ready in advance!” They have more than proven themselves for the projected earnings in the upcoming year of 2014. Analysts expected of $1.43 per share on revenue of $1.53 billion.
Utilizing current technologically advanced webpages that interacts with visitor seeking advice or just wanting to gain information, manned by knowledgeable staff ready and willing to answer any question asked, or lead one to the information, Advance Auto Parts Inc. employees are on the frontline ready to assist the average auto owner and auto enthusiasts alike, they are there to assist you in purchasing the correct auto parts or accessories at a fair
price. REFERENCES
Advance Auto.com. (2013, October 12). Retrieved October 12, 2013, from http://shop.advanceautoparts.com/webapp/wcs/stores/servlet/home___?cm_mmc=ACQ-_-BING-_-Enhanced-_-Brand_Terms_AAP_aaz&jadid=2815132482&jk=advance%20auto%20parts&jkId=mc:a8a8ae4cd3ecef237013efb7eebd77b8b:i18580028762:te_be&js=3&jsid=34837&jt=1#utm_source=a
Business pages. (2013, October 31). Retrieved November 11, 2013, from Miami Hearld.com: http://www.miamiherald.com/2013/10/31/v-print/3722700/advance-auto-parts-3q-profit-up.html#storylink=cpy
MGMT 307 GROUP PROJECT Organizational Structure and Designs with Case Study:QUALCOMM. (2013, October 16). Retrieved October 17, 2013, from http://www.emaytrix.com/mgmt307/section2.php
Missionstatements.com. (2013). Retrieved October 3, 2013, from missionstatements.com: http://www.missionstatements.com/fortune_500_mission_statements.html
Six Key Elements In Organizational Design. (2013). Retrieved October 17, 2013, from emaytrix.com: http://www.emaytrix.com/mgmt307/section2.php
Wright, R. (2013). Phase I Individual Assignment. Indianapolis: CTUO.