Product details

Within four years, Robert Christopher had brought Friendly, a marginal GMC, Buick, and Saab dealership, from the bottom in customer satisfaction surveys to the top of comparable dealerships. He had worked hard to repair the dealership''s tarnished image by building inventory and focusing on human resource issues. As Christopher is contemplating adjusting the marketing mix and the mix of products and services offered, a clause in his loan agreement with the GM holding company weighs heavy on his mind. If he does not implement a plan to raise after-tax profits to nearly half a million dollars in 1996, 1997, and 1998, a clause in his loan agreement will force him to repurchase the stock at book value three times the par value. He is also faced with making decisions to exercise a buyout clause in his lease agreement, introduce used car and fleet sales, and develop a strategy which incorporates the new GM ''channeling'' program mandated to all franchisees.