Business Model and Strategic Plan Part I: Lear Corporation
BUS/475
December 7, 2015

Business Model and Strategic Plan Part I: Lear Corporation
Lear Corporation is a huge company within the industry it is operating. Lear Corporation started its existence almost a century ago, in the year 1917 as American Metal Products, and it continued its development throughout the time by making several acquisitions and going public in 1994. Lear Corporation strives to respond to the changing needs of the automotive industry and successfully manages to be “a global leader in automotive seating and electrical systems” (Lear Corporation, 2015).
Lear Corporation has a simple vision that has four major bullet points, and this vision statement clearly represents how the company sees itself and how it positions itself within the industry. * A supplies of choice * An employer of choice * The investment of choice * A company that supports the communities where we do business (Lear Corp., 2015)
The vision statement of Lear Corporation implies that the company strives to be the first in the market. In addition to that, Lear states that it has core values that the company constantly fulfills no matter what: (1) customer focus, (2) operational excellence, (3) teamwork, (4) integrity, (5) diversity, (6) and community service. Those core values exist in every division of the company, in every transaction and in every move, Lear makes throughout their operations (Lear Corporation, 2015).
Currently the company is working with four major categories of products: connectivity, seating, craftsmanship, and automotive electrical (Lear Corporation, 2015). The company makes those products for the leading companies in automobile manufacturing segment, such as Fiat Chrysler Automobiles, Hyundai Motor Company, Peugeot S.A., Volkswagen Group, Renault-Nissan Alliance, Jaguar Land Rover, and other huge manufacturers. In addition, Lear Corporation makes a significant emphasis on Chinese market, because it believes that China represents one of the largest and fastest growing markets in automotive industry (Forbes, 2015).
New Product or Service for the New Company Division
As far as Lear Corporation produces several major components of the car, the company can engage into the automobile retail business. Lear Corporation can create a new division that will be responsible for the distribution of high quality cars from the best automobile manufacturers with whom the company is currently working. A new division will have a strong emphasis on customers’ satisfaction. The point is that Lear Corporation will create a specialized store, in which customers will be able to choose a new car that has the components of Lear’s production. In addition, in order to increase the level of addressing customers’ needs, the company will have special assistants in the store who will be the experts in the company’s production and will be able to give any advice and respond to any question that the customers may have.
In such a way, a new division of Lear Corporation will be creating a sales department that will be responsible for the sales of cars and for the communication with customers. The major aspect of creating this division is to show customers the engagement of the company into the car manufacturing process and to provide clients with high quality and professionalism assistance in any issue. The mission of a new retail and communication division will be:
To give an opportunity of making an informed and reasonable automobile purchase process and to ensure that the customers have a possibility to get the best alternative of their car choice, along with making a purchase right at the spot.
The car retailing industry has a moderate competition and quite high barriers to entry, because there are strict policies and regulations for opening a business of this type. Still, there is a great benefit for Lear Corporation in terms of the power of suppliers (Tahalyani, 2014). As far as the company is currently working with the leading car manufacturers, they will be able to avoid problems in getting the right suppliers and making strict regulations with them. Without any doubt, this will be a serious process, because Lear Corporation will become not only a supplier of automobile parts, but also a seller of those automobiles. Anyways, Lear Corporation will be able to acquire a great competitive advantage for the new division, because the company already has relations with car manufacturers and those car manufacturers as well depend on Lear, as on the best supplier of automobile products.
Describe How Division Addresses Customer Needs and Competitive Advantage
A new division of Lear Corporation will be concentrating its attention on meeting customers’ needs in making informed choices in the automobile purchase process. Many people all over the world probably face a problem of buying a car, because they may not be well aware of the parts of the automobile, of its efficiency and of the reasonability of their choice in terms of price and quality combination. Lear’s new division of cars’ retailing and communication will assist the customers through the whole process of purchasing a new car. Customers need a professional assistance when they want to buy a new automobile, and car retail shops provide them with this assistance. However, Lear Corporation is already a professional in the automobile parts production, and it significantly contributes to the image of a new company’s division. World’s leading car manufacturers trust Lear Corporation in providing them with car parts, and the company will inform customers about this, which will increase a trust level in the assistance by Lear’s professionals. Thus, this aspect will also add points to the competitive advantage of a new division, as they will already be the experts from the moment of entering the market.
Vision and Business Model for New Division It is crucial for every new business, even for a new division of an existing successful company, to have a clear vision statement. Lear Corporation will make a strong emphasis on customers’ satisfaction and innovation in their operating process in a new division. In such a way, a vision statement of this new department will be the following:
Lear Corporation Retail business is the leading automobile retailer within the industry, because it works on the basis of meeting customers’ needs, providing them with the highest quality service and introducing innovation to the industry of car retailing.
Explain How Vision, Mission, and Values of the New Division Align with
Company’s Mission and Vision
In the beginning, we have mentioned the vision statement of Lear Corporation. The vision statement of a new department aligns with the company’s vision, because the major point is to be the company ‘of choice’. Lear Corporation strives to be the best and it successfully manages to perform their responsibilities at the highest level. In such a way, mission and vision of the new department encourages meeting customers’ needs and preferences at even higher levels. A new division adds value to the company overall.
Summarize Division’s Strategic Direction
Moving forward, we have to mention that it is essential for a new division to have a thorough strategic vision for the future. Opening up a new division will require significant resources from Lear Corporation, and it is important to justify the means through the operating activities. A new division of the company will possess itself as a high professional from the very beginning, working on the creation of a positive image in the eyes of potential customers. The major strategy of a new division will be concentrated in the aspect of offering the best service and always being the best within the industry. In other words, Lear’s new division strategy will be focusing on customers and on the image of the company as a business that works under the strict code of ethics, encourages sustainable development, cares about the environment, and brings value to the society. Lear’s new division will be performing things as if every employer would be the customer himself. In such a way, the business model for a new division will be engaging employees that are working for Lear Corporation now, in the customers’ assistance process. In addition, the employees will try to put themselves in others’ shoes, in order to provide the best alternative in automobile purchasing.
Guiding Principles and Values of Division
As the section above mentions, a new division will concentrate on bringing value to the society. At this point, it is crucial to take into consideration corporate social responsibility aspect and ethics code, as well as cultural differences within the society. Lear Corporation new division of automobile retailing and communication with customers will take the social aspect very seriously. Corporate social responsibility plays a significant role in creating a positive image of the company. Therefore, Lear’s new division will perform all of its operating activities, while taking care of the environment and of the society. All of the operations of the new division will make a strong emphasis on going green. The trend of taking care about the environment takes a significant place in the business within many industries in the modern world. Lear’s new division will maintain only ethical relationships with their customers. The company will always take full responsibility for the retailing process and will provide full assistance if any problems occur even after the purchase already took place. Lear Corporation and its new division will work for the future of the society and for the good of the society in every aspect of its operations.
Conclusion
Lear Corporation is “a global leader in in automotive seating and electrical systems” (Lear Corporation, 2015). Lear Corporation will introduce a new division that will concentrate on automobile retailing and on assisting customers in making informed choices during car purchase processes. A new department of Lear Corporation will emphasize high level of professionalism, of meeting customers’ needs, encouraging innovation and working for the good of society. Lear’s new division will work under the basis of corporate social responsibility, ethical relationships and bringing value to the society.

References Forbes. (2015). Lower automotive sales growth could hurt lear corporation . Retrieved from http://www.forbes.com/sites/greatspeculations/2015/08/28/lower- automotive-sales-growth-could-hurt-lear-corporation/
Lear Corporation. (2015). Company Overview. Retrieved from http://www.lear.com/Site/Company/
Tahalyani, C. (2014, April 12). US Automobile Retail Industry Analysis/Solution. Retrieved December 1, 2015, from http://www.slideshare.net/chitsbull/us- automobile-retail-industry-analysissolution