1.) What are the respective business strategies of Transworld Auto Parts' economy and luxury divisions? (Think about how each division adds value to its customers and differentiates itself from its competition.)

The strategy of the Luxury division was to produce the most innovative, quality parts on the market.

The Economy division’s strategy was to produce high quality car parts with the lowest lifetime price that are known for durability and low maintenance cost.

2.) List three items each division must do well to execute its strategy?

-Luxury 1. Coordinate supplier management, manufacturing and product delivery 2. Be on time and on spec 3. Managing the supplier pipeline
-Economy
1. Must be the best manufacturer (particularly in Asia) 2. Must fully master just-in-time 3. Entire division must be lean 3.) Which division manager has done a better job of executing his business unit’s strategy? Provide three reasons to support your selection.

The luxury division did a better job of executing their business unit strategy for several reasons. First, the luxury division had the best results overall at the end of the six month evaluation. Eckhard’s division exceeded in meeting the short term goals that were necessary to put us in a position where the parent company can invest in programs that will help the company compete. Second, the CEO stated if the company did not reach its goal and maintain positive cash flow, he would divest or close TAP. I believe the results (8M) increased cash flow and helped prevent TAP from being closed. I believe at this six month period was vital to reach the positive increase in cash flow rather than solely meet the long term goals. Although, the luxury division did not meet the long-term goals, results show they still maintained a high rate on innovation. Eckhard thoughts on saving money in the beginning