There are some real beautiful business examples out there.
This is one of them.
A valuable example of unique business architecture.
This company is focused on three activities:
There is a clear division in the automotive industry between producers of vehicles and distributors of these.
There are rules to distribution where one distributor is not able to distribute freely different brands of cars.
In this case the company distributes (in Belgium) the following brands: Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini, Bugatti et Porsche.
Reside this distribution this business unit f the company is also focused on the distribution and import of parts.
Additionally they intermediate in the second hand market through networks (My Way).
Any company has a certain business and each business requires often a unique way to organize.
Together these two make up the business architecture of the company.
There are many best-practices in organizing certain businesses.
Best known is that of "focus.
" This is a competence-oriented rule that states that you can not excel in everything.
There are other rules that have a more organizational drive: "Scale" is one of them, "Synergy" is another.
The main drive for organizations is to become efficient.
In this case, synergy is accomplished by not only distributing vehicles but also by distribution of parts and second hand cars.
In the first case the distribution of parts can offer scale and efficiency-advantages.
The second case is offering a more vertical synergy; a dealer network is focused around clients and the same clients-base can be addressed for the second hand market.
More interesting even are the other business units.
Car rentals for example.
Car rentals need maintenance and parts, but rental offices need a constant flow of new models.
It is very hard to rent a car that is "two or three years old.
" This again offers organizational efficiencies, but it also makes the business less sensitive for economic cycles.
In line with this, the third business unit - vehicle glass - supports both the previous businesses (sales and rentals) as it supports the organizational efficiency: replacement and repair of glass for whatever vehicle.
Most unique of this company is it's history.
The company exists for more than two hundred years (1).
Then there is only a small step from business architecture to investment.
I was triggered by a high financial (earnings) forecast of this company and a previous development of the stock-price.
Business architecture-wise this company is unique, not in the last place because the investment structure is unique too; the company not completely owns the car rental, for this is listed separately on the London stock-exchange.
This makes it a bit of a puzzle investment wise.
What remains a fact is that this company is a real pearl as a case for business architecture.
And that is where this article is all about.
Hans Bool (1)- http://www.
dieteren.
com/splash/en-en/legroupe/histoire.
aspx
This is one of them.
A valuable example of unique business architecture.
This company is focused on three activities:
- Automobile distribution
- Car Rentals
- Vehicle Glass
There is a clear division in the automotive industry between producers of vehicles and distributors of these.
There are rules to distribution where one distributor is not able to distribute freely different brands of cars.
In this case the company distributes (in Belgium) the following brands: Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini, Bugatti et Porsche.
Reside this distribution this business unit f the company is also focused on the distribution and import of parts.
Additionally they intermediate in the second hand market through networks (My Way).
Any company has a certain business and each business requires often a unique way to organize.
Together these two make up the business architecture of the company.
There are many best-practices in organizing certain businesses.
Best known is that of "focus.
" This is a competence-oriented rule that states that you can not excel in everything.
There are other rules that have a more organizational drive: "Scale" is one of them, "Synergy" is another.
The main drive for organizations is to become efficient.
In this case, synergy is accomplished by not only distributing vehicles but also by distribution of parts and second hand cars.
In the first case the distribution of parts can offer scale and efficiency-advantages.
The second case is offering a more vertical synergy; a dealer network is focused around clients and the same clients-base can be addressed for the second hand market.
More interesting even are the other business units.
Car rentals for example.
Car rentals need maintenance and parts, but rental offices need a constant flow of new models.
It is very hard to rent a car that is "two or three years old.
" This again offers organizational efficiencies, but it also makes the business less sensitive for economic cycles.
In line with this, the third business unit - vehicle glass - supports both the previous businesses (sales and rentals) as it supports the organizational efficiency: replacement and repair of glass for whatever vehicle.
Most unique of this company is it's history.
The company exists for more than two hundred years (1).
Then there is only a small step from business architecture to investment.
I was triggered by a high financial (earnings) forecast of this company and a previous development of the stock-price.
Business architecture-wise this company is unique, not in the last place because the investment structure is unique too; the company not completely owns the car rental, for this is listed separately on the London stock-exchange.
This makes it a bit of a puzzle investment wise.
What remains a fact is that this company is a real pearl as a case for business architecture.
And that is where this article is all about.
Hans Bool (1)- http://www.
dieteren.
com/splash/en-en/legroupe/histoire.
aspx
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