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LIFESTYLE CARS Ltd.
Lifestyle Cars Ltd is an automobile producer which is distributing its cars all over Great Britain through a series of authorized dealers. In order to attain the qualification necessary to become such a dealer, each potential dealer has to guarantee that he will respect all qualitative standards imposed by Lifestyle. Because Lifestyle products are popular and they sell very good cars, competition for becoming a Lifestyle dealer has always been tough. All dealers have to attain a certain sales volume, established by the producer. In case of success, the dealer’s reward is not only monetary as it also includes some other prizes ranging from holidays to the ability to present all new models in their own showrooms. It is little surprising that any dealer will be more willing to sell new or improved models, as old ones are obviously more difficult to merchandize.
Once an authorized dealer has been accepted, the symbiosis between this one and Lifestyle is rather difficult. Over the life of the contract, both companies have to closely cooperate. Although directly Lifestyle has little authority over a dealer, indirectly, the other way around is true.
For a better understanding of these circumstances one could analyze a typical dealer, Ratchetts Ltd. Having been founded over twenty years ago by Alan Ratchetts, as an auto repairs shop, the company has experienced continuous growth and it has presently become an authorized Lifestyle dealer. Alan Ratchett, both the founder and the CEO of its own company, is also working for Lifestyle as its main dealer. The Ratchetts Ltd organizational chart is the following: