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Providing High-Quality Automotive Parts: NAPA’s Commitment

Jun 14, 2023 | 0 comments

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Jun 14, 2023 | Essays | 0 comments

National Automotive Parts (NAPA)

Many years ago, the National Automotive Parts (NAPA) was found to address the need for the growing effectiveness of automobile spare parts distribution system. Now, 90% of the customers recognize NAPA by its brand name.

Contact Information

Call                            1-820-LET-NAPA (1-820-538-6472)

Email                         [email protected]

Website              NapaOnline.com

Date Prepared           April 21, 2014

Headquarters           Saint Augustine, Florida
Key people            Thomas Gallagher
Products            Replacement automotive parts

Executive Summary

N.A.P.A Franchise is a business store that supplies automobile spare parts and auto lubricants in Saint Augustine, Florida. It covers close to 91% of the auto spare parts in the continent. The company shipments combine incorporate Florida made auto parts and lubricants with foreign parts conducting re-packaging and product labeling. The auto parts and auto lubricants sell an overall of $ 600,000 million in Saint Augustine, Florida, and entire North America. In these marketplaces, most of the automobile spare part stores were started in the 1970s. Coming up with auto spare part stores that focus on current cars and machinery produced for the last 10 years has challenged many industries.

The company has established a widespread linkage with their customers in the entire region. Thomas Gallagher, the manager of N.A.P.A store has extended work experience in Vehicle Maintenance having served in the military for over 34 years under the vehicle maintenance unit in Saint Augustine, Florida. During his tenure, Thomas Gallagher was involved in thorough vehicle maintenance in the military. It is within this duration that he realized the increasing demand for auto spare parts and auto lubricants.


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  • To achieve satisfying revenue returns within the first year of operation.
  • To rise to an advanced customer base of around 100 taxi companies in the operation region.
  • To steadily increase sales in the second year of operation.


NAPA auto spares are dedicated to providing the auto spares products and lubricants that integrate the quality of the products with the pricing value. The company wishes to develop a fruitful partnership with our clients, suppliers, employees, and respect the objectives and interests of each stakeholder. We look forward to constantly supply what the customers are shopping for and constantly review the demands of the marketplace. Improving on the product availability to the market will guarantee our success in the market that is steered by customer demands. Furthermore, the company intends to be the top auto parts and lubricants provider of choice within the operation region.

Keys to success

  • Be an active member of the auto spares and auto lubricants industry.
  • Promptly deliver our products to the customers.
  • Working with the customers on basis of interactions on a personal level.
  • Attractive store design to the customers, and has efficient and fast operations.

Industry Target

The company statistical research estimated that there are over 30, 000 autos in the region used by the taxi services alone. The number is, however, expected to grow in the next few years. Therefore, the firms that operate taxi services are the major customers targeted by N.A.P.Products. To begin with, the taxi firms represent the highest buying blocks in the company in the targeted potential countries. Furthermore, they have not established a complete channel for purchasing their taxi auto spares at the moment. N.A.P.A, therefore, intends to become their potential supplier of auto spares.

The taxi firms will reduce the cost of buying their auto spares if they buy from N.A.P.A. Moreover, the company purchases high-quality products and has outsourced a smooth channel for delivery. This strategy will make them completely satisfied with N.A.P.Services. N.A.P.A has established that the informal networks created by the taxi firms are extensive, even though, they operate in independence and work in small companies. The taxi drivers usually take time waiting for fares at the bus terminuses, during this time, they chat with their customers, friends, and colleagues over their autos spares and how they work. During this time, the company hopes to benefit from the recommendations by the word of mouth.

Competitor Analysis

Currently, the products that N.A.P.A is selling target the older car owners while the trend in the whole world is new model autos. Therefore, the demand for goods is falling in the domestic market. For this reason, Thomas will get an edge to negotiate favorable pricing on the N.A.P.Products that will be sold. N.A.P.A Franchise will also order the goods in bulk which will, in turn, increase the negotiation leverage.

Moreover, N.A.P.A has a deeper competitive edge since the company is can supply the product packages that completely satisfy the customer. When the taxi firms market during promotion times. Getting a cut off discount on a certain amount of purchased goods directly from N.A.P.A franchise, they will be issued with high-quality products without compromising the prices. In the recent past, the owners of the cars had to spend their valuable time shopping for auto spares (Blanchard, et al 1992). This was as a result of poorly organized channels of delivery.  For this reason, their autos would be non-functional for a lengthy period of time.  Sadly, this caused them big losses in terms of revenue returns.

Competition and Patterns of Buying

The market has got no extreme competition at the moment. NAPA, therefore, intends to remain the favorable auto spares franchise in the market. The company strives to protect the customers’ rights by offering them products of high quality with reasonable pricing. The channel of delivery has also been smoothened to facilitate quick delivery of the auto spares to the customers.

Main Competitors

Advanced Auto

The above competitors are targeted towards marketing professionalism. They differently carry product mixtures to the market. Our research shows that they offer high prices with a nonexistent entry-level market. We found that the customers suffer problems of substandard automobile spares and lubricants with exploitative prices. Their knowledge and experience in auto spares and auto lubricant products and services are also outweighed by our 34 years of vehicle maintenance experience. In the recent past, the customers only used this company for the price because they were inadequate local product suppliers.

Auto Zone

This competitor is a late model auto spares and auto lubricant products sales in the market. Fundamentally, their inventory stock can be used on a limited variety of vehicles. They are located in an out of way location that is never strategic and hard to trace. This makes the customer suffer trying to reach their services. They of late use black and white fliers as their marketing tool and we intend to roll out a catalog with four different colors.

Company Description

N.A.P.Automobiles is a business that stores automobile parts, auto lubricants, and heavy-duty truck services. N.A.P.A operates in 62 different distribution centers with 6,000 stores with approximately 14, 000 auto repair facilities, and more than 400, 000 inventory parts daily. The company serves automotive companies in Saint Augustine, Florida, Canada, Mexico, and other parts of North America.

The company is organized into a limited liability partnership company. N.A.P.A Franchise operates under an estimate of 9,000 square foot facility in Saint Augustine, Florida. It is strategically located near the Florida transportation hub that is crucial for the company’s markets. N.A.P.A intends to control costs and facilitate rapid economic access to the potential markets for the company.

Company Locations and Facilities

N.A.P.A Franchise will be located at Main Street of Saint Augustine, Florida. The location will enable us good access for the customers willing to seek our products and services. This location is advantageous due to the existence of taxi firms in the region. We target taxi firms to be out potential customers in our immediate vicinity. By locating within the proximity of Saint Augustine, Florida, we intend to enjoy a wide customer base. The popularity of the business owner in the military workshops will also strengthen our role in the hub for most potential customers.

Product/ Service Plan

NAPA Franchise will sell the auto spares and auto lubricants to the potential customers in the region. Our services will also include automobile maintenance and offering advice to our customers on the issues of mechanical automobile problems or concerns. Additionally, we intend to offer educational services to the interested parties with the focus of assisting the government to reduce unemployment rates in the country N.A.P.A. Franchise’ products include the following: Transmission parts, engine spare parts, electrical spares, and other automobile services.

Product Description

N.A.P.A Franchise will assist the customers in auto spares and auto lubricants selection best for their automobiles. The quality of the selected products will not only meet but also exceed our customer expectations without compromising the prices. N.A.P.Staff will be there to counsel and assist the customers in whatever the problem is, for a speedy solution.

We will ensure quick access to the major services of the company. Furthermore, we intend to bring on board private labeling that will be marketed under our performance name only. In most cases, private labeling will allow us to increase our profit margins because the cost of procurement of these items is lower.

The company’s management team experienced that most of the customers’ preference is low. Therefore, our belief is to offer products that meet the demands of customers with fair and affordable prices. The products are estimated to enable the safety and performance of the customers. The products will be of high quality that is precise to today’s level of automobile requirements.

Marketing Plan

The industry auto part sales are $ 600,000 in the industry in Saint Augustine, Florida. In these marketplaces, most of the automobiles were developed in the 1970s. Keeping an inventory of these autos has been a problematic process as most stores focus on the cars manufactured in the previous 15 years.

Traditionally, old cars are the major source of spare parts once they develop problems beyond repair. According to (Taylor, et al 2100), the major impediment that prevents the company from accessing the entire market is due to scares number of auto parts manufacturing industries in Saint Augustine, Florida. The manufacturing costs are high in the region and this has also elevated the prices of the auto spares. A majority of the autos aim at high-class customers. However, the customers of the older auto models are struggling to access the spare parts since the manufacturing companies have reduced the production of the old auto spares.

N.A.P.A franchise sells the products to the customers who are retailer auto stores in the region and abroad. The company, however, intends to persuing a bigger market network shortly. The potential customers in the region are the mini auto companies who then sell the products to the final consumers (Taylor, et al 2100). NAPA franchise established an all-encompassing network of different business entities and sells directly to them without a long channel of distribution.

Market Segmentation

N.A.P.Exports intends to focus on different classes of customers. Among them include the following;

  • The auto spare retailer in the region
  • The taxi companies
  • Mini auto spare part store.

Additionally, the company allows and expects individual customers to buy directly from the company. This may adversely impact the company because it might lower the price sensitivity and the larger volume of order mean. Therefore, the retailers, mini auto stores, and taxi companies are the most attractive an

Operational Plan

NAPA Franchise will be located at the city center of Saint Augustine, Florida. The franchise will sell auto parts and lubricants to the potential customers in the market. The location will contain the auto spares and lubricants warehouse, office space, and a garage for all kinds of automobiles. We also intend to develop ample parking for customers who intend to favor our products and services. Even though N.A.P.A targets an entry-level market, the mix of our products will be efficient in meeting the demands of the customers. Our aim for stocking the products demands of the customers will superbly save our clients’ money and time. We also intend to open from 8:00 AM to 6:00 PM from Monday all through to Saturday.

Development Plan

The company intends to lease 3, 000 new square feet of the newly constructed 9, 000 square feet building. With time, as needs may dictate, our facility may be expanded to a further 2,500 square feet. NAPA Franchise will also be sharing the facility with another company involved in taxi operations in the region. This will raise additional capital for the company.  The business of the taxi firms has in the recent past attracted many other local automobile firms. In light of this, NAPA intends to meet more customers because of our strategic association with them.

Management Team

Thomas Gallagher-President

Thomas Gallagher, the owner of the NAPA franchise will manage the business. He has 34 years of experience in vehicle maintenance in the military in Florida, so has vast experience in its regional culture. Furthermore, he possesses contacts of auto businesses and individuals that one can only be achieved with many years of work experience. Thomas has exceptional management skills. Previously, he managed ten people and there was a positive deviation in the sale every year by at least 10%.

Molly Edwards- Corporate Secretary

Molly will be responsible for maintaining NAPA records and communicate directly with the accountants and the business auditors. Furthermore, she will be in charge of the Information System alongside performing all the publishing for the company. Molly will also double up and assist in the sale, customer service, shipping, and receiving of goods. Apart from her regular duties, she will also conduct the marketing of the products on the internet from her office.

Management Team

Thomas and molly not only possess the success desires but will also shop for professionals with a wealth of knowledge and wide experience in auto spares and auto lubricants products and services. They both have 34 years of experience and 28 years of experience respectively in the automobile maintenance industry.

Management Team Gaps

Our company depends on professionals from other fields of professions for some important management assistance. We are also short on the human resource department, however, we plan to use our extensive network with associates in business for advice where possible.

Personnel Plan

The cornerstone of bringing qualified and competent personnel on board is to maximize our productivity and reduce the cost of labor. As the company grows, we intend to bring more personnel to meet business expansion.

                                        Year 1                  Year 2                           Year 3

Thomas Gallagher



$16,800 $20,160 $24,192
Molly Jones
The salesperson (PT)
$8,000 $8,000
The salesperson (FT)
Total People 2 3 4
Total Payroll $26,400

Critical Risks

N.A.P.A Franchise understands the critical risks that may result from the auto spars Business.

  • Marketing risks/product risks- the company intends to conduct a marketing appeal for its products to avoid product failure in the market.
  • Employee risks- N.A.P.A will motivate the improve its customer service to its clients. The associates or the employees and protect them from any risks through motivation, the employees will not exit the company labor force.


The company’s financiers will provide the starting capital for operational duties. The company requires approximately $200,000 to start its operations. The finance will be used for the initial marketing research, inventory backing, and developing the facility under which the company will operate.

Exit Strategy

  • The liquidation-the franchise will choose to close down the business when the intended purpose has been met or under mutual agreement by the investors and the owners.
  • Merger and Acquisition- N.A.P.A may merge with a similar company or will be bought with another company.
  • Selling to a friend- N.A.P.Will cash out the franchise in case of the business winds up and pay the investors. N.A.P.A will choose an ideal buyer with interest in the auto spares franchise.

Financial Plan

N.A.P.A Franchise will capitalize on the high demand for auto spares in the locality. The main expenses are salaries and expenses. Depreciation of the assets will also increase as the company grows. The growth will be majorly financed by the Department of Veterans Affairs, and outside sources, however, this will make us grow slowly.  The owner of the business has no plans to use any profit outside the business affairs until the long term debts are met. The remains of the profits will be used to develop the financial base through additional inventory and computer literacy. This will facilitate the introduction of the ICT curriculum in the college that is can be comprehended by the Dubbo teaching staff. The acquisition.

Break-even Analysis

The Break-even point is estimated from the monthly costs of running the entity.  The company will capitalize on the high demand for auto spares in the locality. The owners of the company provided sufficient capital for stat up when a loan is added. (Pal, et al 2010), asserts that, with professional management aimed at creating and growing a large base of customers, the company anticipates doubling its net profit in a couple of years. The company intends to maintain a 60% of the gross margin, which when combined with operating expenses will give enough return to finance the company’s growth.

Pro Forma Profit and Loss

  Year 1 Year 2 Year 3
Sales $596,000
$ 824,000
Direct Cost of Sales $293,000
Total Costs of Sales $293, 000
$ 355, 000  
Gross Margin
Salaries $26,400
Sales and Marketing and other Expenses
Net Profit


$ 61,040

The table below shows the company’s projected cash flow for three years.

 Pro Forma Cash Flow

Year 1  
Year 2  
Year 3
Cash Sales
Cash from Receivables
Subtotal Cash Received
Expenditures Year 1
Year 2  
Year 3
Cash Spending
$213,000 $232,000
Bill Payments
    Cash Balance

Projected Balance Sheet

Year 1  
Year 2  
Year 3
$ 55,976  
Total Assets
Liabilities and Capital
Accounts Payable
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Retained Earnings
Total Capital

Appendix 1:

Important Assumptions

 We will not sell our products on credit

  • Our popularity will continue in Saint Augustine, Florida.
  • Monthly sales will be general business indicators.

 Appendix 2:

Work Cited

 Business Plan: 1998-2001.” (1998). Print.

Blanchard, Gerry. “A Business Approach to Emu.” European Trends. (1992): 53-60. Print.

Business Plan. Toronto: Queen’s Printer for Ontario, 2001. Print.

Forsyth, Patrick. Business Planning. Oxford: Capstone Pub, 2002. Intervention Programs. BioMed Central Ltd, 2012. Internet resource.

Kimmel, Paul D, Jerry J. Weygandt, and Donald E. Kieso. Accounting: Tools for Business Decision Making. Hoboken, N.J: Wiley, 2011. Print.

Pal, Sujoy, and Rajanish Dass. “Pervasive Business Intelligence.” (2010). Print.

Taylor, Suzi, Carly Schriever, Peter Dolan, Neda Rahmani, and Nicole Donegan. The Business Plan. Hamilton, NJ: Films for the Humanities and Sciences, 2010.

Walsh, Daniel M, Groningen C. Van, and Brian Craig. “Logistics Modelling: Improving Resource Management and Public Information Strategies in Florida.” Journal of Business Continuity & Emergency Planning. (2011). Print.

Young, Paul. Business Plan. Chandni Chowk, Delhi: Global Media, 2

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