Markam Driving School offers a variety of services for drivers. It is ultimately the goal of the company to be a one-stop facility for all driver needs, including registration, licensing, etc., but at this time Markam mainly offers private and commercial driver education in the Seattle, WA area. MDS is positioned as a low-cost facility with excellent service.

1.1 Objectives

Markam Driving School, MDS (MDS) has three years to achieve the following goals:

• In the third year, sales revenues will reach approximately $2.1million
• Expand by starting up two more facilities (one in Portland, OR and the other in Tacoma)
• Be the lowest-cost provider of comprehensive driving education in the Pacific Northwest.

1.2 Mission

Markam Driving School was established to offer high quality, practical and comprehensive driver education courses at an affordable price. Safety is the most important aspect when it comes to driver education. Markam Driving School wants to make sure that its graduates are as safe as possible and exploit this reputation to gain greater market share.

Success Keys 1.3

Markam Driving School stands at a great moment in its history. Having achieved an enviable record of providing the lowest cost drivers education services with comparable quality for the greater Seattle area, the company is ready to expand into the Pacific Northwest region. The firm plans to open two more facilities, one in Portland, OR and the other in Tacoma, WA.

The owners of the company realized six years ago that this market was hugely under-utilized. The customers wanted driver education that was high quality and affordable. Large companies were charging too much for their services and the local companies were not providing enough programs and services or they were poor quality. It was possible to create synergies with other organizations that were buyers or suppliers. In this way, companies can cut costs and compete more effectively, which in turn helps them gain market share. This has been MDS’s driving strategy and winning business model since the company began. It’s steady growth in a mature market has proven the company’s management policy over time. Now, the company is ready for expansion. The key to success over three years in this endeavor are:

• Lower costs result in a company’s gross margin increasing to 66%
• For each facility, a cost control officer should be appointed. They will report to the president and general manger.
• Institute a comprehensive cost reduction program throughout the company.
• Strengthen and pursue partnerships and strategic alliances with suppliers so as to further reduce costs.
• Aggressively pursue contracts with organizations who need our services such as police departments, high schools and trucking agencies.