Case Study of the Week: To Open or Not to Open... on Sundays

September 19, 2022

Automotive Services

You are to assume the role of general manager at Johnson Family Elite, a local automobile dealership that sells both new and previously-owned Elite vehicles. The owner of the local dealership is considering a change to the days the business is open and would like you to analyze the benefits and consequences of the change and make a final decision.

Like in most cities, there is an antiquated law that does not allow Johnson Family Elite, or any other car dealership, to be open on both Saturdays and Sundays. The law was first written over a century ago when most businesses were closed on Sunday. Since that time, social culture and business has changed, with most businesses keeping Sunday hours of operation. Dealerships must choose to be open on either Saturday or Sunday. Most automobile dealerships have chosen to keep Saturdays as a business day and close on Sunday to follow the law.

The owner of Johnson Family Elite is considering changing the weekend business day. Instead of being open for business on Saturday, like all other dealerships in the area, Johnson Family Elite would be open on Sunday instead. This would make Johnson Family Elite the only car dealership open for business on Sundays in a 750-mile radius.

The owner feels that being open on Sunday would give the dealership a competitive edge, but worries that with many parts suppliers, inspection offices, third-party financers and the Elite manufacturer support being closed on Sunday, it could marginalize the level of service provided.

The owner wants you to analyze the benefits and possible consequences of being open on Sundays rather than Saturdays and make a final decision. The owner wants to hear of all potential risks and advantages of the change regarding sales, customers, other dealerships and employees.

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

As DECA’s competitive events specialist, Randi primarily authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also serves as DECA’s liaison for the Virtual Business Challenge and Stock Market Game. Randi assists with the recruitment of judges for both the high school and collegiate International Career Development Conferences. Randi has worked for DECA since 1998.

Discussion Questions

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Classroom Connection

Career CLuster:

Marketing

Instructional Area(s):

Economics

Performance Indicators:

Explain the principles of supply and demand
Determine factors affecting business risk
Explain the concept of competition
Identify product’s/service’s competitive advantage