|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
Jiffy Lube International, Inc.
Background, Strategy, and Performance
In 1979, Jim Hindman acquired seven quick lube centers in Utah and Jiffy Lube International (JLI) was born. ... At that point, at the suggestion of his board of directors, Hindman hired a professional manager, Richard Breen, as President of Jiffy Lube International. ...
Jiffy Lube, Breen, and Hindman brought in a consulting firm; Booz, Allen, and Hamilton, to assess JLI and the quick lube industry. ... Hindman had aggressively projected an additional 5500 Jiffy Lube units by 1990, but Booz, Allen, and Hamilton project over twice that many new stores for a total of 12,000 units.
Future Opportunities
Hindman projected that in the years following 1987, the quick lube market would grow at a minimum of 2% per year. ...
Financial History and Strategies
In 1985, a private investment group, Bridge Capital Investors (BCI) and Don Remey invested 10 million dollars into the Jiffy Lube organization. ... It was obvious to Hindman that his main competition in the future would come from other oil companies such as Quaker State and Valvoline that established quick lubes like Minit Lube and Rapid Oil. ... In addition to the financial backing, Pennzoil brought along many individually owned, successful quick lube centers that would all be converted to Jiffy Lubes. ... Hindman adopted an attitude towards previously established quick lube centers that made it obvious that any center that was interested in joining forces with JLI, and Pennzoil was viewed as an investment opportunity.
Hindman and BCI realized that the more successful centers that had the Jiffy Lube and Pennzoil names, the more leverage would be created for an inevitable initial public stock offering. ... Jiffy Lube stock closed the first day of its offering at $21. ... The great IPO success suggested to Hindman the strength of the Jiffy Lube brand and business plan. ...
Additionally, JLI needs to continue to pursue international markets such as Canada, France, and Great Britain. As untapped markets continue to become scarce in the United States, it will be important for JLI to have previously identified opportunities in international markets.
Approximate Word count = 1612
Approximate Pages = 6.4
(250 words per page double spaced)
|
|
|
|
|
|