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Politecnico Di Torino POLITECNICO DI TORINO Department of Mechanical and Aerospace Engineering Master of Science in Automotive Engineering Master of Science Thesis Business Development in Medium-Sized Company Supervisor Prof. Paolo Ferrero Co-supervisor Candidate Linda Negro Shenouda Fraig Academic Year 2019/2020 Acknowledgment I would like to express my deepest gratitude and thankfulness for my family for their continuous support and motivation throughout the period of my master’s degree. I would like also to express special thanks to Professor Paolo Ferrero who gave me the chance to do this thesis under his supervision and guidance and giving me an opportunity to join the company “Spesso Gasket” for my internship. I am grateful for the team of “Spesso Gasket”, Ms. Linda my direct supervisor and Spesso’s sales manager for her support and highly-appreciated contribution to my work, to Ms. Alessandra and Ms. Viviana for the welcoming and friendly working environment that they provided throughout the internship. It was an experience I will never forget. Abstract In the modern-day working environment, companies should thrive daily to innovate and outgrow their competition, or else risk losing their businesses. This is even more relevant for small/medium enterprises (SMEs) were the consequences could be more severe. There are two main objectives for this dissertation. The first one is to develop a comprehensive view of the concept of business development, especially in the case of SMEs. This part of the thesis is mainly based on researching the available academic publications, extracting the important and relevant information and combining all the data to form a well-structured idea of the following question “What is business development?”. The outcome of this research and analysis is to develop the main disciplines that constitute the concept of business development. Simultaneously, an internship was conducted in the Italian company “Spesso Gaskets S.R.L” which is specialized in the manufacturing of engine gaskets. and here comes the second objective of the thesis, which is getting involved in business development activities in the company, identifying and developing new potential businesses and opportunities for growth. The outcome of the internship’s work is developing a viable business plan for the top management, which was presented in the form of a presentation. The results obtained show a potential increase in revenues of around 30% for the aftermarket businesses for the year 2020. Table of Contents 1. Introduction .............................................................................................................................................. 1 2. Conceptual Background ....................................................................................................................... 3 2.1 Basic theory: ...................................................................................................................................... 5 2.1.1 Resource-based view: ........................................................................................................... 5 2.1.2 Market-based view: ............................................................................................................... 6 2.2 Research fields influencing business development: .......................................................... 7 2.2.1 Strategic marketing: .............................................................................................................. 7 2.2.2 Strategic management: ......................................................................................................... 8 2.2.2.1 Ansoff 's product/market matrix: ............................................................................ 8 2.2.2.2 Familiarity Matrix: ....................................................................................................... 10 2.2.2.3 Porter generic competitive strategies: ................................................................. 11 2.2.2.4 Value chain analysis: ................................................................................................... 11 2.2.2.5 Porter's five forces: ...................................................................................................... 12 2.2.3 Corporate entrepreneurship: ........................................................................................... 13 3. what constitutes Business Development .................................................................................... 15 3.1 Tasks / Activities ........................................................................................................................... 17 3.2 Process .............................................................................................................................................. 21 3.3 Skills and Capabilities / People ............................................................................................... 24 3.4 Structure / Organization ............................................................................................................ 26 3.5 Instruments / Tools ..................................................................................................................... 29 3.6 Coordination (Managerial and planning activities) ......................................................... 30 3.7 Challenges and future applicability........................................................................................ 31 4. Case Study ............................................................................................................................................... 33 4.1 The motivation behind business development ................................................................. 33 4.2 An Introduction about the company...................................................................................... 36 4.2.1 International agreements: ................................................................................................. 37 4.2.2 Spesso Management System (S.M.S): ............................................................................ 38 4.2.3 Certifications: ......................................................................................................................... 38 4.2.4 Range of Products:................................................................................................................ 38 4.2.4.1 Engine gasket sets/kits: ............................................................................................. 38 4.2.4.2 Cylinder-Head Gaskets (CHG): ................................................................................ 39 4.2.4.3 Exhaust gaskets: ........................................................................................................... 39 4.2.4.4 Valve cover gaskets and oil pan gaskets: ............................................................ 39 4.2.4.5 Secondary gaskets ........................................................................................................ 39 4.2.5 Premium products as original equipment component manufacturers (OEM): ................................................................................................................................................................... 40 4.2.5.1 Original Equipment (OE) Customers: ................................................................... 41 4.2.5.2 Original Equipment Service (OES) ......................................................................... 42 4.2.6 Aftermarket (AM): ................................................................................................................ 42 4.2.6.1 Private Label (PL)......................................................................................................... 42 4.2.6.2 Independent Aftermarket (IAM) under the Spesso brand ........................... 42 4.2.6.3 Independent Aftermarket (IAM) under Spesso Racing brand for racing and classic cars ............................................................................................................................... 42 4.3 Business Development Case Study at Spesso Gaskets .................................................... 43 4.3.1 European Aftermarket Research .................................................................................... 44 4.3.1.1 German market ............................................................................................................. 48 4.3.1.2 French market ............................................................................................................... 50 4.3.1.3 Polish market ................................................................................................................. 51 4.3.2 European Aftermarket research findings .................................................................... 52 4.3.3 Non-European Aftermarket Research .......................................................................... 54 4.3.4 Non-European Aftermarket Research findings ......................................................... 55 4.3.5 The Improvement Kata Approach (Toyota Kata)..................................................... 56 4.3.6 Aftermarket business development plan .................................................................... 59 4.3.7 European OE market Research ....................................................................................... 62 4.3.7.1 Analysis of alternative propulsion scenarios ...................................................
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