165 Industrial Parkway Hamilton Ontario L7P 4V5 1 800 332 7360 Yellow Cab Taxi Company 420 Cannon Street East Hamilton, Ontario L8L 2C8 September 7th 2004 Dear Yellow Cab Taxi Company: Thank you for your interest in FMK Consulting. We have fully reviewed your situation and we have developed a proposed course of action to solve it. We can provide you with quality answers and help you to decide whether the Impala or the Crown Victoria is the best fit for your company. Please consider reviewing our enclosed proposal. We have been providing quality business and technical solutions to industry for 3 decades. We specialize in the automotive industry and have provided our services to such companies as Dana Automotive Inc. and Polywheels Inc. Our proposed study will begin June 14, 2004 and end July 10 2004. It will involve technical research, questionnaires, and interviews. The outcome will be a 20 page formal report, consisting of technical data, qualitative information, governing factors, and recommendations. Again, thank you for your interest in FMK Consulting. We eagerly await the opportunity to deal with you. We can be contacted during normal business hours at 1 800 332 7360 or customerservice@fmko.com Best Regards, Mike DeBoer, Vice President encl. Introduction Background We have familiarized ourselves with the problem that confronts Yellow Cab Taxi. We understand that you will be purchasing a fleet of thirty taxi cabs as your business expands and your current cabs deteriorate. Your current cabs require too much attention and repairs, and business is occasionally lost due to breakdowns. You are considering two commonly used taxi cabs, the Chevrolet Impala and the Ford Crown Victoria. We realize that you are interested in choosing the safest, most durable, efficient, economical, and low maintenance car, in order to maximize your long term profit and minimize worry. Although both of these two cars are good choices for a taxi cab, the investment you wish to make is substantial, and making the wrong choice could have major implications. You need to be able to make an informed decision. You will need to be able to compare the cars side by side with expert opinions. You will need to know the strengths and weaknesses of the cars and what they are suited to, as well as a final recommendation on what course of action you should pursue. Clearly, you will require the assistance of a quality research firm. Approach We will use several approaches when conducting our research. These include: o o o o Interviews with all interested parties Questionnaires for cab drivers Use of electronic resources Use of various literatures (ex. Service manuals) Refer to the “Proposed Approach” section of this document for a more detailed explanation of our approach. Scope Our research will be limited to the two cars commonly used for commercial taxi use, as they have both been proved to be durable through police use. Thus, we will examine the Impala Taxi of General Motors and the Crown Victoria Taxi of Ford. We will not perform personal road testing crash testing of the two cars; rather, we will make use of tests performed by firms who are specifically geared toward these tests. We will not arrange for the purchase of the cars, but instead we will make a recommendation which your company may choose to make use of. We will also provide substantiation for our final recommendation so that Yellow Cab will also be informed to make future car-buying decision, especially if conditions change. Report Organization Our final report will be approximately 20 pages, and will be divided into several major sections. These are as follows: Introduction -Outlines the problem addressed; begins the report Background -Summarizes the goals achieved by the research Results -Technical specifications chart (approx. 2 pgs.) on the two cars -Statistics and figures on driver feedback -A discussion of every aspect of the two cars (engine, comfort, reliability, etc.) Conclusions -Fully outlines the strengths, weaknesses, and applications of each car. Recommendations Provides the final recommendation course of action produced by the research The major divisions of thought that will be addressed include o o o o The mechanical design and durability of the cars The cost of purchase and operation of the cars, including efficiency The options available when purchasing either of the cars The strengths and weaknesses of the two cars Details Proposed Approach Our firm will first research the Crown Victoria and the Chevrolet Impala in an unbiased manner, collecting information on the cars and the purchasing and use of cars. We will examine every applicable aspect of the cars and summarize our findings in a formal report. We will make informed recommendations on which car is best for your company. Our team of experienced researchers can analyze every aspect of this problem, while maintaining focus on the results of the study and our commitment to your needs. We can provide a top quality document for a competitive price. Our interviews with police, mechanics, and cab drivers will be thorough, and we will consider the needs of all interested parties, including the mechanics, drivers, and cab customers. The results will be cost effective and informed solution for Yellow Cab. Work Plan Analyzing the problem (June 14 to June 25) Nee Koe will spend time with an associate from your company in person or by phone, to determine what prior knowledge exists on this subject and how best to tailor our solution to your company Formal Research (June 17 to June 30) Ken Phillips will interview mechanics, police, and dealers, while Mike DeBoer will conduct research using electronic sources, articles, and other literature. Questionnaire (To be distributed June 20) Fong Ho Lam will distribute a questionnaire to gain feedback from your drivers (with your permission) to gain their valuable perspective on the cars. They are likely to have experience with both types of cars and will also be impacted by your purchasing choice. Critical Evaluation (June 30 to July 5) The two cars will be compared and contrasted critically. Every pertinent aspect will be examined, rated, and weighted. This section will use the information gained in the Formal Research section. Developing Recommendations (July5 to July 7) A final “best solution” will be developed for your company using the Critical Evaluation. The solution will be substantiated and insights will be provided regarding future taxi purchases. Compiling the Report Upon completion of all the other sections, a formal 20 page report will be compiled. See “Report Organization.” This shall be submitted to you when the balance of the payment is made. Presentation of the Report The report shall be presented to you in the form of a slide show and document. Statement of Qualifications Our firm has more than 30 years of experience providing quality business and technical solutions to industry. This experience has taught us the value of customer satisfaction; our team strongly believes that the client will be satisfied with our research because of our exceptional dedication to addressing the customer’s concerns. We specialize in the automotive industry and have been provided our services to such companies as Dana Automotive industry and Polywheels Inc. Our teams of highly trained professionals have all graduated from Waterloo University, Mohawk College, or the University of Guelph. Cost Breakdown Labour 20 hours at $130.00 / hour $2600.00 Direct Expenses Photocopies and Faxes $7.00 Telephone time $22.00 Driving expenses 150 km. at $0.40 / km $60.00 _____________________________________________ Subtotal $2689.00 Plus 7% GST $188.23 Total $2877.23 A $500.00 retainer shall be paid at the beginning of the study (June 14, 2004). Approximately halfway through the study, a draw payment of $1500.00 is to be made. Upon the study’s completion (July 10, 2004), the balance of $877.23 is to be paid. If additional work is desired, it will be done on a cost-plus basis. Conclusion FMK Consulting Ltd. is a well established name in the automotive field. We have a solid reputation built on commitment and quality. We take the time to identify your needs and develop a cost effective and tailor-made solution. We are confident that our team can help you select that taxi that best fits the needs of your company in a timely and professional manner. By examining this situation from every angle and employing a variety of research techniques, our firm is sure to develop the most feasible and fitting solution for you. Again, thank you for your interest in FMK Consulting Inc. FMK Consulting Inc. – “From Concept to Completion”