Tangible property is property that is seen and touched outside of fixtures (University of Phoenix, 2010).” Tangible property includes physically defined property such as goods, animals, minerals “(University of Phoenix 2010). The laws in the United States of America provides property owner rights of protection of their assets (University of Phoenix, 2010). In essence, any organization has an implied right to safeguard tangible property from damage or thief, and this is an organizational responsibility.
Therefore, a comprehensive strategy by managers must assess the risks associated with doing business in their industry. This is never more apparent than in automotive retailing, tangible property on location can valuate to millions of dollars. Obviously, a coalition that includes a financier, attorney, accountant, and insurance agent would identify areas of concern and present remedies related to the full scope of the business.
The common aspect of procuring a strong property and casualty insurance policy is mandated, and regulated. This is the most basic protection management can institute. Moreover, other meticulous methods designed to protect tangible property must be addressed. This composition will confront three issues tantamount for managers to consider, for the success of protecting its tangible property at an automotive store. Tangible Property Protection Plan
Tangible property protection requires six perspectives that managers should consider when formulating a plan to protect its tangible property. Broom (2008) indicates that the areas pertinent to a comprehensive plan are as follows: operations; reputation; regulation; legal; liquidity; and human element. The focus of this submission will discuss inventory, equipment and information. Automotive Inventory
The vehicles on a car lot are considered to be the store’s most important tangible property. This inventory can be appraised to be upwards of millions of dollars relative to the size of the inventory. Management would do well to fence off the property to deter theft and vandalism. “Of the $17 billion lost by victims of property crime in the United States in 2003, over $8.6 billion (roughly 51 per cent) was the result of auto theft (FBI) 2004,” (“The key to auto theft,” 2006, p. 2). Furthermore car stereos, antennas and other accessories are subject to damage or theft if left unprotected (“The key to auto theft,” 2006).
Another aspect in this area is controlling access to the keys of the vehicles on the property. It is important to have a system that requires every sales and service person to log use. This means that activity for demonstration rides, merchandising the lot as well as maintenance and repairs need documentation. Many car thieves have obtained illegally, access to keys on the property. “They related stories about stealing keys from lock boxes that were attached to vehicles’ windows at car dealerships” (“The key to auto theft,” 2006, p. 919). Automobile Dealership Equipment
Managers at a car dealership will find implementing a comprehensive maintenance program on equipment could increase efficiency and productivity. The prime area of consideration if it has one, is the service department. Broome (2008) relates possessing equipment that is state of the art, well maintained or in some cases replaced will reward the organization by increasing performance and reducing down time while enhancing the bottom line.
Service will counter sluggish sales and leasing and provide stability when economic conditions cause older vehicles to be in use longer. Moreover, management should establish maintenance schedules on mechanical equipment and require a systematic system for placement of all tools. Detailed oral and written reports and firsthand observation should reveal the true value of the service department’s stock in trade. This should prompt managers to follow through and make decisions in a timely fashion for equipment replacement. Protecting Tangible Information
Important tangible property at an automobile dealership also consist of copies of financial information, customer contract, and credit information. These records include both manual and electronic data, and management must provide a haven for storage. Therefore a safe located on the property fire and water resistant could preserve documents. On the other hand, provisions could also be made for storage of records away from the property. Electronic files on the local area network should have back up protection in the event of system failure (Broome, 2008). Conclusion
Tangible property rights is the foundation granted by law that facilitates asset protection. Management has a duty to take initiatives that recognizes risk factors. The next step is to devise plans to mitigate the risk. However, a plan is only a good device unless executed (Broome, 2008).
- Broome, J. T. (2008, September). Six steps to lower risk. Playthings, 106(8), 1-16.
- Chapter 4 reserve reading Cheeseman, H. R. (2010). Personal property and bailment [University of Phoenix Custom Edition eBook]. : Pearson education. Retrieved from University of Phoenix, LAW/531 website.
- Criminal, B. J. (2006, March). The key to auto theft. Advance Access Publication, 46(), 917-934. http://bjc.oxfordjournals.org.ezproxy.apollolibrary.com/content/46/5/917.full.pdf+html