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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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The trucking industry has developed many other industries around the world, specially in the American Economy. The transportation industry serves by transporting massive quantities of raw material, intermediate goods and finished goods over land, other aid in the construction industry. Trucks have been responsible for the expansion of cargo movement over land. The industry has been revolutionized by the increase and development of technology. According to ATA, in 2014 the trucking industry was worth at 700.4 billion, making it one of the top industries in America. It is a very interesting industry that ranges from logistics to sales to commerce. This industry caught my attention when I was in taking the Export Fellows Program where it incorporated logistics, exports and marketing. A very emphasized topic was the business of trucking. Due to that, I decided to research more about the topic and I found myself reading about an expanding firm just a few miles down I-35.

Rush enterprises, a retailer of commercial vehicles primarily focused in new and used trucks, and housed in one of the top ten fastest-growing cities in the United States, New Braunfels, Texas. The company was founded by Marvin Rush, who remained chairman of the board until 2013 when he was succeeded by his son, in 1965.  Which the company is still in care of second generation owners meaning that Rush Enterprises steal hold values such as loyalty, and family values. Rush Truck Centers started as a dealership for Peterbilt trucks, an American manufacture for heavy duty trucks but through hard work and dedication Mr. Rush and his team have been able to expand through other acquisitions of local dealerships. As of 2018, Rush Enterprises has over 100 locations in 22 states. Rush Enterprises Inc. owns and operates the largest network of commercial vehicle dealerships around the nation. It has partnerships with global firms such as Ford, Mitsubishi and Hino. One characteristic that makes the company rare is that all dealerships are located in high traffic areas or near high ways in 20 states and growing which exemplifies the importance of utilizing the VRIO model. The fact that they are just located in high traffic areas add value to the corporation. Also, Rush is not only a dealership but a one-stop center that includes sales, collision centers and financial services such as leasing, insurance etc. One of the most successful stores has been the one in Pharr, Texas just a few miles away from the Pharr Texas port of Entry, the Pharr-Reynosa International Bridge.

I decided to drive down there and interview Edgar Centeno Arriaga, Parts Manager for Rush Enterprise Pharr. He is originally from Toluca, Estado de Mexico. But resides in the Rio Grande Valley (RGV) for around six years with his wife Laura Portilla, a certified Public Accountant and two sons: Edgar, student at the University of Houston majoring in Finance and Accounting and Rodrigo, a high school student. Mr. Centeno is an alumni of Universidad Autónoma del Estado de México, public university in the State of Mexico. He graduated as a Certified Public Accountant as well. He has previously worked for the automobile and trucking industry. His interest sparked when he started as a controller in a small family business in Mexico. And then his interest increased when he became an operational manager.

Mr. Centeno started at Rush Enterprises as a Sales Representative in 2010. Then he later became a Parts Manager on December 2014 after hard work and dedication to the company. He chose to work for Rush due to the stance that Rush Enterprise holds nationwide and competitiveness in the industry. Another reason why he has chosen Rush and the trucking industry is because it is a very dynamic industry. As per his duties and responsibilities as Part Manager, he is currently responsible and plays a leader role for nineteen people which include divisions in sales but not limited to customer service, warehouse, and deliveries. His typical day includes a very busy day that includes placing orders and inventory checking. One of his biggest achievements has been to keep a record of selling more than a million dollars in parts monthly. They focus on parts that sell due to volume or price in order to have a balance and competitiveness in sales. They range from parts that cost from 25 cents to six thousand dollars. Many of his regular customers are the Texan oil and gas companies, local fleets that cater to over a thousand trailers, Texas cities within his Area of sales, as well as big companies such as Uhaul. Also, one of Rush's biggest contract in the Rio Grande Valley section has been an agreement with FedEx, which is considered one of the top multinational companies in the delivery service industry.

Their biggest competitors in the area are Penske automobiles and Monroe Inc. But another rising competitor have been smaller automobile part dealerships such as O'Reilly's Auto parts and Autozone due to the rapid momentum these smaller companies are gaining in the trucking industry. Also, the impact of oil and gas can have a positive or negative affect on the company because if the industry is decreasing they stop needing Rush's services. Moreover, other industries can affect the performance of the company as well like emission and infrastructure innovations because there can be more regulations imposed by the government that may lead to the need to create other parts for trucks and increase prices or could lower the demand for trucking by moving to eco-friendlier ways of transporting. Also, infrastructure affects the trucking industry because it can create a more efficient way of traveling. Lastly, trades and regulations enforced by other countries are a very important component of the company, especially when it comes to tied trade agreements like NAFTA since they ease the trade with North American partners, one of they being Mexico. Also, the trucking industry gets a lot of benefits from South America which includes the impact of trades from USAN/UNASUR and CAFTA. Moreover, because a lot of their products and materials come from China the tariffs imposed by the Chinese government can impact the price of their product and can potentially force Rush to increase their prices. And as of right now, Mr. Centeno believes that the market is not ready to withstand those type of budget increases, making the trucking industry very volatile because of the dependence on the market. This part of the industry really taps into the chapter 8 of capitalizing on global and regional integration because this area of Rush Enterprises exemplifies how working hand in hand with other organizations through trade agreements allow for successful regional economic integration.

 However, even though the competition is growing, there are other things positively affecting Rush Enterprises, such as the new tax reform imposed by President Trump in January 2018.  This new tax reform also served employees tremendously. Through this tax cut, Rush was able to give back to their employees by awarding a 1,000-dollar discretionary bonus. Through these actions, Rush shows that they care and value each employee that makes up the Rush family and are ways of putting Corporate Social responsibility into action.

During the interview, Mr. Centeno showed me the store's intelligent dashboard insights.  The visual display of the most important information such as progress on sales and just in time inventory needed to achieve one or more objectives. He also let me play around with various date ranges, pick different products, or drill down to more detailed data to see the effect that it has on his team's performance and deadlines, which I found to be incredibly useful due to the fact that I am interested in the analytical and statistical part of managing a company's goals to meet consumer's demand. I believe that this experience really heightens my knowledge when it comes to information analysis. I was able to gain knowledge of how managers implement data on their everyday responsibilities and   see how managers implement this kind of analytical tools when they have to write reports on their accomplishments. It also gave purpose to my classes in CIS because the usage of data and being able to properly combine it together can really lead managers to a gold mine of information.

From this interview, I gained so much knowledge in the areas of industry related work, how companies use strategic planning for their advantage, how firms implement models like VRIO, and how managers operate and perform on a daily basis. Many of the topics that we touched during the interview were in relation to the GLOBAL4 book such as chapter 2: understanding politics, laws and economics and how many of these qualities can have a huge impact on an industry and its pertaining firms. Secondly, the importance of trade agreements for Rush linked with chapter 8: Capitalizing on global and reginal integration. And lastly, Chapter 12: strategizing, structuring and learning around the world helped me comprehend how Rush utilizing different forms of multinational enterprises to heighten its position in a global market.

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