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Efficiency of Cars

The following pages focus on debating whether cars should be more efficient or not. The Introduction presents certain points-of-view that will be used in the sections of the paper. The Efficiency section intends to provide a definition and explanation of efficiency. The Efficiency of Cars section presents a discussion that compares different types of cars and their efficiency. The Conclusions section presents some of the most important issues discussed in the paper.

The business environment in which companies develop their activity determines them to focus on strategies that help them improve their efficiency. It seems that efficiency is considered an important factor that influences companies' success. The need for efficiency is determined by the resources of customers. In other words, customers want to purchase the maximum of effects with the minimum of resources.

Therefore, companies must develop innovative processes in order to gain competitive advantage. Customers are interested in identifying products and services that provide a higher level of efficiency. They have different sets of criteria used in defining and evaluating the efficiency of these products and services. It is important that companies understand the fact that customers are oriented towards products with higher efficiency that allow them to make good investments.

From this point-of-view, the efficiency of products and services can be improved. This opinion relies on the important effects determined by technological advancements. Countries with high level of investments in technological developments, like the U.S., Germany, and Japan are well-known for producing different products and services with higher efficiency in comparison with other types of products. Cars can also be more efficient. Their efficiency is differently understood by different categories of customers. It is recommended that companies try to understand the characteristics that customers consider that require improved efficiency.

Efficiency

When analyzing the efficiency of different products and services it is important to determine what efficiency refers to. There are different definitions of efficiency. Some of them are represented by: efficiency is competency in performance, ability to accomplish a job with a minimum expenditure of time and effort, the result as percentage of what ideally can be expected. From the economics point-of-view, efficiency is represented by the relationship between efforts and effects (Merriam Webster, 2012). There are different situations in which efficiency can be studied.

Therefore, in order to determine the efficiency kit is important to evaluate the results in comparison with the inputs and efforts required by the activity in case. The value of efficiency can vary based on the objectives established for these activities. In addition to this, some prefer to focus on efficiency in its relationship with time, while others focus on efficiency in its relationship with money.

Efficiency of Cars

When discussing the efficiency of cars, people usually think of fuel efficiency. People need their vehicles in order to develop their activities, and they use their vehicles a lot. This means they require large amounts of fuel. From this point-of-view, efficiency is evaluated in comparison with the incomes of these people. In other words, people with lower incomes want a higher efficiency for their cars.

There are also categories of customers that are interested in environmental issues regarding their cars. In their opinion, efficient cars are those that do not use regular fuel. In other words, efficiency is valuated in comparison with the pollution levels determined by these cars.

The different types of engines have different levels of efficiency. The diesel engine has a 40% efficiency. The gasoline engine has a 30% efficiency. The problem is that these levels of efficiency reduce in accordance with how the car is used, leading to 15% efficiency. However, electric motors have a 95% efficiency.

The issue of cars efficiency is determined by several factors. Such a factor is represented by the country's dependence on foreign oil. The relationship between the U.S. And oil supplier countries does not favor the U.S. This is because the country's dependence on their oil allows these countries to increase prices in accordance with their needs and preferences and to control the U.S. By controlling the oil supply. Another important factor is represented by the fact that oil consumption significantly influences the global warming process. This has determined customers, producers, and the government to develop strategies intended to increase the efficiency of cars.

The auto industry was forced to react in accordance with these needs. In order to maintain their profits, car producers had to develop vehicles that provided an increased level of efficiency. As a consequence, car producers developed smaller car models. The fact that these models are smaller and lighter determines a reduced oil consumption. The advantage of smaller cars is represented by their higher efficiency because of reduced oil consumption. However, there are also certain disadvantages to developing such cars. Some of their critics consider them more dangerous in comparison with traditional cars.

In addition to this, such smaller car models provided a reduced level of diversity for customers. This situation leads to reduced sales levels of these companies. The production of smaller cars required innovative technologies. Therefore, car producers had to significantly invest in technological developments. As a consequence, car dealers increased their prices. This leads to reduced demand for such car models. These are some of the reasons that determine players in the auto industry to not favor the development of cars with increased efficiency.

It seems that customers have a different opinion on efficient cars. In their opinion, efficient cars determine reduced levels of money required by using them. But if such cars are significantly more expensive in comparison with traditional cars, they are likely to consider this an important disadvantage. Therefore, they are expected to favor the option that requires the smallest level of investment (Coltrane, 2009).

The different groups of environmentalists declare themselves in the favor of efficient cars. They are not interested in the costs of producing and selling efficient cars. Their objective is to find solutions that address the issue of global warming. In addition to this, they are interested in persuading customers to buy environmentally friendly cars that help reduce the levels of pollution.

The governments must also establish whether they are in favor of traditional cars or of efficient cars. However, it seems that these governments prefer not to develop a clear position that would reveal their preference. It is important to determine the objectives that the governments are trying to reach with this strategy. The most important objective relies on reducing the dependence on other countries and their oil supply.

There are also other issues that governments must take into consideration when establishing their strategy towards efficient cars. These issues are represented by global warming and the pressure made by different environmental groups, energy independence and the country's relationship with oil suppliers, public safety and the risks determined by the efficient car models, the jobs in the auto industry, and the profit of companies in this industry. These are important issues that make it very difficult for the government to develop strategies that are in favor of efficient cars.

The strategy of the government is significantly influenced by different stakeholders. The most important categories of stakeholders are represented by the governments of other countries, the population, environmental organizations, car producers, and others. In other words, when developing its strategy, the government must focus on the advantages and disadvantages of such a strategy on these categories of stakeholders.

The problem of the efficiency of cars can be solved by customers. This is because it is the customers that determine whether they want or not to purchase traditional cars in comparison with efficient cars with electric or hydrogen engines. Basically, their decision is made based on financial aspects. In other words, they are interested in cars that are the most cost efficient.

Although most of them state that they are interested in the problem of global warming or in using cars that require alternative fuel sources, it is the price that determines their purchasing decision. Therefore, when trying to determine the purchasing behavior of customers regarding cars it is important to understand that they orient towards cost efficiency. In other words, even if they are interested in the issue of global warming if the cost of hybrid cars is too high, they are likely to purchase traditional cars that have a higher level of pollution.

There are different types of cars that can be considered efficient. The most important difference between them is represented by their type of engine. Electric cars represent a market niche that producers are trying to develop. The objectives of electric cars are represented by reducing the costs of driving, because the customers do not require to purchase the expensive gas, and by reducing the levels of pollution.

The advantages of electric cars are represented by:

Urban air pollution reduction

Reduced greenhouse gas emissions

Reduced dependence on foreign oil

However, there are several disadvantages presented by electric cars. These disadvantages are represented by:

Higher price in comparison with traditional cars

Difficulty in recharging the battery of the engine

Reduced power of the engine

It is important to evaluate these advantages and disadvantages in order determine their influence on customers' purchasing behavior. The fact that electric cars have a reduced level of air pollution and gas emissions is one of the most important characteristics that are likely to determine customers to purchase them (HybridCars, 2012). However, it seems that this advantage is not as important as the price of the car. In addition to this, customers are not really interested in the country's dependence on countries that supply the oil to the U.S. They are interested in what this means regarding the price of gas.

Therefore, they are continuously comparing the price of gas with the price of electric cars. This evaluation is different in each situation. This is because people have different needs and preferences, and different levels of income. They focus on the proportion of gas cost in their income. This is the reason for which some people prefer to purchase electric cars, while others drive regular gas consumption cars. If they can afford to purchase electric cars, they are likely to purchase them. But if it is more efficient to drive a regular car they are expected to continue with such cars.

However, most customers are discouraged from purchasing electric cars because of their high price. The higher price of these cars is determined by the technological developments used in producing such cars. Technological developments are very expensive and companies that produce them significantly invest in these technologies (U.S. Department of Energy, 2012). These investments are reflected in the price of these cars. In addition to this, the higher production costs that lead to higher prices of electric cars determine car dealers to charge more. This is added to the price that customers are expected to pay if they want a green car.

Another problem associated with electric cars is represented by the difficulties of derivers of recharging the battery of these cars. This problem can be easier observed in developing countries where there are numerous buyers interested in purchasing such cars, but cannot use them simply because they cannot recharge them. The reduced number of charging stations in these countries would not allow them to travel for longer distances. In such cases, there is no efficiency of electric cars.

The different solutions proposed for such situations are not satisfactory. Certain specialists in the field recommend that electric cars are installed a regular engine that works on gasoline that can be used by drivers that want to travel for longer distances. This acknowledges the important limitations of electric cars and their use. Other specialists in the field consider that electric cars should function in a similar way to trolleybuses and subways. This is obviously a not feasible solution. It is difficult to image that people would be interested in such cars.

The reduced support of drivers that want to purchase electric cars in recharging their cars' batteries somewhat reveals governments' opinion on these cars. If the government would really be interested in determining people to use electric cars, it would provide significant incentives to interested buyers. This is because many of them are discouraged by the large difference in price between traditional cars and hybrids. In addition to this, the fact that these cars can only be used for short distances makes them less efficient for most customers.