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The other important function of the plan was to shift responsibility for the pension obligations from the company to the United Auto orkers. hile smaller creditors and contractual partners need not be satisfied with the reorganization, it is difficult to believe that the reorganization could have been done with the cooperation of the UA. It would not have been politically expedient for the federal government to become involved and without their involvement the judge would have had had the option of the 363 asset sale. In accepting responsibility for the pension, the union has lifted a major portion of the liabilities from General Motors. In addition, a deal reached before the filing adjusted some of the work rules, ended bonuses and froze wages, all of which combined to save GM $1.2-1.3 billion per year. Combined with plant closures, the moves are expected to bring GM's labor costs more in line…
King, Jr., N. & Terlep, S. (2009). GM collapses into government's arms. Wall Street Journal. Retrieved November 1, 2009 from http://online.wsj.com/article/SB124385428627671889.html
CBS. (2009). GM gets green light to exit bankruptcy. CBS. Retrieved November 1, 2009 from http://www.cbsnews.com/stories/2009/07/09/business/main5147084.shtml
US Courts (2009). Chapter 11: Reorganization under the bankruptcy code. U.S. Courts.gov. Retrieved November 1, 2009 from http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html#debtor
Cornell University. (no date). U.S. code collection: § 363. Use, sale or lease of property. Cornell University Law School. Retrieved November 1, 2009 from http://www.law.cornell.edu/uscode/11/usc_sec_11_00000363-000-.html
For example, GM lobbied the state of California 1998 to overturn an emissions-reduction mandate that would have prohibited many of GM's passenger vehicles from being sold in the large, car-hungry state. When it was successful in the short run, GM discontinued its work on its prototype of a battery-powered car, the EV1 that ran 100 miles on a single charge. Toyota, in contrast, continued to work on its hybrid line, and the resulting Prius shows the fruitfulness of the Toyota approach (Lifton 2008). Discontinuing research on battery-powered technology was not simply bad business sense on GM's part, but also showed how one part of the company (management) could thwart the efforts of another part of the company (&D). The focus of systems theory is synergy rather than such discordant behavior. Systems theory stresses that "the system's overall behavior depends on its entire structure (not the sum of its various parts)"…
Bunkley, Nick & Bill Vlasic. (2009, October 1). G.M. To close Saturn after deal fails. The New
York Times. http://www.nytimes.com/2009/10/01/business/01auto.html
GM plans to cut 10,000 Opel jobs. (2009, 5 November). BBC. Retrieved November 27, 2009 at http://news.bbc.co.uk/2/hi/business/8343517.stm
Lifton, Jack. (2008, December 10). Toyota's business model is the reason that Detroit should not be bailed out. Gershon Lehman Group. Retrieved November 27, 2009 at http://www.glgroup.com/News/Toyotas-Business-Model-is-The-Reason-That-Detroit-Should-Not-be-Bailed-Out-29852.html
The big three will likely weather the tsunami, as completely different entities than they have been in the past, possibly even more strikingly different than they were before and after the Japanese management style implementation in the 1980s. ith these and other changes likely in the industry in the near future The industry will once again prove flexible and innovative in changing with the times.
Brown, Shona L., and Katleen M. Eisenhardt. 1997. The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly 42, no. 1: 1.
Chrysler Sale Could Herald Auto Industry Restructuring. 2007. Manila Bulletin, May 16, NA.
Klier, Thomas. 2005. Determinants of Supplier Plant Location: Evidence from the Auto Industry. Economic Perspectives: 2.
Klier, Thomas H. 1995. The Geography of Lean Manufacturing: Recent Evidence from the U.S. Auto Industry. Economic Perspectives 19, no. 6: 2.
Brown, Shona L., and Katleen M. Eisenhardt. 1997. The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly 42, no. 1: 1.
Chrysler Sale Could Herald Auto Industry Restructuring. 2007. Manila Bulletin, May 16, NA.
Klier, Thomas. 2005. Determinants of Supplier Plant Location: Evidence from the Auto Industry. Economic Perspectives: 2.
Klier, Thomas H. 1995. The Geography of Lean Manufacturing: Recent Evidence from the U.S. Auto Industry. Economic Perspectives 19, no. 6: 2.
Auto Supply Chain
Supply Chain Management in the Auto Industry
The benefits of effective supply chain management are manifold. The ability to project sales, production, demand and inventory in correlation to one another is essential to ensuring that an automaker maintains critical demand schedules.
Benefits and Risks:
Remarkably, the benefits and risks of supply chain management in the automotive industry are closely intertwined today. On one end of the spectrum, auto makers are finding that there is a sudden surge in demand for both automobiles and associated parts. According to the text by Miziolek (2011), maintaining a rapid and responsive supply chain strategy has helped many automakers to stay on pace with this rising demand. However, there is a considerable risk that many face today. As Miziolek notes, the sudden rise in an industry that was struggling to stay afloat half a decade ago means that demand for shipping needs…
IBM. (2012). The Smarter Supply Chain. Ibm.com.
Kilcarr, S. (2012). Supply Chain Concerns Among Top Auto Industry Worries. Fleetowner.com.
Miziolek, A. (2011). Automotive Supplier and Supply Chain Issues. Dykema.
My industry of choice is the auto industry, and I will analyze it using the PESTEL framework. The political environment is critical to the auto industry for a couple of reasons. In most countries, the auto industry is significant, and therefore becomes politicized. The bailouts of GM and Chrysler are just two examples -- albeit extreme ones -- of the intense government involvement in the shape and size of the automotive industry. Another good example is NAFTA, which has resulted in production shifts to Canada and Mexico, but also the opening of the Mexican market. The current climate holds that the governments of the U.S. And Canada are divesting some of their control over GM and Chrysler, but will remain heavily involved in the industry, with the objective of supporting the Big Three, as well as major foreign automakers. The political environment also shapes demand conditions. For example,…
These different elements are important because they highlight the real reason as to why the industry saw such a long-term decline take place. To rectify the situation, it is recommended that the entire industry aggressively begin selling as many hybrid vehicles as possible. This is important because the article the Potential of Hybrid and Diesel Powertrains, indicates that the company / companies that are able to have their entire line of cars and trucks converted to hybrid technology, will see a dramatic improvement in market share. As they estimate that a 40% shift could take place in the market, by the company / companies that are able to achieve this objective. Then, when you combine this with the fact that they were able to reduce labor costs dramatically over the last two years, means that if Ford and GM can be the first to deliver these vehicles, they will have…
Greene, D. (2004). The Potential of Hybrid and Diesel Powertrains. Department of Energy. Oak Ridge, TN: Government Printing Office. http://wwwcta.ornl.gov/cta/Publications/Reports/ORNL_TM_2004_181_HybridDiesel.pdf
Mannering, F. (1991). Brand Loyalty and the Decline of American Automobile Firms. Brookings Paper on Macro Economic Activity, 67 -- 14. http://www.jstor.org/pss/2534791
Oberman, M. (2009). U.S. Auto Sales Crash. Retrieved June 6, 2010. From Sidney Morning Herald website: http://news.smh.com.au/world/us-auto-sales-crash-as-2008-hits-lowest-level-since-1992-20090106-7ax7.html
Polit, D. (2008). Nursing Research. Philadelphia, PA: Wolters Kluwer Health.
Industry and Firm Analysis
Bennett, J. (2016). Fiat Chrysler to Build Parts Distribution Center in Virginia. Wall Street Journal. etrieved 25 May 2016 from: http://www.wsj.com/articles/fiat-chrysler-to-build-parts-distribution-center-in-virginia-1463662804
Fiat Chrysler Automobiles NV is investing $12.2 million to build a new distribution center in Virginia amid growing demand for parts used by its dealerships to both repair and customize its vehicles.
The 400,000-square-foot Mopar distribution center, located in Winchester, will employ about 70 people and ship more than 9.2 million parts and other items annually. This will be the 22nd center Fiat Chrysler has in operation in North America. It will primarily supply more than 200 dealers in the mid-Atlantic region after it opens sometime in the fourth quarter.
Mopar is the hidden gem of the Fiat Chrysler operation. Currently, the unit distributes more than 500,000 different parts and accessories to more than 150 markets around the world. That number is only expected to…
Flak, A. (2014). Fiat Chrysler to spin off Ferrari, issue $2.5 billion convertible bond. Reuters. Retrieved 26 May 2016 from: http://www.reuters.com/article/us-fiatchrysler-ferrari-divestiture-idUSKBN0II1DB20141029
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting, (6th Ed.). Hoboken, NJ: Wiley.
Bennett, J. (2016). Fiat Chrysler to Build Parts Distribution Center in Virginia. Wall Street Journal. Retrieved 25 May 2016 from: http://www.wsj.com/articles/fiat-chrysler-to-build-parts-distribution-center-in-virginia-1463662804
Sylvers, E. (2016). Fiat Chrysler Finds New Boss for Alfa Romeo, Maserati. The Wall Street Journal. Retrieved 26 May 2016: http://www.wsj.com/articles/fiat-chrysler-finds-new-boss-for-alfa-romeo-maserati-1464088964
Car repair is the process of diagnosing the car problem to identify the fault within the car. While the cars manufactured before 2000 requires special tools to be repaired, however, the computer technology has been increasingly used to diagnose and repair many newly manufactured cars. Before mechanics start the repairing of cars, they often quote the prices for customers before starting the repairing work. To repair the car, mechanic uses both electronic methods to gather data in order to replace the faulty materials in the vehicle. A mechanic diagnoses the car and identifies the problem within the car before starting the repairing work. There are two approaches used to diagnose a faulty car:
Use of a repair manual
elying on one's analysis
Use of computer technology
A repair manual is a book that assists an auto mechanic to identify the problems within a car. The repair manual consists…
Alberta Canada (2012). General Practitioners and Family Physicians. Government of Alberta. Canada.
Armenia Development Agency (2010). Jewelry and Gemstone Overview. Armenia.
Hoover's (2012). Jewelry Stores Industry Description. Hoover's Inc.
MedicineNet (2012).Optometrist vs. Ophthalmologist, Do You Know The Difference. USA.
The copyright is protected by federal law. The law may have different interpretations in different states, but the regulation is the same across country. The intellectual property is encouraged nationwide.
4.4. The 4Ps
The 4Ps refer to the marketing mix: product, price, placement (location/distribution) and promotion.
Auto Hicksville has the core competencies embedded its crew to work on all models of domestic vehicles and a large number of foreign ones. Quick turnaround is always on objective at Auto Hicksville with as all employees focused on superior customer service and the shop will have 3 service bays working in parallel.
Auto Hicksville considers that being honest and accurate with customers in terms of estimates for quoting costs and repair completion time is very important in this business. Auto Hicksville employees are focused on delivering their promises. The company's strategy to build strong customer relationships based on integrity and trust…
Bureau of Transportation Statistics, Accessed April 2008, www.bts.gov
City Data, Accessed April 2008, http://www.city-data.com/
NYS DMV - New York State, Department of Motor Vehicle. 2006. http://www.nydmv.state.ny.us/
Simply Hired, Accessed April 2008, www.simplyhired.com
For this reason, they have stepped out to pursue alternatives, especially foreign cars. On the contrary, as consumers become price oriented, they have minimal purchasing power because they are not buyers of large volume automobiles (Porter, 1985).
3.3 Threat of New Entrants
It is extremely difficult for new entrants penetrate the auto industry because of the existing high level of brand loyalty. Nevertheless, the few popular overseas firms and entered the American auto industry easily. For example, Honda Motors entered Ohio by opening a new office. This marked the beginning of a major stiff competition in the industry. Foreign entrants have expanded leading to decreased markets for American auto companies (ubenstein, 2011).
3.4 Bargaining Power of Buyers
In the current marketplace, consumers have been given various options, models, and brands to make their selection. However, various factors affect the buying decisions of consumers. They include price, appearance, and effect on…
Beecroft, D. (2008). History of the American automobile industry. Toronto: CCH Canadian Limited.
Cooney, S., & Yacobucci, B.D. (2009). U.S. automotive industry: Policy overview and recent history. New York: Nova Science Publishers.
Porter, M.E. (1979) "How competitive forces shape strategy," Harvard Business Review, March/April 1979.
Porter, M.E. (1980) "Competitive Strategy," The Free Press, New York, 1980.
Yet, today, they sell only about 47% and this market share loss has accelerated over the past decade (Sullivan, 2008). The major issue, according to Sullivan, is the inability of the ig Three to effectively compete with their more efficient and market savvy Japanese rivals, even on their home turf. Opponents of the auto industry bailout feel that placing more money into a failed business strategy makes no sense and that everyone is better off if the free market, not the federal government, choose the winners and the losers in the economy (Moran, 2008). The end result of the auto bailout could well result in a return to protectionism which could unfairly impact other American industries' ability to compete in a global market. A policy analyst at the German-Marshall Fund voices a common concern that a bailout of the auto industry has the potential "to be the torch that lights…
Abouhalkah, Yael T. "The Big Three Bailout vs. Big Bank Handouts for AIG, CitiGroup." Kansas City Star 4 Dec. 2008. http://voices.kansascity.com/node/2983
"1979 Chrysler Bailout Holds Lessons" The Washington Times 24 Nov. 2008. http://www.washingtontimes.com/news/2008/nov/24/1979-chrysler-bailout-holds-lessons/
Grossman, Andrew M. And Gattuso, James L. "TARP: Now a Slush Fund for Detroit?" 12 Dec. 2008. http://www.heritage.org/Research/Economy/wm2170.cfm#_ftn2
Kiley, David. "Auto Bailout Hung Up in the Senate." BusinessWeek 10 Dec. 2008. http://www.businessweek.com/bwdaily/dnflash/content/dec2008/db20081210_152585.htm
S. In sales and innovation and quantity will likely continue to dominate sales as consumers seek cheaper alternatives, either in fuel economy or sticker price, especially in the wake of a downturn of the U.S. economy. It is clear that in the wake of change, and especially growth of competitive systems profitably tends to decrease in all traditional markets. ("Japan's Car Giants Escape" NA)
4.hich companies are likely to be most successful over the next 5 years?
Emerging markets, i.e. foreign competitors are likely to be most profitable over the next five years and in second any existing corporation who has foreseen the massive changes in auto manufacturing and implemented effective and economical models. hen discussing emerging markets one must also consider the fact that the traditional auto industry (mainly in the U.S.) has been historically resistant to the development of ecofriendly autos, short of developing a scrap/recycling industry that…
Bidwai, Praful. INDIA: "World's Cheapest Car Environmentally Costly," Jan 16, 2008 http://www.ipsnews.net/news.asp?idnews=40805.
Brown, Lester R. "Planning for the Eco-Economy." USA Today (Society for the Advancement of Education) Mar. 2002: 31.
Ealey, Lance a., and Luis Troyano-Bermudez. "The Automotive Industry: A 30,000-Mile Checkup." The McKinsey Quarterly (2000): 72.
Japan's Car Giants Escape Domestic Woes with New Assault on U.S. Market." Sunday Business (London, England) 12 Jan. 2003: NA.
VD industry, located in Singapore, offers manufacturing services of components for the auto industry in both GM in the U.S., Europe and other U.S. automakers. In the recent past, this industry expanded in the exporting its products to GM in China. This illustrated a massive growth in terms of marketing for its business. The VD industry operates as a three product divisional strategic businesses, located within the same business complex, which includes; electrical and energy, automotive parts and infotainment (Burnes, 2000, p. 15). As an external change consultant for the VD industry, several factors or assumptions based on the problems experienced by the industry develops acting as an aid in boosting the growth of the company at a much higher scale. Several assumptions emanate from the group level, individual level and the organizational level of the VD industry, thus, the need to develop ideas, which in turn helps in improving…
Burnes, B, 2000, Managing change -- a strategic approach to organizational dynamics, 3rd Ed., Prentice Hall, Harlow, England.
Coghlan, D & Coughlan, P, 2004, 'Collaborative research across borders and boundaries: action research insights from the co-improve project', Research in Organizational Change and Development, vol. 15, pp. 275 -- 95.
Daft, R 2001, Organizational theory and design, 7th Ed. Thomson Learning, Cincinnati,
Once a DMS has been created that spans across all three dealerships, financial and accounting decisions about pricing, promotion and rebates can be more effectively coordinated to a level of and accuracy not possible today. It is a common weakness in automotive retailers who represent multiple brands to be constrained by the lack of systems integration that limits their ability to create synchronized strategies (Bradford, Samuels, Wood, 2008). By having a customer system of record that spans across all dealerships that also takes into account the many variations and complexities of co-op and promotional programs, dealers are able to more cost-effectively manage selling and service programs (Zinnbauer, Eberl, 2005). Schlossmann Automotive Group needs to concentrate on how to tie together all their diverse DMS systems to create a single system of record that is based on customer activity and lifetime customer value, allowing for flexibility of integration with dealer co-op,…
Bradford, M., Samuels, J., & Wood, R. (2008). Beta Auto Dealers: Integrating Disparate Data to Solve Management Problems. Issues in Accounting Education, 23(2), 309-326.
David Pollitt. (2005). E-learning delivers management skills to Ford's North American dealers. Training & Management Development Methods, 19(1-5), 639-642.
Gary Reed, Vicky Story, & Jim Saker. (2004). Information technology: changing the face of automotive retailing? International Journal of Retail & Distribution Management, 32(1), 19-32.
Patricia T. Warrington, Elizabeth Gangstad, Richard Feinberg, & Ko de Ruyter. (2007). Multi-Channel Retailing and Customer Satisfaction: Implications for E-CRM. International Journal of E-Business Research, 3(2), 57-69.
According to Leuilette the only way of accomplishing this is if the, "auto industry flexes its lobbying muscle and pushes Congress to enact a gas tax to pay for research and development. Otherwise, according to Leuliette, the United States will become even more dependent on shrinking foreign oil supplies. Toyota is the second-largest carmaker worldwide and reported that it intends to increase its' lead over Ford. Toyota is expected to remain the worlds most profitable carmaker after making a net profit last year of double its' nearest competitor. Further stated is that, "Japanese manufacturers have been able to steal market share from the American producers in their home market, recently starting to compete against U.S. pick-up trucks and large offroaders, the most profitable vehicles.
Toyota is also rapidly gaining share in Europe and is building new factories there as well as in China and the U.S. On Tuesday the scale…
CEO to Metaldyne Corporation Calls for Fuel Cells in Cars during Automotive News World Congress (2005) May 3 NewsTarget.com Commentary http://www.newstarget.com/003938.html .
Toyota takes load in global car sales, putting Ford in second place Tuesday, May 03, 2005 Commentary | http://www.newstarget.com/001433.html .
Toyotas West Virginia Plant Expands Again, Bringing 150 New Jobs
Automaker to Manufacture Additional Automatic Transmissions
politics full concern environment, related oil auto industry. There a number ethical considerations arise issues. Please answer questions: Some propose concerns alleviated cars limited increased gasoline taxes-- gas expensive,, a beneficial -product, improve environment.
aising the price of fuel does appear to cut down on the amount of miles consumers drive. Even the CEO of General Motors has said: "People will start buying more Cruzes and they will start buying less Suburbans" with a higher gas tax (Blanco 2010). In Europe, for example, consumers are far more apt to use public transportation because of the high price of gas. High gas prices encourage consumers to purchase more fuel-efficient vehicles. The demand for hybrids increased as the price of gas increased. However, because gas, much like food, is a necessity for most consumers, a tax upon gas is disproportionately shouldered by the poor. Members of the poorer and working…
Blanco, Sebastian. (2010). CEO Akerson says higher gas tax would be good for environment.
Auto Blog. Retrieved:
Oster, Shari. (2011). World's top polluter emerges as green-technology leader.
..the stimulus plan calls for laying 3,000 miles of new transmission lines -- considered crucial for moving wind and solar power to different corners of the country" (LaMonica 2008). This sets a shining example for the nation for the need to make current and future structures environmentally sustainable.
Even if prices of fossil fuels decline, there are also other pressures that increase public awareness about the need for green housing -- finite timber resources, increasing overpopulation, and also the expansion of the densely populated developing world in China and India will make green building a continued priority on an international level.
The sad rise of asthma due to mold and other allergies contained in sick buildings may make a green building that can reduce mold, mildew and other build-up a necessity rather than a debatable luxury for many home owners in the future.
The current administration is working to bring…
Del Percio, Stephen. (2008, March 28). Green building in crisis. Green buildings NYC.
Retrieved March 9, 2009 at http://www.greenbuildingsnyc.com/2008/03/18/green-building-in-crisis-bear-stearns-meltdown-may-drown-beer-belly-building/
Homeowner affordability and stability plan. (2009, February 9). Department of the Treasury.
Retrieved March 9, 2009 at http://www.treas.gov/press/releases/tg33.htm
auto parts industry on a global level and highlight potential opportunities as well as problems facing manufacturers. The industry has undergone a number of significant changes in recent years, including the globalization of automobile use in developing world nations such as China and India. Environmental concerns and regulations have also impacted the industry.
Global Industry Selection
As car use becomes more and more ubiquitous throughout the world, the significance of the global auto industry will increase exponentially. To better understand developments within automobile manufacturing, it is also essential to better understand how components of automobiles are sold and sourced internationally. Just as automobile companies are subject to radical shifts in consumer demand, so are the organizations which manufacture auto parts.
Industry Description and Competitive Environment
The auto parts industry is more competitive given the current downward pressure upon prices. American consumers are growing less enamored with high-cost luxury vehicles and…
Automotive 2020: Clarity beyond the chaos. (2008). IBM.
Bosch in North America: Four Years of Solid Growth. (2014). Bosch. Retrieved from:
Hirsh, E., Kakkar, A., Singh, A. & Wilk, R. (2015). 2015 Auto Trends. PWC. Retrieved from:
Michigan Auto Show: History
The history of the Michigan Auto Show (now re-named as the North American International Auto Show) dates back to 1899 when it was held for the first time as the Detroit Auto Show in Detroit. The credit for organizing the earliest Detroit Auto Shows goes to illiam E. Metzeger who dealt in bicycles before becoming associated with the auto industry. ("Zacharias"). Metzeger had traveled to England in 1895 to attend the world's first auto exhibition and returned to Detroit to become its first auto dealer. (Ibid.)
In 1899 Metzeger and an associate formed the Tri State Sportsman's and Automobile Association and leased the Light Guard Armory in Detroit to organize a hybrid exhibition of sporting equipment and automobiles. At the first show, the major attractions were big-game trophies from Africa, fishing tackle and assorted sporting equipment, rather than automobiles. Metzeger was the only auto…
Auto Show Historical Overview: A colorful past, an exciting future." January 2002. NAIAS 2002 -- Official Web site. March 10, 2002. http://www.naias.com/main.asp?sectionID=51&visitorType=1
Economic Impact: North American International Auto Show." January 2002. NAIAS 2002 -- Official Web site. March 10, 2002. http://www.naias.com/main.asp?sectionID=87&visitorType=1
Interesting Facts." January 2002. NAIAS 2002 -- Official Web site. March 10, 2002. http://www.naias.com/main.asp?sectionID=5&visitorType=1
2002 NAIAS: History." Woman Motorist. (n.d.) March 10, 2002. http://www.womanmotorist.com/autoshows-2002/naias-2002/naias-2002-history.shtml
Japanisation in the United Kingdom:
Experiences From the Car Industry
This report aims to analyze and compare the systems of power and control in the Japanese and western automobile manufacturing industries. The method was to use a wide range of theory and to support the analysis. The world has become an extremely competitive global economic battle ground. Automobile manufactures from both the east and the west continue to search for opportunities that will allow them to strategically reduce overhead but not affect market share or profitability. Consider that In the 1990's the solution was to literally cut or reduce the labor force and therefore reduce inherent costs of labor. The buzz words of the time were 'they just laid off X amount ... ', or 'they are downsizing ... ' These terms were regulars on the media circuit or on the front page of the morning's business section. These phrases…
Corbett, Brian (2002). Southern hospitality. Ward's Auto World, August.
Internet Strategies Adopted by Automobile Companies in a Changing Business Market
This is an article on the Internet strategies adopted by automobile companies in the changing business scenario.
hat is the most recent fad that is tempting, informative and dangerous? The author would have loved to hear the responses from an audience, because none would have mentioned the Internet as the answer, and that is exactly what it is. Tempting because companies fall for the hype that the Internet has the potential to increase their profits by huge unrealistic percentages. Informative because the company is soon informed by its event managers that the virtual world is not what it was originally thought of, and dangerous because even after burning their fingers, they keep coming back for more! The reason why the come back is plain simple: the Internet is not directly responsible for the drubbing they received, It is their…
Author Not Known1, Global Vehicle Sales To Fall 11% In 2001-02 New Report Concludes.(Brief Article), http://www.findarticles.com/cf_0/m0UDO/14_13/84740455/p1/article.jhtml?term=Global+Vehicle+Sales Accessed on July 11, 2002
Dallan Greg, 2000, Automakers Rev Up Web Strategies
http://www.thestandard.com/article/display/0,1151,8969,00.html , Accessedon July 11, 2002
Conlin, Rob, 2000, Ford and Trilogy Forge E-Commerce Alliance, http://www.ecommercetimes.com/perl/story/2563.html , accessedon July 11, 2002
In the years leading up to the auto industry bailout, all of the so-called Big Three automakers were struggling. They had been losing market share for many years as more import companies had entered the American market. Some of these companies, notably Honda and Toyota, were able to deliver better cars at lower prices, putting the Big Three at a significant competitive disadvantage. hile the automakers had some good years, by the last 2000s they were losing money. They did not have competitive products, and were saddled with substantial retirement costs. These companies had tens of thousands of employees at one point and need to pay retirement benefits to those workers; the problem is that there are fewer workers today because of automation to cover those benefits. The automakers headed for bankruptcy, and successive contract restructurings with the unions had failed to reverse the trend. The federal government…
BLS. (2012). Automotive industry: Employment, earnings and hours. Bureau of Labor Statistics.
Cauchon, D. (2012). In Ohio: Voters choose Obama as auto bailout resonates. USA Today. Retrieved November 30, 2012 from http://www.usatoday.com/story/news/politics/2012/11/06/ohio-election-results/1658389/
CNN. (2009). Obama defends auto bailout, touts new fuel rules. CNN. Retrieved November 30, 2012 from http://articles.cnn.com/2009-09-15/politics/obama.autos_1_auto-industry-auto-bailout-tighter-auto?_s=PM:POLITICS
Reuters. (2009). Obama to announce auto bailout plan Monday. USA Today. Retrieved November 30, 2012 from http://usatoday30.usatoday.com/money/autos/2009-03-27-new-autobailout_N.htm
This is an innovative system developed by Ford, and with this system, the vehicle operates either on the electric, on the gasoline, or on both engines together. The outcomes of this technology is that it helps emit 81% less smog forming emissions and that it delivers between 400 and 500 miles of travel on a tank of gas. The company has also invested $2 billion in cutting-edge manufacturing and environmental features for its Michigan manufacturing complex.
Another company that U.S. Auto has a lot to learn from is Toyota. Toyota is very much different from Ford and from any other car manufacturer in the world. The company stands out due to certain practices that the company has successfully implemented over the past years. These practices include: kaizen, just in time method, and Toyota Production System. These methods were required for counteracting any aspects that might have negatively affected the company,…
Putting Hybrids on the Road (2007). Ford Motor Company. Retrieved July 3, 2007 at http://www.ford.com /en/innovation/technology/puttingHybridsOnTheRoad.htm.
Toyota Production System (2007). Wikipedia, the free encyclopedia. Retrieved July 3, 2007 at http://en.wikipedia.org/wiki/Toyota_Production_System .
Overview of Toyota's North American Engineering and Manufacturing (2007). Toyota Motor Sales. Retrieved July 3, 2007 at http://www.toyota.com /about/operations/manufacturing/index.html.
Automative Industry and Computers
How computers (over the years) have affected and changed automotive industry and auto sales.
How computers (over the years) have affected and changed automotive industry and auto sales.
History of Automotive Industry
Time Line of Developing Technologies
Emergence of Flexible Manufacturing Systems (FMS)
The ole of Computers in Sale and Marketing
How computers (over the years) have affected and changed automotive industry and auto sales.
Current essay is a discussion of the role and impact of computer on manufacturing and sales of autos. To better understand how and why the automotive industry is where it is today, a brief historical background of the automotive industry is offered. The development of the automobile can be tracked back to 1769 when Nicolas Joseph Cugnot of France built the first vehicle, (Olsen 2002). Cugnot is recognized by the British Automobile Club and the Automobile Club de…
Banham, R.(2002). The Ford century, Ford motor company and the innovations that shaped the world. New York: Artisan.
Erjavec, J. (2005) automotive technology, a systems approach (4th Ed.). New York, NY: Thomas Delmar Learning.
Kalpakjian, S. (1995). Manufacturing engineering and technology. Reading, MA:
Addison-Wesley Publishing Company Inc.
BIC Auto Market
Should GM Invest in China?
The world has been moving away from the Western dominance that has held it for the past several centuries for the past few decades. As the world's largest populations grow economies to match, the United States and other G6 nations will dwindle in influence. This means that companies need to invest heavily in the BIC nations if they are to compete globally in the near future. The given question is whether General Motors (GM) should invest heavily in China as that nation's population begins to have more individual economic means, or another of the BIC nations (Brazil, ussia, India, China) due to more rapid growth. This essay will examine the question and determine an answer from the research.
In a report completed for Goldman Sachs investment company, Wilson and Purushothaman (2003) estimated that China would pass all of the G6…
Lang, N.S., Mauerer, S., Aguiar, M., Kreid, E., Bhattachariya, A., & Nettesheim, C. (2010). Winning the BRIC auto markets. Retrieved from https://www.bcgperspectives.com/content/articles/automotive_globalization_winni ng_the_bric_auto_markets/
Wilson, D., & Purushothaman, R. (2003). Dreaming with BRICs: The path to 2050. Goldman Sachs Global Economics Paper, 99, 1-24.
DOPPEL Autos, INC. Business Plan
Doppel Autos Inc., is an auto manufacturing company that intends to manufacture vehicles custom-made to the preferences and desires of the consumers. The major goal of the business is to facilitate individuals to attain their dreams of possessing cars which are reasonable and that are designed to their requirements and needs. In the contemporary world, automobiles have come to be not only a basic need for everyday life but also a proclamation on the individual that is driving the car. The management team of the company will include of five executives. These will be the CEO, the financial controller, the director of engineering, the director of manufacturing, and the director of marketing. The company is situated in California for easy access to the supply chain of the company. Several locations within the state of California, such as Beverly Hills, Newport Beach, and Kern, have very…
Antiventure Capital. (2015). Generico, Inc. An Example of a Complete Business Plan. Retrieved from: http://www.antiventurecapital.com/backupfolder/devbusplexmpl.pdf
Cooperstein, P. (2014). The 27 Richest Neighborhoods In Southern California. The Business Insider. Retrieved from: www.businessinsider.com/richest-neighborhoods-in-southern-california-2014-4
Lienert, D. (2003). Do American Cars Make Money? Forbes. Retrieved from: http://www.forbes.com/2003/10/06/cx_dl_1006feat.html
Location Analysis. (2015). Retrieved from: http://wweb.uta.edu/insyopma/prater/Location%20Analysis%20draft.pdf
Geely Chinese Autos
What is the issue/problem for Geely?
By about 2006, as it made its first appearance at the Detroit Auto Show, Geely decided to be a trailblazer of sorts for the Chinese automotive manufacturing sector (text, page?
In particular, what it was doing was setting its sights on making itself one of that nation's standout original equipment manufacturers, enabling it and China as a whole to be more flexible to the fast evolving global purchasing markets. Many Chinese companies wanted to exercise their own levels of influence over the automotive sales market because it was already known that China would be the purchasing market of choice within just a few years (AlixPartners, 2011). Even though Chinese automobile manufacturing was growing well, for the most part companies in that nation were strong because they were partners of larger outside companies directly associated with Chinese initiatives (text, page?
AlixPartners (2011). Full Speed Ahead AlixPartners 2011 China Automotive Outlook. Automotive Industry and Parts Executive Summary. Viewable at http://www.alixpartners.com/en/LinkClick.aspx?fileticket=ABjw5H8TduE%3d&tabid=958 .
Fangfang, Li (2010). Geely buys Volvo in biggest overseas foray. ChinaDaily. Viewable at http://www.chinadaily.com.cn/china/2010-03/29/content_9653260.htm .
Geely Company Website (2010). Corporate Presentation June 2010. Viewable at http://www.geelyauto.com.hk/PDF/Presentation/geelyauto__english__jun2010.pdf.
Shirouzu, N. (2012). China's Geely turns to Egypt. The Wall Street Journal. Viewable at http://online.wsj.com/article/SB10001424052970204778604577239043167935050.html .
firm concentration ratios for the following industries are: fluid milk (311511), women's and girl's cut & sew dresses (315233), envelopes (322232), electronic computers (334111). The industries that are characterized by a high level of competition include clothing, which is a dominant industry in this country. The high level of competition and the many small business type clothing stores, in competition with larger chain stores, makes the competition widespread (Case et. Al, 2009).
Another industry that has a high level of competition is that of car sales and auto parts. Again, cars are a modern necessity and not necessarily a luxury item. Transportation is a necessity for many individuals. This means that car sales as well as auto parts are items that are sold often, and thus have a high level of output. Agricultural and farming products are also highly competitive. Food is obviously a necessity for everybody, and there are…
Case, K.E., Fair, R.C., and Oster, S.E. (2009) Principles of Microeconomics (9th ed). Upper Saddle River, New Jersey: Pearson Prentice Hall.
Smith, F. (2008). Examining Financial Concepts and Business. New York: McGraw Hill.
Taylor, K. (2009). Finance and Business: Growing Trends. New Jersey: Pearson
ITT Supply Chain
Evaluating ITT Industries' Supply Chain
ITT Industries (NYSE:ITT) generated $2.1B in revenues during their latest full calendar year of results with a Net Income of -$130M. For the latest calendar quarter ending September 30, 2012 the company generated $555M in revenues and earned a Net Income of $73M. This transition in financial performance is attributable to several factors incouding better coordination, collaboration and integration of suppliers into their manufacturing operations, more efficient use of existing manufacturing assets, and greater use of analytics and IT systems to streamline complex processes (ITT Investor elations, 2012).
ITT's diversified operations include engineer-to-order, configure-to-order and build-to-order production strategies that have a multiplicative effect on the complexity and extent of collaboration with suppliers (Boon-itt, Himangshu, 2006). Using these product customization strategies the company competes successfully in energy, infrastructure, electronics, aerospace and transaction. Supply chain locations and their corresponding operations are tightly integrated across…
Barrett, J. (2007). Demand-driven is an operational strategy. Industrial Management, 49(6), 14-19,5.
Boon-itt, S., & Himangshu, P. (2006). A study of supply chain integration in thai automotive industry: A theoretical framework and measurement. Management Research News, 29(4), 194-205.
Gardner, G. (1998). Conglomerate exodus. Ward's Auto World, 34(5), 79-81.
Hofman, D. (2004). The Hierarchy of Supply Chain Metrics. Supply Chain Management Review, 8(6), 28-37.
General Motors was founded in 1908 and has been the largest manufacturer, designer, building and marketer of cars and trucks throughout the world since 1921. It sells vehicles in more than 200 countries worldwide and maintains assembly, manufacturing, distribution or warehousing operations in 53 of these countries. In 2000, it sold 8.6 million cars and trucks - constituting 15.1% of the entire world vehicle market (the world's biggest share) at $4.5 billion net sales and $184.6 billion in revenues. (General Motors). It envisions itself as the enduring world leader in transportation products and related services, whose goal is "to maintain this position through enlightened customer enthusiasm and continuous improvement, driven by the integrity, team work and innovation" of its employees. (General Motors)
The organization operates in four regions. The first, which has the largest market at 27%, is the GM North America. This region designs, manufactures and markets vehicles for…
Business Wire. Raytheon Chosen by General Motors to Provide Dealership
Technical Training, 1999
2. Insider. XV8 Power: Another Intriguing Concept Engine from the General.
McMullen Argus Publishing, Inc., 2002
The copy continues with a powerful use of key statistics and figures about how the Lexus Certified Pre-Owned Program delivers every Lexus with a 3-year, 100,000 total vehicle warranty and customer care package including 24-hour roadside assistance. The copy continues with the point that every Lexus is qualified through a rigorous 128-point inspection as well. The copy concludes with the dealership making the point that their dealership is the largest in Arizona for Pre-Owned Lexus autos in Arizona. All of these points in the copy are interwoven to create a story of trust that a prospective customer can believe and rely on to rationalize their decision.
Analysis and Critique
This ad is very effective in communicating both visually and through copy that Lexus has one of the most comprehensive certified pre-owned programs in the luxury car industry. The copy is full of quantifiable claims that can be easily backed up…
Harris, D.. (2009, October). Dealer's long warranty lures traffic. Automotive News, 84(6381), 34.
Wang, X., & Yang, Z.. (2010). The Effect of Brand Credibility on Consumers' Brand Purchase Intention in Emerging Economies: The Moderating Role of Brand Awareness and Brand Image. Journal of Global Marketing, 23(3), 177.
Link to ad:
Resolution: General Motors (GM) versus United Auto orkers (UA) in health care negotiations between unions and management
Given the recent overall negative financial environment in the American automobile industry, the disputes between labor and management at General Motors, regarding worker's health care and benefits have proven to be some of the most significant, contentious, and 'watched' disagreements arising between labor and management in recent times in American labor negotiations. As GM goes, it is often said, so goes the nation.
"Imagine that you are running a domestic automaker ... And burdensome union contracts limit your ability to cut costs." The burdensome nature of the currently existing union contracts means that GM is forced to pay even its retired workers coffer-draining health care benefits, even while the company is losing money. Also, it seems, according to many industry analysts, GM may have lost its vision for the future. (Akst, 2005)
Akst, Daniel. (24 Jul 2005) "The Green Machine that could be Detroit." The New York Times. Retrieved 24 Jul 2005 at http://www.nytimes.com/2005/07/24/business/yourmoney/24cont.html?hp& ; ex=1122264000& en=3e1619f41f62e54e& ei=5059& partner=AOL
Hakim, Danny (21 Jul 2005) "Despite a June Surge in Sales, G.M. Posts Another Losing Quarter." Retrieved 24 Jul 2005 at http://www.nytimes.com/2005/07/21/business/businessspecial3/21auto.html
Collapse of the Big Three
America was once the leader and pioneer in the auto industry, a title that the country had for decades and a title that was so dear to America's heart that it was unfathomable to think that title might ever be lost. It's commonly misconstrued that America invented the automobile, when in reality that honor goes to German Karl Benz in 1885 (ozema, 2010). "Americans did, however, industrialize the love of the automobile. America loves big, fast cars, and for many decades American car companies shared the biggest slice of the auto industry pie" (ozema, 2010). America made having a car and the business of making cars firmly entrenched in American culture. This was a fact which kept the economy stimulated and which provided a consistent level of financial stability for the nation and the civilians within it. However the decade of the eighties marked the…
Anderson, P. (2008, November 11). Expert Examines Impact Of Big Three's Collapse. Retrieved from Npr.org: http://www.npr.org/templates/story/story.php?storyId=96875257
Dunbar, W., & May, G. (1995). Michigan: A History of the Wolverine State. Grand Rapids: Eerdmans Publishing.
Gatesman, A. (2005). Why are Foreign Manufactured Cars Gaining Market Share in the U.S. market? . Retrieved from Iwu.edu: http://www.iwu.edu/economics/PPE13/gatesman.pdf
Gordon, E. (2005, May 4). The Decline of the 'Big Three' U.S. Auto Makers. Retrieved from npr.org: http://www.npr.org/templates/story/story.php?storyId=4630187
Dell business model and strategy is one of the best strategies that can be employed by various organizations for them achieve their set goals and business objectives (Hall, 2000). In this paper we describe how the auto industry might work differently if it were designed in accordance with the Dell Model.
The Dell model
The Dell Model (Hall,2000,p.6).
The strategy comprises of three main components namely the best direct customer experience, virtual integration as well as low cost provider. In the Dell Model, the company occupies the Original Equipment Manufacturer (OEM) space between the suppliers and customers.
The best direct customer experience
One of the strategies that are employed by Dell is the provision of the best direct customer experience that they can have with machines (computers) as a tool. This involves the obtaining of these computers, using them as well as servicing them appropriately. This stage involves no intermediaries…
Hall, RW (2000). Distributed Excellence and the Dell Model. Target Volume 16 (2)
Kraemer, KL and Dedrick, J (2002): "Dell Computer: Organization of a Global Production Network," Center for Research on Information Technology and Organizations, 2002.
Kraemer, KL.,Dedrick, J ., Yamashiro, S (2002). Refining and Extending the Business Model With Information Technology: Dell Computer Corporation
Roger and Me: Automobile Industry
Like All the President's Men, this work is a departure from fiction in film and in novels. Rather than portraying fictional characters in a contrived plot, "Roger and Me" takes us into the lives of actual men and women dealing with the all-too-real problems of the decline of the United States as a world industrial power.
The focus is on the automobile industry, in particular, on one of the early centers of that industry, Flint, Michigan. Major automakers like General Motors have for years been cutting back on production and employment. Now, many of the older plants that have been running at reduced capacity are being closed for good and their workers let go permanently.
Because Flint was heavily dependent on auto making, the effects on the local economy are disastrous. Flint seems to be in the process of turning into a postindustrial ghost town,…
Moore, Michael (Dir.). Roger and Me. Warner Bros, 1989.
auto industry is generally characterized by immense fixed costs, strong labor unions, strict regulation, tough competition, and volatile demand. There are times when even extremely strong car manufacturers find it difficult to overcome these forces. Investors looking for an easy profit should definitely look somewhere else. Even prudent investors should worry about the fundamentals of the auto industry.
Ford led the U.S. manufacturers in the 1980s in the commercial war against the Japanese by selling truck-based products to car owners. The fact that Americans prefer large vehicles and that large vehicles are what U.S. automakers do best is no surprise to anyone. Helped by favorable fuel-economy and emission legislation for trucks, Ford dominated the trucks and SUVs market for years. The most profitable segments of the market were occupied by Ford for more than a decade.
However, one recent financial trend Ford experienced is the loss of 7 percentage points…
1. John Taylor, "Allegations of Accounting Missteps Can Hurt Trust"; Knight Ridder Tribune Business News. Washington: Jan 14, 2002. pg. 1
2. Morningstar analyst report on Ford Motor. www.morningstar.com
Use of single version of the truth and single information
Balanced set of strategic metrics (Financial and non-financial).
New methods of cost accounting (ABC, Target Costing).
Internal vs. External Focus (Benchmarking and Self-Assessment).
Process Management and Measures (value delivery).
Stakeholder value measures
Uniform set of measures
Causal relationships between measures across all levels.
Source: Lieberman; (1994; et.al.).
Automotive Industry Analysis
Entering 2007 it is clear that Japanese firms, lead by Toyota, will be at parity with and potentially surpass the Big Three automakers' market share in the U.S. And globally. The Big Three automakers, all in various phases and strategies of restructurings today, will continue to look towards significant cost reduction strategies over time. General Motors and Ford specifically are offering early retirements and incentives to further decrease payroll, pension and healthcare costs. It is anticipated Ford will consider selling Land over, as the sales of Austin Martin is pending.…
Bergman, Rhonda. Electronic medical record makes life simpler for clinic physicians. Information Management. Hospitals and Health Networks. July 20, 1993. Page 60.
Cohen, W.M. & D.A. Levinthal (1990). "Absorptive Capacity: A New Perspective on Learning and Innovation." Administrative Science Quarterly, 35, 128-152.
Columbus and Murphy. Re-orienting your knowledge and content management strategies. AMR Research Report., AMR Research.
October 31, 2002
Some of the biggest incentives for manufactures are the outrageously low tax bases in southern states. "When taxes are paid, southern levies are lower than most Northern states. GM's Hamtramck, MIG, plant, for instance, has one of the highest property tax mileages in the United States at 88 mills." (Corbett, 2002) Taxes are some much lower than in say Michigan or New Jersey and southern state officials are very open to negotiations to land the new factories and the plethora of jobs. In other words, land values are low and government incentives are extraordinary so the automobiles industry would be crazy to not migrate south for those reasons alone. "Furthermore, utilities costs are lower. After the products have been assembled, the South's location is superior to the Midwest or the East Coast for delivery." (Corbett, 2002) but there are other incentives.
Not only is the land for the new facilities…
Corbett, Brian (2002). Southern hospitality. Ward's Auto World, August.
The Japanese Government to usiness Model
The Japanese government has more direct control of private business. The difference is that it is doing so, as a partner to ensure that the business is able to maintain successful long-term economic growth. The government does not offer subsidies or any kind of bail outs. Instead, they help companies through loans, tax breaks and other forms of assistance. This helped to contribute to the success of the Japanese auto industry by allowing executives to focus on how their organization can grow in the future. (Johnson, 1985)
usiness, government and the Liberal Democratic Party in Japan
The Liberal Democratic Party helped to liberalize the relationship that the government would have with the auto industry. As it would be successful in helping Japan to eliminate protectionism; this is something that would allow Japanese cars to become more competitive in markets around the world.…
Automobile Industry Introduction. (2010). Retrieved May 6, 2010, from Plunkett Research website: http://www.plunkettresearch.com/Industries/AutomobilesTrucks/AutomobileTrends/tabid/89/Default.aspx
CAFE Overview. (2010). Retrieved May 6, 2010, from NHTSA website: http://www.nhtsa.gov/cars/rules/cafe/overview.htm
Federal Motor Vehicle Safety Guidelines. (n.d.). Retrieved May 6, 2010 from NHTSA website: http://www.nhtsa.gov/cars/rules/import/fmvss/index.html
G8's Gradual Move. (2008, January 25). Retrieved May 6, 2010, Council of Foreign Relations website: http://www.cfr.org/publication/13640/
The former might be, 'What specific...' [while] Less structure might be exemplified by: "Please respond to the following in your own words: I....'" (Dereshiwsky, 1999) in addition:
adding some open-ended items such as these to a more traditionally scaled quantifiable survey, such as one with Likert-scaled attitudinal items, and/or "check/off" questions on demographic background variables, is a good way to make the survey "multimethod" in nature. This is because you'd be using that "single" data collection vehicle (survey instrument) to collect your data (responses) in more than one form: quantitative and qualitative! You could ask the same general questions in both forms and then compare the two alternative forms of responses to see if they 'converged,' or agreed, regarding the phenomenon that you are trying to measure via the survey (e.g., attitudes towards school climate). If they do, you can have greater assurance that "there's something real being captured/measured" regarding…
Area Sales of Luxury SUVs in High Gear; Gas Prices Don't Slow Down Affluent Buyers. (2007, April 28). The Washington Times, p. C10. Retrieved April 24, 2008, from Questia database:
Vice versa, a relaxation of credit operations through a reduction of the interest rates generates an increased purchasing power and an increased ability for the manufacturer to contract loans and further invest in his business.
2.6 Producer price index
The Producer Price Index, or the PPI, stands for "family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller" (Investopedia, 2009). The evolution of the PPI has also been a fluctuating one, with a major ascendant trend:
Source: United States Department of Labor, 2009
Despite the past increase in producer price index, the future seems to hold decreases in its value:
The downward trend forecasted for the following 18 months means that the automobile producers in the United States receive less money for the sale of their products. Increases in…
Ford Motor Company, Hoovers, 2009, http://hoovers.com/ford-motor/--ID__10597,FRIC__ -- /free-co-competition.xhtml last accessed on May 8, 2009
Gross Domestic Product, U.S. Bureau of Economic Analysis, 2009, http://www.bea.gov/briefrm/gdp.htm last accessed on May 8, 2009
Interest Rate Trends, Mortgage-X, 2009, http://mortgage-x.com/trends.htm last accessed on May 8, 2009
Producer Price Indexes, United States Department of Labor, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet-request_action=wh&graph_name=WP_ppibrief last accessed on May 8, 2009
Considering that GM has acquired 20% of the Fiat Company, it can be mentioned the financial advantages gained by the Italian company, considering its decrease in the last years. As intangible resource, it may be mentioned that Fiat has increased its reputation on the market, on the basis of this alliance with GM. The possibility to reduce the cost and consequently to better compete on the market remains the most important intangible resource of the alliance.
The Value chain activities are the inbound logistics (receiving and warehousing the raw materials, and their distribution to the manufacturing), the operations (the processes of transforming inputs into finished products and services), outbound logistics (the warehousing and distribution of finished goods), marketing and sales (the identification of the customers needs and generation of sales) and service (the support of customers after the products and services are sold to them). Although, the two partners have…
To examine the causes the independent variables will be the costs associated with the production and sale of the cars, looking a both the direct and the overhead costs in the years prior to the bailouts, to assess the degree to which the firms appeared to have control over their costs. If there was a lack of control over the costs, the level of costs may be a predictor of future problems.
Definition of Terms
Before undertaking the research it is necessary to define some of the terms which will be used. The failure of a firm relates to whether a firm entered into bankruptcy. Bailout funding was the funding that was received from the government as part of an official bailout package in order to help the firm survive.
The costs will be assessed in terms of the overall costs incurred to manufacture cars; this may be the cost…
Isidore, C. (2008, November 17). Auto Bailout: Showdown. CNNMoney.com. Retrieved from http://money.cnn.com/2008/11/17/news/companies/gm_showdown
Hiraide Norikatsu; Chakraborty, Kalyan, (2012) Surviving the Global Recession and the Demand for Auto Industry in the U.S. -- a Case for Ford Motor Company, International Journal of Economics and Finance, 4(5), 85-94
Ooghe, Hubert; De Prijcker Sofie, (2008), Failure Processes and Causes of Company Bankruptcy: a typology, Management Decisions, 46 (1-2), 223-242
Watson, Thomas, (2009), Automotive Trouble, Journal of Domestic Car Production, 82(7), 11-12.
How forces in and outside of business firms are changing the management task, altering business operations, and modifying stakeholder expectations?
Business, particularly those heavily emphasizing technology, are constantly changing. In many instances these changes are occurring due to a combination of internal and external factors. These factors often modify stakeholder expectation because the fundamental business itself has shifted. A very dynamic force that is changing the management task is that of globalization. Globalization is particularly contentious because it has no geographic limits. Competition can now come from anywhere at anytime. As such, management must be cognizant of the changing dynamics prevailing in their respective industries. The auto industry, for example, has directly felt the impact on globalization and stakeholder expectations. The auto industry prior to foreign competition was characterized by large fixed asset costs, hefty legacy and pension obligations, and slow innovation. However, through globalization the Japanese's were able…
Motivation is the process of initiating, guiding, and steering people into achieving some set goals with ease. Many motivational strategies target different needs like cognitive, biological, social, and emotional forces. Psychologists have come up with theories of motivation humanistic theory, instinct theory, and drive theory. The essential components of a successful motivational strategy intensity, activation, and persistence. Persistence entails the constant effort towards a given goal even with the existence of obstacles while intensity relates to the vigor and concentration. This report endeavors to explain the advice given to a line manager in the auto industry as a model of motivating employees in tough economic times. I have also identified factors that would motivate in my current job placement (Herzberg, 2003).
Advice to a line manager in the auto industry
Management team of most companies come up with procedures and policies that end up de-motivating employees…
Herzberg, F. (2003). One more time: How do you motivate employees? Harvard Business Review. January, 1-13. (Business Source Complete Database: AN 8796887.)
Nohria, M., Groysberg, B. & Lee, L. (2008). Employee motivation: A powerful new model. Harvard Business Review. July- August, 1-7. (Business Source Complete Database: AN 34403173.)
Sirota, D., Mischkind, L. & Meltzer, M. (2006). Stop de-motivating your employees. Harvard Business Review, January, 1- 6. (Business Source Complete Database: AN33018727.)
nature project, sources information plan, important concepts techniques applied. You receive feedback proposal Instructor Week 6, give time make adjustments.
Proposal for new strategic endeavors of production, pricing and resource utilization at Ford Motor Company
In the context of the global economic recession, the American automobile industry faces demise. Out of the three main players in the United States, Ford Motor Company has rejected the bailout from the government and has focused its strategy on internal restructuring. As part of this effort, the future project would set out to provide some recommendations of how the company can reshape its production, pricing and resource utilisation strategies in an effort to create more value for the organisation.
With the commencement of the 2007 economic crisis, the American automobile industry has been facing endless challenges. The number of customers has decreased, as has their purchase power and the subsequent demand for the…
Pride, W.M., Hughes, R.J., Kapoor, J.R., 2011, Business, Cengage Learning
Rosenfeld, H., 2009, The North American auto industry in crisis, Monthly Review, Vol. 61, No. 2
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Vasudev, P.M., Watson, S., 2012, Corporate governance after the financial crisis, Edward Elgar Publishing
U.S. National Strategy
What three United States national interests do you think will be at great risk over the next five years? Describe those interests and identify which instruments of national power can be leveraged to protect or advance those national interests and how those instruments can be used.
As President Obama stated in his addresses to Congress in February 2009, the most important problem that the country faced was the economy, which was in the worst recession since the 1930s. This affected both domestic and foreign policy, since the country would probably have to reduce military spending and its commitments overseas as it did during the Great Depression, so for the Obama administration economic recovery was the primary goal. He did promise that "the weight of this crisis will not determine the destiny of this nation" (Obama Address, 2009, p. 1). He promised that the government would deal with…
Address to Joint Session of Congress. Remarks of President Barack Obama, As Prepared for Delivery, Address to Joint Session of Congress, Tuesday, February 24th, 2009.
Comprehensive Regional Strategy on Somalia: A Strategy for U.S. Engagement Report to Congress, February 2007.
JP 3-0 Chapter I.
JP 3 Extract Chapter 2.
changing and competitive workplace and environment, it has become vital for the organizations to come up with effective strategies for maximum and efficient use of resources (eich, 1991). The most important and critical resource for any organization is the human resource or man power. It has become difficult to find and retain skilled and trained human resource. Organizations are facing increasing challenges in this regard and are striving to formulate effective and efficient human resource policy and practices. The role and importance of human resources and man power is being understood by the organizations in response to the altering and uncertain business landscape and environment.
It is necessary to have proper and well stated policies and standards for hiring, training, appraising, compensating, and utilizing human resources. Efficient human resources and employees facilitate the organization in achieving its strategic goals and objectives. For this reason it is necessary to have strong…
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This is important, because physics has allowed the combustible engine to provide the world with a cost effective solution for traveling long distance. Sadly, the electric car can only be used for short to medium distances. Then, there is another potential problem that could be developing with the lithium batteries that are used, where China control 95% to 100% the resources for these batteries (lithium). This is problematic because they could restrict how much they are exporting (which they already have) to ensure that there is enough supply for the country to meet its own internal demand. (ryce 2010)
Despite this dire news, there are increased effort within the industry to support the use and development of such new technologies, to work in conjunction with the combustible engine. An example of this support for such technologies can be seen by the fact several oil companies hold the patents on several…
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Enterprise Integration Act of 2002 and SCM
How will setting supply chain standards improve supply chain management?
The Enterprise Integration Act of 2002 was initiated by the National Institute of Standards and Technology (NIST) with the goal of helping companies coordinate supply chain information exchange and improve efficiencies (Thibodeau, 2002). The need for standardization stemmed from soaring costs and lengthy design and transaction timelines -- just a few of several challenges revealed in a1999 study conducted by the NIST. The study estimated that the auto industry alone would see $1 billion in annual supply chain savings with improved enterprise integration (Yimin et al., 2011). Enterprise integration refers to seamless electronic integration along a vertical supply chain (Thibodeau, 2002).
Manufacturers in today's marketplace require flexibility, adequate time to respond to shifts in customer preference, and efficiency (Jett, 2008). Today, more customized and specialized products are necessary to meet fluctuating consumer demands.…
1. Jett, Q. (2008). Mastering the Supply Chain. Electric Perspectives, 33(3), 62.
2. Thibodeau, P. (2002). Supply Chain Standards Up for Federal Funding. Computerworld, 36(42), 6.
3. Yimin, W., Gilland, W., & Tomlin, B. (2011). Regulatory Trade Risk and Supply Chain Strategy. Production & Operations Management, 20(4), 522-540. doi:10.1111/j.1937-5956.2010.01167.x
2007 Economic Crisis on American Car market
Effect of the 2008 global economic crisis on automotive industries
Crisis in the United States
Crisis in Canada
Crisis in ussia
Crisis in European markets
Crisis in Asian markets
Effects by other related crisis events
In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will also have a look at how this crisis had affected car manufacturers in other major markets around the world notably Europe, Canada and the prominent Asian markets such as China and India. Finally, we will look at some of the other factors which were important to this event namely the energy crisis since the cost of fuel is directly related to the car industry.
The automobile industry is a very important part…
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Pempel, T.J. (1999). The Politics of Asian Economic Crisis. New York: Cornell University Press.
Arestis, P. (2001). What Global Economic Crisis? New York: Palgrave.
Liou, K.T. (2002). Managing Economic Development in Asia. Westport, CT: Praeger.
In the case of Toyota they have focused on supply chain integration, collaboration and collaborative forecasting and replenishment (CPF) workflows. What emerges from this SWOT analysis from a competitive analysis standpoint is that while Fiat was concentrating on product-driven strategies for differentiation, its competitors had embraced and were well on their way to making processes their core competitive advantage, especially those augmenting personal productivity (Porter, 2008).
Fiat's opportunities however are significant. There is growing truck market demand, increasing demand for manufacturing equipment in BIC nations and growing need fro construction vehicles in China and India. As Tata Motors has worked to dominate the passenger car market in India, there is no company focused on construction vehicle development. For Fiat, this presents a unique and highly differentiated opportunity.
The threats Fiat faces are comparable to many other global auto manufacturers, including the continued contraction of credit and therefore the entire auto…
Markus C. Becker, and Francesco Zirpoli. 2003. Knowledge integration in new product development: The FIAT Autocase. International Journal of Automotive Technology and Management 3, no. 1,2, (January 1): 30-46.
Giuseppe Calabrese. 2000. Fiat Auto hands the wheel to its employees. Human Resource Management International Digest 8, no. 1, (January 1): 13-15.
Mauro Caputo and Francesco Zirpoli. 2001. A new organization for supplier involvement in vehicle design: The Italian automotive industry case. International Journal of Automotive Technology and Management 1, no. 2,3, (January 1): 301-320.
Jeffrey H. Dyer, and Kentaro Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks 21, no. 3, (March 1): 345-367.
The product being studied is the Prius, the hybrid car from Toyota. The automobile industry is one the largest industries in the world. The major players are Ford, General Motors, Chrysler, Honda, Mitsubishi, Hyundai, several European companies and regional players as well (Investopedia, 2011). These firms all contribute to intense competition among rivals, especially given the size of the industry. The result is an industry characterized by competition both along the lines of differentiation and cost leadership. Firms must sell high volumes of cars at low margins in order to earn revenues, but must also load those cars with features and demonstrate technological leadership in order to attract business.
The large number of firms has an impact on the supply conditions within the industry. Supply is determined by expected sales and by the capacity of manufacturing facilities. In general, the global automobile industry suffers overcapacity. There are high costs…
AAAT. (2011). Auto transport business in auto industry slow down. All America Auto Transport. Retrieved December 3, 2011 from http://www.aaat.com/auto-transport-business-industry-slow-down.cfm
AP. (2008). Hybrid sales, led by Prius, up 38% in '07. MSNBC. Retrieved December 3, 2011 from http://www.msnbc.msn.com/id/24230209/ns/business-going_green/t/hybrid-sales-led-prius-percent/#.Ttq9o1b5sa8
Hirsch, J. (2011). Toyota Prius dealers see demand rise and inventories fall. Los Angeles Times. Retrieved December 3, 2011 from http://articles.latimes.com/2011/mar/31/business/la-fi-autos-disruption-20110331
Investopedia (2011). The industry handbook: Automobiles. Investopedia. Retrieved December 3, 2011 from
Dell was setting a very rapid pace of new product introductions during the period analyzed by the author and afterwards as well. The focus on just the direct channel and thoughts of disintermediating the indirect channels through their highly successful direct build-to-order model blinded Dell from the much larger and more diverse profit pool all channels could provide. Ignoring these market dynamics and believing the direct model was by far going to win the battle of channel models in the PC industry, Dell experienced exceptional declines immediately following this rapid run-up of growth. In the end, Dell chose to use the profit pool concept to gain an even greater insights into their customer base and was able to generate profits 3 times higher than industry average (Gadiesh, Gilbert, 1998). Dell recovered form a potentially disastrous situation by using the profit pool concept effectively.
There is also the example of how…
Gadiesh, O., & Gilbert, J.L. (1998, Profit pools: A fresh look at strategy. Harvard Business Review, 76(3), 139-142+.
In general, Product Development at Ford involves three major stages, all leading up to the manufacture of the vehicle: Plan, Design, and Verify -- then manufacture. To do this, though, functional areas need to manage costs, plan marketing programs, ensure that needed parts are available, plan manufacturing schedules, hiring (if needed), shift changes, and numerous other data (a/p, a/r, payroll, etc.). The model for Ford is:
(ource: Murthy and Desai)
Thus, on a daily, or ongoing basis, employees in numerous functional areas are able to pull up historical data on models, features, issues; find out stages of development for new models or new programs; chart advertising effectiveness using detailed database parameters, preplan tooling, resource, and supplier needs; access accounting and invoice functions, and, system wide, use the available information for appropriate levels of knowledge management (Maynard 2004).
By department, a needs analysis shows that each individual department has both similar…
Sources: Ford Motor Annual Reports: www.ford.com; http://online.wsj.com/mdc/public/page/2_3022-autosales.html ).
" In those manufacturers who are attaining lean enterprise-level performance, the cultures of their companies have become incredibly focused on metrics, and in fact the organizations themselves have become so metrically driven that the culture itself embraces the concept of measuring performance and improvement (Nash, Poling 2007).
Lean positioned for cost cutting vs. customer-driven change. This is also a critical mistake many manufacturers make, and often becomes the main focus these companies continue to pursue, as opportunities to better integrate their strategies with customers, suppliers, buyers, and service organizations present themselves.
Evolution of the Lean Enterprise
Manufacturers have continually struggled to gain the advantages of lean manufacturing, starting first with manufacturing processes at the shop floor level and progressing to a vision of implementing an entire lean enterprise. What's become essential in the pursuit of the lean enterprise are the creation of strategies for driving waste of all types (time,…
Aberdeen Group (2005). Best Practices in Strategic Service Management. Aberdeen Group Report. June, 2005. Boston, MA. Executive Summary. Retrieved January 26, 2008.
Aberdeen Group (2006). Best Practices in International Logistics. Aberdeen Group Research Report, January, 2006. Boston, MA.
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General Motors in China:
Chinese Motor Vehicle Industry Structure:
The motor vehicle industry in China had over 200 carmakers in 2004 with most of them being small Chinese firms. In addition to being small and domestic companies, the carmakers were solely owned by the Chinese government and had a market share of approximately 40%. As new joint venture firms emerged during this period, the Chinese government was reluctant to see its manufacturers of motor vehicles eliminated. Generally, this motor vehicle industry structure was mainly dominated by small domestic firms that were owned by the government. These firms experienced serious threats from new joint ventures on supporting their existence while attracting managerial skills and foreign technology.
Therefore, the Chinese motor vehicle industry was seemingly modest in the global context as it grew in heady rates (Teslik, 2007). Since this industry had a modest structure, it produced great uncertainty regarding future prices…
Bursa, M. (2011, March 7). March Management Briefing: China's Emerging Auto Industry (Part
1). Retrieved July 4, 2012, from http://www.just-auto.com/analysis/chinas-emerging-auto-industry-part-1_id109555.aspx
Holweg, M., Luo, J. & Oliver, N. (2005, August). The Past, Present and Future of China's
Automotive Industry: A Value Chain Perspective. Retrieved from University of Cambridge website: http://www-innovation.jbs.cam.ac.uk/publications/downloads/holweg_past.pdf
emotional positioning stategies. Maketing Intelligence & Planning, 23(1), 9-29.
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The company was established in 1886 and since its inception the technology developed by Daimler has revolutionized the automotive industry (Daimler AG, 2014). Daimler's initial product line started with a motor carriage and a three wheeled vehicle. The quality, safety and comfort of Daimler's vehicles have impressed their customers, establishing the standards of the industry.
With automotives being a physical product, it is very easy to measure them. Standards of the industry are established and brought to public notice, allowing all customers to understand them and rapport to them. In this industry products are physical received by customers and they enter customers' possession once all contractual and financial aspects have been attained. Product reception takes place under the terms established by the seller and agreed by the buyer.
There are several ways customers can address in order to find out information about the price and characteristics…
1. Tradition (2014). Daimler AG. Retrieved November 20, 2014 from http://www.daimler.com/company/tradition .
2. Product Responsibility (2014). Daimler AG. Retrieved November 20, 2014 from http://www.daimler.com/sustainability/product-responsibility .
3. Lis, B. et al. (2012). Oil and Cars: The Impact of Crude Oil Prices on the Stock Returns of Automotive Companies. International Journal of Economic and Financial Issues. Retrieved November 20, 2014.
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Detroit House Flipping
Detroit Housing evamp
Detroit is a city that is indeed behind the proverbial "eight ball" in a lot of ways. The nastier parts of Detroit are full of abandoned and burned houses, crimes go unreported or at least unanswered and local agencies are uniquely pathetic at completing and providing even basic services at a satisfactory level. However, not unlike work industries and neighborhoods of yesteryear, it is possible for the Detroit housing market to see a rebirth. This would need to be done carefully due to monetary, cultural and economic pressures but it is entirely possible. While the house flipping alone would not solve the problems that Detroit has, it is absolutely part of the overall solution and the free market is the best source to use as the government money well is currently tapped out.
There are some that have stated that many large portions…
ABC. (2014, July 18). GM Delayed Recall in Another Ignition Switch Case. ABC News. Retrieved July 19, 2014, from http://abcnews.go.com/Business/wireStory/gm-delayed-recall-ignition-switch-case-24628352
Bradford, H. (2012, April 6). Homeowners Stuck With High Interest Rates Even After Government Refinancing Program. The Huffington Post. Retrieved July 21, 2014, from http://www.huffingtonpost.com/2012/04/06/mortgage-refinance-program-underwater-homeowners-lack-competition_n_1407949.html
Burdeau, C. (2012, August 28). New Orleans' post-Katrina gentrification is touchy. The Big Story. Retrieved July 21, 2014, from http://bigstory.ap.org/article/new-orleans-post-katrina-gentrification-touchy
Campanella, R. (2013, March 1). Gentrification and its Discontents: Notes from New Orleans. Newgeography.com. Retrieved July 21, 2014, from http://www.newgeography.com/content/003526-gentrification-and-its-discontents-notes-new-orleans