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Automotive Parts Suppliers
Automotive Industry faced a serious decline in production in last few years resulting in concurrent decline in production of vehicle parts. Unfortunately the production and consumption of vehicle parts made in the U.S. declined more sharply than total sales of vehicles primarily because due to economic recession, people moved from big trucks and SUVs to smaller passenger cars. As consumption at home declined, exports of automotive parts increased dramatically from $42.7 billion in 2009 to $58.1 billion in 2010. At the same time imports of vehicle parts also increased as U.S. automobile companies started importing cheaper parts from Mexico, Canada, Germany, Japan and China. The combined imports from all these countries accounted for 78% of automotive vehicle parts imports. China was the most sought after country as imports from China for vehicle parts increased some 35%.
Suppliers in the U.S. faced a very challenging time during 2009…
References
Bureau of Labor Statistics data using NAICS 3361, 3362, and 3363. http://data.bls.gov/PDQ/outside.jsp?survey=ce
Ross, Sativa, "Staring Down Commoditization," Aftermarket Business, 12/05.
Automotive Bailout:
The three major firms in the United States automotive industry asked the government for a bailout worth $34 billion in December 2008 in order to avoid bankruptcy. These companies asked for the bailout from government because their demise could result in approximately 3 million layoffs within a year, a measure that could plunge the American economy further into economic recession. These three major firms in the American automotive industry are General Motors, Ford, and Chrysler. The bailout of General Motors and Chrysler was to provide operating cash for both companies and to avail auto loans for car buyers. However, many people in the United States opposed the automotive bailout arguing that these American automakers brought the near-bankruptcy on themselves. They argued that these automakers inflicted the bankruptcy on themselves through failure to retool an energy-efficient era, which resulted in lessening their competitiveness in the global market.
Specifics about…
Works Cited:
Amadeo, Kimberly. "The Auto Industry Bailout." About.com - U.S. Economy. About.com, 28 Mar. 2012. Web. 29 Nov. 2012. .
Eilperin, Juliet. "EPA Issues New Fuel-efficiency Standard; Autos Must Average 54.5 Mpg by 2025." Washington Post. The Washington Post, 29 Aug. 2012. Web. 29 Nov. 2012. .
Isidore, Chris. "Bush Announces Auto Rescue." CNNMoney. Cable News Network, 19 Dec. 2008. Web. 29 Nov. 2012. .
Levin, Doron, and Rebecca Christie. "Chrysler Financial Gets $1.5 Billion to Aid Car Sales (Update4)." Bloomberg. BLOOMBERG L.P., 16 Jan. 2009. Web. 29 Nov. 2012. .
Automotive Industry
Current automotive market
Current market make up of the global automotive industry:
Impact on the American economy
Not so long ago, the death knell of General Motors was being sounded by many economists. However, GM has rebounded, largely thanks to its international presence, particularly in Indian, China and ussia. "General Motors [has] appeared to regain its one-time perch as the world's largest automaker. With 2011 sales of more than 9 million vehicles, it soared past Toyota, which plunged from first to fourth...as well as Volkswagen" (Eisenstein 2012). GM's sales dominate developing world nations, which shows a great deal of promise for sustained growth given that these nations' middle class populations are expanding and there are high levels of aspirational consumption. Many families have never owned cars and now desire to make their first purchase. The international market could prove more important for all Detroit car manufacturers than the…
References
Bomey, Nathan. (2012). Leaner North America leads way for GM. Detroit Free Press.
Retrieved:
http://www.freep.com/article/20120803/Business01/308030048/Leaner-North-America-leads-way-GM?odyssey=tab|topnews|text|Auto%20news
Cha, Ariana Eunjung. (2008). China's cars, accelerating a global demand for fuel.
At this stage one does not know which of all the solutions will be the best for solving the problems of the organization. (acing to compete, the automotive industry goes on demand)
One of the solutions
Now let us look at one area where IBM has helped an organization to improve its dealing in the wholesale market, as probably Kirk Motors is both a retailer and a wholesaler with only one outlet. The concerned company was South Pacific Tires, and the aim of software development was to provide dealers with more convenient ways to reach South Pacific generate demands for the brands of South Pacific and reduce their operating costs. The suggested solution was a B2B and B2C e-business infrastructure which could integrate with their earlier systems. The benefits of the system was to be a saving of A$ I million in a year which could lead to a payback…
References
Auto Data Network Announces Appointment of Aftersoft Management Team. Retrieved at http://biz.yahoo.com/bw/050803/35717.html?.v=1Accessed on 5 August, 2005
Galaxy. Retrieved at http://www.sys2.com/products_services/parts.aspx . Accessed on 6 August, 2005
Icas develops superior business management software solutions & systems for parts distribution companies. 1 June, 2005. Retrieved at http://www.icas.com/detail_cms.php?id=87&page_name=news.php&inpage=news_detail.php. Accessed on 6 August, 2005
Racing to compete, the automotive industry goes on demand. Retrieved at http://www-1.ibm.com/businesscenter/cpe/download5/31895/Automotive_POV.pdf . Accessed on 6 August, 2005
Automotive Company: China
The automotive industry in China has seen significant growth over the last decades. The country's economic growth has increased the potential for the industry in t his market, since there is an increase in demand for passenger vehicles by general citizens. This has made the market favorable for new entrants, and for existing market participants to grow and prosper (Holweg, Luo, and Oliver, 2005).
The automotive company in question then also operates in China, and is known as Chong Hu Motors. It generally provides non-commercial passenger vehicles to average citizens. The pricing is therefore also average to cater to the affordability of the market. Generally, representatives of the most popular models are offered, with the latest models being on display. The company also has a used vehicles department for citizens who are concerned with affordability. Vehicles that are not on display can be ordered. There is also…
Reference
Holweg, M., Luo, J., and Oliver, N. (2005, Aug.). The Past, Present and Future of China's Automotive Industry: A Value Chain Perspective. Retrieved from: http://www-innovation.jbs.cam.ac.uk/publications/downloads/holweg_past.pdf
In fact, a hybrid car t is a cross between a gasoline-powered car and an electric car. There are two kinds of hybrid cars. One way is a parallel hybrid. In this, a fuel tank supplies gasoline to the engine. But it also has a set of batteries that supplies power to an electric motor. Both the engine and the electric motor can turn the transmission at the same time, and the transmission then turns the wheels. As a result, in a parallel hybrid, both the electric motor and the gas engine can provide propulsion power. The other is a series hybrid. In this, the gasoline engine turns a generator, and the generator can either charge the batteries or power an electric motor that drives the transmission. Thus, the gasoline engine never directly powers the vehicle.
One might think the reasons for building such a complicated machine when most people…
In times of inflation, typically inflation rates rise. This tends to slow business activity and slow inflation ("Interest rate," 2009).
Producer Price Index -- The producer price index is the "relative measure of average change in price of a basket of representative goods and services sold by manufacturers and producers in the wholesale market" ("Producer price," 2009). It is made up of three indices: finished goods, intermediate goods, and raw or crude materials.
Trends for Economic Indicators and Prediction for 18-months:
Graph 1: Inflation ate ("Countrywatch data," 2009; "Field listing," 2009).
Graph 2: Gross Domestic Product (U.S. Billions) ("Countrywatch," 2009; "BEA news release," 2009).
Graph 3: Unemployment ate ("Economy," 2009; ).
Graph 4: Producer Price Index ("Economy," 2009)
Graph 5: Personal Income (Billions U.S.) ("Personal Income," n.d.; "State personal," 2009)
Graph 6: Interest ates (30-year) ("30-year," 2009; "H.15, 2009")
How the Automotive Industry Would be Affected by These Predictions:
Continued…
References
30-year. (No date). Retrieved April 28, 2009, from http://www.federalreserve.gov/releases/h15/data/Annual/H15_SWAPS_Y30.txt .
BEA news release: Gross domestic product. 29 Apr 2009). Retrieved April 28, 2009, from http://www.stat-usa.gov.ezproxy.apollolibrary.com/online.nsf/vwNoteIDLookup/NT009BF1BE/$File/GDP.PDF-OpenElement .
Consumer price increase. (2009). Retrieved April 28, 2009, from http://www.businessdictionary.com/definition/consumer-price-inflation.html .
Countrywatch data. (2009). Retrieved April 28, 2009, from Countrywatch database.
Such changes that influence the automotive industry bring a series of opportunities that the company could exploit. Therefore, the company should focus on Asian markets, where Daimler Chrysler's position on the market can be improved. China is one of the growing markets that the company should address in a more aggressive manner. Certain Chinese polls and surveys place Jeep in the top 5 most preferred American brands (Highfill et al., 2004).
One of the threats that are likely to affect Daimler Chrysler is represented by the instable alliance between the company and Mitsubishi. This situation and Mitsubishi's current evolution have damaged Daimler Chrysler's condition, revealing the company's vulnerability. If this situation persists, the company could be severely affected in the future, and it is quite likely to be outrun by lower positioned companies in terms of sales.
Another threat consists in Daimler Chrysler's decision to invest in the hydrogen fuel…
United States Inflation rate - consumer prices (2008). Index Mundi. Retrieved September 4, 2008 at ( http://indexmundi.com/united_states/inflation_rate_ (consumer_prices).html.
Carrick, Alex (2008). Motor vehicle sales are driving into some potholes. Journal of Commerce. Retrieved September 4, 2008 at http://www.journalofcommerce.com/article/id29889 .
Highfill, D. et al. (2004). Automotive Industry Analysis. AcademicMind. Retrieved September 4, 2008 at http://www.academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive-industry-analysis.html .
Automotive industry's value chain is highly dependent on the level of quality management achieved in each phase of supplier validation, sourcing, procurement and demand management, to ensure each customer gets the highest quality vehicle possible (o, Liker, Fixson, 2007). The intent of this paper is to compare a domestic manufacturer, Chrysler, with a globally-based one, Toyota on how each manages the quote-to-order process for customized vehicles. While both companies take a unique approach to this process area, both share a common attribute or characteristic of using quality management, demand management, forecasting and pricing data to optimize their performance in production, services and customer management (Breyfogle III, 2010). For purposes of this analysis the quote-to-order process these auto manufacturers and others like them also use to translate customer demand into high quality vehicles is used (Selladurai, 2004).
Describing the Quote-to-Order Process between Chrysler and Toyota
The purpose of the quote-to-order process…
References
Bilek, G.. (2010). The Value of Information Sharing in a Build-to-Order Supply Chain. The Business Review, Cambridge, 15(1), 131-136.
Forrest W. Breyfogle III. (2010). Process improvement projects shortcomings and resolution. International Journal of Lean Six Sigma, 1(2), 92-98.
Harry K.H. Chow, K.L. Choy, & W.B. Lee. (2007). Knowledge management approach in build-to-order supply chains. Industrial Management + Data Systems, 107(6), 882.
Jeffrey H. Dyer, & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
That means they have to be flexible, and they also have to be open to change, in case they face an emergency or a repair they may not be too familiar with.
A good mechanic is honest, as well. Many garages have the reputation of being dishonest or inept, and it gives many mechanics a bad name. The customer should be able to trust the mechanic and trust his word about what is wrong with the customer's car. If a customer does not trust the mechanic, they probably will not return to the shop, and the certainly will not recommend them to others. Therefore, a mechanic must always be fair and honest, and never give the customer any reason do doubt his word or his actions.
A good mechanic stands by his work, as well. The shop should offer a warranty, and they should stand behind that warranty. A good…
References
Cars Editor. "How to Find a Good Mechanic." eHow.com. 2007. 19. Oct. 2007. http://www.ehow.com/how_3380_find-mechanic.html
Editors. "What Makes a Good Mechanic or Garage?" SearchZoneJA.com. 2007. 19 Oct. 2007. http://searchzoneja.com/editorial_view.cfm?pageid=54
The report develops mathematical model and Excel is ideal spreadsheet to implement a mathematical model because it is developed to carry out a number of iteration. The report uses the spreadsheet to determine the time that the engine takes to reach 3000 rpm with continuous 100% fuel input.
The Table 1 provides the layout of the spreadsheet, which reveals the time on the first row and the system variables on the subsequent columns on the right. The table 2 defines the Constant separately, which can be easily changed in order to investigate the system response.
Table 1: Layout of the Spreadsheet
A
B
C
D
E
F
G
H
I
1
Time (sec)
Fuel (%)
T
TF
TN
(Nm)
Vel
Pos
rpm
2
0
=B2*L$1
0
=C2-D2
=E2/L$3
0
0
=G2*60/(2*3.14159)
3
=$A2+0.1
=G2*L$2
=G2+(A3-A2) *0.5*(F2+F3)
=H2+(A3-A2)*0.5*(G2+G3)
4
Table 2: The Engine Parameters
K
L
Engine Parameter
1
k1=
1…
References
Harris, H.D. & Pearce, F. (1990). A universal mathematical model of diesel engine performance .Journal of Agricultural Engineering Research . 47: 165 -- 176.
Golten, J. & Verwer, a. (2003). Control System Design and Stimulation.London.McGraw-Hill Publishing.
Jon, R. (2004). Automotive Control Systems: For Engine, Driveline and Vehicle. Sensor Review. 24(4): 395-396.
Appendix 1: Code of the Javascript of the Engine Speed vs. Fuel Part 1
Also in contrast to Toyota, Ford boasts a heavily unionized workforce rather than stresses the need for employees to sacrifice for company success. Although both place a premium value on company loyalty, Toyota's method stands in sharp contrast to Ford's rewarding of its workers with long-term benefits and extensive retirement packages. This has proved a drain on Ford finances in recent years. and, although they aim at a similar car-buying audience, both companies have emphasized vastly different types of vehicles. Ford enjoyed its greatest success selling SUVs during the 1990s, while Toyota remained devoted to cars like the Camry, mid-sized family vehicles that are especially popular now, with the rising cost of fuel.
Today, while under the leadership of CEO Bill Ford (like Toyota, Ford is a family-dominated company in its upper echelons of management) "analysts fear Ford is not keeping pace with the aggressive models planned by rivals. And…
Works Cited
Flint, Jerry. (2 Aug 2005). "Ford's Fuzzy Future." Forbes.com. Retrieved 28 Jul 2007 at http://www.forbes.com/home_asia/columnists/2005/08/02/ford-gm-backseatdriver-cz_jf_0802flint.html
Toyota Production System Terms." (2006). Toyota Motor Manufacturing. Retrieved 28 Jul 2007 at http://www.toyotageorgetown.com/terms.asp
Mayne, Eric (5 Aug 2005). "Ford Fights to Save Future." Detroit Motor News. Retrieved 27 Jul 2007 at http://www.detnews.com/2005/autosinsider/0508/07/A01-272014.htm
Then, the second sub-target market will be formed from those individuals who register both medium as well as above medium incomes, but care about preserving the environment; these individuals will purchase the fuel-efficient cars.
A new and uncharted target market can be identified and it would consist of those individuals who do not currently own a car, nor did they ever, based on ecological reasons. In this order of ideas, Chery Automotive can address them by presenting the benefits upon the environment of the compact and fuel-efficient hybrids.
Given that the Chinese vehicles will be sold onto the American market, it is only natural to look at the automobile industry from a statistical perspective, such as the classification system implemented by NAICS. From this stand point, the Chinese cars will fall under the category 42311, detailed on 423110 - Automobile and Other Motor Vehicle Merchant Wholesalers. These regulations have been…
References
Official Website of the North American Industry Classification System, 2008, http://www.naics.com , last accessed on February 15, 2008
DesRosiers, D., 2007, an Outlook for the North American Automotive Industry, http://www.cartest.ca/2007_outlook_for_the_north_a.htm , last accessed on February 15, 2008
America's Auto Industry, Weber Chevrolet, Retrieved at http://www.weberchevrolet.com/sale/american.pdfon Febrruary 15, 2008
Sparklin Automotive Costing
Sparklin Automotive Company (SAC) is a leader in the spark plug business and has now developed a revolutionary new product that will enhance that leadership position. The new product allows the company to offer special-order spark plugs for the auto racing industry. The company needs to determine the best method of accounting for this product. The current accounting system is a basic costing system that delivers only basic information to the company's managers. Other systems have also been recommended for adoption to enhance the company's costing knowledge and improve managerial decisions. This memo will discuss some of the options for the new custom spark plug product in particular, taking the approach of comparing the new product with the normal spark plugs the company offers, and explaining why a different accounting system for the new custom plugs would be beneficial.
Current Practices
SAC currently utilizes the process costing…
Works Cited:
Accounting for Management. (2011). Job order costing system. Accounting for Management. Retrieved August 27, 2011 from http://www.accountingformanagement.com/job_order_costing.htm
White, M. (2010). Chapter 18: Process costing. Middle City. Retrieved August 27, 2011 from http://www.middlecity.com/ch18.shtml
BSC
Balanced Scorecard: Sparklin Automotive Company
By using financial and H measures it is possible to recognize the impact on business performance. These areas of Balanced Scorecard are Accounting and H Performance.
Management recognize that measurements are a necessary strategy to an effective management process. In order to implement new strategies there needs to be improvement in manufacturing processes as well as the level of performance of workers. H is instrumental in providing the resources to raise the skillset of workers by providing training opportunities. Oftentimes management introduces new requirements and quotas for workers without examining the affect of the past guidelines for improvement as to relevancy or even necessity. A balanced scorecard combines an operative measurement guideline that allows SAC to define strategic goals that align to helping drive change in key areas. Some of these areas include production, process improvement, customer satisfaction and market development.
The scorecard supplies…
References
Averson, P. (2002). Balanced Score Card Institute: Ethical Perspective. Retrieved September 11, 2011 from http://www.balancedscorecard.org/TheEthicsPerspective/tabid/127/Default.aspx
Pearson. (2009). Balanced scorecard. Retrieved September 10, 2011 from www.csub.edu/~tdoucet/PPTACCT303Chapter19.ppt
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.…
References
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
SAC Capital Structure
The Sparklin Automotive Company needs to make a capital investment of $3,000,000 to improve its manufacturing facilities. This investment needs to be carefully considered along two dimensions. The first of these is that the company needs to consider the investment from a capital budgeting point-of-view. The second is that the company does not want to change its capital structure as the result of this decision. The current capital structure is 60% equity and 40% debt. The company needs to utilize the best analytical tools possible for making a capital budgeting decision. There are a number of methods that are common. A net present value (NPV) calculation, an internal rate of return (IRR) calculation, and a payback period calculation are three of the most common. Each of these will be considered, although NPV is the most trusted methodology because it is most closely aligned with total shareholder value.…
Works Cited
Investopedia (2010). Weighted average cost of capital. Investopedia. Retrieved September 3, 2011 from http://www.investopedia.com/terms/w/wacc.asp
The resulting legal ramifications have created an environment of sensitivity to all types of potential discrimination through pre-employment testing procedures.
The ADA Act of 2008 became effective on January 1, 2009. A significant change in the way "disability" is defined is incorporated in the language, so the EEOC is preparing to evaluate the impact of how the language affects the ADA and how it is enforced. Pre-job testing, even though it is done for the right reasons, may now be affected.
The National Institute on Disability and ehabilitation esearch (NID) has established 10 regional centers providing information, technical assistance and training to people with disabilities, employers, and others having responsibilities under the ADA (Nester, Mary Ann, 2008). Even though historically, job applications and interviews could request information concerning an applicant's mental and physical condition, because it was used to discriminate against and even exclude applicants with disabilities, it has created…
References
Nester, Mary Ann, Pre-Employment Testing and the ADA. Program on Employment and Disability, School of Industrial and Labor Relations-Extension Division, Cornell University, funded by a grant from the National Institute on Disability and Rehabilitation Research (2008). Reviewed June 29, 2009 at http://www.theaaceonline.com/employ.pdf .
Kaplan, Daniel A., J.D., Foley & Lardner LLP, Employment Testing in the Workplace, March 20, 2008. Reviewed June 29, 2009 at http://www.foley.com/files/tbl_s31Publications/FileUpload137/4910/MRA_Kaplan.pdf .
"In a recent case, EEOC v. DaimlerChrysler Corp., an applicant test failed to accommodate those with learning disabilities who needed reading accommodations during the pre-employment test given for nonexempt manufacturing jobs. The case resulted in the ruling that applicants should have the opportunity to take the hiring test with the assistance of a reader if they have proof of an ADA disability. This illustrates that employment testing in the pre-employment context must be continually evaluated to determine if the tests create potential disparate effects and to ensure that the tests are legitimately related to the requirements of the positions for which they are developed/provided" (Kaplan., 2008, p. 1).
Auto Bailout
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…
Works Cited:
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
Magna International a global leader in automotive supplies "designs, develops and manufactures technologically advanced automotive systems" (Magna.com. About Us. 2011). Fiscal year 2010 saw "Magna sales of $24.1 billion, an increase of 39% compared with fiscal year 2009" (Magna International Annual Report 2010. P.10). his revenue growth was predicated on a return of global growth in the automotive space however, equally crucial was an executive management team which built a solid financial foundation "with net cash of $2 billion and little debt" (Magna International Annual Report 2010. P.10). he 2010 financial results including strong operating and net income gains stand in contrast to 2009 results which saw Magna International with net operating income and net income losses. he task at hand is to analyze the 2009 and 2010 Annual Reports to discern changes in management strategy which can explicate these financial changes.
Were fixed assets added because of the need…
The most useful method of analyzing Magna'a annual sales to cost is through analysis of the firm's Gross Margin and Selling, General, and Administrative Expenses (SG&A). The 2009 Annual Report identifies "Gross margin decreased 22% or $746 million to $2.72 billion for 2008 compared to $3.46 billion for 2007 and gross margin as a percentage of total sales decreased to 11.5% compared to 13.3%" (Magna International Annual Report. 2009. P.39). "The calculation of the Gross Profit is: Sales minus Cost of Goods Sold. The Cost of Goods Sold consists of the fixed and variable product costs, but it excludes all of the selling and administrative expenses" (Accounting for Management.com. N.D.). From the decline in Gross Margin as well as study of the income statement, Magna's Cost of Goods Sold declined from 2008 levels of $20.9 billion to $15.69 billion, while Selling, General, and Administrative Expenses declined from 2008 levels of $1.31 billion to $1.26 billion in 2009 (Magna International Annual Report. 2009. P.46). . What this decline indicates is significant reductions in variable cost related to labor and wages concomitant with a large reduction in sales volume. Additionally, depreciation expense declined by approximately $150 million, while interest expense increased by approximately 70 million (Magna International Annual Report. 2009. P.46).
Has the firm's cost structure changed over the period noted in the annual report?
For the period covered by the Annual Report 2009, Magna costs reflected a shift away from higher variable costs in the form of labor and wages to a greater reliance on fixed costs; evidenced by cap-ex spending in
outsourcing decision in the Rondot Automotive case on pages 132-133 in the textbook. If you were in the position of Glenn Northcott, what would be your analysis of the opportunity to outsource painting for housings to Greven? What recommendations would you make to Terry Gibson and Dick Taylor and why?
In developing your answer, consider the following:
What reasons, other than financial factors, need to be taken into account in this decision?
As a company known for providing outstanding products, Rondot Automotive has a reputation it must uphold. When a company outsources any aspect of its operations, it loses a degree of oversight over the quality control of that component of the production process. Rondot cannot simply look at the bottom line in terms of money saved from outsourcing. It must also consider if the quality offered by the other company is the same and/or superior to the expected quality…
Xing Yun Lucky Automotive Into China
XingYun is an automobile manufacturer based in Australia, looking to further expand its operations in China. This strategy is based on the increased operational efficiencies the company would register within the Chinese market place, including the access to technological advancements, as well as the access to hard working and cost effective labor force, which is also accustomed to international operations and manufacturing. Aside from the actual operations with manufacturing, XingYun's decision to expand globally is also based on the increasing economic status of the Chinese buyers; China, for instance, registers the second largest gross domestic product, after the European Union (Central Intelligence Agency, 2016). This virtually means that the company would not only produce its vehicles in the more cost effective and skilled region, but also that it would sell its automobiles in China, as this becomes a greater consumer market.
Other aspects of…
References:
Fogel, G.K., (2010) Business environment in China: Economic, political and cultural factors, University of Southern Indianasunt, https://www.usi.edu/media/3654697/Business-Environment-China.pdf accessed on February 5, 2016
2016, The world factbook -- China, Central Intelligence Agency, https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html accessed on February 5, 2016
Auto
Various questions relating to Automotives, Safety and Environmental Concerns
Discuss the apparent reluctance of auto manufacturers to put consumer safety ahead of profits.
Money is, of course vitally important, especially in America. However, just recently we have heard news on how a Toyota killed a family, who was not able to use the breaks on the highway. Auto accidents are climbing rapidly, and often traffic on the highway is due to such accidents, which is a sad fact.[footnoteRef:1] Of course, auto manufacturers are not necessarily at the base of these statistics, and human error undoubtedly plays a role; yet many studies do conclude that the emphasis is often on profit instead of customer safety, which is worrying indeed. [1: U.S. Census Bureau-Accidents and Fatalities (011). Retrieved September , from . ]
One study, for example, is concerned that the U.S. is much too complacent with the incidence of accidents…
2. What is "environmental racism"? What about minority/economically disadvantaged populations encourages or allows this situation? How is environmental racism relevant to white-collar crime?
Environmental racism is yet another problem that faces our country. This means that certain races are more affected by environmental crises as others.[footnoteRef:3] For example, the disadvantaged in the Katrina hurricane were more affected than the affluent, and many more of the latter perished, sadly. This situation is encouraged by the poor standards that are enforced with it comes to minority populations. It is not unusual that they live in worse areas, under worse conditions (i.e. dilapidated houses, worse terrain, etc.) The fact that most of these populations are not helped and that the government does relatively little to remedy such situations does not help either. This concept is related to white collar crime due to the fact that companies, and the executives of these companies in specific, often go around safety measures for housing, for example, built for minority populations, which in turn affects the latter, as mentioned above.[footnoteRef:4]
[3: Environmental Justice/Environmental Racism. (2011). Retrieved September 22, from .] [4: While Collar Crime (2011). FBI. Retrieved September 22, 2011, from . ]
BMC Global
The entrance of an automotive MNE in China
Behemoth Motors Corp. (BMC) is a major manufacturer of automobiles in the United States. BMC has decided to include a Global Positioning System navigator (GPSN) in all of its Sports Utility Vehicles (SUV) beginning with the 2011 model year. Wally Wizard, the GPSN manager, has been approached by Far East Enterprises, Ltd. (FEE) who has offered to outsource these units for MBC. FEE is a three-year-old electronic manufacturing company located in China and has experienced outstanding growth during that three-year period.
These models are just now being delivered and the GPSN units are manufactured in the Detroit BMC facility. Currently and for the foreseeable future, BMC will need 8,000 GPSNs per month. BMC experiences a high level of quality control over these units with only 2% of total production failing quality control testing. At present, 98% of all units manufactured…
References
Dispute Settlement: Dispute DS340 China -- Measures Affecting Imports of Automobile Parts (2008). World Trade Organization. Retrieved from: http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds340_e.htm
Financial Accounting Standards Board: FASB Issues Proposed Accounting Standards Update on Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (2010). Investment Weekly News, 17 July 2010, 304.
Stewart, G.B. (2002). Accounting is Broken: Here's How to Fix it: A Radical Manifesto. EVAluation, 5 (1). New York: Stewart Stern & Co.
automotive materials imported from a foreign manufactures to the local market. It will also emphasize on the effects it caused to the economy of the United States. Finally, the study analyzed the effect of import of materials from foreign manufactures to the people of the United States.
It's more likely to find that, in every household in the United States, almost sixty five percent (65%) of the households for example utensils, clothes and even cars are not produced in the United States. They are manufactured somewhere in China, India, Mexico or Bangladesh, or the materials used to manufacture then were imported and assemble back here in the United States (Bill Canis, 2006). Since the year 2006, the automotive industries in the United Sates have witnessed a steady growth on import of materials from foreign manufactures. Industrial experts further expect that domestic vehicle manufactures will lose their market share to U.S.…
References
(2009). automobile industry, automobile industry, Encyclopedia Britannica,
http://elibrary.bigchalk.com
(2006). Businesses and Occupations, obtained from:
www.encyclopedia.com > ...
Jaguar Land over Automotive PLC
Company Profile:
Jaguar Land over Automotive PLC is a British multinational corporation that designs, develops, manufactures, promotes, and sells automobiles under the brand names of Jaguar and Land over, including ange over brand. Jaguar Land over is the United Kingdom's largest automobile corporation that took its roots from a couple of strongest automobile brands: Jaguar and Land over. Currently, Jaguar Land over Automotive PLC is a renowned subsidiary of India's most successful automobile group -- Tata Motors. It is headquartered in Whitley, Coventry, United Kingdom. Tata Motors acquired Jaguar Land over in 2008 from Ford Motor Company. The major subsidiaries of Jaguar Land over Automotive PLC include: Jaguar Land over Holdings Limited, Jaguar Land over Limited, Jaguar Land over India, and Chery Jaguar Land over. Jaguar Land over was the result of a union between Jaguar Cars and Land over which Ford Motor Company did…
References
Cranfield University, (2014). Jaguar Land Rover: High Performance Leaders Programme. Retrieved on April 2nd, 2014, from
Harrison, J.S., & John, C.H. (2014). Foundations in Strategic Management, 6th Edition. USA: Cengage Learning.
Henry, A. (2011). Understanding Strategic Management, 2nd Edition. Oxford: Oxford University Press.
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). Strategic Management: Competitiveness and Globalization: Concepts & Cases, 8th Edition. Mason, OH: South-Western.
" 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,…
References
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.
Retrieved January 31, 2008
Adamides, N Karacapilidis, H Pylarinou, D Koumanakos. (2008). Supporting collaboration in the development and management of lean supply networks. Production Planning & Control, 19(1), 35. Retrieved January 31, 2008, from ABI/INFORM Global database. (Document ID: 1423331461).
globalization increased and standards of living around the world went up and with the expansion of industrialization in many less developed countries around the world, the demands of the automotive industry around the world increased significantly. This resulted in a worldwide boom in the international automotive sector with many individual countries entering the global automotive market as potential producers. As a result, the international competition in the automotive sector grew more aggressive over a period of time.
The sharp increase in international competition in the automotive industry during the recent years and the fact that automotives are not a 'Fast Moving Consumer Good' made, the countries involve in automotive production realized the growing need to stay competitive. The need to maintain an absolute competitive advantage and constant innovation, research and development was inevitable. Moreover, the international automotive industry was dominated by a handful of big players of the likes of…
References
Abbott, J.P. (2003). Developmentalism and Dependency in Southeast Asia: The Case of the Automotive Industry. New York: Routledge. Retrieved March 8, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=108343360
Amrina, E., & Yusof, S.M. (2010). Manufacturing Performance Evaluation Tool for Malaysian Automotive Small and Medium-sized Enterprises. International Journal of Business and Management Science, 3(2), 195+. Retrieved March 8, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=5052752860
Hyun, J.H. (2008). A Comparative Analysis of Transplants and Industrial Location of Japanese and Korean Automotive Industries in Europe. International Journal of Business, 13(3), 215+. Retrieved March 8, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=5045029782
Kohpaiboon, A., Kulthanavit, P., Vijitnopparat, P., & Soonthornchawakan, N. (2010). Global Recession, Labour Market Adjustment and International Production Networks: Evidence from the Thai Automotive Industry. ASEAN Economic Bulletin, 27(1), 98+. Retrieved March 8, 2012, from Questia database: http://www.questia.com/PM.qst?a=o&d=5044271159
Automative Industry and Computers
Management Information
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)
Kaizen
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…
References
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.
The last century has seen an increase in the level of international purchases which has been supported by the developments in transportation and technology. Goods can move faster than before with developments in logistics. The negotiation and forming contracts for purchase with companies and communicate with potential suppliers in distant countries is also easier than in the past with the internet and tools such as video conferencing and emails. This facilitates the use of international suppliers. However, other firms may choose local suppliers believing strategy will best suit their needs. Local suppliers may be able to provide where there is an increase in the transparency of the supply chain, less exposure to risks such as interruption and exchange rate risks and proximity may allow closer collaborative relationships to develop. Both procurement strategies are viable, to assess the advantages associated with each approach the procurement from international and local suppliers can…
REFERENCES
'Automotive and Auto Parts Industry in Turkey.' (2012). Turkish Ministry of Economy. [online] available: http://blog.tcp.gov.tr/?p=2632 .
"Automotive Industry Trends Affecting Component Suppliers.' (2005). International Labour Review, vol. 144, no. 1, pp. 130-133.
Borrus, M., Ernst, D. & Haggard, S. (2001). International Production Networks in Asia: Rivalry or Riches. London: Routledge.
Burton, S., & Steane, P. (2004). Surviving Your Thesis. New York: Routledge.
This allows for greater levels of planning and cooperation, and fills in the information gap that currently exists between the factory floor and the rest of the supply chain.
Lexmark provides an example of waste. Recently, the company found itself with more than $1 million in scrap from one lot. Engineers had insufficient information to isolate and fix the problem, so were instead relegated to crisis control. With more accurate data from each step of the operation, the engineers could have been more involved in the process and made improvements along the way before it became a large-scale crisis.
Through web-based business applications, engineers can now examine a defective printer cartridge and then use a thin client to put a hold on the entire batch if necessary, regardless of its physical location (anywhere in the world)
In conclusion, it is apparent that e-business is making its mark on the business…
Bibliography
Alexander, Michael. (2001). Factory Floors Go Online -- Pioneering manufacturers close the final gap in their supply chains. InternetWeek; Manhasset; Mar 12, 2001.
2002) Automotive Design & Production. Cincinnati, 114(8), 70-72.
Steele, a.L. (2001). Cost drivers and other management issues in the JIT supply chain environment. Production and Inventory Management Journal. Alexandria, 42(2), 61-68
Drickhammer, D. (2001, May 21). Peak performance. Industry Week. Cleveland, 250(8) 36-40.
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.
Introduction
The automobile industry is a very important part…
References
Lee, C. (2003). Financial Liberalization and Economic Crisis in Asia. New York: Routledge.
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.
5. How have the trade unions in the industry responded to the changes in employment relations in the industry?
Since 1991, both Labor and Liberal-National governments have encouraged enterprise bargaining, marking a major shift away from a more centralized approach to employment relations. On the other hand, there is still an aspect of external regulation in the automotive sector and more generally, across the industrial relations system. The AIC, a tribunal established by the Commonwealth Government at the turn of the twentieth century continues to have the power to settle disputes through conciliation and arbitration, to certify enterprise agreements and to establish minimum standards across the workforce. The ongoing role of the AIC has meant that the legacy of external directive continues to have an influence in the automotive assembly division, as do other third parties such as trade unions (Lansbury, Wright and Bairdi, 2006).
Over the last two decades,…
References
Lansbury, Russell D., Wright, Chris F. And Bairdi, Marian. (2006). Decentralized Bargaining
in a Globalizing Industry The Automotive Assembly Industry in Australia. Industrial Relations, 61(1), 70-92.
Riemen, Wendy and Marceau, Jane. (n.d.). Running on Empty? Innovation in the Australian
Automotive Industry. Retrieved September 2, 2010, from Web site:
Policy Extension
General Context
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…
Reference list:
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.
4. The Automotive Industry (2014). Business and Economics Research Advisor. Retrieved November 20, 2014 from http://www.loc.gov/rr/business/BERA/issue2/industry.html .
falling into a functional rut. This is exemplified in the approach Kuiper Leda also takes with regard to optimizing lead times throughout the productions scheduling and fulfillment processes as well.
In summary, Kuiper Leda has many of the foundational processes, systems and roles in place to enable an efficient demand-driven supply chain network (Barrett, 2007), including the ability to synchronize suppliers, inbound quality management and inspection, production scheduling, manufacturing, and fulfillment. The maturation from MP to EP is evident in the same factors which illustrate how the company is becoming more adept at accomplishing its lean manufacturing objectives, beginning with attainment of JIT. Outsourcing excess demand for the ECUs also indicates a relatively high level of process maturity, knowledge management (Ferdows, 2006) and quality management expertise as well (Yamazaki, 2003). Kuiper Leda shows the potential to scale into more collaborative processes with their suppliers, opening up the opportunity to create…
References
Jane Barrett. (2007, November). Demand-Driven is an Operational Strategy. Industrial Management, 49(6), 14-19,5.
R Bhagwat, MK Sharma. (2007). Performance measurement of supply chain management using the analytical hierarchy process. Production Planning & Control, 18(8), 666.
Anjan Chatterjee, Aurobind Satpathy, Neal Ganguli, TV Kumaresh. (2002). Collaboration: Key to world class quality. Quality, 41(6), 50-53.
Debra Hofman. (2004, September). The Hierarchy of Supply Chain Metrics, Supply Chain Management Review, 8(6), 28-37.
credible sources support claims. Identify purpose, incorporate audience, establish a desired tone, and organize information/claims effectively.
Automotive company: Causes and effects of importing most of its materials from foreign manufacturers
In the new global economy, nations have gained the potential to become increasingly specialized in terms of how and what they produce. For many companies outsourcing everything from the component parts of their products to helplines offers a way to cut costs, lower prices, and increase demand. However, these decisions have many hidden costs. "As stated by the new market research report on Automotive Component Outsourcing, Asia-Pacific remains the most prominent regional market for automotive component outsourcing, with revenues from the region waxing at a CAG of about 12% over the analysis period" (Global automotive component outsourcing market to reach $1.09 trillion by 2017, 2012, P Web). An overreliance upon overseas providers of materials can have the unintended long-term effect…
References
Carey, W.P. (2004). Deep supplier relationships drive automakers' success. Know WPC. Retrieved:
http://knowwpcarey.com/article.cfm?aid=940
Global automotive component outsourcing market to reach $1.09 trillion by 2017. (2012).
PR Web. Retrieved: http://www.prweb.com/releases/automotive_component/manufacture_outsourcing/prweb8285953.htm
As compared to carbon steel, the development of high speed steel has many advantages over carbon and is therefore more popular in high speed applications (lack, 2010).
This type of steel works due to several very important factors such as the type of metals used, high treatment temperatures and its ability to melt metals. eing an alloy that combines several metals, high speed steel can be kept hard even under extreme temperatures because the steel can provide heat resistance. The steel also remains hard even under intensive high temperatures due to the high temperature treatment.
This steel is an alloy which combines several metals such as tungsten, molybdenum, chromium, cobalt and others. The most commonly used type of steel in high speed steel products is tungsten. Nonetheless, various types and designations of high speed steel exist with each of these steels having their own special combinations. Due to its ability…
Bibliography:
AllBusiness.com (1999), Growth of High Strength Steel In Auto Industry Outpacing Other
Materials, Association says, AllBusiness.com, viewed 4 April 2010
Autospeed.com (n.d.), High Performance Gearbox Steels, Autospeed.com, viewed 4 April 2010,
In the case of industrial products, as is the example with AANX, the contract between the purchaser and the seller will need to include elements such as the seller's capacity to deliver a certain amount of the supplied parts over a period of time, as well as quality limits for these.
The case of AANX had an additional requirement, because of the restricted access to the e-marketplace and many other industries most likely practice this approach as well, so as to protect data and information: the need for privacy. This was provided by the fact that the e-market was a private one, with access given only to members of the Australian automotive industry and the suppliers part of the production process.
The figure above presents the different e-marketplace situations that can occur, depending on the total number of buyers and sellers participating in the process. The marketplace model, present as…
Bibliography
1. Contemporary Developments in B2B E-Commerce. Australian Government. On the Internet at http://archive.dcita.gov.au/2001/10/b2b_e-commerce/developments.Last modified on April 11, 2007. Last retrieved on October 13, 2007
2. ITOL Case Study: Australian Automotive Network eXchange. Australian Government. On the Internet at http://www.dcita.gov.au/communications_and_technology/publications_and_reports/2002/july/itol_case_study_australian_automotive_network_exchange.Last modified on November 8, 2006. Last retrieved on October 13, 2007
3. Singh, Mohini, Thomson, Doug. eProcurement Model for B2B Exchanges: An Australian Example. 15th Bled Electronic Commerce Conference Reality: Constructing the eEconomy. June 2002. On the Internet at http://www.bledconference.org/proceedings.nsf/Proceedings/1B672FB5793BB90DC1256E9F003806F2/$File/singh.pdf.Last retrieved on October 13, 2007
4 http://www.ford.com.au/servlet/ContentServer?cid=1137384211055&pagename=Page&c=DFYPage.Last retrieved on October 13, 2007
Science appealed to me as early as I can remember in my academic career, specifically, solving problems through experimentation. Biology, in particular, captured my interest because it seemed to combine science with the goal of providing healthcare and comfort to patients suffering from medical disease. Since then, I have learned that the other scientific disciplines contribute equally toward improving modern health care, but the biological sciences have always captured my greatest interest.
My recent volunteer duties at the (Name of nursing home) nursing home confirmed to me the profound satisfaction inherent in providing patient care. The experience of being able to improve the lives and outlook of elderly patients (some of whom suffer more from depression and loneliness than any organic disease) remains one of the most rewarding endeavors that I have ever undertaken.
The satisfaction of helping others is one element that has been missing from my professional life,…
Garmin Corporate Strategy
You are now the CEO of Garmin Incorporated. You've watched your industry and your business rise to prominence and you've watched as your competitors have slowly eaten away at your share of the market. At the same time, you've witnessed your bread and butter automotive opportunity erode before your very eyes.
Company Overview
Garmin has been an innovator in Global Positioning System (GPS) technology as well as a worldwide provider of navigation, communication, and information devices which are all somehow related to GPS systems. Garmin is a global company that operates through a global network of subsidiaries and the parent organization and home office is located in Taiwan. There are four broad categories in which Garmin's products are produced in; the automotive, outdoor/fitness, marine, and aviation products are the respective product lines.
ithin 5 short years, the GPS manufacturer went from a small niche producer to a…
Works Cited
Bourdeaux, P. (2009, December 30). Google's Impact on GPS Devices. Retrieved from Sun Dog: http://www.sundoginteractive.com/sunblog/posts/googles-impact-on-gps-devices
Fletch, P. (2008, May 8). GPS Brands Market Share Data for 2007. Retrieved from GPS Magazine: http://www.gpsmagazine.com/2008/05/gps_brands_market_share_data_f.php
Garmin. (2011, December 31). Garmin 10-k. Retrieved from About Garmin: http://www8.garmin.com/aboutGarmin/invRelations/reports/10-K_2011.pdf
Google Finance. (2013, December 9). Garmin Ltd. Retrieved from Google Finance: https://www.google.com/finance?q=NASDAQ:GRMN
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…
References
Corbett, Brian (2002). Southern hospitality. Ward's Auto World, August.
Business
Bosch Company and Social Media
The Bosch Company appears to have a strong and comprehensive presence within the world of social media. This is crucial as social media is a truly powerful and invasive tool that can be used to build relationships with new customers and strengthen already existing relationships with old customers. "Building a social strategy takes time and careful attention, but the point is: you need one. Many of my friends don't watch TV, don't read magazines or newspapers, and get most of their news from Twitter and Facebook. So where will brands have the best chance of engaging my friends? On Twitter and Facebook. Social media builds brand awareness in ways that no other form of media can and reaches customers who would be otherwise unreachable" (Barbara, 2012). The Bosch Company appears to have an acute understanding of this and has worked hard to create a truly…
References
Barbara, J. (2012, November 11). Is Social Media Bad For Business? Retrieved from Forbes.com: http://www.forbes.com/sites/julietbarbara/2012/11/11/is-social-media-bad-for-business/
Bosch.com. (2004). Basic principles of social responsibility at Bosch. Retrieved from Bosch.com: http://www.bosch.com/media/com/sustainability/archive_1/issues/corporate_leadership/Basic_principles_of_social_responsibilities.pdf
Bosch.com. (2012, May 22). Sustainable use of rain forests. Retrieved from Bosch.com: http://www.bosch.com/en/com/sustainability/current/news/2012/regenwald_nachhaltig_nutzen.html
Bosch.com. (n.d.). Energy-efficient products. Retrieved from Bosch.com: http://www.bosch.com/en/com/sustainability/issues/products_customers/energieeffizienz/energyefficientproducts.php
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…
References
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…
Bibliography
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
Human esource Management at the Ford Motor Company
The Ford Motor Company is one of the largest economic entities at the global level, with sales and operations across the entire globe. The organization is reputable as the first company to make automobiles accessible to the people through the usage of the production and assembly line. In more recent times, Ford is recognized as one of the largest employers in the United States and a global leader of the automotive industry.
During 2008, the company was hit by the internationalized economic crisis, which raised new financial concerns, but also exacerbated the problems already existent within the firm. For decades, Ford had invested in large size and luxurious vehicles as an emblem of American consumerism. Throughout the past recent years however, the preferences of consumers have changed to reflect the shifting international price of oil and environmental concerns. More and more smaller…
References:
Cascio, J.W., Bodreau, J.W. (2010). Investing in people: financial impact of human resource initiatives. 2nd edition. FT Press.
Price, A. (2011). Human resource management. 4th edition. Cengage Learning.
Randhawa, G. (2007). Human resource management. Atlantic Publishers & Dist.
(2012). A timeline of Ford Motor Company. NPR. http://www.npr.org/templates/story/story.php?storyId=5168769 accessed on December 12, 2012
Distribution Strategy:
Distribution plays an important role in the success of a business because it ensures that a firm can deliver products and/or services to customers efficiently and at effective costs. Generally, the members of a firm's distribution channel offer a significant marketing resource that enables the company to increase market share and expand to new markets based on the established business relationships and local knowledge. Notably, distribution provides various opportunities for the marketer that could normally be linked with the other elements of the marketing mix. Nonetheless, the same distribution strategy is unlikely to be effective for every company because of the need for markets to be balanced. Therefore, companies are required to make decisions regarding the most effective and appropriate distribution strategy. The main focus of distribution decisions is to establish a system that basically permits customers to gain access and buy a marketer's product.
Distribution Strategy for…
References:
"Canned/Preserved Food in the U.S." (2011, October). Euromonitor International. Retrieved October 30, 2012, from http://www.euromonitor.com/canned-preserved-food-in-the-us/report
Christ, P. (2011). Principles of Marketing. Retrieved October 30, 2012, from http://www.knowthis.com/principles-of-marketing-tutorials/
Hirsh, E.R., Rodewig, L.F., Soliman, P. & Wheeler, S.B. (1999, January 1). Changing Channels
in the Automotive Industry: The Future of Automotive Marketing and Distribution. First Quarter, 1999(14). Retrieved from http://www.strategy-business.com/article/10102?gko=f738b
"A central tenet of emotional labor theory is that employees must follow emotional display rules that specify which emotions are appropriate and how those emotions should be expressed to others" (p. 273). This research leads to support for Kongsberg developing training that could teach employees techniques for managing their emotional displays, and management can incorporate emotional display behaviors in goal-setting and performance reviews.
eferences
Diefendorff, J., ichard, E., & Croyle, M. (2006). Are emotional display rules formal job requirements? Examination of employee and supervisor perceptions. Journal of Occupational and Organizational Psychology, 79, 273-298.
Pater, Van Vianen, Bechtoldt, and Klehe (2009) noted the importance of promotability evaluations when it comes to employees' career development as well as the organization's human resource management procedures. The researchers found that there was limited research on this topic, with most focused on the employee's current job performance and non-behavioral, fixed predictors. As such, they took…
References
Tangirala, S., Green, S. & Ramanujam, R. (2007). In the shadow of the boss's boss: Effects of supervisors' upward exchange relationships on employees. Journal of Applied Psychology, 93(2), 309-320.
Stock Stats
Statistics in the World of Stocks
Many students at various levels in mathematics at times find themselves asking the question, why do I need to learn this? It is admittedly true that many people will never really use algebra in their daily lives, and the complex world of statistics and probability also goes unutilized by many. Algebra, probability, and statistics can all be useful to everyone, in actuality, and more importantly there are specific instances where these areas of mathematics prove absolutely invaluable. When it comes to the stock market, many people try to use statistical models to predict when certain stocks are good values, or when they are poised to skyrocket investors to new fortunes, but there are also more sensible applications of certain probability and statistics concepts that are reasonable means of influencing stock-buying decisions. Applying a few basic methods of analysis to some elements of…
SAC
This memo will discuss the financial condition of Sparklin Automotive Company (SAC) for the years 2005-2006. Sparklin produces spark plugs for the original equipment market (OEM) for automotive manufacturers, as well as for the automotive aftermarket. The company has recently introduced a new spark plug that offers superior performance. The content of this memo will include both a ratio analysis and other forms of financial analysis. At the conclusion of this memo will be recommendations for the company to improve its financial performance. These recommendations will be based on the financial analysis contained in the memo.
Financial analysis involves analyzing a company's financial statements to determine the health of the company. There are a number of different types of analysis, including ratio analysis and trend analysis. The former involves calculating financial ratios in order to better understand the firm's financial performance. Ratio analysis tends to use the same sets…
Works Cited:
Loth, R. (2011). Financial ratio tutorial. Investopedia. Retrieved August 21, 2011 from http://www.investopedia.com/university/ratios/
Bias Critique
Thackery, John. "ybrid autos REV up: but will SUV-addicted buyers opt for an environmentally friendly car that saves on gas but commands a premium price?" Electronic Business: Automotive Electronics. Oct 2002 v28 i10 pp. 64(5)
Even before reading the article, "ybrid autos REV up" an informed consumer of the media should know that quite often automobile and electronics magazines are highly favorable of the industries they chronicle. The industry is essentially their 'bread and butter' of such magazines -- i.e. without cars, fancy car gadgets, and car aficiandos, there would be no audiences for such segmented magazines. The credentials of John Thackery, the article's author, are not immediately obvious, but the article's title "ybrid autos REV up: but will SUV-addicted buyers opt for an environmentally friendly car that saves on gas but commands a premium price?" suggests a highly positive slant is being given to the vehicles, for…
However, the article does provide credible statistical evidence to suggest the car's popularity, noting "Toyota has sold a total of 100,000 of all types of HEVs worldwide in the last five years and boasts that it will crank out 300,000 HEVs annually by 2005, as more car buyers show a preference for lower emissions and better mileage." As further testimony to the likely future popularity of the cars it also notes as well that in addition to Toyota, Honda and Nissan have also begun to offer hybrid cars. Other automotive manufacturers plan to introduce electric cars in the next few years, including Ford, General Motors and Daimler Chrysler. All of these manufactures, incidentally, have linked advertisements to this article on the World Wide Web.
The intended audience of this article, however, is clearly more interested in the car's purported power than environmental impact. Although the article does quote a director of alternative power technologies at J.D. Power & Associates, Westlake Village, who notes "the total HEV industry could be as large as one-half-million units by 2007," instead the author is more keen to emphasizes that forward-thinking car makers are "building a new breed of HEVs with smaller sticker premiums and more modest emission-reduction and mileage-enhancement targets." Thackery gently mocks the Toyota Prius, for example, stating that the car "sells on its appeal as a statement of the driver's environmental piety," but the more revved up HEVs, of the future, which are incidentally are more likely to be made by American car manufacturers, "are more attuned to market realities in a country where gas guzzling is an accepted addiction. 'If you do the math, you can see that we can actually save significantly more fuel converting a 20-mpg vehicle into a hybrid than a 30-mpg vehicle, especially if it's a vehicle that sells in high volumes, not a niche vehicle,'" one GM executive is quoted as saying, in defense of GM's future, more modest emissions standards for its electronic vehicles, in contrast to the Toyota Prius.
Thus, the article overall presents solid and credible information about how hybrid cars work, and their burgeoning popularity. But this American car and electronic niche magazine, aimed at car and gadget aficionados rather than the average cost-conscious middle class American car consumer may be too quick to sneer at the petite and cost-conscious hybrids such as the Prius, and too quick to endorse the more mildly conservationist and conserving 'mild-HEVs' that American manufactures plan to make in the future. Although its information its solid, its tone must be regarded with a pinch of proverbial (electrically charged) salt.
Environmental management system is an important element in the modern business environment in light of the increased demands for environmental protection. The increases demands are fueled by the considerable effects that manufacturing processes have had on the environment and ecosystems across the globe. This paper provides a report of the need for an environmental management system for a small, growing manufacturing company that produces lithium-ion battery for aviation and automotive industries. The discussion examines what an EMS is, its goals, how it will help the firm comply with environmental laws, and how it will assist the organization to decrease its liability exposures. An explanation of additional benefits of the EMS for the organization and why the company should pursue its certification by ISO 1400 standards is also provided.
Environmental Management System (EMS) in an Organization
A small, growing manufacturing company that focuses on manufacturing lithium-ion battery for the automotive and…
References
Christini, G., Fetsko, M. & Hendrickson, C. (2004, June). Environmental Management Systems
and ISO 14001 Certification for Construction Firms. Journal of Construction Engineering and Management, 130(3), 330-336.
Environmental Protection Agency. (2013, April 10). Environmental Management System (EMS).
Retrieved from The U.S. Environmental Protection Agency website: http://www.epa.gov/ems/
Sally Jones, New Assistant
Tony Billan, Chief Accountant
Similarities and Differences between Financial and Managerial Accounting.
I am writing you this MEMO to provide the similarities and differences between financial and managerial accountings. Identification of the similarities and differences between the two concepts is very important to enhance your greater understanding on the importance of managerial accounting, managerial reports, and their usefulness in making importance decisions within the Sparklin Automotive Company (SAC).
The objective of this MEMO is to identify the major similarities and differences between financial and managerial accounting. In a contemporary business environment, both financial and managerial accountings are important tools for business. Although, both concepts employ the same financial data, nevertheless, they serve different purposes. Differences between financial and management accountings could be identified from the different roles they perform.
II. Differences Between Managerial and Financial Accounting
Financial accounting report is prepared to reveal the financial health…
References
McGraw-Hill Higher Education (2008).Distinguish between managerial and financial accounting.
The McGraw-Hill Companies. USA.
University of North Carolina, (2010).Introduction to Managerial Accounting. University of North
Carolina E-Book.
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?
). Geely…
REFERENCES
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 .
Some of the reasons why Hyundai relocated to Alabama State of the U.S.A. include the failure that she suffered in Korea. With the influx of cheap imported cars and the violent nature of the labor unions in Korea, the company had started to suffer serious decline in profits; this necessitated the move to look for other alternatives of operation. This landed the company in the U.S. As the revolution of the manufacturing companies and industries in the country (Carmel & Tjia, 2005). This is the place that provided the utmost and best labor regulations for the company. Another significant factor is the state government's incentive package. The incentive was very attractive to Hyundai as they could abate tax if they relocated there. This was a massive boost to the process of adaptation and profit realization. Moreover, the company was offered a site for setting their operations and a good access…
References
Lansbury, R.D., So?, C., Kwo-n, S., & Hyo-ndae Chonghap Sangsa (Korea). (2007). The global
Korean motor industry: The Hyundai Motor Company's global strategy. London:
Routledge.
Motherson sumi systems limited: 2009 company profile edition 2: Chapter 6 SWOT analysis.
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…
References
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 marketing mix has many variables that can be changed and adapted in every company, but in this process it is important to keep in mind the position the company wants on the market and its objectives.
The marketing mix planning is the process of developing long-term strategic plans that can help the company to achieve its goals. Each element in the marketing mix - product, price, promotion, and place -should be very well used in the attempt to satisfy the needs of consumers.
ibliography
Ford Parts (n.d.). Retrieved March 6, 2007 at http://www.innerauto.com/Ford_Parts/
FW15-MARKETING MIX (n.d.). Retrieved March 5, 2007, at http://www.freeworldacademy.com/newbizzadviser/fw15.htm
Marketing mix (n.d.). Retrieved March 5, 2007 at http://www.answers.com/topic/marketing-mix
Marketing mix (Price, Place, Promotion, Product) (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=243
Overview (n.d.). Retrieved March 5, 2007, at http://www.ford.com/en/company/about/overview.htm
The marketing mix (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=185
Volker Mike, MARKETING & 4Ps of MARKETING…
Bibliography
Ford Parts (n.d.). Retrieved March 6, 2007 at http://www.innerauto.com/Ford_Parts/
FW15-MARKETING MIX (n.d.). Retrieved March 5, 2007, at http://www.freeworldacademy.com/newbizzadviser/fw15.htm
Marketing mix (n.d.). Retrieved March 5, 2007 at http://www.answers.com/topic/marketing-mix
Marketing mix (Price, Place, Promotion, Product) (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=243
Garmin was considered to be a company that was "well-run and positioned to grow" (Peters, 2006). The company's stock was trading around $93 per share at the time. The optimism surrounding Garmin was based on a strong balance sheet, technological innovation, double digit growth and the ability for the company to change direction. The company's core products, GPS systems for automobile consumers, were becoming viewed as valuable, if not essential, items, something that would have implied to an outside observer a strong long-run upside in demand (Pittsley, 2007).
Somewhere between its great starting position and this promised land, Garmin lost its way. The company, once lauded for its ability to "change direction," found itself unable to adapt to a major technological shift. In 2006, the smartphone market was relatively small, a niche business within the corporate telecommunications business. Palm and Blackberry were the dominant products. ith the iPhone, and later…
Works Cited:
Bylund, A. (2010). Garmin's last gasp? Fool.com. Retrieved May 20, 2012 from http://www.fool.com/investing/general/2010/05/27/garmins-last-gasp.aspx
Hesseldahl, A. (2009). Garmin, TomTom slash prices amid Google threat. BusinessWeek. Retrieved May 20, 2012 fromhttp://www.businessweek.com/technology/content/dec2009/tc2009128_481006.htm
MSN Moneycentral: Garmin. (2012). Retrieved May 20, 2012 from http://www.businessweek.com/investor/content/jun2006/pi20060620_778234.htm
Peters, J. (2006). Time to home in on Garmin. Business Week/Standard & Poor's. Retrieved May 20, 2012 from
At the same time the social awareness is increasing in terms of its viability as a rescue product in case of any battery failure.
Technological Environment:
The renewable energy products are gaining popularity in developed countries. The technology used in the product is using sunlight to transform it into solar energy for chagrining battery. Therefore it is an advanced technology. The usage of solar technology as well as the presence of secondary input through the car lighter is evident that product is designed using the latest technology. The technological environment of the product is rapidly chaining and improvements are incorporated. The product should be analysed periodically for advanced features.
Environmental Environment:
The environmental aspects of the product are most favourable in terms of the product usage and technology used to manufacture the device. The product is considered as a contributor to the efforts of promoting renewable energy alternatives at small…
Bibliography:
Amazon, 2011, SOLAR POWER CAR PANEL BATTERY TRICKLE CHARGER 12V 1.5W, Retrieved From: http://www.amazon.co.uk/gp/product/fB002V9JEF0/ref=s9_simh_bw_p263_d0_i4?pf_rd_m=A3P5ROKL5A1OLE&pf_rd_s=merchandised-search-9&pf_rd_r=AA95B12935CE4ADA9860&pf_rd_t=101&pf_rd_p=368716567&pf_rd_i=248877031
Gitman, LJ, & McDaniel, CD 2008, the future of business: The essentials, South-Western Pub, USA.
Go Outdoors, nd, Ring Solar power battery maintainer, http://www.gooutdoors.co.uk/solar-maintainer-p178539
Guffey, ME & Loewy, D 2012, Essentials of business communication, South-Western Pub, USA.
Ethics and Social esponsibility
General Motors
General Motors (commonly known as GM) is an American multinational automobile manufacturer. It is the world's largest corporation in the automotive industry with respect to unit sales. GM is headquartered in Michigan, United States and operates with fully-owned subsidiaries as well as joint ventures in 157 countries of the world. The manufacturing units are being operated in 31 countries. It employs more than 202,000 people who work in its 158 different operational areas in all six operating regions of the world. General Motors was established in 1908 by William C. Durant. It has a very well-established brand image across the Globe with a high level of brand acceptability and loyalty by its customers and stakeholders (General Motors, 2012).
Having business operations at the Global scale, General Motors operates in a highly complex and uncertain business environment. There are a number of environmental factors that…
References
Banerjee, S.B. (2007). Corporate social responsibility: the good, the bad and the ugly, 1st Edition. Cheltenham, Glos, UK; Northampton, MA: Edward Elgar.
General Motors, (2012). Environment. Retrieved on January 3rd, 2013, from
General Motors, (2012). Our Company. Retrieved on January 3rd, 2013, from
General Motors, (2012). Our Commitment. Retrieved on January 3rd, 2013, from
Business Management
Discuss specific challenges that managers face in each of the following industries that were less important five years ago.
An important challenge in the apparel industry today was also present five years ago but has become increasingly important in the interim (and looks to become increasingly important still in the years to come) is that of the difficulty that American businesses have in competing with companies overseas. This is arguably true in all fields but is especially so in those fields in which there is a high need for long hours of relatively unskilled labor.
Making clothes is a very labor-intensive process and all such industries (in both heavy and light manufacturing) are experiencing problems in today's marketplace. The decision this month of Levi Strauss to close its last American plant and to have all of its garments produced overseas is emblematic of the fact that it may…
References
Griffin, R. & Ebert, R. (2003). Business. (7th ed.).. New York: Prentice.