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Many on Wall Street expected Schrempp to use his new-found liquidity to make an acquisition.
It is worth noting that Schrempp always saw auto manufacturing as a global business. In addition to establishing an important beachhead in the U.S., he wanted to do the same in Japan. Shortly before the Chrysler merger he concluded a deal with Mitsubishi to acquire a significant minority stake in their stock. Schrempp must have realized that Chrysler's earlier cooperation with Mitsubishi would pave the way to a three-way auto colossus, led by Daimler enz.
CHRYSLER'S GROWTH and SUCCESS in the 1990S
Merger was the furthest thing from peoples' minds at Chrysler in the 1990s. ased on the strong growth of market share in minivans and trucks, Chrysler had regained some of its market share losses and remained consistently profitable. Chrysler was particularly helped by changes in American taste: while all the ig Three were…
AllPar. "Chrysler Facts 1997." 2007. Allpar.com. 19 September 2007 http://www.allpar.com/corporate/fast-facts-1997.html .
Anastakis, Dimitry. "The Last Automotive Entrepreneur?" Business and Economic History online (2007): n.p.
Cyber. "The History of Mercedes-Benz." 2007. CyberParent. 19 September 2007 http://www.cyberparent.com/wheels/mercedes.htm .
Economist. "A fun drive while it lasted." Economist 16th October 1997: n.p.
Daimler Chrysler Merger
hat was the stated rationale for the merger?
The potential benefits of the merger were roughly equal both sides of the two companies. First of all Chrysler had a significantly bigger presence in the North American market while Daimler-Benz had a much bigger presence in Europe. Therefore, both companies were eager for more market penetration in the others home-territory. However, the rationale extends far beyond the geographical market presence. At the time of the merger, both companies were profitable but were eager to expand in order to create a long-term orientation and be more competitive with the larger automotive manufactures.
Furthermore, the combined product mix would represent more of a full lineup than each on had separately. For example, Chrysler was more focused on lower cost cars and sport utility vehicles while Mercedes had deep penetration into the luxury market. Additionally, there were a large number…
Gill, C., 2011. "The role of leadership in successful international mergers and acquisitions: Why Renault-Nissan succeeded and DaimlerChrysler-Mitsubishi failed.. Human Resource Management, p. In Press.
Jameison, B., 2000. DaimlerChrysler Merger A Fiasco. [Online]
Available at: http://abcnews.go.com/WNT/story?id=131280&page=1
[Accessed 30 June 2012].
Daimler-Chrysler- Case Study
Corporate marriages have become so problematic in recent times that it no longer generates a shocking response from the analysts at Wall Street if a merger fails. We witnessed some of the classic merger downfalls in 1990s when many large companies decided to merge their businesses mainly because of poor economic conditions. Because of these failures and the many stories surrounding rapid collapse of corporate marriages, the public along with Wall Street analysts more or less has stopped reacting to such news. Still, the news that Daimler-Chrysler merger was facing deep problems generated a massive response from Wall Street observers who were keenly anticipating some positive news. Everyone had believed that it was a 'merger of the equals' since both companies ranked very high in their respective areas of expertise.
Things should have worked out well because there were apparent no clash of interests. Daimler Benz was…
For people like Rudiger Grube, it wasn't important whether the company had foreseen the new opportunities or seized them in time, rather it was more critical to meet the schedule and ensure deadlines were strictly followed. His main responsibility was to plan, oversee and evaluate the integration process. While there was nothing wrong with Grube's approach and his strategy for post merger integration, people at Chrysler resisted since they had not been accustomed to this European management model. The problems that we noticed in the profits of Chrysler and in the overall post-merger integration process were grounded in Chrysler's inability to understand European style of management and in Daimler's refusal to accept the cultural differences that existed between the two firms.
These management problems however were not the only factor affecting Chrysler's dwindling profits. The general conditions in the automobile industry had a bearing on Chrysler's performance. The major problem with the world automobile industry is grounded in production and capacity issues. The industry, which is highly competitive with key players struggling to increase their market share, is suffering due to over production. Over supply of vehicles has seriously affected growth of the automobile industry as demand has more or less remained static. In the coming years, however the demand is expected to decrease further as ever expanding capacity of major automobile firms. Table 4.12 shows how automobile firms in the U.S., Asia and Western Europe are increasing their production capacity. Without considering the sluggish demand, these firms have continued to expand the utilization percentage of their production capacity. For example the firms in the U.S. were utilizing 81.2% of their capacity in 200, up from 76.8% in 1998. similarly, automobile companies in Western Europe had increased utilization to 71.8% from 71.5% within two years. Asia had followed suit with utilization rate going up to 64.55% in 200 from 61.2% in 1998.
Problems have continued to mount at Daimler-Chrysler and it is therefore important for the strategic planners to recognize the key factors influencing the firm's performance. Apart from internal cultural clash, there are other forces, which are negatively affecting Daimler-Chrysler merger. These include general issues faced by the automobile industry such as low demand and increased supply, convergence of design and technologies, rapid disappearance of small automobile producers and a general trend towards globalization and investment.
A Long and Tangled History
The Daimler car company, under various different names and throughout various configurations, has been around almost as long as the history of the automobile itself. It has seen good times -- including some very good times -- as well as some very troubled times. While Daimler, like any other company, has been to some extent purely at the mercy of chance and external forces, it has also risen and fallen a number of times because of the company's internal culture. This paper examines that organizational culture and how it has both helped and hindered the company during its recent history, relying primarily on the theoretical model of the cultural web. While "culture" is most accurately understood as an element of an integrated human community rather than a corporation (which includes elements of a wider human community but is much narrower in function and scope),…
Bak, P. (1997). How Nature Works: The Science of Self-Organized Criticality. Oxford: University Press.
Capra, F. (1997). The Web of Life: A New Synthesis of Mind and Matter. London: Flamingo.
Dooley, K.J. & Van de Ven, A.H. (1999). Explaining Complex Organizational Dynamics. Organization Science 10(3): 358-372.
Douglas, M. (1985) Introduction in J.L. Gross & S. Rayner, Measuring Culture: A Paradigm for the Analysis of Social Organization. New York: Columbia University Press.
Behavior einforcement Theory
Use of behavior modeling advocated for in reinforcement theory tends to increase employees' commitment to a job and ensure job satisfaction obbins S.P. & Judge T.A., 2011.
In the organization, this level of behavior modeling was disregarded thereby, failing to encourage team members and managers to participate meaningfully. The theory of reinforcement sees the behavior of employees as one that is conditioned by the immediate environment. A tendency to reinforce behavior will resort in its recurrence. The performance of the employees immediately following the merger was reduced productivity. The behavior was reinforced by the management team taking no appropriate action to discourage the tendency of even encourage the contrary.
According to the reinforcement theory, people will avoid getting something they do not want as well as feel motivated to work in order to get what they want obbins S.P. & Judge T.A., 2011.
The failure by Chrysler…
Badrtalei J., & Bates D. (2007). Effect of Organizational Cultures on Mergers andAcquisitions: The Case of Daimler Chrysler. International Journal of Management, 24(2), 303-317.
McHugh M.F. (2008). Human resources management: Finding and keeping the best employees. (8th ed.). New York: McGraw-Hill.
Robbins S.P., & Judge T.A. (2011). Organizational Behavior, Fourteenth Edition, by . Published by . Copyright © 2011 by, Inc. New York: Prentice Hall.
The EVMI initiative will push the supply chain even more rigorously, requiring even greater financial investment. EVMI as a technology is an opportunity; the challenge for Chrysler is to transform their supply chain into a support infrastructure that can fully make this opportunity realizable. Additional opportunities for the company include the continual improvement of their quality management and compliance systems so they will be able to exceed CAFE requirement and create alliances with the NTSA, EPA and California emissions boards (Campbell, 2007). For the EVMI project to gain any momentum it would need to have the support of these three governing bodies. For Chrysler to realize the potential of the EVMI initiative it must also seek to transform its new product introduction process into one that can capitalize on low costs (Ibusuki, 2005) while also embracing innovation. This organizationally will be a very significant challenge for the company yet one…
Jeff Bennett. (2009, September 2). Car Makers Upbeat as Sales Rebound. Wall Street Journal (Eastern Edition), p. B.1.
Gillian Campbell. (2007, June). Big Changes for the Big Three? Quality, 46(6), 6.
Ford Motor Company, Investor Relations (2009). Ford Filings with the Securities and Exchange Commission. Retrieved September 1, 2009, from Ford Investor Relations Web site: http://finance.yahoo.com/q/sec?s=F
Hout, Thomas M. (1996). Time-based competition is not enough. Research Technology Management, 39(4), 15.
Chrysler, unlike Ford with its Focus, had no popular, fuel-efficient cars. In fact, even after the first government bailout, "Chrysler's big reveal at the International Auto Show was a new Jeep Grand Cherokee. Not what the government wants the company to be spending time and bailout money on" (Gap, 2009, Key Splash Creative). As GM was planning a new line of cars, and formulating a prospective electric car, the Volt. Chrysler remained out of touch.
Chrysler was the first company of the 'big three' Detroit automakers to go into bankruptcy. It was forced to respond to direct pressures from the Obama administration to do so, despite protests that Americans would never buy cars from such a financially-tainted company. Chrysler's current CEO, obert Nardelli said that he had been pulling the flagging company back together, and that "the privately held Chrysler was flush with cash and leaner than at any time…
The Gap between Chrysler, GM and Toyota. (2008). Key Splash Creative. Retrieved October 30,
2009 at http://keysplashcreative.com/category/marketing-mistakes/
Flint, Jerry. (2003). Chrysler's marketing mistakes. Forbes.com. Retrieved October 30, 2009 at http://www.forbes.com /2003/08/05/cz_jf_0805flint.html' target='_blank' REL='NOFOLLOW'>
Fiat / Chrysler -- Leadership - Teambuilding
The Chrysler merger with Fiat was met with skepticism and doubts when it was first proposed. Chrysler had just recently emerged from near bankruptcy -- saved by a U.S. government bailout -- and Fiat is a strong internationally respected corporation building cars, earth-moving machines, and more. The merging of Chrysler and Fiat was seen as having a greater opportunity for success than did the merger between Chrysler and Daimler-Benz, but still there were doubters in the industry. However, as of May, 2012, the blending together of the two companies (Fiat and Chrysler) has produced a profitable situation. This paper examines the cultures -- and leadership -- shown within the two companies, a strong combination that has allowed success to be achieved. The paper also critiques the leadership styles in the dynamics of this merger, and delves into the concept of teambuilding when two…
Associated Press. (2012). Fiat Gets Another 5% State In Chrysler Thanks to Dodge Dart.
HuffPost Detroit. Retrieved May 11, 2012, from http://www.huffingtonpost.com .
Buss, Dale. (2012). "Gordian Knott" Sliced Through Chrysler Woes with Suppliers. Forbes.
Retrieved May 11, 2012, from http://www.forbes.com .
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.
Because of its hip European style, its environmentally-conscious image, its fuel economy, and its novelty, the Smart Car will appeal to a large segment of American consumers.
Proposals for marketing the Smart Car in the United States:
The Smart Car will appeal mostly to consumers in urban and semi-suburban areas. Therefore, marketing should be targeted at that segment of the population.
I have no recommendations for product adaptations to the two-seater Smart Car. However, I strongly recommend that Daimler-Chrysler introduce the SUV model of the Smart Car because of the American obsession with the SUV. The SUV Smart Car will appeal to Americans who don't want the stigma of driving an SUV but who at the same time need the extra space.
The Smart Car will appeal to all ages and genders but will be best marketed toward well-educated consumers, college students, and persons of a liberal political philosophy.
Llanos, Miguel. "Europe's 'smart' cars coming to U.S. -- in 2 sizes." MSNBC. Aug 31, 2004. Retrieved Nov. 8, 2005 at http://www.msnbc.msn.com/id/5217861/
Smart USA. Retrieved Nov. 8, 2005 at http://www.usa.smart.com/brand/index.html
Yes, the merger may have been a good idea in the beginning and would have allowed both companies to form a considerable economy of scale, but only if they could work out their differences and be able to make the changes necessary. According to Lewin's model they never even got past the first age, therefore they were never able to make the changes in the first place. A merger requires that both companies "unfreeze" of their business model and other elements of their company. Unless they can get past the first age, they will not be able to get to the second and third stage of the change model. This one the key lessons that is learned by the failed merger of Daimler-Chrysler.
In 2007, the failed restructuring attempt led to the decision by Daimler AG to sell Chrysler to Cerberus Capital Management (Szczesny, 2007). One of the key reasons…
Daimler. (2006). DaimlerChrysler Creates New Management Model. January 24, 20006. Retrieved February 22, 2011 from http://www.daimler.com/dccom/0-5-7171-1-583502-1-0-0-0-0-0-9296-7164-0-0-0-0-0-0-0.html
Kadapa, S. (2008). Change Management Analysis of Daimler-Chrysler Merger. Retrieved February 22, 20110 from http://www.associatedcontent.com/article/1306208/change_management_analysis_of_daimler.html?cat=27
[email protected] Wharton (2000). Has DaimlerChrysler Hit the Breakdown Lane or Just Stopped to Fill Up? Retrieved February 22, 2011 from http://knowledge.wharton.upenn.edu/article.cfm?articleid=290
Mindtools (n.d.) Lewin's Change Management model. Retrieved February 22, 2011 from http://www.mindtools.com/pages/article/newPPM_94.htm
.. business performance and long-term economic success; the responsibility for the sparing use of our planet's resources and for maintaining an intact environment for present and future generations, and the responsibility for the people involved in or affected by our company's business activities and for society as a whole" ("Chrysler Group," Internet).
Currently, Daimler-Chrysler is headed by Dr. Dieter Zetsche, appointed in 1998 and until the year 2010. His leadership style is wholly based upon the company's "Integrity Code," being guideline... which defines limits to the activities of employees worldwide... And contains rules of conduct concerning international transactions, conflicts of interest, the issue of equality, the role of internal monitoring systems (and) the right to the fulfillment of statutory standards." As to the company's ethics, it currently adheres to the Sarbanes-Oxley Act "which is applicable to board members and other senior officers" within and without the company. Also, Daimler-Chrysler "acknowledges…
Chrysler Group." (2006). DaimlerChrysler. Internet. Retrieved at http://www.chryslercorporation.com .
Ingrassia, Paul and Joseph White. (1994). Comeback. New York: Simon & Schuster.
Levin, Doron P. (1995). Behind the Wheel at Chrysler: The Iacocca Legacy. New York:
Harcourt-Brace & Company.
Porter's generic strategies began life as a matrix grid featuring low cost and differentiation strategies, which could either be mass market or niche in nature (QuickMBA, 2010). A fifth strategy, hybrid, has been hypothesized by some, noting that there are instances where a firm could be argued to practice some combination of differentiation and low cost.
The Swatch Watch has a differentiated strategy. While not a high end watch, it does have a strong brand, with a unique brand proposition.
The McDonalds Value Meal is essentially a hybrid. All McDonalds product is low cost by the definition of its industry, and the value meal accents the low cost element. However, McDonalds has a high level of differentiation within its industry. It has a healthy 20% net margin, which indicates that it does not follow a true cost leadership strategy -- it could cut prices quite a bit more…
DoJ. (2014). Foreign Corrupt Practices Act. U.S. Department of Justice. Retrieved April 28, 2014 from http://www.justice.gov/criminal/fraud/fcpa/
MSN Moneycentral: McDonalds. (2014). Retrieved April 28, 2014 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=MCD
No author. (2014). How culture ended the Daimler-Chrysler merger. Kwikessential. Retrieved April 28, 2014 from http://www.kwintessential.co.uk/resources/daimlerbenz-chrysler-merger.html
Nudd, T. (2013). How Subaru fell in love and never looked back. Ad Week. Retrieved April 28, 2014 from http://www.adweek.com/news/advertising-branding/how-subaru-fell-love-and-never-looked-back-148475
Managing All Stakeholders in the Context of a Merger Process
Review of the Relevant Literature
Types of Mergers
Identifying All Stakeholders in a Given usiness
Strategic Market Factors Driving Merger Activity
Selection Process for Merger Candidates
Summary, Conclusion, and Recommendations
The Challenge of Managing All Stakeholders in the Context of a Merger Process
Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and maintain competitiveness in an increasingly globalized economy (Nevaer & Deck, 1996). Mergers are generally described as being the formal joining or combining of two corporations or business (Prichett, 1987), although both the framework and the method of merger vary greatly. The reasons for mergers are different based on what a company is trying to accomplish. The acquiring firm may seek to eliminate a competitor; to increase its efficiency; to diversify its products, services,…
Ansoff, H. Igor. 1987. The Emerging Paradigm of Strategic Behavior. Strategic Management Journal, 8, 501-515.
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Beinhocker, E.D. & Kaplan, S. 2002. Tired of Strategic Planning? Many Companies Get Little Value from Their Annual Strategic-Planning Process. It Should Be Redesigned to Support Real-Time Strategy Making and to Encourage 'Creative Accidents.' The McKinsey Quarterly, 49.
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Additionally, aside financial resources, they also used their assets. The most relevant example in this sense is the selling of part of its interests in Mazda. It as such transformed its assets into liquidities -- the 20% shares in Mazda were converted into $540 million (Murphy) -- that better allowed them to pursue their innovation objectives.
The matter of technological innovation is not only a core focus of Ford's, but of all players within the American automobile industry. The reasons for the rivalry in terms of &D are numerous, the most outstanding however being constituted by the desire to attract and satisfy as many customers as possible, managing as such to increase organizational revenues. "&D efforts in the U.S. Auto industry are channeled into a variety of processes such as stamping, casting, machining, and assembling. Within the time-frame of our investigation, &D efforts had to embrace sudden changes in taste…
Brighton, G., July 17, 2006, Ford to Drive Revolution with £1bn R&D Project, PSFK, http://www.psfk.com/2006/07/ford_to_drive_g.html last accessed on May 6, 2009
Murphy, J., November 18, 2008, Ford Cuts Mazda Stake, The Wall Street Journal
Ramrattan, L.B., 1998, R&D Rivalry in the U.S. Automobile Industry: A Simultaneous Equation Model Approach to Bain's Hypothesis, American Economist, Vol. 42
Ramsey, J., October 7, 2007, Ford is Biggest Spender on R&D, AutoBlog, http://www.autoblog.com/2007/10/07/ford-is-biggest-spender-on-randd / last accessed on May 6, 2009
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…
'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.
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__' target='_blank' REL='NOFOLLOW'>
S. This has partially continued during the 90s as well, so protectionist barriers is one of the things Nissan needs to consider when exporting to its main partners.
There are two different actions Nissan may consider in the future in this sense. The first one refers to the fact that Renault, an European company, still holds a significant part of Nissan shares, which may facilitate exports on the European market. On the other hand, trade barriers can generally be avoided by direct implementation in the respective country, a measure which Japanese companies, especially Toyota, have successfully applied in the U.S. during the 80s.
2. Internal competencies
A. General Motor seems to be currently both the most important producer and the sales leader. However, this should come with several amendments. If we are referring to the market leader, there are several criteria worth mentioning. First of all, the number of cars…
http://www.nissan-global.com/EN / www.oanda.com
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
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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
Sirius and XM Satellite Radio
Satellite radio has emerged in the past few years as the hot new trend in broadcasting. Operating similar to DirecTV, satellite radio companies bounce their signals off satellites to beam high-quality digital service coast-to-coast, offering exclusive ad-free programming. Satellite radio offers listeners the opportunity to hear any show anywhere in the United States, combining the benefits of premium quality sound and convenience when traveling on the road. Research indicates that similar to the way FM radio grew against dominant AM radio, satellite radio is becoming known for "edgier" alternative programming (McCarthy, at http://www.usatoday.com/money/media/2004-10-6-radio-compare_x.htm). The entire satellite radio industry is currently made up only two companies, XM Radio, which started broadcasting in 2001 and has 2.5 million customers, and Sirius, with 600,000 subscribers since going live in 2002. This paper will offer a comparative analysis of the two companies and a general overview of the satellite…
Deitz, C. "A Step-by-step Comparison of XM and Sirius Satellite Radio Features." Radio.
2005. About. < http://radio.about.com/od/satelliteradio/ss/blsatstepbystep.htm >.
Gustafson, C.J. "Sirius Satellite Radio vs. XM Satellite Radio- Which Streams Should You
Choose?" Ezine Articles. 2005. Ezine Articles. 21 Mar. 2005
Not only this, the business processes are also accomplished through digital networks spanning the entire organization (Buyya, Yeo, Venugopal, Broberg, and Brandic, 2009).
One of the examples of the organizations that are quickly transforming themselves into digital firms is the Daimler Chrysler that includes the Chrysler Group and the Mercedes, which has digitalized every step of its vehicle production and sales processes. It has incorporated an integrated Volume Planning System that gathers sales data and sends them back to the production planning systems and from there to suppliers so that they can adjust their productions and deliveries of parts to make exactly the desired amount of models that are actually demanded and selling in the dealer showrooms.
One other example of how the going digital has altered the way firms can reach their customers can be witnessed in the music industry. According to CNN report, Digital Firms are playing a…
Buyya, R.; Yeo, C.; Venugopal, S. Broberg, J. And Brandic, I. (2009). Cloud computing and emerging IT platforms: Vision, hype, and reality for delivering computing as the 5th utility, Future Generation Computer Systems, 25 (6), 599-616.
Jovarauskien?, D. And Pilinkien?, V. (2009). E-Business or E-Technology? Engineering Economics, retrieved July 13, 2011 from http://internet.ktu.lt/lt/mokslas/zurnalai/inzeko/61/1392-2758-2009-1-61-83.pdf
Mollman, S. (2008). Digital firms playing a new tune in music sales. CNN, retrieved July 13, 2011 from http://edition.cnn.com/2008/Business/02/11/digital.music/index.html
Finally they put it on the lift and run it in drive to see where the sound is coming from. It seems to be coming from the drive shaft. Turns out that the drive shaft had a manufacturing defect and was slightly bent. It was this bending that caused all the other problems but no one ever figured it out and it was a completely isolated incident. It was also out of warranty and even out of the Lemon Law jurisdiction. My cousin wound up trading the car in for a new one and the dealer gave him a good price on the trade in to make up for the problems.
Annual eport. (2005). New york's new car lemon law arbitration program. Office of the Attorney General of the State of New York. etrieved on 4/8/08 at http://www.oag.state.ny.us/consumer/cars/usedcar_lemonreport05.pdf
Bigda, Carolyn & Chatzky, Jean. (2004) Make Lemonade From Your Lemon.…
Annual Report. (2005). New york's new car lemon law arbitration program. Office of the Attorney General of the State of New York. Retrieved on 4/8/08 at http://www.oag.state.ny.us/consumer/cars/usedcar_lemonreport05.pdf
Bigda, Carolyn & Chatzky, Jean. (2004) Make Lemonade From Your Lemon. Money 33 (11), p. 216
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These businesses represented potential revenue with a lower startup cost than expansions on the manufacturing side.
To this point, the strategy had been successful. Ford's development functions had improved in efficiency and profitability had increased. Cost savings in 2000 totalled $500 million, for a total of $3.7 billion over the previous three years. There was some strategic logic to the push into services, in terms of capturing downstream revenues. However, this initiative did not support the previous objectives.
n 2001, Ford fell into tougher times. Whether the service businesses could be viewed as a distraction that harmed Ford's focus on its core business is questionable, but certainly those businesses were not a major factor helping Ford through this period. The main successes that helped Ford in this period were sales in Europe, which generated significant improvements in both revenues and profit. n North America, it was again automobile manufacturing that…
I would also recommend that a greater emphasis be placed on predicting future trends. For most of the time period in the case, Ford's marketing was geared towards selling what the production units were making. At times, this strategy left Ford in a situation where they were reacting after the fact to shifts in the automotive industry's key drivers. Nasser started taking a more consumer-centric approach with the made-to-order idea, but the follow-through does not appear to have been strong. However, the idea has merit - if Tauruses and Explorers are on the downswing, it is best not to have lots full of them.
The environment in which Ford operates moves quickly. Key drivers like fuel prices and the strength of the global economy change more quickly than do Ford's production and marketing capabilities, as we saw in 2001, a year in which Ford recorded heavy losses despite the fact that it was realizing cost savings from the Globalisation 2000 plan. Ford needs to continue on the path towards reading customer needs in advance, so that they are not caught so far out of position when these shifts occur. There is no evidence that Ford had a plan, for example, in the event that fuel prices spiked. Indeed, they knew throughout the 1990s that the Taurus was slumping, but did not put a strong focus on this vehicle until well into the 2000s, after fuel prices had spiked.
The third main recommendation is that Ford should focus its marketing on the developing world. The competition in the developed world is intense. The market is both mature and lucrative. This fierce rivalry has lead to rounds of cost-cutting in order to maintain profitability in the face of declining market share. In this type of situation, marketers may not be limited in the tools they have at their disposal, but they will inherently be limited in their effectiveness. The easier money is to be made in growing markets. This can be seen in the multi-billion dollar figures that each of the global auto companies is plugging into the Chinese market, for example. Ford's $1 billion, however, is not enough. That sort of money will get them into the game, but will not allow them to win it. Ford needs to put a greater focus on key emerging markets in order to capture the easy market share that is there for the taking. As the North American market in particular has shown, once a market matures, there is little a firm like Ford can do to retain market share, much less gain new share. Securing a dominant position in emerging markets like India and China should be a marketing priority now.
But regardless of the reasons for downsizing, fact remains that it is a process which severely affects both the organization as well as its employees. The major effect upon the organization is related to the corporate culture. In this order of ideas, Ford, like most American companies, promoted the idea of a secure workplace, one in which the employee is valued, cherished and accordingly rewarded. But his firing directly contradicts this initially stated mission, forcing as such the stakeholders to question the true intentions and capabilities of the organization which led it to stepping over their promoted culture. Looking at it from a different angle, the situation presents itself with an opposite conclusion. To better explain, the corporate culture at Ford, again like in most American companies, clearly states the company's intent to register profits. And if achieving this desiderate requires the downsizing of the personnel, they will engage in…
Maynard, M., 2007, Ford Chief Sees Small as Virtue and Necessity, the New York Times
Downsizing, What Is, 2008, http://whatis.techtarget.com/definition/0,sid9_gci759501,00.htmllast accessed on March 8, 2008
Longman Dictionary of Contemporary English, 2008, http://pewebdic2.cw.idm.fr/last accessed on March 8, 2008
Price elasticity of demand
Traditionally, large ticket items do not have a great deal of elasticity in terms of price, because they are viewed as necessary goods, although they are not as elastic as a supermarket item one can 'stock up' on in bulk when it goes on sale. Car demand can be somewhat elastic in the sense that people can elect not to buy a new car, purchase a used car, or lease a model until prices decline -- there are market substitutes that can be cheaper, if the car market prices goods too high, as Ford was pricing its vehicles too high, and producing too many high-cost vehicles. Also, the price of compatible goods like gas can impact the choice of vehicle consumers chose to purchase. The Toyota Prius' popularity grew with the price of gas.
Ford's North American operations lost $1.6 billion in 2006,…
Lassa, Todd. (2007). "Ford brass unveils rescue plan. But is it enough?" Motor
Trend. Retrieved 30 Jun 2007 at http://www.motortrend.com/future/spied_vehicles/112_0604_ford_motor_co
Webster, Sarah. (29 Jun 2007). "Ford leaders talk global warming, fuel economy in letter." The Detroit Free Press. Retrieved 30 Jun 2007 at http://www.freep.com/apps/pbcs.dll/article?AID=/20070629/Business01/70629071/1014/Business01
Used car sales
Increasing trend of car sharing
Weakened U.S. tourism industry ("Enterprise")
The sale of used cars by other organizations is a significant threat to Enterprise. Many of the world's largest car manufacturers, like Daimler Chrysler, General Motors, and Ford, are offering large incentives and low interest financing through their dealers on new vehicle purchases. For this reason, it makes owning a new vehicle more affordable for more consumers and conversely weakens used car pricing industry wide. This could be devastating for Enterprise with their traditional procedure of acquiring new vehicles and then disposing of them through their used car outlets. To date, Enterprise has enjoyed higher resale values on their vehicles, when compared to standard residual value, due to their consistent level of maintenance service. However, in recent years this margin between the vehicle sale price and the residual value has narrowed considerably, especially as used…
1957. 2006. Enterprise Rent-A-Car. November 13, 2006 http://aboutus.enterprise.com/who_we_are/milestones.html.
1962. 2006. Enterprise Rent-A-Car. November 13, 2006 http://aboutus.enterprise.com/who_we_are/milestones.html.
1969. 2006. Enterprise Rent-A-Car. November 13, 2006 http://aboutus.enterprise.com/who_we_are/milestones.html.
1970. 2006. Enterprise Rent-A-Car. November 13, 2006 http://aboutus.enterprise.com/who_we_are/milestones.html.
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…
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
Satellite Radio: The New Technology
Everyone is familiar with cable TV. To get TV signals sent to your TV via cable, the cable company runs wires to your home. It's similar to traditional phone services. Depending on where you live, the wires may be strung above ground or hidden below ground, but the signal to your TV arrives through a physical channel - a wire.
Some people have dropped cable TV in favor of satellite TV. With satellite TV, the viewers have satellite dishes attached to their homes. These dishes receive signals sent from satellites in space. While this seems like new technology, is it simply a major improvement on the first way TV signals were sent, from transmitting towers to each home's antenna. One of satellite TV's advantages is that because the satellite sending the signal is in outer space, it can receive TV signals from a much wider…
Newman, Heather. "Satellite radio is here, and it's looking for your business." Detroit Free Press: May 30, 2002. Accessed via the Internet July 8, 2002. http://www.freep.com/money/tech/newman30_20020530.htm
market capitalization of 23.011 billion, oeing is the nation's largest producer of commercial aircraft and the world's leading aerospace company. It operates in four principal segments: Commercial Airplanes, Military Aircraft and Missile Systems, Space and Communications, and oeing Capital Corporation. As the world's market for air travel fluctuates with the risk of war, so do oeing's revenues. However, as the United States moves towards a footing that may include future wars against perceived 'terrorist states,' oeing stands to gain from military aircraft and weapons production. As such, it intrigues investors as its market is a careful reflection of the front pages of the world's newspapers.
To successfully evaluate oeing's stock, we must analyze its fundamentals and the performance of comparables, as well as market performance. A projection of future revenues is necessary, along with an estimation of the cost of capital with which oeing produces. These allow us to provide…
Finance.yahoo.com finace.yahoo.com, March 20th, 2003 www.airbus.com
Boeing SEC 10-Q Filing, 1st Quarter 2003
On the American 'front,' Schrempp has found himself in conflict with American unions, as he attempts to negotiate an early retirement settlement with unnecessary workers, to reduce costs. Schrempp evidently hopes to maintain a positive buzz about the company, keep investors happy and thus keep revenue flowing in the future, while taking a hit in the short-term as he waits for the company to gradually show a profit once more workers retire. It remains to be seen if his strategy will pay off.
Obviously, the CEO hopes that there will be savings on the horizon, and feels that the greatest risk posed to the company is by a hostile takeover that could occur if the crucial Deutsche Bank and the Kuwait Investment Authorities sell their shares in the company, given that they make up such a large percentage of the company's investors. But if the company continues to use up…
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.
Globalization and Technological Influences
On International Mergers: DaimlerChrysler as a Case Study
One of the most interesting international manufacturing mergers of the 20th century was the 1998 negotiation between the Daimler auto company headquartered in Germany and the struggling Chrysler corporation, headquartered in the U.S. Daimler's buyout of Chrysler resulted in a merger that ultimately failed to benefit either party, and may have seriously damaged both organizations' capacity for future growth. Below, I will discuss how the merger proceeded -- as it was covered in U.S. And international business media -- and how the negotiations for the merger and the 2007 spinoff of Chrysler were facilitated by technological developments and global business practices. I will also discuss motivations for international mergers in general and how they applied specifically in the case of the DaimlerChrysler merger.
As a horizontal merger, DaimlerChrysler followed a popular movement towards consolidation in the international auto…
Qiu, L., & Zhou, W. (2003). International Mergers: Incentive and Welfare. Journal of International Economics, 68(1): 38-58.
Landler, M., & Maynard, M. (2007). "DaimlerChrysler stock gets a lift from talk of Chrysler spinoff." International Herald Tribune, Tuesday February 20, 2007.
Finkelstein, S. (2001). The DaimlerChrysler Merger. Tuck School of Business White Paper # 1-0071.
Vlasic, B., & Stertz, B. (2001). Taken for a Ride: How Daimler-Benz Drove Off with Chrysler. New York: Harper Perennial.
Once the plan has been created, you must begin training / development as soon as possible. This means, that HR personnel must begin to training the staff on the new policies and procedures that will be implemented. Under ideal circumstances, the HR department would want to begin training as soon as possible. This is because there will be a window, between the time frame that the merger is announced and when the actual deal occurs. The reason why is, various regulators as well as the shareholders will need time to: examine the merger, debate about it and vote on it. In most cases, these kinds of mergers can usually take a few months to occur. Given the circumstances surrounding the merger, what more than likely happen is this time table will be increased. This because the regulators will want We Will Hang Onto it Savings, to close the…
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IHRM issues that occur when organizations undertake cross-border mergers, acquisitions and international joint ventures
Globalization of economic systems has created a new business environment in the last couple of decades. This trend is largely driven by international trade and multinational corporations expanding crossed international borders. One consequence of this trend is that many multi-national corporations (MNCs) have created an international culture of business that is shared to some extent in most corners of the globe. hen an MNC mergers, acquires, or forms a joint venture in a new market then this acts to create a mix of cultures in that new organization and its people. The new culture that arises tends to have many elements of the broader international business culture. Although this trend has been heavily fostered by the business community, it also has spilled over to also affect various social and political norms.
Minbaeva, D., Pedersen, T., Bjorkman, I., Fey, C., & Park, H. (2003). MNC knowledge transfer, subsidary absorptive capacity, and HRM. Journal of International Business Studies, 34(6), 581-599.
Simonin, B., & Ozsomer, A. (2009). Knowledge processes and learning outcomes in MNCs: an empirical investigation of the role of HRM practices in foreign subsidiaries. Human Resource Management, 48(4), 505-530.
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.…
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Columbus and Murphy. Re-orienting your knowledge and content management strategies. AMR Research Report., AMR Research.
October 31, 2002
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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Arestis, P. (2001). What Global Economic Crisis? New York: Palgrave.
Liou, K.T. (2002). Managing Economic Development in Asia. Westport, CT: Praeger.
Overall the automobile industry must make a more concerted effort o behave in ways that are consistent with accepted business ethics. From a utilitarian standpoint the automakers must begins to consider the consequences of their actions in the decision making process. At the current time Toyota is fighting to rebuild its brand image because the company6 did not thoroughly take into consideration the consequences of their actions. From a deontological standpoint the automobile companies have failed to act in ways that are just as it relates to the bailout and the recall of defective vehicles by Toyota. Going forward the companies that make up the industry must learn from the issues they have been confronted with in recent years. It is only through such a process that the entire industry will reflect a more ethical business model. An increase in ethical responsibility will likely prove effective attracting customers back…
Brady F.N., Dunn C. P 1995. Business Meta-Ethics: An Analysis of Two Theories. Business Ethics Quarterly, Vol. 5 (3) pp. 385-398
Finch, J. 2010. Toyota Sudden Acceleration: A Case Study of the National Highway Traffic Safety Administration. Retrieved from: http://www.luc.edu/law/activities/publications/clr_vol22_issue4/pdfs/finch_toyota.pdf
Fuhrmans, V., Catan, T. (2010) Daimler to Settle With U.S. On Bribes. Wall Street Journal. 255 (68), pB1-B2
Newman, a. Auto Bailout: Lemon or Lemonade. New American 25 (1), p21-24
his is because of the fact that Chrysler is now getting back its success, as well as because of the fact that the company now is becoming more and more known worldwide. he utilization of Clint Eastwood was also a stroke of genius. His voice is not only well-known but also authoritative and emotional in a way that only adds credibility to the brand.
he ethos here is thus found on two fronts: the subject of the commercial as well as the way in which it is delivered by Eastwood. When he speaks about Detroit, Eastwood utilizes personal as well-known anecdotes that the country can recognize and that can rally it towards a common goal. In fact, the word 'rally' and the phrase 'acted as one' is utilized many times, as Eastwood stresses, time and again his faith in the strength of the country, as well as its ability to…
The commercial, in my view, is quite successful. This is because it makes use of fantastic appeals processes, especially pathos and ethos. Eastwood's voice also contributes to this feeling, as it is the perfect voice to deliver a message of hope and of togetherness. One needs only watch this ad to feel truly that Chrysler can come back, and can make a difference in America. And one can also feel that the overall message of hope will truly be true, as America will get back on its feet and will truly overcome the current economic crisis.
The advertisement analyzed here can be found at the following link:
With such result, estimates for the 2,400 F-111 (including their exports) were significantly reduced, but nevertheless, General Dynamics still managed to obtain a $300 million profit with this project.
Grumman started also to build the F-14 Tomcat, using many of the F-111 innovations, but build solely for its purpose of serving as a carrier-borne fighter.
General Dynamics eorganization - it was in May 1965 that the company reorganized its activities into 12 operational divisions, having as a base their production lines. The board took the decision to have all future planes built in Fort Worth and thus ended the plane production in San Diego, which had been Convair's original plant. At the San Diego location the production of space and missile development continued.
The second CEO in this period, David S. Lewis required the headquarters of the company to be moved to St. Louis, event that took place finally in…
Canada's Air Force, Historical Aircraft - Canadair F-86 Sabre, retrieved online October 6th at http://www.airforce.forces.gc.ca/site/equip/historical/sabrelst_e.asp
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MIT Sloan Management Case Study
Evaluate the internal resources and core capabilities of CX Technology. This should include as a minimum the value chain for this firm. Overall, what are the key strengths and weaknesses of CX Technology? (Johnson et al., 2014)
Conduct a detailed and systematic external environmental audit of the U.S. automotive industry market. This should include as a minimum; PESTLE, 5-forces, industry life cycle and competitor analysis (Johnson et al., 2014). Overall, what do you conclude about the opportunities and threats for CX Technology?
Critically evaluate the factors that an organisation should investigate when considering entry into emerging markets. Use relevant theories and models to support your
Question 1 - Evaluate the internal resources and core capabilities of CX Technology. This should include as a minimum the value chain for this firm. Overall, what are the…
Bhole, K., Lee, J., Lu, E. & Sen, I., 2009. CX Technology. MIT Sloan Management, 28 May.
Boudette, N., 2014. Car-Sharing, Social Trends Portend Challenge for Auto Sales. [Online]
Available at: http://www.wsj.com/articles/SB10001424052702303743604579354480129579454
[Accessed 13 October 2015].
Marketing Case Study
The case study being completed in this reports asks the author of this response to answer to three major questions. The first is what Fournier means when she says that consumers have relationsihps with a brand. The second question asks the author two pick two out of three brands from a list provided in the assignment and explain if and/or how consumers do or do not have relationships with those brands. The third questions asks the author to explain whether the relationship between brand and consumer is universal or not and why the author of this response believes that to be the case.
As for the first question, Ms. Fournier talks in the opening or her 1998 treatise about how there has been a lot of work done regarding the relationships that businesses and vendors have vis-a-vis their established lines of communication and business agreements/arrangements.…
Fournier S. (1998). Consumers and their brands: Developing relationship theory in consumer research. Journal of Consumer Research. 24:4(March).
Vargo, S.L., and R.F. Lusch (2004). Evolving to a new dominant logic for marketing.
Journal of Marketing, 68(January):1-17. Available through Library
Portal/Proquest, March 7, 2013
Where, the benchmarks will show if the system is helping or hindering the company from achieving its objectives. This is significant, because when it is used in conjunction with flexibility, you can be able to effectively adapt to changes in the markets. With flexibility providing the necessary ingredients to implement such changes, while the use of benchmarks will identify when a management system is becoming unproductive. (Ireland, 2008, pp. 33 -- 39)
The use of knowledge management is when an organization is collecting and analyzing the total amounts of knowledge at their disposal. This would include analyzing all available: resources, employee / managerial skills and documents. This is significant, because it provides a way for an organization to quickly collect and analyze a wide variety of information. At which point, managers can be able to effectively place the different resources and personnel of the company, in those areas where they…
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Flamholtz, E. (1998). Case Studies in Changing the Game. Changing the Game. (pp.81 -- 90). New York, NY: Oxford University Press.
Ireland, D. (2008). Promoting Integrity and Ethical Behavior. Understanding Business Strategy. (pp. 33 -- 39). Mason, OH: South Western.
MESIC's have been singularly unsuccessful, and have been deemphasized in recent years.
Related to this are: State-sponsored venture capital investments. Countries and regions invest in venture capital funds as Limited Partners, meaning that they have the same or similar financial returns as all other investors in a Fund. In many cases, such state investments require some conditions on the privately-run venture fund. The most popular conditions include:
fixed percentage threshold of investment in the region or country, or certain number of jobs to be generated by their investments, or Attracting a certain multiple of investment from outside the state or region into the fund, or Limiting the venture investments to the types of technologies and industries which are of greatest interest to that state or region.
Examples of the above can include the Indiana Futures Fund, in which the State of Indiana invested $100 million in several venture funds. Among…
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Merger, Acquisition, And International Strategies
Ford Corporation: The Volvo takeover
It's imperative for the automotive companies to attain benefits of scale whilst developing latest products which is costing exceedingly high in the present business environment. Compared to the 90's the chances of attaining benefits of scale while saving costs has altered quite a bit. Model volumes have declined which creates difficulties for companies to attain economies of scale, while saving costs. Hence, as a last resort, companies merge with each other, acquire and form alliances with each other to save rising costs while developing new technology and products (Lundback, 2002).
Ford Motor Company
The Ford Motor Company is the second leading profitable automaker in the world. Ford has recently acquired the Swedish-based Volvo for $6.45 billion. Fords profits last year were a bit more than that with $6.57 billion. It's yet another quick acquisition among many others. Ford at present…
AECOM. (2014, July 13). Retrieved October 13, 2014, from http://www.aecom.com/News/Press+Releases/_carousel/AECOM+to+acquire+URS+Corporation+for+U.S.$56.31+per+share+in+cash+and+stock
AECOM Capital. (n.d.). Retrieved October 13, 2014, from http://www.aecom.com/About/AECOM+Capital
Asongu, J. (2007). Innovation as an Argument for Corporate Social Responsibility. Journal of Business and Public Policy.
Fairholm, M. (2009). Leadership and Organizational Strategy. The Innovation Journal: The Public Sector Innovation Journal, 2-15.
Human beings are by nature change-resistant and particularly within an organizational context there is anxiety about change, given fears of job losses or simply being unable to adapt. It is essential to convince change agents of the need and urgency for change and also of the congruency of the change with the evolving vision for the company.
A "vision statement should have four elements: a customer orientation, employee focus, organizational competencies, and standards of excellence" ("Changing the game," 2015:3). The change should be demonstrated to enhance all of the organization's capacities, not simply improve its bottom line in the short-term. Having an effective vision statement is necessary for effective change. The Lewin Model of organizational change stresses the need for a three-part adaptation process called unfreezing, changing, and refreezing. In other words, the organization must be temporarily destabilized or unfrozen before it returns to a new…
DiMaggio, M. (2009). The top 10 best (and worst) corporate mergers of all time... or, the good, the bad, and the ugly. Rasmussen. Retrieved from:
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Ford Motors: Strategy to Beat Competitors Using Operations and Supply Chain
Ford Motor Company is the second largest automobile manufacturer in the United States apart from General Motors. The Ford Company is credited for the production of trucks and cars for mass markets. The company also produces car accessories such as cars' electronic components, vehicles' plastic, and replacement parts. Moreover, Ford Motor owns approximately 8% stakes in Aston Martin, a 2.1% stake in Mazda, and 49% stake in Jiangling. Ford Motor also develops joint ventures with several companies around the world. The company has also diversified their business operations into financial services such as American oad Insurance and Ford Motor Credit. However, Lincoln and Ford's models accounted for the approximately 10.5% of the company sales in the United States. A rise in prosperity of emerging markets has made Ford focusing their business attention in China. At the end…
Kearney, A.T. (2013). Creating Competitive Advantages through Supply Chain: Insights on India. Council of Supply Chain Management Professional.
Bozarth, C. & Handfield, R.B. (2012). Introduction to Operations and Supply Chain Management. Pearson Education.
Ned Davis Research (2016). NYSE:F Ford Motor Company. USA.
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