...US AUTOMOBILE INDUSTRY ANALYSIS [pic] Written By: Jennifer Duhaney & Presented to: Professor Kurt Wurthman March 17th, 2011 MAN 4720 1. Industry Overview The US automobile industry has evolved over the years from steam engines, to internal combustion engines, to gas powered engines, and presently the newest innovations, alternative fuel engines, and electric cars. Henry Ford built the first car in 1896, (Gale, 2003). and then revolutionized the industry when he invented the assembly line.(David Highfill, Matt Baki, Sean Copus, Matt Green, Jennifer Smith, Matt Whineland). This invention allowed mass production which lowered the costs of automobiles for consumers. The industry includes a number of car manufacturers competing with each other in their competitive priorities, and competitive capabilities to capture market share. The major players in the industry are, the big three US automakers, Ford Motor Company, DaimlerChrysler, and General Motors. The major Japanese players who are also a part of the US auto industry are Toyota, Nissan and Honda. Ford, Chrysler and GM account for approximately 76% of US passenger Vehicles, Toyota, Nissan and Honda, Subaru and Mitsubishi account for 18%. The European automakers, BMW and Mercedes makeup nearly 2%. (Global Foresight, Inc. 2006 Report on Industry Trends). Over the years several mergers and acquisitions occurred within the industry and contributed to this global view. Some of the mergers and...
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...Introduction Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the...
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...become too complex mainly due to the increased globalization and therefore has to be understood thoroughly for the continuous operation of the business. This outline report explains the business environment of automobile industry in the People’s Republic of China in terms of political, legal, economic, and cultural and ethical traditions. Political 1. Encourage the Automobile Industry Development Policies Having struck by the world-wide financial crisis, the global automobile market currently is facing severe situations. In order to revive the automobile market, the State Department decides to reduce the vehicle purchase tax. This policy will play a major role in raising automobile consumption market while effectively encourage automobile purchase, expanding domestic demands as well as facilitating the steady and rapid development of domestic automobile industry. 2. China’s Road Construction Policy In order to maintain the automobile market to develop, the government enhances plans to provide priority to the construction of express highways and accelerating the construction of the National Express Highway. The ministry is also promoting the integration of unconnected roads. Legal 1. Legal provision relating to environmental population by automobiles and safety measures. 2. Intentions on harmonizing the regulatory standards with the rest of the world. Economic 1. Rapid Development of Economy The economy of the People’s Republic of China(PRC) is the...
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...11/26/13 Tell me about yourself. - HR Interview Questions and Answers Search Arithmetic Aptitude Data Interpretation Logical Reasoning Verbal Reasoning Non Verbal Reasoning General Knowledge Sudoku Number puzzles Missing letters puzzles Logical puzzles Playing cards puzzles Clock puzzles C Programming C++ Programming C# Programming Java Programming Microbiology Biochemistry Biotechnology Biochemical Engineering Civil Engineering Mechanical Engineering Chemical Engineering Networking Database Questions Computer Science Basic Electronics Digital Electronics Electronic Devices Circuit Simulation Electrical Enigneering Engineering Mechanics Technical Drawing Placement Papers Group Disucssion HR Interview Technical Interview Body Language Aptitude Test Verbal Ability Test Verbal Reasoning Test Logical Reasoning Test C Programming Test Java Programming Test Data Interpretation Test General Knowledge Test Data Structures Operating Systems Networking DATABASE Database Basics SQL Server Basics SQL Server Advanced SQL Server 2008 JAVA Core Java Java Basics Advanced Java UNIX Unix File Management Unix Memory Management Unix Process Managemnt C Interview Questions The C Language Basics .NET Interview Questions .NET Framework ADO.NET ASP.NET Software Testing Home Aptitude Logical Reasoning Verbal Ability GK Puzzles Engineering Interview Online Test Tell me about yourself. @ : Home > HR Interview > HR Interview Room Improve English Speaking Le arn English Spe ak ing O nline to Im prove...
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...Analysis of the Macroeconomic Environment within the Health-Care and Automobile Industries Abstract This report discusses macroeconomic factors that impact both the automotive and health-care industries. Interest rates, consumer price index (CPI), consumer confidence, Gross Domestic Product (GDP), wage rates, and inventory levels impact the macroeconomic environment to influence these industries in the short run. Consumption as a percentage of the GDP depicted in table 1 indicates a continuous declined in consumer spending from 2005 through 2010 and suggests that consumers are becoming more conservative with disposable income spent on elective health-care products and procedures as-well-as new vehicle purchases. As the nominal interest rates indicate in table 2, the FED attempted to encourage consumer spending by decreasing the interest rates to encourage expansionistic economic activity, which would also be a positive influencing factor for both the health-care and automotive industries. The automobile industry is volatile by nature and heavily influence by macroeconomic factors, while the health-care industry enjoys an inelastic environment. Macroeconomic factors influence the health-care industry, it is unlikely essential health-care demand will decrease in the short term; however, elective health-care products and services will likely suffer as will new vehicle purchases as consumers remain conservative. The future is not as bleak as one might anticipate. The automotive...
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...The automobile industry is growing rapidly with the introduction of newer technologies and car models. Latin America is quite a preferable location for auto manufacturers. Countries like Brazil, Argentina and Mexico are well known for manufacturing automobiles. As a Chinese automobile company who wants to set up their operation in Latin America, several major factors must be considered while selecting the country. Some of the factors which are considered when deciding on which country to invest are as follows: A. Infrastructure: Latin America lags behind in terms of infrastructure. This is a disadvantage for Latin America since it has a negative implication on its production and foreign direct investment. The proportion of paved roads in Latin America is comparatively low. i) Brazil: Brazil, the biggest economy in Latin America is ranked 104 in 2014 according to the “Global Competitiveness Report” by the World Economic Forum. This significantly increases the set up costs for new firms. ii) Argentina: Argentina lags even further behind Brazil in terms of infrastructure according to “Global Competitiveness Report” by the World Economic Forum published in 2014. This makes Argentina unsuitable for setting up new subsidiary. iii) Mexico: Mexico is ranked 73rd in the “Global Competitiveness Report” published in 2014, by the World Economic Forum. This shows Mexico is better in terms of infrastructure than Brazil and Argentina. Hence, Mexico will be the better choice...
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...cost factors of an automobile manufactured are supplier component cost, in-house development cost, advertising cost and etc. The costs of automobiles sold to customer will be marketing cost, storage cost and etc. 3. To be able to reach the economies of scale, the production volume must be high. The automobile companies that have the major market share will have the advantage in economies scale. For example, they will incur less advertising cost compare to lower volume production’s company. 4. Japanese automobile industry has to consider the export automobile oversea when the domestic market matured in end of 1980s. All of the three markets are important to the Japanese automobile industry. The most important market will be Asia. The Asia market is growing. Yes. It is said `dumping` in the sense of selling the automobiles oversea is hardly profitable. But it is a must since the domestic market is mature and exporting oversea can cover parts of the fixed cost. It is also an act of Japanese automobile industry to test the oversea market with expected loss in mind. 5. Japanese automobile market is using the market segmentation of product differentiation. They offer different types of cars to satisfied the different needs of customers. The ways to differentiate are the level of luxury, size of car and etc. 6. No. The relationship between Japanese automobile assembler and components supplier is loosing over the years. It is hard for the automobile assembler to control...
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...A STUDY ON SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Prof. & Hod of Commerce Dept. Govt. T.R.S.College, Rewa (MP) Govt. T.R.S.College, Rewa (MP) The changing business conditions of the 21st century has led to companies facing issues ranging from globalization, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today, where supply chain is a popular tool for improving the organizational competitiveness. OVERVIEW OF SUPPLY CHAIN MANAGEMENT IN AUTO-INDUSTRY [pic] The Auto Ancillary Industry can be Further Divided into Six Main Segments: ❖ Engine Parts - Engine assembly, fall into 3 broad categories: core engine parts; fuel delivery system; and others. ❖ Electrical Parts - The main products in this category include starter motors, generators...
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...In The US Automobile Industry US automobile industry started booming after the recession and became an important part of the US economy. Low interest rate, cheap gas price, and new technologies of car influence buyers to get a new car. The US automobile industry consists of almost 200 companies and their annual revenue is about 280 billion (Automobile Manufacturing, n.d.). Last year US automobile industry sold record 17.5 million cars and trucks, which is a 5.7% increase from 2014 fiscal year (Spector, Bennett, & Stoll, 2016). The top four US automobile manufacturers are General motors, Toyota, Ford, and Chrysler, who account for about 70% of the total automobile sales. US based automakers face rivalry problems with foreign companies such as Toyota, Honda, and Nissan because of their cheap labor cost and no union problem. However, these companies also have their assembly lines in US, and hold around 45% of the US auto industry. US automakers are also taking advantage of NAFTA by assembling autoes in Mexico and Canada with lower labor costs (Automobile Manufacturing, n.d.). Usually 75% of the materials account for the selling price of a US made car. US companies have also increased importation of parts from abroad which helps them increase their profitability. Features like extended warranty, extended service plan, safety features, and fuel efficiency help attract consumers and increase sales. US retail sales have increased 7.00% in 2015 (Automobile Manufacturing, n...
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...the Importation of Automobiles from Germany to UAE Name of Student Name of Instructor Name of Institution Date of Submission Executive Summary There are a number of challenges faced by organizations wishing to conduct business with other firms in a foreign country. The reason behind this is that the organization will be required to engage either in the importation or exportation of goods or services. The Emirates Motor Company has for many years engaged in the importation of Mercedes Benz from Germany into the UAE. One of the major challenges that the organization has suffered is lack of sufficient funding. As such, the organization has not been in a position to fully exploit the UAE market. The company also has to deal with high cost of operations. Importation activities require firms to pay for shipping and loading charges for the goods. The importer also has to incur insurance charges. The costs result in an increase in the cost of commodities making them undesirable to customers. Delays in payment also make it difficult for the company to replenish its stock. Outline 1. Executive Summary 2. Introduction 3. Literature Review a) An Overview of the Emirates Motor Company’s Import Business b) History of Importation of Mercedes Benz Automobiles from Germany to the UAE c) External Analysis of the World Automobile Industry d) External Analysis of the Trade between the UAE and Germany in Automobiles e) Internal Analysis of the Emirates Motor...
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...escaped bankruptcy of the Big Three among the automobile industry by June 2009, Ford suffers $14.7 million loss of revenue and elimination of stockholders’ equity due to the record-breaking fall in demand for 2008,US. However, to understand Ford’s position today requires understanding the American automotive industry. * General Industry analysis * From 1900-2008, US motor vehicle production has a rapid increase to9, 000,000 from 1900 to 1967, after not, there is a graduate decrease to 3,000,000 until 2008. At the mean time, the median age of passenger car in US was Spiral upwards. Combine the two phenomenon, we can get that the automobile industry market is quite saturated and the demand fell down. Regard to the automobile manufacturing technology, despite less differentiation between manufacturers due to the converge of technologies and design, the technological progress was incremental and lead to the various segmentations in each country. Follow the two situations, there are 3 big issues were emerged. One was the deep demand of auto cars result in excess capacity. Another one issues was the high cost among the technological development. Last one issue was the lacking differentiation. However, it also offers automakers new product segmentations and market. For an insightful analysis, we need to look at more information in details. * Porter’s Five Forces First of all, we can get a comprehensive industry environment analysis through the Porter’s Five Forces. In terms...
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... BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce. The analysis of the external...
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...provides a consolidated preview of the external environment of Ashok Leyland and the Indian automobile industry. This study will take us through the evaluation of external factors using EFE matrix, to the comparison of the company with its competitors (CPM) and study the incentives given by the government to encourage the expansion of the Indian automobile industry. Introduction The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and an investment of USD 10.9 billion. The industry has provided direct and indirect employment to 13.1 million people. But lately the Indian automobile industry has been going through a low phase since the past 10 months and experts believe that situation is going to sustain in the current financial year that ends in March 2014. Demands continue to remain low as against the expectations of the Indian auto makers, due to the crisis in the economy, increase in fuel prices and loan rates. Until few years ago, this industry boomed with sales but the falling value of Indian rupee is only bringing its depreciation. (Car trade, n.d) The market is divided into four segments namely two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. (Grewal, n.d) Source: Society of Indian Automobile Manufacturers (SIAM) According to the deputy director general of SIAM Sugato Sen cited in Economic...
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...To: Harold Bashor From: Swarna Sub: PESTEL Analysis on Auto Mobile Industry Date: 04/06/2014 Business Brief The auto industry is a leading driver of global economic growth; the industry is a leading employer throughout the world, with 9 million people involved in making 60 million vehicles, or 5% of global manufacturing jobs. Indirect employment from automotive activity is fivefold, representing 50 million jobs connected indirectly to the auto industry. Other industries involved in the manufacture and service of vehicles include textiles, plastics, iron, steel, glass, aluminum, computer chips and rubber. The industry also involves significant research and development activity, representing investment of nearly $85 billion. It is estimated that the manufacture of vehicles contributes more than $430 billion to the governments of 26 countries combined. Automobile are primarily used to transportation and changed the world during 20th century particular in developed nations like USA and other developing nations like India, China markets. The automobile industry has succeeded like never before in the recent years but also seen major setback in global recession. This extraordinary growth that the automobile industry has witnessed is a result of a three major factors namely, increased average income of a per person, life style and innovation. Moreover in countries like India the liberalization steps, such as, relaxation of the foreign exchange and equity regulation, reduction...
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...trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...
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