...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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...customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. Scope of the Research The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano. It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success. Factors of the Research The main factors of this project are as follows: * The overview of the Indian automobile industry * The detailed information on the buying behavior of the customers when they buy cars Research and Study Within the process of completing this research, hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of secondary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to get authenticated for downloading them. followed the authentication and...
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...41 Asia-Pacific Business Review Vol. VI, No. 2, April - June 2010 pp. 41-49, ISSN: 0973-2470 Capital Structure and Product Market Determinants: Empirical Evidence from the Indian Automobile Industry Himanshu Joshi This paper provides insights into the way in which the capital structure is determined by product market determinants, research and development activity and profitability. This paper is an attempt to test relevance of empirical evidences found in matured markets to the Indian market condition. Automobile industry is taken up for the study because of its oligopoly nature and easy availability of product prices. Some of the results are very different from the similar studies conducted in the advanced economies. It is found that the firms in the same industry can have different capital structures and there is a negative correlation between the profitability and capital structure of the companies. Interestingly, no correlation is found between R&D expenses and capital structure of the company. It was also concluded that no extra market power is attained because of high leverage. Keywords: Capital Structure, Product Market, Market Structure, Profitability, Market Power, Capital Expenditure Introduction Capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm’s capital structure is thus, the composition or ‘structure’ of its liabilities. The modern theory of capital structure began...
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...“Literature Review” IMPACT OF AUTOMOBILE ON THE ECONOMY: Mr. Zahoor Sheikh Sarwar (CASE), Mr. Azam Ishaque, (CASE), Mr. Nadeem Ehsan, (Center For Advance Studies in Engineering), Mr. Danial Saeed Pirzada, (Center For Advanced Studies in Engineering), and Mr. Zafar Moeen Nasir, (CASE) in their report published in International Journal of Productivity and Performance Management, has Identified that automobile sector has huge economic potential and the Study identified the prevalent condition of productivity in automotive Manufacturing industry of Pakistan and indicated the possible areas for Enhancing productivity. The findings of this research have revealed that Effective utilization of role of technology can enhance the productivity of Pakistani manufacturing firms drastically. Pakistan Auto Industry Development Program (AIDP-2006), an study conducted by Ministry of Industries and Production, Government of Pakistan states that the Pakistan Auto Industry has become a leading industrial sector to steer the growth in large scale manufacturing sector. The high economic and job multiplier effect of this industry and its deep forward and backward linkages in allied industries, make the auto industry a key player in the national economy. the world which manufacture all kinds of vehicles i.e. 2/3 wheelers, motorcars, LCVs, tractors, prime-movers & trucks and buses. The total country requirements are generally met from the local production except...
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...Box4.4 Case Studies and Applications p111-112 Minimum efficient scale 1) Why might a firm operating with one plant achieve MEPS and yet not be large enough to achieve MES? A firm that operates with one plant may only achieve minimum efficient plant size (MEPS) instead of minimum efficient scale (MES) in accordance to the size of the firm. This can be reasoned that the individual plant is not large enough comparing to a firm that operates with several plants. An individual factory can be categorized as a Short-run production, since it is only one factory, expanding the factory or building more factories will be considered as Long-run. Thus, the individual factory (one plant) of the firm is a fixed factor and the inputs are variable factors. The only way to expand firm production is to increase the outputs by increasing variable factors such as materials and labour. This process will lead to a similar theory of “economies of scale” consumption in the short-run period. MES will be relatively larger than MEPS in terms of production of outputs through this process. The example below will show why one plant cannot achieve MES, but instead only MEPS. Take the case of an Orange juice production firm with a single factory: The Variable factors include the number of workers and oranges (input), and the fixed factor is the factory itself. In order to increase output, the firm needs to increase the number of workers and oranges. The “economies of scale” will occur when oranges from...
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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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...Evolution of Automotive Industry The automotive industry is a competitive yet lucrative business industry. Everyone is designing and developing the latest revolutionary model car. Automotive manufacturers and dealers are able to price their products at exorbitant prices if they so choose because in most cases the consumer does not have a choice but to purchase a car. We all need transportation and with that in mind automotive traders basically determine product pricing. The market structure of the automotive industry is relative to the number, size, kind and distribution of buyers and sellers (ModernIr LLC [MILLC], 2008). Needless to say the automotive industry is a very huge market. The automotive industry is considered to be in the perfectly monopolistic competition market structure, having many sellers of a similar product yet each seller’s product is somewhat unique to the producer. There are no seller or buyer entry barriers and there are numerous buyers and sellers within this market structure. One main purpose of the producers of the automotive industry is profit. As with any industry the introduction of a new company, leads to the assumption of new and better products. In the case of the automotive industry that case might be very true in a dwindling economy where there is no foreseeable relief on the rising gas prices. Consumers are now concerned with the cost of gas consumption and are ready to opt for more cost effective means of transportation. Companies promoting...
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...circulated to stimulate discussions and critical comments IDE DISCUSSION PAPER No. 120 A Flowchart Approach to Malaysia’s Automobile Industry Cluster Policy Akifumi KUCHIKI* September 2007 Abstract In this paper, we apply a flowchart approach to investigate Malaysia’s automobile cluster policy. We investigate whether the industrial cluster policy has been successful or not, suggest policy prescriptions, and propose a way to prioritize policy measures. Our flowchart approach leads to the following three policy prescriptions: (1) Malaysian firms should establish sites for exporting compact cars with automatic transmissions; (2) actors in the public, semi-public and private sector should work to upgrade skilled labor; and (3) the central government should promote liberalization and deregulation to attract foreign firms into the supporting industries. Keywords: Malaysia, automobile industry cluster, policy prescriptions, actors, deregulation JEL classification: G18, O18, R11 * Executive Vice President, Japan External Trade Organization (JETRO) E-mail: akifumi_kuchiki@ide.go.jp The Institute of Developing Economies (IDE) is a semigovernmental, nonpartisan, nonprofit research institute, founded in 1958. The Institute merged with the Japan External Trade Organization (JETRO) on July 1, 1998. The Institute conducts basic and comprehensive studies on economic and related affairs in all developing countries and regions, including Asia, the Middle East, Africa, Latin America...
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...Name Professor Course Date The challenge that faces Telsa Motors trying to enter the Chinese market Organizational behavior is centered on how people act or behave in an organization. An organization is simply a group of individuals who have the same interests and are brought together by similar or common goals (Lam and John 123). Organizational behavior is, therefore, the study of the factors that influence how employees and other people respond, feel and act to organizations and work and how the Company is affected by the external environment (McShane, Steven and Glinow 321).Organizational behavior reveals how people interact in a group and how the environment affects this interaction. The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their 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...
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...Assignments, Case study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, court visits etc. to be undertaken as a part of the continuous assessment for the Course) Home Work No. 02 Lovely School of Business Depatment of Management Name of the faculty member: Rajan Girdhar Course No: MGT631 Course Title: Customer Relationship Management Class: MBA Semester: VI Section: Specialization Batch: 2008-10 Max. Marks: 15 Date of Allotment: 15/02/2011 Date of Submission: 22/02/2011 Important: To be read before filling up the Plan format. 1. Planning for academic activities other than Lecturers/Tutorial/Practical like Assignments, Case study, Presentation, Quiz, Projects, Class tests, industrial visits, teaching practice, court visits etc to be undertaken as a part of the continuous assessment for the Course should be prepared separately as per the format at the start of the session. 2. Industry oriented academic activity should be encouraged. If the academic activity is organization based, please specify the organization with respect to the assignment. Absolute theoretical academic assignments, which involve only copying from the books, should be discouraged. Model *(Method/Pedagogy) used in allotment and evaluation of the assignments should also be specified in the assignment plans itself. 3. All the students should be given a different topic of assignment, in all cases either the topic...
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...and External analysis of the Automotive Industry focusing mainly on the UK, a resource based view and value chain analysis of Tesla, an analysis of two PR crises and to conclude an evaluation of Tesla’s strategies. 1. External Analysis The main findings from a PESTLE analysis found that legal and technological factors had the most significant affect on the UK automotive industry. In particular UK laws that enforce vehicle CO2 emission standards are forcing manufacturers to produce more eco-friendly cars. In addition, fast changing technology is increasing innovation and creating new market segments such as the Electronic Vehicle. The main findings from a Porters 5 Forces Analysis shows: The threat of new entrants is low, the risk of substitutes is low, the buyer bargaining power is high, supplier bargaining power is moderate and the intensity of rivalry is high. This concludes that the industry is still attractive and profitable for those who are already in it. 2. Internal Analysis An internal analysis of Tesla showed that their man competitive advantage comes from their vast amount of intellectual property and infrastructure. Tesla also has large amounts of capital being invested into the company to further boost production and innovation. 3. PR Crises The two examples of PR crises found that Tesla is a company who take CSR and brand reputation seriously. They are a company that has set a benchmark for other firms in the industry. 4. Strategic Analysis A strategic analysis...
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...Spring term 2010 ABSTRACT Over the past two decades, the open-door of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential that the interaction among independent variables is considered in...
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...COMPANY REPORT: TATA MOTORS Chapter 1 INTRODUCTION India has been one of the largest automobile industry in the world. The growth of this industry had been one of the fastest globally but due to various reasons the growth has unacceptably declined in the present day. Passenger car and commercial vehicles manufacturing industry of India stands in the sixth position in terms of volume, 3.9 million units were produced in 2011. India saw a growth from 16 to 18 percent of sales during 2011 to 2012.Earlier Brazil was ahead of India in terms of volume production. India managed to surpass the old and new auto makers such as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain and France. India managed to beat Thailand in 2010 and came forward to third position from fourth position the previous year in being Asia’s largest exporter of passenger cars. By 2015, the Society of Indian Automobile Manufacturers predicted that the annual vehicle sales will increase to 4 million. India’s car manufacturing industry can be largely divided into three hubs i.e. the south, west and north. Chennai in the southern cluster contributes 35% of the share of revenue. Mumbai and Pune in the western cluster is responsible for contributing 33% of the revenue and the National Capital region in the northern hub contributes 32%. Ford, Hyundai, Daimler, BMW, Hindustan Motors, , Nissan, Caparo, Mini, Renault, Mitsubishi, and Datsun have their operating station in Chennai. General Motors, Tata Motors...
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...PRINCIPLES OF MANAGEMENT Case Study Sound Planning at Volkswagen? Volkswagen AG, based in Germany, is one of the largest automobile manufacturers in the world. Over time, Volkswagen has prospered while manufacturing reliable and affordable cars such as the Jetta and the Golf for the average consumer. In fact, Volkswagen literally means “the people’s car.” Despite Volkswagen’s past success as a company that produces, mid-priced automobiles, Bernd Pischetsrieder, Volkswagen’s new CEO, wants to modify the company’s direction. During a recent study of the automobile industry, Volkswagen’s executives attempted to better understand the company’s product line. The executives listed all of the different model segments in the automobile industry such as “big SUVs” and “hatchbacks” and compared the list against all of the automobiles that Volkswagen produces. Study results clearly showed that Volkswagen did not offer products in the luxury market to compete with other German automobile manufacturers such as BMW and Mercedes-Benz. Although Pischetsrieder already knew about Volkswagen’s lack of luxury car product, study results caused him to think. In the past, management at Volkswagen had opted to focus simply on the “averaged-priced” automobiles. Past management realized that the company made less profit on each average-priced” car sold, but knew that automobile manufacturers typically will sell more averaged-priced automobiles than higher priced...
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...Finding the Possibility of Creating a Local Car Brand for Middle Income Group Utilizing the Worldwide Recognition of Automobile Designer Leepu Research Report on Finding the Possibility of Creating a Local Car Brand for Middle Income Group Utilizing the Worldwide Recognition of Automobile Designer Leepu Submitted to Mehedi Hussain faculty Marketing Research Submitted by Group: Resonance Group Members: Mahbob Sadi Bhuiyan (ID#062 187 530) Rafat Mohamed (ID#062 453 030) M. Ibrahim (ID#061 432 030) Muntasir Ahmed Zaman(ID#061 461 030) Farzana Afroze Zerin (ID#052 515 030) Date of Submission: 27th August 2009 August 27, 2009 Mehedi Hussian Faculty Marketing Research North South University, Dhaka Subject: Final report on “Finding the possibility of creating a local car brand for middle income group utilizing the worldwide recognition of automobile designer Leepu” Dear Sir: It is a great pleasure to present to you the final report on “Finding the possibility of creating a local car brand for middle income group utilizing the worldwide recognition of automobile designer Leepu” which we have diligently worked on during the entire spring semester. We have gained a most interesting & informative experience while working for this report. Our efforts regarding learning about feasibility and acceptability of a local car brand have not only...
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