...Weight Submission Deadline BU/PG 20.00% 09/03/2011 Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism. 000636368 Tutor's comments Ngufor Chiawah Hilary NGUFOR CHIAWAH HILARY-000636368 Grade Awarded___________ Moderation required: yes/no For Office Use Only__________ Tutor______________________ Final Grade_________ Date _______________ ANALYSING THE IMPACT OF THE INTRODUCTION OF HYBRID CARS ON THE AUTOMOBILE INDUSTRY IN THE UK Abstract Hybrid cars are an emerging aspect in contemporary automobile technology. Hybrid cars have existed for over one hundred years. However the benefits from such cars have not been acknowledged for all this time until in recent years. Generally speaking a hybrid car is one which uses two power engines to pull the vehicle. The introduction of hybrid cars has been hailed greatly, mostly by international organisations, governments, nongovernmental organisations (NGOs,) and individuals. Many car manufacturers are continuously getting involved with the production of hybrid cars with Toyota being the highest producer of the cars and having the highest sales [1]. These cars are most used in Europe. Hybrid cars were introduced to combat the effects of the gasoline...
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...“Internal and External environmental audit” of the automobile industry in the UK using PESTEL and SWOT frameworks. Britain’s automobile industry dates back to the late 19th century, when Daimler began manufacturing cars. Today, the UK is a major automobile and automobile part manufacturing hub and home to seven major car manufacturers. It produces a wide range of standard specification, premium and specialist vehicles, including Formula One cars and sports vehicles. An analysis of the industry using the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework is carried out below: Political: The automotive industry has always received political support on account of several factors such as employment potential, export earnings and membership of the European Union. The Government has signed free trade deals with Singapore and also benefits from the EU-South Korea trade agreement. The UK is increasing exports to emerging economies in order to boost exports. This has attracted new foreign investment to the tune of GBP 6 billion from BMW, Jaguar Land Rover, Nissan, Ford and others. UK-manufactured cars sold within the EU are exempt from customs tariffs and are therefore cheaper. Economic: The UK is now the second largest car producer in the world after Germany. It exports 25 per cent of the cars it manufactures and provides 730,000 jobs. In terms of value, automobile exports stand at a staggering GBP 27 billion, helping to reduce Britain’s large...
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...“Internal and External environmental audit” of the automobile industry in the UK using PESTEL and SWOT frameworks. Britain’s automobile industry dates back to the late 19th century, when Daimler began manufacturing cars. Today, the UK is a major automobile and automobile part manufacturing hub and home to seven major car manufacturers. It produces a wide range of standard specification, premium and specialist vehicles, including Formula One cars and sports vehicles. An analysis of the industry using the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework is carried out below: Political: The automotive industry has always received political support on account of several factors such as employment potential, export earnings and membership of the European Union. The Government has signed free trade deals with Singapore and also benefits from the EU-South Korea trade agreement. The UK is increasing exports to emerging economies in order to boost exports. This has attracted new foreign investment to the tune of GBP 6 billion from BMW, Jaguar Land Rover, Nissan, Ford and others. UK-manufactured cars sold within the EU are exempt from customs tariffs and are therefore cheaper. Economic: The UK is now the second largest car producer in the world after Germany. It exports 25 per cent of the cars it manufactures and provides 730,000 jobs. In terms of value, automobile exports stand at a staggering GBP 27 billion, helping to reduce Britain’s...
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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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...date. Honda’s motor vehicle sales in Europe have been relatively poor, especially in the previous five years. Despite its huge success in the North American market, Honda is struggling to gain a significant foothold in the European market. Honda executives wonder why their global strategy is sputtering. Is global strategy just a pipedream, or is something wrong with Honda's European strategy? History of Honda In 1946 Souichiro Honda founded the Honda Technology Institute. The company started as a motorcycle producer and by the 1950s had become extremely successful in Japan. In 1956, Honda entered the US market and was able to position itself effectively, selling small sized motorcycles. In the early 1960s, the company commenced automobile manufacturing and participated in Formula-1 racing (F-1) to assist its technology development. Thanks mainly to its F-1 efforts, Honda became recognized, not only in Japan but in the rest of the world as well, as a technological savvy company. Up to the early 1990s the company had experienced serious organizational mismanagement resulting from tension between the technology side and the marketing-sales side. The situation became so dire, that the technology biased president and founder, Souichiro Honda, was forced out, due to his neglect in important marketing decisions. After Souichiro Honda’s departure, the company became more marketing-technology balanced, and by 1999 was second in sales only to Toyota in the Japanese market...
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...…………………………………………………………….4 a. Overview of Automotive Industry in the UK b. Overview of Jaguar Cars 3. Situation Analysis…………………………………………....…………………..5 4. Branding Strategy and Management…………………………………………….6 5. Communication of the Jaguar Brand in the Market……………………………..9 c. Global Marketing Campaign d. Social Media Marketing e. Corporate Social Responsibility f. Same Essence, Different Market g. “The Art of Performance” 6. Conclusion………………………………………………………………………15 7. References……………………………………………………………………… 16 1. Executive summary This report aims to analyze the branding activities of Jaguar Cars and how the company is run with the help of its main global marketing activities. The report discusses and analyses the external business environment of the company using situational analytical tools such as the PEST analysis and Porter’s five forces. To better understand the branding of Jaguar Cars, the ‘Brand Onion’ tool has been used to analyze the company’s marketing mix. The report also compares and contrasts the way in which the brand image has been communicated in mature developed markets and emerging markets. Specifically this report will analyze Jaguar’s position in the automobile market in the United Kingdom and the United States of America as the developed countries and China’s emerging economy. 2. Introduction a. Overview of the Automotive industry in the UK The United Kingdom has a strong and growing...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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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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...and the World Automobile Industry Ford and the World Automobile Industry In 2008, the Ford Motor Company and the world automobile industry as a whole, was struggling financially. The slumping economy had a significant effect on US automobile sales, with a 50% reduction year over year, negatively impacting company earnings. (Grant, 2010, p. 46) Reduced sales, emerging markets and increased competition created a changing landscape and financial sustainability issues amongst the market. These forces and Ford’s growth created excess capacity beyond consumer demand resulting in inefficient use of resources. Synopsis of the Case Ford and the collective automobile industry were faced with challenging times due to a US recession, resulting in reduced demand. This decline caused a focus shift from existing markets to new growth markets, such as Asia, Europe and Latin America. (Grant 2010, p. 48) Companies partnered with outsourced providers and adjusted operational methods in an effort to reduce costs. This growth partnered with a decrease in consumer demand resulted in high carrying costs across the industry. Relevant Factual Information about the Problem or Decision the Organization Faced The US automobile industry experienced a boom in the early-mid 1900’s, resulting in Ford and the industry growing rapidly. (Grant, 2010, p. 48) In order to meet the demand, capital investment in manufacturing capabilities was occurring. In the late 1900’s the industry began to see a...
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...2014 International Business Assignment Tata Motors International Strategies sdfdf Farhan Khan 11/30/2014 Table of Contents Indian Automobile Industry .................................................................................................................................... 2 1. 2. Tata Motors Overview ................................................................................................................................................. 2 3. Porter’s Five Forces Analysis of UK Car market considering Tata Motors Strategy........................................ 3 i. Competitors’ bargaining power............................................................................................................................... 3 ii. Buyers’ bargaining power ........................................................................................................................................ 3 iii. Suppliers’ bargaining power................................................................................................................................ 3 iv. The threat of Substitutes ...................................................................................................................................... 3 v. 4. Strategy adopted by Tata Motors................................................................................................................................ 4 i. Competition at Home...
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...The report is about the analysis of the environment of automobile industry and the marketing strategy for Ford Motor Company. It initiates with examining of external environment of automobile industry by using PEST analysis and Porter's five forces analysis. After the internal analyses that focus on the resource audit on brand, products, markets, technology, people and son on, the value chain analysis of the company will be conduct. Then the generic competitive strategies would be discussed through SWOT analysis, Ansoff Matrix and BCG Matrix in order to identify the general business strategy taken by the Ford Company. After specifying the company strategy by those analysis tools, the strategic evaluations would be drawn together with the strategy control methods. Finally, a suggested recommendation for the company future development will be mentioned at the end of the report. I. INTRODUCTION 1.1 Aim of The Report This report aim to identify the external environmental of the global automobile industry, measure and evaluate viable and sustainable marketing strategies using by the Ford Motor Company. Through appropriate theoretical concepts and models, together with appropriate methodologies, the organization within its contextual setting will be carefully examined, and justify recommendation will be mentioned. Though the report, how a successful corporation is operated and how its business strategy is implemented and controlled will be understood. 1.2 Company Background Ford Motor...
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...Analysis Contents Introduction 4 PART: 1 Proton Introduction 4 About Proton 4 PART: 2 Proton’s External Environment Analysis 5 2.1 PESTEL Analysis 6 2.1.1 Political and legal factors 7 2.1.2 Economic Factors 7 2.1.3 Social-Cultural Factors 8 2.1.4 Technological Factors 8 2.1.5 Environmental Factors 11 2.2 PROTON’s SWOT Analysis 12 2.3 Industry Analysis 12 Proton five forces model 13 2.3.1 Threat of New Entrants 13 2.3.2 Bargaining Power of Suppliers 13 2.3.3 Bargaining Power of Customers 14 2.3.4 Threats of Substitutes 14 2.3.5 Competitive Rivalry between Existing Players 14 2.4 Some other external factors 15 2.4.1 Change in Customer Demand 15 2.4.2 Globalization 16 PART: 3 17 Recommendation 17 3.1 How can we deal with the pressure of innovation? 17 3.2 Cost Control 19 3.4 Innovative feature’s pricing decision 20 3.4 Dealer knowledge in customers 20 Conclusion 20 References 22 Appendixes 25 Appendix-1 Supplier spending on R&D 25 Appendix-2 Changes in external force 25 Appendix-3 Critical industry skills 25 Appendix-4 Expected challenges of automotive industry 26 Introduction The report is going to conduct Proton external analysis and the report has been divided into main three parts. The first part will be discuss some background of the company. The secondary part complete external analysis through using PESTEL, SWOT and Porter five forces model. The third and last part of the report will be put forward some...
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...KAYODE OMOSEBI: A4032655 MBA – 8A 18-08-2011 Contents EXECUTIVE SUMMARY 2 CADILLAC: A BRIEF INSIGHT 2 MARKET SUMMARY 3 MARKET TREND IN THE PREMIUM AUTOMOBILE MARKET 4 CONSUMER MARKET 4 MARKETING RESEARCH 6 BUSINESS ENVIRONMENT 6 PESTEL Analysis 6 SWOT ANALYSIS 9 MISSION, DIRECTION AND OBJECTIVES 11 TARGETING AND POSITIONING DECISION 12 MARKETING MIX 12 PROMOTION / MARKETING COMMUNICATION 14 CUSTOMER SERVICE AND INTERNAL MARKETING 16 FORECASTS AND FINANCIAL DETAILS 16 IMPLEMENTATION AND CONTROL 17 REFERENCES…………………………………………………………………………………………………………………………………….18 APPENDICES…………………………………………………………………………………………………………………………………….19 EXECUTIVE SUMMARY Cadillac Escalade Hybrid SUV is the new product of the Cadillac Company which is a sub-division of the General Motors group. General Motors group plans to market this premium and luxury product to UK auto market and, later, to other European auto market. However, luxury and premium auto-makers with well-respected brands can potentially earn higher profit margin by targeting a specific market segment. Our targets are four consumer segments at the high end of the affordable personal/family auto market, enhancing our positioning with luxury brand, hybrid version and advanced technologies. Our financial objective relates to first-year turnover in the UK market, a minimum level of sales per unit, achieving a break-even within three years. Our marketing objective relates to the first-year product awareness among...
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...to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in the industry thereby reducing the significance of branding. The report finds out that the value chain the most efficient model of analysing internal environment. Moreover, the industry is found to have reached its...
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...taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved. There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures The cost of managing complex infrastructure should not –outweigh the benefits of increased scale Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of production...
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