...The European Journal of Development Research Vol. 20, No. 1, March 2008, 31–55 Staying alive in the global automotive industry: what can developing economies learn from South Africa about linking into global automotive value chains? Justin Barnesa and Mike Morrisb * Benchmarking and Manufacturing Analysts, and PRISM, School of Economics, University of Cape Town, Cape Town, South Africa; bPRISM, School of Economics, University of Cape Town, Cape Town, South Africa, and School of Development Studies, University of KwaZulu-Natal The insertion of the South African automotive industry into the global mainstream of vehicle manufacturing highlights a number of valuable analytical lessons for developing country automotive economies. The global value chains that dominate the automotive industry have fostered substantial upgrading within the South African automotive industry but pervasive international trends also limit the opportunities for value addition and more substantial increases in vehicle output. Key trends in this regard relate to tightening market conditions in the developed economies into which South African vehicle producers and automotive component manufacturers supply, excess global production capacity and the emergence of new low cost production locations principally in Asia. The benefits to the South African automotive industry of engaging in global value chains are clear but the long term sustainability and development of the industry remain in question. The importance...
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...5160: STRATEGIC MANAGEMENT SCL#3: The automotive industry in Malaysia PREPARED BY: marziana basir gm04459 SYAZwANI MUSTAFA gm04625 johan adam leong gm04319 FADZILLA ZAHRA SAMIAN GM04550 PREPARED FOR: SR. DR. HJ MAZLAN HJ HASSAN Graduate School of Management Universiti Putra Malaysia Q1. View this industry through the eyes of a CEO. Which would you regard as the three most important opportunities or threats to Mahathir’s idea? Reputation and consumer impression Merger between both Malaysia carmakers will improve the reputation of Malaysia carmaker in world’s eyes. With both manufacturers has its’ own Japanese counterparts (Mitsubishi for Proton and Daihatsu for Perodua), it will further boast the consumers’ impression of a combined quality from both makers in developing countries especially in ASEAN region. Merger can be seen as the platform for a united and consolidated effort for refinement in terms of technologies and quality control on each end product. Example is that using proven Mitsubishi’s robust engine development coupled with Daihatsu or Toyota’s ways of manufacturing and quality control (Kaizen) by utilizing the cheaper local Malaysia resource and facilities. The end product can be seen as a reliable piece of vehicle produced in the most efficient manner with lower cost and yet achieving the international standards recognition (i.e., EURO NCAP 5 start ratings). Total domination of the Malaysia automotive market Both car makers if merged may impose...
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...Environmental and Root Cause Analysis………………………………………………..…7-9 Alternatives and Options……………………………………………………………………9-11 Recommendation and Implementation …………………………………………………11-12 Monitor and Control…………………………………………………………………………...12 Conclusion………………………………………………………………………………….12-13 EXECUTIVE SUMMARY Ford Motor Company is the second largest industrial automotive corporation in the world. Their operations span over 200 countries with more than $144 billion in revenues. Over the years, its market share has been on the decline due to the entrance of foreign-based auto manufacturers. They are also faced with over industry capacity and uses minimal technology in their process. In an effort to face competition, Ford is currently reviewing Dell’s Model of virtual integration to solve their supply chain bottlenecks. However, there were fundamental issues that needed to be addressed: (1) How would the virtual integration affect the operations of Ford in areas of ordering, quality control and distribution? (2) Should Ford completely Dell’s business model or which aspects would work best for Ford? (3) Could Dell’s cycle time and lead times be replicated into Ford’s automotive infrastructure and would the current technology at Ford support this? and (4) Would virtual integration be feasible in the automotive industry given the product characteristics and industry scope? It was found that emerging technologies, globalization of foreign-based auto manufacturers and intense industry competition...
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...International Economics August 29, 2011 Big Drive Auto In the automotive industry there is evidence that supports the future of economics within the automotive industry such as Big Drive Auto, a multi-manufacture of cars and trucks. Not only does the company conduct contributions in the coolant, tire replacement and motor oil industry, but Big Drive Auto, also, services parts for repairs and sales vehicles. Big Auto will have to forecast their prior records kept within the past ten years in order to remain successful as well as needing growth within the automotive industry if they are to stay ahead of the automotive industry. An evaluation, in spite of the fluctuations in the economy, of the revenue generated on service and auto sales and of the companies past sales of parts, this evaluation and/or information will assist Big Auto Drive’s management for the organization for future production plans. A future demonstration pricing strategy will be used from the data of previous years and in keeping the company moving forward, the management’s awareness of the economy in recent years will be considered in helping with product recommendations for Big Drive Auto. In moving forward, Big Drive Auto will need to assess in the upcoming years the mathematical equations and take into consideration operations, cost, economic analysis and productivity in order to create a strategy that is solid in dealing with the automotive industry in which will allow them to have processions for their...
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... Our economy had a downturn in 2007-2011 and the automotive industry was hard hit. GM and Chrysler filed for bankruptcy due to increasing labor costs and decreased demand in automobile from consumers. Therefore, U.S. automakers turned to two-tier wage structures to control labor costs over the next several years. GM started using a two-tier wage structure in late 2007. Any new hires after September 2007 received an hourly Tier II wage of $14, about one half the hourly of the $28 hourly wage of Tier I existing employees (Milkovich, Newman, Gerhart, 2014, p.242). In the U.S. in the late 1990’s had over one million people employed in the automotive industry, the number dropped to 550,000 during the recession. The Center for Automotive Research projected that in 2012 the numbers could increase to 650,000 and in 2015 it could be more than 750,000 employees (Milkovich, Newman, Gerhart, 2014, p.242). Two-tier wages systems has helped the automotive industry recover because the reduced hourly wages for new hires helped decreased labor costs to compete with labor costs internationally. With the downturn in the economy there were many people that were unemployed and having these two-tier wage systems allowed the automotive companies to hire in eager and willing employees for the $14 an hour wage, compared to these applicants receiving unemployment or minimum wage positions. The lower hourly wages helped the automakers control their labor costs, improve their business strategy, and...
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...Team B’s Week 5 Assignment ECO/365 Automotive Industry Introduction The automotive industry is one of most important businesses in the World, creating a variety of vehicles for consumers worldwide. Management teams must learn to recognize how changes in other businesses can directly or indirectly affect the success of firms in the same industry or another type in domestic and global markets. The following paper analyzes the effects of changes in the automotive industry and how regulations held by the government control the financial and consumer aspects this industry maintains domestically and globally. A Company Emergence in Market Mergers and Globalization Functioning as an evolving market, automotive firms all the world find innovative ways to appease customers by offering the multitude of vehicles meeting consumer needs. New companies entering the automotive industry are competitive businesses exploring ways to expand professionally through vertical mergers. “The automotive industry is literally built on the concept of vertical integration – that is, one company owning both the manufacturing and as much of the supply chain that leads to the factory floor as possible,”(Gorzelany, 2014.) For instance, currently Tesla Motors in building a $5 million dollar “giga-factory” to power its electric vehicles with half of its investment coming from Panasonic, Tesla’s partner in this vertical merger. Panasonic is a successful battery...
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...allocation of resources as compared to peersW4: Lack of high technical skills of engineering designs when they have high level of skills in productionW5: Loss of control. The management failed to anticipate looming problems and expanded too quickly, ignoring Toyota’s style of disciplined growth. | Opportunities | S0 Strategy | WO Strategy | O1: Growing global automotive industryO2: Toyota poised to benefit from growing joint venture with GM called New United Motor Manufacturing Inc.(NUMMI)O3: Strong outlook for the global new car market04: Augmented worldwide distribution and servicing network to increase market penetrationO5: Expanding automobile market and opportunity launching new products | 1. Exploit engineering and R&D capabilities to produce new and innovative car models(S2,05) 2. Integrate the competitive advantage of both Toyota and GM to create strong brand name and competitive position in automotive manufacture industry(S3,02) | 1. Closely monitor quality and overhaul its design and manufacturing operations to enter growing global automotive industry (W1,W4,O1) 2. Joint venture with GM cause Toyota strive for continuous improvements and enhance the sales and market share in particular geographic market(W2,02) | Threats | ST Strategy | WT Strategy | T1: Facing intense competition in automotive manufacturers industryT2: Appreciating Japanese Yen a major concernT3: Natural disasters could...
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...Company Background Toyota Motor Corporation (TMC), the world’s famous automotive manufacturer which headquartered in Aichi, Japan was founded by Kiichiro Toyoda in 1937 (Toyota.com, 2015). According to a survey by OICA, Toyota is the world’s largest automobile manufacturer ahead of the Volkswagen Group and the General Motor in term of production volume in 2012 (OICA, 2013). Today, it plays an important role in quality control management in production. Its production system and lean manufacturing practice or also referred to as Toyota Production System (TPS) has been adopted by many organizations which demand sustainable high quality in their production and continual improvement (Liker, 2004). In 2014, Toyota has an estimated increase of net revenue (16.4%) from automotive sector (Toyota Motor Corporation, 2014). Besides automotive, Toyota also makes investment in other nonautomotive activities. For example, Toyota invests USD67.2 million in aerospace technology under a joint venture with Mitsubishi Aircraft Corporation (Xinhuanet, 2008). Product Overview Hybrid electric car (HEV) is one of the most innovative product in automotive field. It uses at least two power supplies (internal combustion engine and electric motor) to run the vehicle. Toyota is the first automaker to mass produce hybrid car, Toyota Prius in 1997 and commercialized them worldwide in 2000 (Toyota.com, 2015). As of July 2015, more than three million Toyota Prius has been sold worldwide...
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... | | Case Study: ‘The OSCar Project – Cars to save the world’ Question 1 – IT took Hugo about 6 years to secure funding for the LIFEcar project whilst at the same time he was keen to develop the Hyrban city-car as a parallel project. Comment on the creation, development and management of the two projects. Where they indeed separate, as presented? The creation of the LIFEcar project was based on opportunities that had been generated by the current practices of the automotive industry. In times were combating global warming is a big issue Hugo identified that the long term future of the automotive industry was uncertain as it relied heavily on finite fossil fuels. Hugo identified a market opportunity that would take advantage of the current issues the automotive industry had by proposing a vehicle that did not depend entirely on the consumption of finite fossil fuels. The creation of the LIFEcar project was Hugo’s answer to clean transport and it seemed to be the way forward and future of automotive technology. With the concept of the LIFEcar project underway Hugo identified another potential market for Hydrogen fuel cell Car, one which he believed seemed to be a more ideological market and moved away from the development of a HFC sports car. Hugo identified that a more promising early market would be for HFC city-cars, this lead to the development of a second project the Hyrban city-car. The Hyrban city-car had similar technological aspects to those that were introduced...
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...Focus--------------------------------------- pgs. 11-13 6. Marketing program strategy and tactics----------------- pgs. 13-14 7. Financial Projections----------------------------------------- pgs. 14-15 8. Organization Structure--------------------------------------- pg. 16 9. Implementation Plan------------------------------------------ pg. 17 10. Appendix A: Biographies of Key Personnel------------- pgs. 18-20 11. Appendix B: Detailed financial projections-------------- pgs. 21-22 1. Executive Summary Heat & Clean, LLC Karen Akers, Jordan Capps, Alicia Collison Heat & Clean, LLC (referred to from hereon in as the "Company") was established as a Limited Liability Company on St Rd 52 in Lafayette, Indiana with the expectation of rapid expansion in the automotive accessories industry. The Company solicits financial backing in order to be able to introduce its new product (described below). Business Description The Company was formed in August 2011, as a Limited Liability Company under Indiana state laws and is headed by Karen Akers, Jordan Capps, and Alicia Collison. Heat & Clean was established in the Mid-West and we currently only sell our product online. Our Company currently employs 51 full-time employees and part-time employees excluding ourselves. Management Team The Company has assembled an experienced management team: Founder: Chief Financial Officer - Karen Akers, 15...
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...experiential marketing solutions to the automotive and motorsports industries. emotive creates and executes automotive based experiences for the world’s leading car manufacturers and corporations , operating in one of the fastest growing marketing environments - direct consumer experiences. In an increasingly competitive market, automotive sales are in decline . Manufacturers need ever more compelling methods to conquest the consumer. The emphasis on traditional advertising by these companies has changed with a far greater emphasis on direct consumer marketing. Experiential marketing’s unique ability to reach , engage and make relevant connections with consumers has contributed to its growth in this climate with significant year on year increase predicted . The reason is simple; it works, it is measurable, it sells cars and adds value to brands. emotive programs take many forms, from the sales-generating consumer driving events to the thrill-seeking sports & race car driver training and the educational (teen driving programs) to custom designed programs that satisfy the client’s objectives. emotive is uniquely positioned to change the way people interact with cars, collaborating with clients, CEOs, marketing managers, consumers, safety experts, engineers and drivers to develop compelling experiences in an era of increased consumer control and desire for authenticity. The group has brought together an international team of experts from the automotive, creative design, marketing,...
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...Started over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward. Globalization Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities , 2012).As a result, many automotive companies such as General Motors, Toyota, Honda and Ford viewed strategic partnerships as a way to dip their toes into the water and expand into different...
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...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 Company...
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...Competitive Strategies and Government Policies ECO/365 Principles of Microeconomics October 28, 2013 Feedback from Instructor (Published: Sat 11/02/2013 07:04 PM MST) Earned Points: 9.6/10 Comments: Week 5: Team Paper Assignment Grading Rubric =========================================================== CONTENT 70% Address the following topics: (1) New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiarhorizontal, vertical, or conglomerateand explain why you made that choice.: Content Grade / Comments: Good, meets expectations. Good amount of detail about auto industry globalization and competition. (2) Current and expected government policies and regulations, including taxes and regulations in place to address issues related to externalities Content Grade / Comments: Mostly good. You could have gone into more detail about the incentives created and the (unintended) consequences of regulations and how this impacts decisions made by the firm. (3) Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry Content Grade / Comments: Good, but this section seems more hypothetical and less applied. You should have given more details related to banking, but overall good points. (4) Recommend how the industry you chose may respond...
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...Nano technology in the automotive industry:- ABSTRACT What is Nanotechnology? Nanotechnology is the engineering of materials on the scale of 1 nanometer (nm) to 100 nm, a nanometer being 1 billionth of a meter. At this level, the basic physical laws governing macro objects undergo a drastic change. A macro particle is a cluster of atoms arranged together in random order. The formation of the structure is left to nature, and control over the properties of the material is difficult. Nanotechnology, on the other hand, is a bottom-up approach where materials are created by placing individual atoms together. This decreases the randomness in the structural formation, enabling significant control over the properties of the material. Mechanical properties such as strength, ductility, and resilience can all be incorporated into one material. Currently, nanotechnology is functioning as an enabling technology. It is being used to enhance the properties of existing materials. This is largely attributed to the fact that the technology has clearly not been understood and there is still much more to nanotechnology than meets the microscopic eye. It is rare for a single technology to have the power to dramatically influence almost every major industry in the world. Nanotechnology falls into this category and offers fundamentally new capabilities to architect a broad array of novel materials, composites and structures on a molecular scale. This technology has the potential to drastically...
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