...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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...present and evident in the company’s culture and has always been the guideline to narrow the strategic path of the group. Competitor analysis The German automaker experienced a steady increase in sales in the last few years, as it has always been able to respond to the attacks of its competitors with an increasing level of technology and innovation that characterizes its products. The design is also a fundamental and integrant part of the competitive advantage of BMW. As far as competitors concern, the BMW has always faced the competition of the compatriots manufacturers such as: Mercedes, Audi, and Porsche which benefit from a similar brand-reputation and price range, but also from overseas brands brand such as Lexus and Toyota. The automotive sector is a fast moving sector, and the competitive advantage is not...
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...Intellectual Property Theft in the Automotive Industry Scope, Trends, and Mitigating Strategies Table of Contents Introduction………………………………………………………………………………..3 Scope of Intellectual Property Theft………………………………………………………3 Intellectual Property Theft and China……………………………………………………..4 Intellectual Property Theft in the Automotive Industry…………………………………...5 The Subtle Pick-Off……………………………………………………………….5 Piracy and China’s Global Emergence…………..………………………………………..6 Consequences of IP Theft…………………………………………………………………7 Mitigating Strategies………………………………………………………………………7 The Autoweb Intellectual Property Exchange…………………………………………….8 Fusion-DX………………………...………………………………………………9 GlobalSource………………………………………………………………….…..9 Data Integration Services……………………………………………………….…9 GlobalSource...………………………………………………………………….…9 Integrated Translations…………………………………………………………….9 Autoweb Company Overview……………………………………………………10 Bibliography………………………………………………………..……………………11 www.autoweb.net 2 Introduction I ntellectual Property protection in the manufactured goods sector is not a new idea. Laws prohibiting manufactured goods counterfeiting and piracy activities existed as far back as the Middle Ages when bakers, artisans, and craftsmen used distinctive marks to distinguish their products and work from would-be counterfeiters. The general problems associated with modern day counterfeiting and intellectual property piracy have long been recognized, yet today’s high-tech economy has magnified the problem of...
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...regulation and government policy. Globalization and the effects on pricing, and price sustainability of profit and those mergers are an important piece to understand in the topic of Honda and their automobile industry and how it works for those innovating and running the business. The demand on a vehicle that has efficient fuel economy seems to be increasingly important among the economy. Continuously rising in the market for automakers can be challenging as these elements are strategically supported to progress in this market. The global automotive industry offers plenty of business drama, and Fiat’s recent purchase of Chrysler’s assets, one of the United States “Big Three” automakers, is enough of drama to produce a trilogy at the theater, with each movie running for two and a half hours. This horizontal merger, or partial horizontal acquisition, entails the United States (US) Governments involvement with its ailing domestic automotive industry. At the core of this merger is the inability of the US automakers to match the aggressive technological advancements of its global competitors like Fiat. Small, fuel-efficient cars are expected to save Chrysler as the following statement explains: "Work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward," the company...
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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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...tertiary. The decision was made to research new companies entering the market, have experienced mergers or globalization within the secondary sector with an emphasis on the automotive industry. Furthermore, a review of how pricing and sustainability of profits in the automotive industry is maintained. Government policies and regulations that influence the automotive industry, including taxes, and issues that are associated to externalities will be additionally reviewed. The automotive industry was established back in the late 1880s in Germany, where the first Benz was created. By World War II, the United States was the largest producer of automobiles with 75% of the global market. Between 1980 and 2000, a toggle back and forth between the United States and Japan on dominating the automotive industry occurred until most recently in 2011, China produced the equivalent amount of Japan and the United States combined. The automotive market has experienced a combination of influences on global production over the past five years. Much of the economic crisis influenced the industry, experienced a 12% reduction in 2009 and an increase of 26% in 2010, and a moderate increase of 3% in 2011 totaling 80 million cars in production (United States Department of Labor Bureau of Labor Statistics, 2012). The automotive manufacturing industry appears to be a vertical integration state. With companies as Ford that owns Lincoln, Mercury, and Volvo along with a 13.4% ownership of Mazda, one...
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...Policies and Regulations The current and expected government policies and regulations within the automobile industry have a big focus on safety. The government is enforcing several safety regulations in the automobile industry across the United States. The government’s responsibility in the automobile industry is to make sure automobiles meet the safety standards (Basu). For example, it is a requirement that automobiles have a rear view mirror in order for a driver to see angles. Another safety regulation is the air pollution. The government is continuing to make changes in the automobile industry to help reduce the air pollution to save the environment. The government has smog laws to help reduce the air pollution caused by automobile emissions (Basu). Most people who own a car will have to follow these laws to keep their vehicle on the road. There are several government policies and regulations that will occur in the automobile industry for the future. Each year a new make and model of an automobile is introduced and some vehicles are made so fast to where there are...
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...Bernauer Block 2/3 World Studies Since the automotive industry constitutes more than 40% of North American trade, NAFTA saves the automotive industry immense amounts of money. The North America Free Trade Agreement is a trilateral agreement that encourages free trade between Mexico, Canada, and United States. The NAFTA agreement has affected the automotive industry by increasing the amount of U.S. automotive imports. It has also increased the amount of U.S. automotive exports to NAFTA partners and it has caused outsourcing in the automotive industry. The North American Free Trade Agreement came into effect on January 1, 1994. The president of Mexico, Carlos Salinas de Gortari, the prime minister of Canada, Brian Mulroney, and the president of the U.S., George H. W. Bush, signed NAFTA in 1992, which then required the legislatures of the three countries to approve it before it went into effect. After the legislatures passed the NAFTA agreement, it became in effect on January 1, 1994. Under NAFTA, the partnering countries agreed to eliminate and reduce most barriers to trade freely between the countries. Most of the United States automotive trade is done with Mexico. This is because the United States and Canada were already highly integrated following the U.S.-Canada Free Trade Agreement and a U.S.-Canada Auto Pact in 1965. Before the NAFTA agreement, Mexico had strict automotive decrees on foreign automotive production in Mexico. After NAFTA was signed, those strict...
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...Labor Laws And Union Labor Laws and Unions I will discuss a brief background on Ford Motor Company. Identify legal issues and obstacles that this organization could encounter. Determine which federal, state, or local laws could be broken because of these legal issues and why. Provide recommendations to minimize possible litigation. What are the organization’s benefits of joining a union? What is the unionization process? How does a union bargain? What effects does union bargaining have on the organization? Ford Motor Company Background The Ford Motor Company was founded in 1903 by Henry Ford. The Ford Motor Company established itself as being one of the biggest automotive makers in the world. Ford is well-known for making cars and trucks. Ford is also in the business of financing vehicles. Ford has about 78 plants worldwide, Ford employs about 166,000 around the country and 41,000 United Auto Workers (UAW) within the United States. “Ford announced a new four-year labor contract with the United Automobile Workers union in October 2011. The company agreed to add 12,000 jobs and invest $6.2 billion in its United States plants. The numbers included 6,250 jobs and $2.4 billion in investment that it had previously announced” (New York Times, 2011). Legal Issues and Obstacles Ford Could Encounter The current recession has forced many workers and unions to take reductions to avoid Ford and other companies from outsourcing their production. In signing a new contract with...
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...Executive Summary Toyota is arguably one of if not the most success automobile manufacturing companies in the world. With annual revenue of over $200 billion and over 300,000 employees across 27 countries, even the smallest decisions could have huge repercussions. It is the purpose of this audit to offer a in depth review and examination of Toyota’s marketing environment, objectives, strategies and activities to determine what are the key elements of their success, potential issues the need to avoid or improve on and any new opportunities to further maintain their position as industry leaders. Toyota has positioned itself as one of the automotive industry leaders with the highest market share when based on sales volumes. Toyota also maintains this strong market position across many countries. Toyota has developed a wide range of vehicles catering for all types of customers, from low to very high income, with easy access to their products thanks to a global distribution system. The company makes a strong effort to be well rounded and remains strong in innovation, brand reputation, good prices and international relationships. This strong market position is largely attributed to Toyota’s value proposition to provide customers with the best range of models, at affordable prices, all whilst maintaining our long-standing reputation for manufacturing excellence and for producing high quality vehicles that are safe and reliable. The efficiency and capacity of the Toyota production...
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...Economy Anonym PESTEL-Analysis of BMW Seminar paper Bachelor Business Administration Seminar paper Strategic Management Topic: PESTEL-Analysis for BMW Course of studies: Business Administration Table of Content Table of Content ............................................................................................ I Table of Figures............................................................................................ II 1. Introduction ........................................................................................ 1 2. Automotive industry in the 21st century ........................................... 1 3. PESTEL Analysis for BMW ................................................................ 2 3.1 Political ................................................................................................. 3 3.2 Economical........................................................................................... 3 3.3 Social ................................................................................................... 4 3.4 Technological ....................................................................................... 5 3.5 Environmental ...................................................................................... 6 3.6 Legal .................................................................................................... 7 4. Conclusion...
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...Executive Summary BMW is an acronym for Bayerische Motoren Werke AG or in English: Bavarian Motor Works. It is a German automotive company brand founded in 1917 with its headquarters in Munich, Bavaria, Germany and is amongst the worlds best automakers known for it’s intriguing - one of the kind designs, quality of engineering, performance and elegance in its fleet of vehicles. BMW Group is also a manufacturing company for motorcycles and engines for aircrafts, bullet- trains and has won the award for the best engines a numerous times in the worldwide automotive industry. The BMW Group also owns and produces vehicles under the brand MINI marquee, motorcycles under BMW Motorrad and Husqyarna and is also the parent company of Rolls-Royce Motor Cars, which are known to be the most luxurious, expensive and hand built vehicles baring not only a heavy price tag but specifically known to have a prestigious status symbol. To insure the company’s stability and expansion, BMW Group has a strong management control that ensures an edge over its competitors in the automotive market. The Group faces constant demands for cost, quality and productivity improvements within shorter product lifecycles, but also face the new challenge of building cars to customer order in short order lead-times and numerous other external and internal environmental factors. This report focuses on BMW’s flexible production and the process of technologies that enable the shift towards achieving a higher market...
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...competitive market: 9 B. Risk of suppliers 9 C. Risk of governmental regulations 9 D. Risk of digital and information technologies 10 E. Risk of innovation competition 10 V. Benefits of ERM 10 VI. RISK ORGANIZATION 11 VII. Organizational Culture 13 VIII. Recommendations 14 Company Mission and Strategy The main source used for this work was the Toyota’s Annual Report. http://www.toyota-global.com/investors/ir_library/annual/pdf/2013/ Toyota, or officially Toyota Motor Corporation, is a car manufacturer based in Toyota City in Japan. The company operates in about 170 countries over the world. The company employs about 320.000 people and has production plants in every continent. This major company is the leader in the automotive industry with a turnover of more than $265 billion in 2012 and with about $4.7 billion of benefits. The major markets of Toyota are Japan, North America, Europe and Asia. The company sells its cars under its name Toyota, but it also owns subsidiaries like Lexus, Scion, Hino Trucks and Daihatsu. Toyota is also the creator of the Toyota Production System (TPS), which...
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...Toyota is Akio Toyoda. Toyota maintains a 9.8 percent share of the automobile global marketplace. Japan itself, has very few natural resources, which prompted the Toyota Motor Corporation to develop fuel efficient vehicles. Change in political environment in Japan, prompted Japanese auto manufacturers to rely on new technologies to guarantee success in the industry such as the birth of the small car. While other countries concentrated on large, luxury vehicles, Japanese manufactures were busy focusing on building small, fuel-efficient vehicles that would grow to dominate the automotive industry. Political unrest can lead to military action and wars, which make materials needed for car manufacture difficult to find. Such was the situation Toyota Motor Company faced during World War II, when a crippled Japanese economy forced the company to start building 'recycled' vehicles. Corporations must also comply with the laws of trade both nationally and internationally. After World War II, "Japan's automakers knew that they could no longer count on government protection in the form of high import duties or other barriers as they had before the war. After World War II, in 1955, Japan joined the General Agreement on Tariffs and Trade (GATT) anticipating the day of increasing international trade. In 1965, Japan legalized imports of foreign passenger cars. This was the...
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...1|Page Company History Toyota is world's second-biggest auto maker after General Motors Corporation. Toyota primarily conducts business in the automotive industry but in the finance and other industries as well. The Toyota automobile company as it began, specialized in making cars, but now also forms a leading pioneer in bus, trucks, robot manufacturer, truck, auto and financial service providers. In 1933, Kiichiro Toyoda established an automobile division within an already successful Japanese company, Toyoda Automatic Loom Works, Ltd., a manufacturer of textile looms. In 1935, Toyota had established its first dealership and produced their first vehicle. In 1937, the division became an independent company within the group and became known as Toyota Motor Corporation (TMC). In 1957, they had imported their first passenger car from Japan into the United States. In1960’s, Toyota was clearly in the path to becoming a multinational corporation by opening a vehicle plant in Brazil and their first Asian vehicle plant in Thailand. In 1989, TOYOTA branched out by established a luxury line of vehicles with debut of LEXUS LS 400 and the ES250. In 1999, Total vehicle production reached 100 million in Japan. In 2003, they became the world’s number 2 in terms of annual sales, as they overtook Ford Motor Company and coming behind General Motor. In 2008-2010 sales of vehicles is the first in the world for 3 consecutive years. 2|Page Business Overview Toyota sells its vehicles in...
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