...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 the hybrid and gas saving type of cars tend to attract these consumers. These gas efficient car companies are drawing consumers away...
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...Business Plan Establishing a kingdom of auto perfume online Business name: AutoTaste.cn Owners: Yanghui Zhou, Guibo Xiang Address: Beihu Ddistrict Yongquan Area 22, 3#,3，F ， 4243000 Chenzhou City, Hunan Province Contact information: Telephone:15973588885 Fax: E-mail:992079@qq.com Table of contents 1. 2. 3. 4. 5. 6. 7. Executive Summary ………………………………………………………. Analysis of Advantages in Competition ………………………………….. Analysis of Target Market.………………………………………………… Break-even ………………………………………………………………... Budget………………………………………………………………………. Risk Assessment ………………………………………………………….. Reference………………………………………………………………….. 味品车 味品车 味品车 味品车 2 3 4 5 7 8 9 1 Auto Taste & 1. Executive Summary AutoTaste.cn is a new online business providing healthy, fashionable and high-class auto perfume. We have D&R to develop diverse perfume mix to attract different customer groups. And the top sites of taobao.com are number 14 in the world. It is a famous internet business in China.1 Therefore Auto Taste.cn will use via taobao.com and our own website. 1.1 The first trend: The selling of family/private cars in China is increasing 20% annually and the total amount is anticipated to be 75 million by the end of 2015. According to statistics from The National Bureau of Statistics of China, the auto related industries are growing rapidly and with the trend and auto perfume is one of them.2 However, the majority of auto perfumes in the current market cannot perfectly meet the needs of the customers...
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...Automotive Production Levels The automotive industry is a competitive yet lucrative business industry. Every automotive manufacturer 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 (Modern Ir 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. Measuring product development performance is neither simple nor straightforward due to its complex nature. This section examines these measures quality and customer satisfaction, market share, profitability, lead time, and productivity for Toyota. The data show that while this company’s system excels along all the measures, both companies score extremely well along several and thus constitute...
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...be North American operation and rising supply, fuel, healthcare, and pension costs. GM makes money not on auto sales auto financing.GM is overly dependent on the U.S automobile market; more than two thirds of its sales are made in the United States. In addition it is overly dependent on its financing division. GM facing economic threats at home and abroad and stiff competition from more differentiated and lower priced products, GM manager must decide how it will produce and market its vehicles in the future. EXECUTIVE SUMMARY: This paper will explain GM’s most pressing challenges. Overcapacity is negatively impacted their financial results, brutal international competition is causing GM to react with target costing strategies, rising fuel prices directly impacts their cash flows and complicates capital budgeting strategies and tactics and their ongoing health care and pension costs continue to color their future earning potential. These challenges will be addressed by using performance assessment measures. The financial assessment measures include net income and their market share value, liabilities of health care and pension benefits, revenues, target costing and capital budgeting. Non-financial measures include customer satisfaction and branding effects on sales volume....
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...Dethroning of General Motors Abstract General Motors, GM was unseated from being the world’s top auto manufacture to Toyota. There were many factors involved which resulted in GM losing its position. This paper will explore several of the factors such as union relationships that resulted in payroll differentials between GM and foreign transplants, legacy costs, and the job banks program. Secondly, poor strategic management decisions including product development and the quality gap issues between GM and its Japanese competitors. Finally, the effects of foreign competition including imports from Japan, foreign transplants here in the U.S. and currency manipulation by the Japanese Government will be explored. “What’s good for GM is good the country.” This statement is attributed to former General Motors CEO, Charles Wilson during his 1953 Senate confirmation hearing to become President Eisenhower’s Defense Secretary. The quote has been taken out of context over the years. In response to a question posed by a senator who asked Mr. Wilson if he could make decisions that would be harmful to GM, Wilson stated he would be able to, but continued by adding that he could not imagine such a situation, “because for years I thought what was good for the county was good for General Motors and vice versa.” (“The Rise and Fall of General Motors”, 2009, What’s good for GM section, par. 1) Because GM was such a large portion of the U.S. economy during the 1950’s, if difficult...
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...decreased again Detroit was making huge profits due to large sales. Unfortunately that did not last that long. As the oil price increased again in 2001 the fortune of the enterprises shrunk again and in 2007 they had to face an economic slowdown. On the basis, that many automotive companies weren´t able to cut their costs fast enough, there was a shedding of more than 100.000 jobs and the shout down of factories. The entities just couldn’t keep up with the steadily declining market for new cars and trucks. There was no demand for pick-ups, not from private households as well as not from home constructions. But not only changing requirements on the market stressed the automotive industry. There was also an increase of competition. With having Toyota of Japan as one new competitor, who offered fuel efficient cars, it ended up with having lower margins because of fewer sales of course. The previous paragraphs focused on the external factors car manufacturers faced, like rising competition and fuel prices and the change of customers’ demands. Most of external factors also involve or lead to internal...
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...Chrysler and Daimler merger case 1) in 1998 the worldwide car market is growing (from 46 million in 1993 to 52 million in 1997), but more and more competitor are present in this business market in a worlwide level. In the 90's the incumbent competitors are threatening by the emergence of Korean manufacturers ( Hyundai, Kia ), because the firm are offering cheap and good quality cars. the emerging firms in the 90's are from Asia, where the work force is cheaper than in westerners country, in this way these firms can offering a high quality product ( Lexus, Infinity, etc) for an affordable price. Thus High end firms as Mercedes, BMW, are threatened by those firms. In this way to face with the competition most of companies are shifting their production toward developing countries for reducing their cost and compete in a better way with these emerging firms. Moreover according to some analysts there would be a reduction from 39 current producers to 20 major companies. That would be because of the high competition that would be especially due to present in the market. Furthermore each year the plant capacity exceeded demand of cars by15 million vehicles, thus the profitability of the firms is reduced, and that affect on the long term financial health of the different firms. Finally the industry is stroke by several mergers and acquisitions, which reinforce the competition in the markets. 2) In my point of view the merger make sense, because in a competitive market firms face...
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...restrictions on imports from other * countries thus eliminating competition of certain goods within the importing nation. This is * called a tariff. The World Trade Organization (WTO) declared that tariffs represented a * violation of the WTO treaty and were to no longer be used by members of the WTO, but this * created non-tariff barriers. The following will describe tariffs and non-tariff barriers to trade, * why would a country impose any form of tariff, and examples of each. Both tariffs and non-tariff * barriers to trade have an effect global financing operations and managing risk. * Tariffs According to Hill (2009), “a tariff is a tax levied on imports.” A tariff is Japan placing a tax on steel; for every pound of steel imported into Japan the nation exporting the steel would have to pay this tax. The problem with tariffs is it restricts free trade. Because of this restriction of trade lead to the creation of General Agreement on Tariffs and Trade and its successor, the WTO. WTO promotes free trade by limiting the ability of national governments to adopt policies that restrict imports into their nations. Some nations believed a tariff was in the best interest of his or her nation. * A tariff does some positive things for a nation imposing the tariff. A tariff would eliminate competition of a certain product within the country. This protects domestic producers from foreign competition. This is also another way for a government to generate revenue...
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...Q1 Market failure: In my view: market failure is a market can’t be in accordance with the original efficiency of the distribution of goods and services. For example: The status quo of the market has no way to meet the interests of the people of a situation Merit Goods (Doe. M. 1965) is one: people produce an unreasonable consumption of consumer goods evaluation. For example, cigarettes harmful to people's health, but some people want to buy. Education is important to people, but some people do not put money into it. Government intervention can lead to a decline in merit goods production, some people would rather buy a better car, a better house at some point, and do not want their children to receive better education. However, such as tobacco...
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...abuse come perilously close to fiction - or even fraud. The wildly escalating estimates cited by the National Institute on Alcohol Abuse and Alcoholism (NIAAA) betrays a soft underbelly of accounting assumptions. The latest estimate of over 148 billion dollars is indefensible in terms of modern accounting principles Prof. David J. Hanson, Ph.D. (1997). This cost does not reflect the cost of emotion, when a drunk driver kills an innocent person or the abusing parent to their child can last a life time. Alcohol abuse not only does massive amounts of damage to everyone around it but also can do even more damage to your body. Alcohol poisoning leads to health costs, medication, going to therapy. The costs transfer over into the work environment leading to production losses and loses to close friends. Not only are you losing your health but you can lose a child from premature death. Alcohol abuse can lead to the marginal principle of keeping hospitals staff one hour longer on the weekend due to higher alcohol related problems after midnight. How can we stop alcohol abuse? Solutions to Alcohol Abuse First, make things simpler and focus on the problem, there’s too much alcohol available and it’s being abused. Solution, limit the amount available. This would first start with isolating the variables, going into an alcohol store and measuring the amount ordered then cutting the order in half while multiplying prices by two. Now we have less supply and less demand. This limit...
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...Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. In the past it has also produced heavy trucks, tractors and automotive components. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914. Ford is the second-largest U.S.-based automaker and the fifth largest in the world based on 2010 vehicle sales. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles. And employed about 213,000 employees at around 90 plants and facilities worldwide. Competition Factor Between the 20th century 80s to 90s, the growth of automobile industry is very slow, and many American companies try to use discount and some preferential policy to attract customers. At the same time, more and more Japanese cars were preferred by customer cause of their high quality and attractive price, like Honda, Toyota and Nissan. Compared with Ford, Japanese cars used higher technology and control the price at the same time. So how to prevent it? Before the umbrella break, Ford should...
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...polymers, fire suppressants and retardants. Founded in the 1930s, Great Lakes were known as an oil and gas exploration company under the name of McClanahan Oil Company. In the 1950s its focus was petroleum production but later took a different approach into the bromine and chemical business. The idea behind the company was to extract bromine salt water brine deposits from underground. Having a headquarters in Indiana, Great Lakes built a great reputation and became the world’s largest bromine plant in southern Arkansas. Great Lakes have proven to be a leader in the industry of leaded additives. Technological advances for the company include advances to eliminate the harmful chemical being produced. Great Lakes were committed to “protecting the health and safety” of its employees, communities, and the environment(Hitt, Ireland, & Hoskisson, 2011). Great Lakes seemed to have a good Management Information System to track their profits and losses over the years. The company was aware of the fact if they stopped producing the leaded additives there was potential loss of profits which would result in low average returns. The fact that developing countries didn’t have a means to produce the additive was a positive for Great Lakes because they could supply the countries with a product not available or currently produced in...
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...Additionally, the most important principles of achieving effectiveness and efficiency in blending with creating a safe, healing environment are of energetic importance in order to address the global challenges from diminishing resources, increasing public expectations and demands. Likewise, increasing the level of interest and scrutiny within a health and care...
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...established in 1950 by former GM president Harlow H. Curtice may have been true at one point, but is called into question today by many, including Wall Street. General Motors Corporation, also known, as GM or GMC is the world’s 2nd largest auto company in sales revenue behind Toyota which took the lead in 2006. General Motors reigned as the global leader in the automobile industry for the last 76 years, which was longer than any other automaker. Today, Richard Wagoner, Jr., GM Chairman and CEO currently runs GM, which was founded in 1908. GM today employs approximately 324,000 people around the world, with their global headquarters in Detroit Michigan. Their European headquarters is based in Zurich, Switzerland. In 2006, 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM, Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall. General Motors has a superb relationship with international connection. GM takes pride in fostering global partnerships and consumer relationships. GM is majority shareholder in GM Daewoo auto & Technology Co. of South Korea and has had collaborative ventures in technology and manufacturing with several other automakers. It also has ventures with Shanghai Automotive Industry Corporation of China. GM’s largest national market is the United States, followed by china, Canada, the United Kingdom and Germany. By many standards, General Motors is an extremely successful company...
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...Application of Porter’s Five Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history...
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