...Ford vs Dell Executive Summary FORDs current method of controlling all aspects of the manufacturing is outdated and is limiting the corporation’s annual results. In order to stay competitive and become efficient again, FORD needs to re-evaluate their current supply chain and implement key portions of DELLs vertically integrated supply chain model. A proper implementation will increase information flow between suppliers, departments and dealers resulting in a reduction of redundant inventory and focus towards just in time inventory. All of these factors will further drive up the already US industry leading profit margin per vehicle. In order to accomplish these goals FORD needs to refocus the Purchasing department’s responsibilities, consolidate and develop suppliers that deliver finished high level components and increase the information flow across all points of the supply chain. These steps will help to introduce a more pull-based system. Contents Issue identification 1 Environmental and root cause analysis 2 Alternatives/Options 3 Recommendations 4 Implementation 5 Monitor & Control 6 Issue identification • Current order to delivery (OTD) is more than 60 days. • Management of large supplier network. • Utilization of IT is lacking. • Purchasing isn’t integrated into Product development. • Independent dealership network has resulted in FORDs loss of control over customer service experiences. This network also...
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...Introduction The first factory assembled pickup truck introduced to America was based on a Ford Model T car. Although automobiles had been around for decades there was something unique about Henry Ford’s Model T vehicles. Other automobiles were considered as luxury vehicles because they were expensive to the average working American. In 1908 Henry Ford changed that by assembling affordable vehicles which caused Ford Motors to become popular in the mass market. Debuting in 1925 the Ford Model T Runabout sold for only $281 US dollars. Henry Ford built 34,000 models the first year which featured a cargo box, adjustable tailgate, four stake pockets and heavy duty rear springs. Which much popularity came other competitors like Louis Chevrolet who at the time was a Co-Founder to Chevrolet Motor Car Company and later merged with General Motors. Louis had a vision to become the leading brand for selling mainstream vehicles. Chevrolet’s goal for getting there was to overtake Henry Ford’s Model T. Louis competitive spirit led to decades of automobile manufactures competing to create the bestselling vehicles in the United States. In this paper you’ll discover the promotional strategies used by both companies to sell the 2014 Ford F-150 and 2014 Silverado 1500. Marketing recommendations will be made for Ford and Chevrolet to differentiate themselves in the marketplace in order to gain advantage over their competitors. You’ll find ways for both companies to assist with consumer...
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...Introduction The first factory assembled pickup truck introduced to America was based on a Ford Model T car. Although automobiles had been around for decades there was something unique about Henry Ford’s Model T vehicles. Other automobiles were considered as luxury vehicles because they were expensive to the average working American. In 1908 Henry Ford changed that by assembling affordable vehicles which caused Ford Motors to become popular in the mass market. Debuting in 1925 the Ford Model T Runabout sold for only $281 US dollars. Henry Ford built 34,000 models the first year which featured a cargo box, adjustable tailgate, four stake pockets and heavy duty rear springs. Which much popularity came other competitors like Louis Chevrolet who at the time was a Co-Founder to Chevrolet Motor Car Company and later merged with General Motors. Louis had a vision to become the leading brand for selling mainstream vehicles. Chevrolet’s goal for getting there was to overtake Henry Ford’s Model T. Louis competitive spirit led to decades of automobile manufactures competing to create the bestselling vehicles in the United States. In this paper you’ll discover the promotional strategies used by both companies to sell the 2014 Ford F-150 and 2014 Silverado 1500. Marketing recommendations will be made for Ford and Chevrolet to differentiate themselves in the marketplace in order to gain advantage over their competitors. You’ll find ways for both companies to assist with consumer...
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...Chery Auto's Success Story (BSTR 377) ------------------------------------------------- Abstract: China based Chery Automobile is one of the top ten car manufacturers and the leading exporter of cars in the country. Started as an automotive company by the Wuhu government in 1997, Chery designed engines for cars. After finding no buyers for its engines, it decided to build its own car. Chery entered into tie-up with another automotive company which had license to sell cars to retail customers in China. After obtaining its own license, Chery implemented a four-phase strategy to develop its technical strengths. Chery started exporting cars as early as 2001 and became the largest exporter of cars among the Chinese car companies. Chery expanded globally to have its presence in over 70 countries by 2009. | | ------------------------------------------------- Issues: » Study and analyze the competitive strategies of Chinese automobile companies. » Understand how Chery Auto used available resources effectively to manufacture cars. » Examine how a startup company could develop R&D capabilities by collaborating with other firms. » Study the globalization strategies of Chery Auto. » Evaluate the challenges faced by Chery Auto in the near future. ------------------------------------------------- Contents: | Page No. | Introduction | 1 | Background Note | 2 | The Growth Strategy | 3 | Going Global | 5 | The Challenges | 7 | The Road Ahead | 9 | ...
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...boom and bust cycle all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. The History of General Motors Corporation, the one-time “largest automaker in the world” had its start in 1899. At that time over one thousand companies attempted to improve the “horse drawn carriage” to that of an automobile and failed. William Crapo Durant was in the horse carriage business in Flint Michigan since 1886, selling over 75,000 in 1895. In 1904 Durant bought into the Buick Motor company where many other auto makers had operations in Flint, MI; Chrysler, Buick, Nash to name a few. The economic downturn of 1907 bankrupted many of the smaller auto manufacturers and to protect the company, Durant sought out Henry Ford and Ransom Olds to discuss a possible merger. Both declined due to Durant’s lack of capital (Durant, 2004, p 71-73). Durant, instead of a merger, bought several smaller companies and founded General Motors on 16 September, 1908. By 1910 the company owned 20% of the American auto industry by purchasing smaller competitors while incurring significant debt. Shortly after, Durant was removed from his position as the head of GM and replaced by a 5 person board of trustees. Durant went on to start another company and...
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...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 from the traditionally desired bigger cars like the sports utility vehicles (suvs) and pickup trucks that tend to use more gas. “Sales of pickup trucks have plummeted in recent weeks, prompting an announcement from Ford last week that it is slashing truck...
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...Suzuki Samarai – Summary and Notes HBR Background: * Suzuki was founded in the early 1900’s an d started off as a motorcycle company. In the 50’s, lightweight vehicles became popular. Motorcycle products grew and expanded products to include a lightweight vans and cars. Until 1979, cars and trucks were only sold in Japan. In 1979, auto’s were introduced into foreign markets and by 1984, Suzuki cars were available in over 100 countries and Hawaii. In 1983, GM purchased 5% of Suzuki and helped develop subcompact car for US market (Chevy Sprint) – sold exclusively by Chevrolet dealerships American Suzuki Motor Corporation (ASMC) * GM’s success with the Sprint showed Suzuki that a market existed for its cars. Suzuki decided to establish its own presence in US market (not including GM) – and could begin selling under their own name. To test the waters, ASMC started with a beta product in FL called the SJ413 that had 1324 cc engine and was designed with US market in mind. In 1985, Suzuki hired Douglas Mazza to head ASMC and develop a Suzuki dealer network to sell SJ413 within 6 months. They named SJ413 the Suzuki Samurai and decided to market a convertible and hard top version. Samurai Dealer Network * Mazza’s goal was to establish Suzuki as a major car company in US – and had to convince prospective dealers to build separate showrooms for samurai to ensure product visibility. Facility had to include a showroom, sales offices, customer waiting and accessory...
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...JieFang. GM also operated the brand names of Saturn, Pontiac, and Hummer until 2009. During this time, GM was emerging from chapter 11 bankruptcy as a result of the 2008 financial crisis, and decided to shed those brands for strategic reasons in order to compete with foreign emerging vehicle distributers in the market. In January 1912, the company decided to incorporate themselves under the GM brand name, and were the gold standard in the automobile industry for almost 80 years. From 1931-2007, GM successfully led global sales amongst every car manufacturer in the auto-manufacturing industry. Currently, the automobile industry is one of the most fierce industries in the market. Not only is GM competing with American car manufacturers such as Ford and Dodge, but also foreign companies such as Toyota, Honda, and Hyundai. II. Financial Statements (attached excel sheet) Anthony Brooks For: Professor Goncalves Corporate Finance FIN-325 Final Exam Paper 12/3/2014 III. Financial Ratios Liquidity: Current Ratio: 1.31 Quick Ratio: 1.08 Cash Ratio: .48 The Current Ratio of 1.31 means that GM has more assets than liabilities. The higher the ratio the bigger the gap between assets and liabilities. The quick ratio measures liquid assets. The ratio of 1.08 means that GM has $1.08 of liquid assets for every one dollar of liabilities. The...
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...Abstract This research looks at the General Motors Company and what led to company failure and filing of bankruptcy in 2009. The American automotive industry was poorly managed for years and was almost eliminated when the economy crashed in 2008. Without the help of the U.S. government, General Motors and Chrysler would not have been able to survive. How did GM, as the number one auto manufacturer and seller, go from being at the top to almost ceasing to exist? This kind of financial mess usually takes years of poor decisions and does not happen to a large company overnight. To come to my conclusion I analyzed four books written by people with inside knowledge of the company, as well as magazine articles and a couple of online websites. As a result of my research, I believe that the problems that GM faced stemmed from poor risk management. Rick Wagonner, former CEO, made several poor business decisions that did not take into account any future risks or market changes. A new management team and a fresh perspective were able to turn the company around and put them back at the top of the automotive industry. Risk Management within the General Motors Company General Motors has been in business since 1908 and currently employs 202,000 people in 157 countries world-wide. It is a well-known fact that GM took government bailout money and filed bankruptcy in 2009. How did one of the largest companies in the world fall to needing financial assistance and declaring bankruptcy...
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...and construction of a unique electric vehicle in a form that is easily understood. Unique characteristics include dual, independently controlled A/C drive motors, elimination of traditional mechanical power transmission devices, and traction control software with the ability to make changes several thousand times per second. These original ideas make for an environmentally responsible vehicle with few moving parts. ACKNOWLEDGEMENTS Brocton Barras – Wrote a brief recap of the history of electric vehicles. Joshua Day – Responsible for originality/acknowledgments page, as well as abstract and conclusions. Matthew Griffin – Provided research for innovative control methods section of paper. Andrew Phegley – Wrote a brief description of A/C vs. D/C motors. Nathan Smith – Provided research for the construction of battery packs. Alex Turek – Responsible for introduction, section on the CAN bus, and editorial duties. ABSTRACT The objective of this project is to design and build an electric vehicle that exhibits unique qualities not found in any production vehicle in its class. The vehicle will operate in a similar capacity to the average automobile so as to maintain familiarity to consumers. The vehicle will be powered by independently controlled A/C motors that forgo typical mechanical power transmission devices. Highly intelligent programming techniques will be employed to vary the torque and speed several thousand times per second. Through the research conducted, our team has...
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...Tesla Motors Strategic Analysis Report Industry, Company Analysis and Recommendations on Accelerating Transition to a Solar-Electric Economy By Candela Díaz, Michelle Ikoma, Benton Moss, John Son, David Valenstein Introduction The United States automobile industry is one characterized by incumbent behemoth corporations whose distribution channels span the world. Companies like Toyota, General Motors, and Volkswagen form entire segments of their respective countries’ economies and have dominated the auto industry for generations. Yet Tesla Motors, a company started in 2003, represents a disruptive threat characteristic of the information age in which industries are constantly challenged to innovate by smaller, more nimble firms. Led by Elon Musk–a serial entrepreneur who co-founded PayPal, serves at the helm of SpaceX and chairs the board of SolarCity–Tesla Motors evokes memories of Apple in the 1980s and Napster in the new millenium, companies that shook their respective industries. Industry Analysis The United States automobile industry can be divided into three categories: fully internal combustion engine (ICE), hybrid (a mixture of ICE and electric) and plug-in electric (fully electric vehicles). Within these categories, there are two subcategories based solely on price point: luxury and mass market. For this analysis, we define luxury as vehicles priced at $30,000 and more. Tesla Motors operates within the fully electric luxury segment of the market, but has...
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...Johnson Shin-Kai Aaron Kau Amanda McDavid Gisle Vestnes Table of Contents Introduction..........................................................................................................................3 Hybrid Car Overview.......................................................................................................3 The RX400h.....................................................................................................................4 Problem Identification.........................................................................................................5 Analysis................................................................................................................................5 Product Extension vs. Product Expansion.......................................................................5 Brand Equity....................................................................................................................6 Strengths .............................................................................................................................7 Brand Recognition.......................................................................................................7 Brand Loyalty..............................................................................................................8 Number one rankings...................................................................................................8 Customer relationships....
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...China’s Auto Sector Development and Policies: Issues and Implications Rachel Tang Analyst in Asian Affairs June 25, 2012 Congressional Research Service 7-5700 www.crs.gov R40924 CRS Report for Congress Prepared for Members and Committees of Congress China’s Auto Sector Development and Policies: Issues and Implications Summary The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who...
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...Hybrid Cars IQP A Study on Hybrid Cars: Environmental Effects and Consumer Habits An Interactive Qualifying Project to be submitted to the faculty of Worcester Polytechnic Institute in partial fulfillment of the requirements for the Degree of Bachelor of Science. Submitted By: Michael Beliveau James Rehberger Jonathan Rowell Alyssa Xarras Submitted to: Submitted: 28 April 2010 Project Advisor: Prof. Chickery Kasouf 1 Hybrid Cars IQP Table of Contents List of Figures ................................................................................................................................................ 4 Abstract ......................................................................................................................................................... 5 Executive Summary ....................................................................................................................................... 6 Chapter 1. Chapter 2. Introduction .......................................................................................................................... 9 Literature Review ................................................................................................................ 12 2.1 Environmental Effects ....................................................................................................................... 12 2.2 Emissions ............................................
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...For the exclusive use of T. Song, 2015. 9-714-413 REV: JANUARY 24, 2014 ERIC VAN DEN STEEN Tesla Motors “Tesla is in California, so it is not April Fool’s yet!” tweeted Elon Musk, CEO of Tesla Motors, around 10 PM PT on March 31, 2013. “First profitable Q for Tesla thanks to awesome customers & hard work by a super dedicated team”1 he had tweeted a few minutes earlier. And indeed, on May 8, Tesla announced a net income of more than $10mln on $560 mln in sales.2 Tesla had outsold both Nissan and GM in electric cars in the U.S.3 Its Model S had sold more than the BMW 7 and Audi A8 combined.4 Tesla raised its Model S sales target for its first full year from 20,000 to 21,000 cars.5 Over the next three months, its stock price almost tripled.6 In its 10 years since founding, Tesla had launched both a high-end limited edition “Tesla Roadster” and its “Model S” production car, and was now taking reservations on its upcoming “Model X” electric crossover SUV. Despite a public controversy about its range, the Model S had received the coveted Car of the Year award and earned the highest rating that Consumer Reports ever gave to a car, an astonishing feat for a company that was only at its second car. While some of its most visible EV competitors went bankrupt or halted production,7 Tesla became profitable. Elon Musk wanted Tesla to be a mass manufacturer of electric cars.8 Becoming profitable meant that that goal was within reach. Or was it not? The Car Business ...
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