...Informatics University West Spring term 2010 ABSTRACT Over the past two decades, the open-door of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential that the interaction among independent...
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...Kim (2009), explains that internal integration and external integration have the ability to improve operational performance outcomes, such as cost, quality, delivery and flexibility however their impacts on product innovation are less understood due to their potential in facilitating exploration and exploitation. While studies have tried to show the positive impacts of internal integration and external integration on explorative innovations, due to the fact that internal integration and external integration together improve product innovations and exploitative innovations have a positive effect on explorative innovations, there are no comprehensive empirical evidence or theoretical explanation to show or support this argument (Lau et al., 2010). The research presented on this presentation will critically evaluate and explain how internal integration and external integration both individually and together affect product innovation. When separated, the individual effects of internal integration and external integration can be explained by information processing theory and relational view theory. However, for the combined effects of internal integration and external integration, we have to refer to the ambidexterity theory from the field of organizational studies as ambidextrous firms are found to benefit both the exploitation of existing resources as well as the exploration of new resources and they are additionally known to be more relatively innovative. This research will offer...
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...1 INTRODUCTION PROTON BEHARD is a Malaysian car manufacturing company that was established by the government in 1983. The objective behind the creation of the car company was to aid the attainment of the country’s goal of becoming an industrialized nation through a fortified car manufacturing industries. The country also had the intention of acquiring improved technology and industrial skills through the new manufacturing field which in turn is believed will fortify the status of Malaysia as an industrial Nation Vision The vision of proton is stated thus “to become Asia’s premier automotive brand; a brand that connects with people and provides products which become life companions”. This will be achieved through; • Ensure quality as the Number One work ethics in all operations • Establish an effective and efficient Quality System based on the requirements of ISO9001:2008 standards • Provide adequate skills and knowledge to all levels of personnel through systematic and structured training programmes • Provide a culture and environment of continuous learning, improvement and innovation towards total quality excellence • Provide a conducive, safe and healthy working environment in which people like to work and prosper. 1.1 Performance and challenges For twenty five years Proton has provided Malaysians with a number of award winning models and presently they have the largest factory in the South East Asia region with respectable statute. The company which has grown...
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...with 24 manufacturing facilities in 13 different countries, and it can count on a distribution network in more than 140 countries. Long term thinking, ecological and social responsibility in the value chain, strong investment in research and development, and an effective speed and agility in sustaining the changes in the market, are some on the key reasons for BMW success. The company has always promoted high-performing product trough a high-profile brand since the early stage; this perception is still 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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...1.0 Introduction Strategic Management is the decision making by management level through its process; it consists of strategic analysis, strategy formulation and strategy implementation. Alfred Chandler suggest strategy as an organisation to determine the basic-long term goals and objectives, adopt the course of action and allocate resources in attaining the goals (Chandler, 1962; Henry, 2011). However, Porter’s defined it as a plan for the organisation to sustain in the industry. Porter argue that strategy is a tool to measure the success or failure of the organisation, a strategy will able to help the organisation to be competitive in its industry and lead to sustainable financial performance (Porter, 1991; Ritson et al, 2013). Apart from that, Mintzberg’s concept of strategy is Plan, Ploy, Pattern, Position and Perspective (Mintzberg et al, 1998; Anon, 2009). It is important for the organisation to manage its strategy to be flexible and responsive toward the environmental changes. Audi AG is a German luxury automobile manufacturer with its subsidiaries, Lamborghini, a supercar producer and Ducati, a motorcycle brand. Audi AG is major owned by Volkswagen, a German automobile manufacturer which controls 99.55% of the share capital (Audi, 2009). Audi always undergoes continuous refining of its strategy to ensure the strategies are always up-to-date to fulfill the organisation mission and vision. Today, Audi is one of the major players of luxury auto makers in German, along...
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...Hyundai cars are simple, resilient and known for their low cost. Created in the middle of the country’s recovery after the Korean War, Hyundai received help from Ford, which through its subsidiaries in the UK, helped to set up its manufacturing plant. The brand was born in 1947 by Chung Ju-yung, Son of North Korean peasant farmers; dominant figure in the Korean economy from 1960 until his death in 2001. Hyundai built its first car in 1968, the “Cortina”, a compact sedan under Ford license. In 1975, Hyundai made its first own model, the Pony, in collaboration with Mitsubishi and the firm “Italdesign” of Turin. Currently, Hyundai has one of the most respected research and development centers of the industry. In 1997, South Korea suffered of a serious financial crisis which also affected the automotive industry involving the Daewoo’s bankrupt (now part of General Motors). Hyundai overcame the crisis, but it was forced to divide its many operations (construction, banking, petrochemicals, logistics, shipbuilding, etc...) into 5 separate companies. One of these, the most internationally known, is the Hyundai Motor Group which now includes the brand Kia. The company has been one of the most influential industrial conglomerates in South Korea's economy. And currently, it’s the second-largest chaebol behind Samsung. The 6 major group companies are: • Group Hyundai: Hyundai's original company, founded in 1947 as a company infrastructure construction. It is dedicated to infrastructure...
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...ranked number one car manufacturer. However, the company of the Toyota had a bad year in 2010. They had plenty of manufacturing problems in different countries around the world. So the company needs to recall lots of cars. The incident brought to Toyota big losses. Porter’s Five Forces Perspective and PEST analysis are from different area. Porter’s Five Forces Perspective is used for the analysis of competitive strategy, and can effectively analysis customs of the competitive environment. PEST analysis is a macro-environment analysis. Its’ macro-forces is refers to the impact on all industries and enterprises. Its’ macro-environment can be focus on various situations. The first part is focusing on these two theories that using I chosen the company of Toyota as an example to overview and critique these two theories. Then compare and contrast these two theories. At last, conclusion this report and given some advises for these two theories. 2. Overview and Critique of theory 1 2.1 Overview the Porter Five Forces Perspective Porter five forces perspective has also known as Porter’s five competitive model. This model was first used by Michael Porter (Porter) made. This model was published in 1979 on the "Harvard Business Review" entitled "How to build competitive strategy” and the same mean is “How Competitive Forces Shape Strategy”. Then later in his published "Competitive Strategy" has in the further development and refinement of this model. He recognized that...
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...weaknesses in relation to it. The importance of environmental information depends on the degree to which the success of the organization itself depends on its environment. In the business literature, this dependency of the organization on its environment is referred to as perceived environmental uncertainty (PEU). Gordon and Narayanan (1984) identified factors that determine PEU. These factors include the nature of the society, economic stability, legal stability, political constraints, the nature of the industry, the customer base and the nature of the organization. While PEU varies from industry to industry, the level of recognition of the importance of the environment also varies from company to company, as does the reaction of companies to their environment. Khandwalla (1977) identifies three possible relationships between organizations and their environments: Dominant organization/dominated environment Dominant environment/dominated organization Symbiotic relationship – neither the environment nor the company dominates. The relationship between an organization and its environment depends upon the internal strengths and weaknesses of the company, which means that an opportunity for one company will be viewed as a threat to another company, depending on how well each is positioned to deal with the specific trend or issue. How Is an Environmental Scan Conducted? Bryson (1989) outlines general steps for conducting an environmental scan: Identify...
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...Automobile Industry Volkswagen Lecturer : Mdm Jayanty A/p Kuppusamy Prepared by: Students’ Name | Students’ ID | Boong Lek Yang | 1112702060 | Cheryl Sim Qiao Ping | 1112700828 | Gog Yi Jun | 1112700309 | Pong Fwu Yi | 1121115503 | Yau Shye Hui | 1112702505 | Table of Content Description | Page number | Executive Summary | 4 | List of Tables | 5 | List of Figures | 5 | I Introduction | | II Methodology: The Strategy Formulation Framework | | III Company Background | | The Internal Environment 1. Resources2. Capabilities3. Core Competencies | | The External Environment1. Demographic2. Economic3. Political/Legal4. Sociocultural5. Technological6. Global7. Physical8. Industry | | Porter Five Forces Model1.Threat of New Entrants/Barriers to Entry2.Bargaining Power of Suppliers3.Bargaining Power of Buyers4.Product Substitutes5.Intensity of Rivalry Among Competitors | | IV Analysis 1: The Input Stage 1. Internal Factor Evaluation (IFE) Matrix 2. External Factor Evaluation (EFE) Matrix 3. Competitor Profile Matrix (CPM) | | V Analysis II: The Matching Stage1. SWOT matrix 2. SPACE matrix 3. BCG matrix 4. I/E matrix 5. Grand Strategy Matrix | | VI Analysis III: The Decision Stage 1. QSPM Matrix | | VII Strategy Recommendation | | References | | Appendices | | Executive summary This report was commissioned to examine the internal and external environment...
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...Contents 1. Introduction 2 2. Porter's Determinants of National Advantage 2 3. Gaining Competitive Advantage with the TOWS Matrix Conceptual Model 3 4. Germany's Internal Weaknesses 4 5. Germany's Internal Strengths, Social Factors 5 6. Germany's Internal Strengths, Political and Economic factors 6 7. Threats from European Union Countries, North America and Asia 7 8. Opportunities within the European Union, North America, and Asia 9 9. Government Policy and Business Strategy 10 10. Conclusion 12 11. References 13 1. Introduction All nations are attentive to compete efficiently in the international market. Competitiveness doesn't depend simply on the value of individual firms, but also on the socioeconomic system and the industries of a nation. The rapidly changeable situations of the free world markets transcribe that nations fully utilize their comparative advantages to become or remain thriving in the future (Farr, 1990). Economic and political leaders must estimate the opportunities and threats from the foreign environments so as to put up convenient domestic strategies that shore up the weaknesses of their nations and take advantages of its strengths. This essay will illustrate the aspects of German weaknesses as well as competitive strengths that have had a significant impact either positively or negatively on the country's economy and its position in the European community and the world. Practical national forces in the technological, economic...
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...SWOT analysis of Ford and Toyota SWOT ANALYSIS “Opposition is an inevitable part of change and one that can significantly impact your community organizing. However, if you know how to take stock of the opposition inside and outside of your effort or group, you are more likely to plan and act effectively.” That's where SWOT analysis comes in. SWOT can help you handle both ordinary and unusual situations in your community health or development initiative, by giving you a tool to explore both internal and external factors that may influence your work. SWOT analysis, founded by Albert Humphrey, is a compacted planning method used to determine the strengths, weaknesses, opportunities and threats involved in a business or in a project. SWOT analysis can be used for product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. There are lots of advantages of using SWOT analysis. When a single person is considered, it is a useful technique for understanding his Strengths and Weaknesses, and for identifying both the Opportunities open to him and the Threats he faces. When SWOT analysis is used in business context, it helps you carve a sustainable niche in your market. it can helps to uncover opportunities for the business. And by understanding the weaknesses of the business, threats can be managed and eliminated that would...
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...1 Mission Statement………………………………………………………………………….1 The Role of the Marketing Plan………………………………………………………….1 The Role of marketing Information and Research…………………………………...2 The Marketing Audit……………………………………………………………………….4 A SWOT Analysis The Internal Environment…………………………………………………………………5 Strengths……………………………………………………………………………………..5 Weaknesses…………………………………………………………………………………5 The External Environment…………………………………………………………………6 Opportunities………………………………………………………………………………..6 Threats ……………………………………………………………………………………….6 Summary of key issues and implications for the eco-Nano…………………….…6 Marketing Objectives……………………………………………………………………..7 Segmentation, targeting and positioning strategies………………………………..8 The marketing mix………………………………………………………………………….9 Marketing budget………………………………………………………………………...10 A marketing Audit the Gap Analysis Recommend evaluation and control…………………………………………………12 Assess the internal marketing environment…………………………………………15 Processes and techniques ……………………………………………………………..16 The Boston Consulting Grid …………………………………………………………….16 McKinsey’s Seven S’s ……………………………………………………………………17 The planning Gap………………………………………………………………………..18 Brand management Role and significance of Branding…………………………………………………….22 Impact of Branding on marketing mix………………………………………………..22 Brand management……………………………………………………………………...23 Recommendation for improvement…………………………………………………..24 core section - task one Case – Tata motors 1 Introduction Tata Motors...
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...Challenges for the automotive industry in an on demand environment Seven areas of strategic action Executive brief ibm.com/bcs Contents 1 1 1 3 4 7 Introduction The automotive industry is facing new and pressing challenges. Globalisation, individualisation, digitalisation and increasing competition are changing the face of the industry as we know it. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry will also contribute to the changes ahead. Size is no longer a guarantee of success. Only those companies that find new ways to create value will prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and highlight challenges facing the industry. Based on this perspective, we will discuss strategic levers enabling OEMs to transform to on demand enterprises. Introduction Methodology The evolving automotive landscape The on demand challenge Brand management Customer relationship management 10 Core competency management 13 Software management 15 Quality management 17 Product development management 20 Expansion management 22 Strategic steps toward the on demand business 25 Conclusion 25 About the authors 26 About IBM Business Consulting Services 26 References Methodology The information, data and opinions presented in this paper are based on a series of interviews that IBM Business Consulting Services held with automotive industry experts, who gave...
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...Analysis of Toyota Motor Corporation By: Thembani Nkomo This paper will explore the external and internal environment of Toyota Motor Corporation, and suggest recommendations to sustain its competitive advantage. Analysis of Toyota Motor Corporation by Thembani Nkomo ANALYISIS OF TOYOTA MOTOR CORPORATION TABLE OF CONTENTS 1 COMPANY OVERVIEW 2 EXTERNAL ENVIRONMENT OF THE AUTOMOTIVE INDUSTRY 2.1 Industry Overview and Analysis 2.2 Industry Life Cycle 2.3 Industry Demand Determinants 2.4 Porter’s Five Forces 2.5 Industry Cost Structure Benchmark 2.6 Industry Competitive Landscape 2.7 Major Competitors 2.8 Key Success Factors in Industry 3 INTERNAL ENVIRONMENT OF TOYOTA 3.1 Core Competencies 3.2 Distinct Competency 3.3 SWOT Analysis 3.4 BCG Matrix: Internal Analysis of Toyota Portfolio 3.5 VRIO Framework Analysis 3.6 Toyota’s Efforts in Emerging Economies 3.7 Case Study: Toyota’s Successful Strategy in Indonesia 3.8 Strategic M&A, Partnerships, Joint Ventures, and Alliances 3.9 Analysis of Financial Performance 4 RECOMMENDATIONS 5 APPENDICES 6 REFERENCES Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota,...
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...scene and has gained considerable attention from both academics and practitioners: Supply chain risk management. Thun, Druke, and Hoenig set out to empirically investigate, supply chain risk management in small to medium sized companies. By analyzing data from 67 various German automotive manufacturing plants, the authors seek to identify the key drivers of supply chain risk and look at the various methods or instruments of supply chain risk management to determine their suitability by comparing those smaller enterprises with the larger companies. The results are visualized in the probability-impact-matrix distinguishing between internal and external supply chain risks. Statement of Problem The authors sought to answer two main questions: What are key drivers of supply chain risks, and what is their likelihood to occur and their potential impact on the supply chain? and, what are the instruments for dealing with supply chain risks and their impact on performance? These questions gave way to three Hypothesis: H1. Small to medium-sized enterprises regard their supply chain as more vulnerable that large scale companies. H2. Small and medium sized enterprises are affected more strongly by developments towards complexity and efficiency of supply chains that those large scale companies. H3a. Small and medium sized enterprises implement instruments of supply chain risk management to a lesser degree than large scale companies. H3b. Compared to large scale companies, small and...
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