...AUTOMOTIVE INDUSTRY ANALYSIS Submitted by Team A Donald Bradley Morgan Bruns Adam Fleming Jay Ling Lauren Margolin Felipe Roman Presented to: Prof. Alan Flury December 5, 2005 ME 6753: Principles of Management for Engineers Executive Summary Chosen industry: This analysis focuses on the automotive industry, specifically, large-scale manufacturers of automobiles. The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to undergo major restructuring in the near future due to globalization and decreasing oil reserves. The analysis team members (we) feel qualified to perform this investigation due to our familiarity with the industry and our education—several of us have studied and worked on problems associated with automobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry’s structural characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies and selection criteria follow. General Motors, Ford, and Toyota were chosen because they are the current market leaders. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as stable international...
Words: 13102 - Pages: 53
...JHT2 Strategic Management TASK3 A1. Evaluate the industry environment for your company by doing the following: Dominant economic features JoPat Auto Repair service Inc. is a business that specializes in auto repair and maintenance in the Houston Katy area. They offer competitive rates, use original equipment parts, and specialize in both domestic and foreign vehicles. They perform state emission inspections, sell batteries, and install tires. They strictly adhere to factory maintenance schedules. The Retail Automotive Industry is comprised of two kinds of companies: those that sell replacement automotive parts and accessories to "do-it-yourself" customers and to commercial "do-it-for-me" clients; and those that sell a wide assortment of new and used vehicles over the Internet and networks of regional or national franchised dealerships. The most dominant economic feature is Market growth rate. The Auto repair industry is a fast growing industry. There is an increase in the number of vehicles on the road and the average age of a car today is nine and half years. People are choosing to keep their cars for a longer time and therefore spend on the maintenance, to prolong its life span. There is also an increase of the miles driven by drivers today, which emphasizes the need for regular maintenance of the vehicle. The complexity of the vehicles today requires special tools and computerized analysis for repair. It is very expensive to buy a new car therefore people are choosing...
Words: 3400 - Pages: 14
...Thursday, November 13, 2014 [Ethics of the Automobile Industry: Ford Motor Company] | By Amir Rafih, Jordan Mather, Jennifer Sprague, Eric Parr, Gloria Ledi, and Meshal Mustafa | | (04-71-300 ) Business Ethics in a Global Context by Dr. Kent Walker Table of Contents Executive Summary 3 Introduction 4 Global History & Development of Automotive Industry 4 Value Chain of the Automotive Industry 6 PEST Analysis 7 Political Factors 7 Economic Factors 9 Social Factors 9 Technological Factors 10 Stakeholder Interests 11 Shareholders 11 Domestic Part Suppliers 12 CAW/UAW (Employees) 12 Customers 12 Environmental Groups 13 Stakeholder Position Analysis 13 CEO 13 Customers 13 Competitors 14 Analysis of History of Recalls and Assessment of Ethics 14 History of Recalls 14 Potential for Improvement 16 Economic, Social and Environmental Impacts of the Global Automobile Industry 17 Utilitarianism 17 Feminist Ethics 18 Postmodern ethics 20 Kant’s categorical Imperative 21 Corporate Social Responsibility, Corporate Social Responsiveness and Corporate Social Performance 22 Conclusion 27 References 27 Appendices 29 Executive Summary Before only the wealthy could afford cars but this changed with the Ford Model T. This car was specifically targeted at average family household by making it affordable to own. By 1918, Model T was owned by half of American car consumers (LoveToKnow, 2014). Standards must be set for companies...
Words: 9752 - Pages: 40
...costing This is not a new idea as far as a successful companies operation is concerned. It can be defined as the method that is implemented in determining the cost at which a product having particular parameters must the produced to ensure the required return rate is achieved.. This process entails analysis of cost that take place during the development phase and ensuring the cost is kept below the threshold (Stapenhurst, 2009). Target costing is one of the responsibilities that are pursued by the managing accountants even though several companies dramatically use a different approach. Due to the fact that target costing approach originated from a competitive environment many companies adopt a different approach in order to survive. ITT Automotive Company has been using the comprehensive target costing to ensure profitability in the sales. The fundamental objective of...
Words: 2501 - Pages: 11
...Ethical Assessment Victor Terry Swanson MGT/521 June 8, 2011 Dr. William Dickie A successful company is built on a solid foundation. Ford Motor Company was founder Henry Ford had a concept to build cars. Henry Ford not only wanted to manufacture cars, he wanted to produce a product of superiority and quality. The market and automotive industry has grown considerable since the conception of Henry Fords’ dream. Never the less, in a global and universal market, the core principle of what Ford Motor Company was founded remains the same. Ford Motors’ commitment to the company’s mission statement, vision, ethics, and values is what solidifies Ford’s position as a top contender in the automotive industry. Mission and Vision Ford’s transformation Ford’s commitment to mission statement is timeless. Henry Ford had a mission to produce a quality automobile in the 20th century. Ford Motor Company (FMC) continues to solidify the company’s top ranking in the worlds’ automotive market. As a leader in the automotive market Ford continues to reinvent the company’s style of leadership. Several approaches to leadership have lead to a successful rejuvenation of Ford Motors. According to text Ford Motors embraces the transformational style of leadership. FMC know the benefit of keeping the proverbial hand on the pulse of the consumer272. A company is only as good as the product the companies supply and the demand for the product. The conceptual vision of the company was to provide a...
Words: 1166 - Pages: 5
...FUTURE © Commonwealth of Australia 2008 ISBN 978-0-642-72554-7 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Canberra ACT 2600 or posted at http://www.ag.gov.au/cca CONTENTS PRIME MINISTER’S FOREWORD MINISTER’S FOREWORD EXECUTIVE SUMMARY WHY A NEW CAR PLAN? THE DETAILS THE GOVERNMENT’S RESPONSE TO THE REVIEW OF AUSTRALIA’S AUTOMOTIVE INDUSTRY 1 3 5 7 9 13 PRIME MINISTER’S FOREWORD The Hon Kevin Rudd MP Prime Minister of Australia Our first car took to the road as early as 1897, when David Shearer demonstrated his steam-driven horseless carriage in South Australia. Yet it would be two generations before the first 48-215 Holden came off the line in 1948, and motor vehicle production began in earnest. That’s a measure of how hard it is to establish an automotive industry, and a reminder of why Australian governments have dedicated themselves to ensuring that we remain a car-making country. In the past, governments have tried to protect the industry with tariffs and quotas. The Button Plan of the 1980s showed there was a better way. If we want the Australian car industry to prosper, we have to make it stronger — more innovative, more productive...
Words: 7028 - Pages: 29
... MAKING THE TOUGH TEAM CALL (A) Gudrun Dammermann-Priess was stunned after this latest round of project presentations. In the nine years since the international management program (IMP) began, she never had a project so bad that she considered not allowing it to go forward. With only six weeks until the final project deliverable in mid-May 2000—a 15-minute presentation in front of 100 top executives at Continental A.G., including the chief executive officer (CEO) and at least four other members of the Vorstand—the software team project was a potential embarrassment in a very high-stakes environment. The CEO’s concluding remarks from the previous year’s IMP–1999 echoed in her ears. “I would like all my top managers to take notice. If only your presentations were as good as those we have seen this afternoon.” The IMP program had risen substantially in stature and useful strategic output over the last several years, and the risks of presenting a poor project were, for Dammermann, acutely felt. Literally from the very first module of IMP–2000 in November 1999, when teams were put together and matched to mentors and projects, the three members of this project were in complete disagreement about almost every aspect of the project and its development. They disagreed on what the mentor wanted them to accomplish and how they might begin to approach answering the key questions. Furthermore, even though there were some personal interest overlaps, the styles of two team members mixed like...
Words: 4631 - Pages: 19
...Industrial Strategy: government and industry in partnership Driving success – a strategy for growth and sustainability in the UK automotive sector July 2013 Contents | 3 Contents Foreword Executive summary Challenges and opportunities Investing in innovation and technology Enhancing supply chain competitiveness and growth Investing in people – ensuring the right skills A business environment that enables a competitive automotive industry 1 The UK automotive industry Overview of the sector Competitiveness – a high productivity sector Enhancing UK competitiveness: strengths and weaknesses Vision for the UK automotive sector Investing in innovation and technology Success through collaboration Developing more detailed technology roadmaps Maintaining the UK’s strength in propulsion systems Hydrogen and fuel cells Enhanced links with motorsport Enhancing collaboration with the research base Better engagement with EU funding Delivering intelligent mobility Future technologies Enhancing supply chain competitiveness and growth Key challenges for the supply chain Quantifying and capitalising on the business opportunity for the UK supply chain Improving long-term supply chain competitiveness Encouraging inward investment in the UK supply chain and creating export opportunities Access to finance Innovative processes for premium manufacturers 3 5 6 6 7 8 8 9 9 10 12 16 18 21 24 26 31 31 32 32 32 33 34 37 38 40 44 47 48 2 3 4 | Driving success – a strategy for growth...
Words: 24676 - Pages: 99
...DANDRIDGE MENDOZA BA411: TRAINING AND DEVELOPMENT WRITING ASSIGNMENT: ADAYANA AUTOMOTIVE MARCH 31, 2014 ADAYANA AUTOMOTIVE Adayana makes e-learning happen. The firm develops interactive training programs delivered through websites and software as well as classroom-based courses. Adayana learning services include content development, strategic and marketing consulting, managed learning services, and technology integration. It targets specific vertical markets around the world such as food, agriculture, automotive services, government, and health care, with clients including Jiffy Lube, Goodyear, and the US Army. In the specific case of Adayana Automotive, now simply Adayana since its 2009 merger with other companies and subsequent expansion into additional business lines. A decision to contract with it is, again, an economic or financial decision, but one solidly grounded in the dynamic nature of the automotive industry. Automotive technology is in a constant state of evolution, with new models of automobile and new types of automotive components and the incorporation of computer chips in cars represented a major technological innovation, placing a serious strain on the repair industry in terms of maintaining proficiency in car repair. The financial and organizational burden of maintaining in-house training and education programs to ensure that employees remain technically proficient can be prohibitive. Under such circumstances, outsourcing to a company like Adayana...
Words: 543 - Pages: 3
...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...
Words: 4645 - Pages: 19
...Executive Summary This report suggests that mass car market is highly competitive and through proficient operational approach McLaren remained successful in eliminating all barriers to entry in mass car market.The successful merger of McLaren team with Ron Dennis’ Project 4 team in 1981 and itsstrategic alliance with Mercedes-Benz later in 1995 for supplying enginesprovided the group with a golden opportunity to establish itself on the global platform. McLaren was the first company to use carbon-fibre-composite in its road car designs, which has provided the company with a competitive edge in the mass car market. Continuous investments are made in R&D to produce high-performance road cars for its discerning customers. McLaren’s successful establishment in the mass car market signifies the effectiveness of its global business strategy. McLaren’s diversified business portfolio consists of McLaren Automotives, McLaren Racing, McLaren Electronic Systems, McLaren Marketing, Absolute Taste and McLaren Applied Technologies. McLaren has adopted related diversification to increase its growth rate and market power. There is operational synergy amongst the businesses in McLaren’s business portfolio.Vertical integration has allowed the group to increase its operational efficiency and profitability. McLaren Racing is the most profitable company in the portfolio and all the other companies in the portfolio are also making considerable profits. Core competences are the underpinnings of...
Words: 2794 - Pages: 12
...Case Study: Adayana Automotive Alandric Holman Grantham University/BA411 1 Auguat 2013 Adayana, is a company comprising of 300 professionals located around the world, excels at thought leadership and innovation in developing employees of a company to accelerate their organizational success. It consists of a talented team of professionals which collaborates with an organizations team to accelerate success whether through Learning & Development, Management Consulting, or Performance Technologies. They serve to find the right answers, and to put those answers into action collaboratively with the organization they work with. Human capital is the single most valuable asset for most organizations and they consider no better way to improve operational performance, gain a clear competitive advantage, or continue growth with sustainable success than through the effective development of people and enterprise strategy. Adayana, accelerates its clients' success through: • Learning Solutions • Management Consulting • Performance Technologies Adayana is honored to collaborate with clients from around the globe, in business and in government, in our strategically focused and experienced industries. It is largely involved with organization such as: Adayana Automotive The Adayana Automotive Group delivers value to clients in the motor vehicle and transportation industries. Within this market, it serves retailers, manufacturers, service providers, and their channel partners...
Words: 995 - Pages: 4
...utilize my practical skills and put my enthusiasm to use while providing the opportunity to expand my knowledge gain additional skills and experience. I’m a quick learner able to adapt and integrate effectively with people, situations and work environments. I have the ability to handle high level of workloads submitted strict deadlines; excellent communication, leadership, problem solving, organizational and interpersonal skills. I’m an innovative person, flexible I work well in team environment but also self-motivated and capable of working independently. I believe my positive attitude and dedication will be an asset to your company, If given the opportunity I’ll show how I am able to work productive in all environments while pushing myself to achieve my best Skills * Mechanical aptitude and interest mechanics, mechanically minded * Able to work under pressure thrive in a busy environment * Ability to follow complex instructions, procedures and specification * Detail orientated, Outstanding attention to detail in fast paced environment * Ability to use initiative * Ability to use common sense and work through problems * Knowledge and experienced in working clean room with hazards substances * I work well in team environment but also self-motivated and capable of working independently and responsibly * Extensive experience in assembly and soldering. * Demonstrates analytical thinking and problem-solving skills necessary to troubleshoot...
Words: 1749 - Pages: 7
...| The Automotive Industry | Ford AutomotiveOctober 3, 2012 | | | | | INTRO: BARRIERS TO ENTRY: Since the company we chose to analyze is Ford, the industry is limited to the North American automobile industry. Barriers to entry are defined as characteristics of the industry itself that prevent rivals from getting in as well as set standards for the competitors in that industry. The automotive industry has grown exponentially and it is currently one of the most competitive industries. One of the major players in barriers to entry is brand strength. Over the years brands have been developing and customer loyalty to one particular brand is very strong. This makes it difficult for a company to enter the industry and expect to be a significant competitor. Customers are loyal to one particular brand and that diminishes the customer base for new entrants. Unless the company already has the internal structure of a big automotive manufacturing company then it is very difficult for them to enter this particular industry. Not only are start-up costs very high, but there are significant costs in the design and manufacturing of cars. Product differentiation is also another major factor, since many companies have had to rely on their unique products to attract more customers as well as expand their customer base. Other factors to barriers to entry include government regulations. In the United States, the Environmental Protection Agency has set standards of emissions...
Words: 3364 - Pages: 14
...development of an automotive repair shop while showcasing the expected financials and operations over the next three years. The Automotive Repair Shop, Inc. (“the Company”) is a New York based corporation that will provide automotive repair services and part sales in its targeted market. The Company was founded in 2009 by John Doe. 1.1 Products and Services The Automotive Repair Shop will be engaged in the business of providing automobile repair and other automotive services to the general public. The Company has the ability to service almost any domestic or foreign automobile. The Company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts. Once Mr. Doe brings the business to profitability, he intends to further expand the after-market auto parts revenue center and increase the sports tuning services, which command higher premiums that standard automotive repair. The third section of the business plan will further describe the services offered by the Automotive Repair Shop. 1.2 The Financing Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. 1.3 Mission Statement The Automotive Repair Shop’s mission is to become the recognized leader in its targeted market for car and truck repair services. 1.4 Management Team The Company...
Words: 1713 - Pages: 7
