... MBA 5801 Term Project: Analysis of Turkish Automative Industry and Review of Ford OTOSAN Hakan ERTÜRK 1611136 Contents 1) Historical Development and the Importance of Automative in Turkish Business Enviroment 3 a) History 3 b) Importance of Automative in Turkish Business Enviroment 7 2) Demand and Supply Structure of the Automative Sector 8 a) Sector Highlights: 8 b) Motor Vehicle Production and Sales in Turkey 9 c) Concentration of the sector 10 d) Chacteristics of products, elasticies, characteristics of consumers, entry and exit barriers, resources and capabilities of the firms, 11 3) Government Policies 12 4) International Competition 14 a) Passenger Car and Commercial Vehicle Market Import 14 b) Vehicle Market Export 14 5) Analysis Of FORD OTOSAN A.Ş. 15 a)Company Profile: 16 -Shareholders: 16 - Headquarter & Branches, Foreign Country Operations: 16 -Field of Operation 17 -Strategy of the Company: 17 -Financial indicators of the company 18 -Products, Export-Import and Domestic Market Performance: 19 -Research and Development: 19 6-Ratio Analysis: 21 7. Conclusion 23 8.Appendix 24 1) Historical Development and the Importance of Automative in Turkish Business Enviroment a) History The development of the Turkish automotive sector has been closely related to the market policies implemented by the Turkish government. The protected market regime, prevailing since...
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...Turkey’s Automotive Sector Turkey’s automotive sector’s foundations date back to the 1950s. Over recent decades, it has grown substantially, due to two main factors: the large size of the domestic market where individuals were gaining increasing purchasing power as the economy developed; and the enormous expansion of international trade especially following the Customs Union Agreement signed with the EU in 1996. These fundamental factors also drive the long-term growth expectations. In recent years, the automotive sector has become our country’s leading exporter, with total exports of USD 16.9 billion in 2009, which constituted 17.4 percent of Turkey’s total export revenues.1 Exports were USD 8.7 billion in the first six months of 2010. In 2010, demand patterns are likely to change for the Turkish automotive sector. Considering the first half of 2010, the total production reached 547,022 vehicles, a jump of 39 percent compared with the same period of 2009. Also exports and imports increased by 4.5 percent and 43.8 percent respectively.2 As the effects of the global financial crisis recede, it is expected that the Turkish automotive sector will reach average annual growth rates of 4.5-5 percent per year in 2011 and follow this trend through till 2013. There are 22 automotive manufacturers in Turkey. The total capacity of the OSD members (15 manufacturers including two tractor manufacturers) amounted to 1,561,155 vehicles in 2010.18 The capacity seemed to stay stable for the...
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...to be an iconic marque symbolized with luxury and elegance since 1913 (Aston Martin, 2015). However, Aston Martin has slowed down the market demand in Europe and North America (KPMG, 2013: 12). Nevertheless, Aston Martin plans to do an investment to expand the global market (Tift, 2015), Meanwhile, because Turkey is the fastest rising country for luxury cars, it seems advisable to target Turkey as a potential developing market (Porturkey, 2013). This report will attempt to evaluate the expansion of Aston Martin in Turkey with macro PESTLE analysis, followed by SWOT analysis, a market entry strategy and concluding recommendation for future marketing strategies based on the previous analysis. 2. PESTLE analysis 2.1. Political Turkish politics has become more stable and 50 political parties has compete in freedom, Turkey's political development is moving towards the EU accession process, the rule of law and civil liberties have been actively improved (Abylkassymova et al, 2011: 8; World Bank, 2015). Moreover, Turkey has significantly low trade barrier due to its customs union with the EU, Foreign companies are attracted by low income tax of 20%, which is an important driver of foreign direct investment(FDI) (Abylkassymova et al, 2011: 11). Furthermore, Turkey is a place where relatively easy to begin a business, as reported by the World Bank’s Doing Business Report 2015, which ranks Turkey above Italy and Greece, and also significantly exceeds the fast economic growth...
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...Outsourcing and its Effects on the Automotive Industry Abstract This paper will explain the history, current issues and future issues of outsourcing and its effects upon the automotive industry. Outsourcing has become a huge topic in recent years as our economy has begun to struggle. However as our automotive companies become more strained with increased wage expenses, shorter product life cycles and a higher cost of capital outsourcing is being utilized according to Parry and Roehrich (2009). Outsourcing can help to solve many of these problems by bringing wages down and bringing more resources and expertise in. This will help to soften the blow of these increasingly tough economic times. In order to do this they will have to reduce their on-site functions. Although as more and more core functions are being outsourced, the companies are at a larger risk of becoming “hollow”. Our essay will explore the history so that we can learn from our past mistakes and apply what we learn into the issues that we are facing currently and will face in the future. What exactly is outsourcing? Well Ledford (2006) describes that outsourcing is often used to describe situations where corporations move part of their operations out of the country. However these companies can also subcontract with in the same country and this would still be outsourcing. Now off shoring is a type of outsourcing which relocates business processes to another country in the hopes of keeping as much as...
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...Actes du GERPISA n°22 GLOBALIZATION STRATEGIES OF KOREAN MOTOR VEHICLE INDUSTRY: A CASE STUDY OF HYUNDAI Myeong-kee CHUNG The current issue in the world economy is characterized by globalization. Corporations have built up a world-wide network economy by promoting production and trade. An important cause for the globalizing trend of the world economy lies in relocation of production sites and management strategies of business. Firms need not only partnership with foreign companies in the form of direct investment and joint ventures, but they need also to develop cross-border buyersupplier relations. These trends also provide opportunities for the sharing of risks and costs in R&D and production. Globalization is driven by strategic alliances that reflect a shift of company strategies. Globalization is an increasingly important aspect of the automobile industry. In the past decades, the automobile industry has been one of the mains driving forces in globalization. The pattern of globalization followed by the major car makers can so far be split into three stages. The first stage is export. At this stage the goal is to create a car that fits into a worldwide car category. The second stage of globalization comes after the expansion of export. This is the setting up of transplant in major market regions. The last stage of globalization is complete localization of transplants on one hand and the establishment of a global business network on another hand. In the following...
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...ASSESSING THE POWER OF PORTER'S DIAMOND MODEL IN THE AUTOMOBILE INDUSTRY IN MEXICO AFTER TEN YEARS OF NAFTA SALVADOR BARRAGAN Master in Business Administration, IPADE Business School, 1996 BSc in Industrial Engineering, Universidad Panamericana, 1994 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Salvador Barragán, 2005 ii Abstract It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a free trade market. One of the main purposes for Mexico in joining NAFTA was to increase the competitiveness of its manufacturing sector, especially the automotive industry. In this paper, Porter’s Diamond Model of national competitiveness and some critiques that attempt to extend the usefulness of the model are analyzed. The Doubled Diamond and the role of MNEs in a host country are both examined through a case study research of the foreign-owned automobile industry in Mexico. The findings of this study show evidence of a broader role of MNEs than in the original framework, as well as the usefulness of the doubled diamond extension to explain alternative sources of competitiveness in early stages of development. iii Acknowledgments...
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...Running head 1 BMW's Dream Factory & Culture Christian Chenard Strayer University Dr. Theresa J. Bowen Leadership and Organizational Behavior - BUS 520 April 2010 BMW's Dream Factory & Culture 2 How would you describe the culture at BMW? Entrepreneurial culture is rarely the norm in German corporations. Employees at BMW are innovative because management has learned from experience that listening to assembly workers' ideas and customers likes make for a very creative culture. The employees at the plant, to include engineers, assembly line employees and management are known to brainstorm when a problem arises with a car model in production. The task force concept is a powerful tool BMW has learned to use when it needs to either solve a problem or create a new concept of operation for a project. (Hellriegel, D. & /Slocum J, 2007, pp.522-524). Managers came to realize that they don't necessarily have all the right answers. Audi and Toyota are BMW's closest market rivals in Germany and this keeps everyone at BMW thinking from top to bottom. No sooner does an innovation hit the market, people at BMW stay on their toes to see if that is something their clientele might go for in a "Bimmer" or not. Norbert Reithofer, the current CEO at BMW stated "we push change through the organization to ensure its strength. There are always better solutions". (Hellriegel, D, 2007, p522)....
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...Innovative Practices in Customer Creation Submitted to : Prof. Mithileshwar Jha On 18th October 2013 In partial fulfillment of the requirements of GMITE-VII By |Name |Registration No. | |Gopakumar Nair |GMITE- 22 | |Jijo Mathew |GMITE | |P G Rajesh Nair |GMITE- 63 | |Name |Registration No. | |Gopakumar Nair |GMITE 22 | |Jijo Mathew |GMI | Name Registration no. Gopakumar Nair GMITE 22 Jijo Mathew Rajesh Nair [pic] Executive Summary From the conception level to the launch of a product/service and then to sustain and enhance market acceptability, each product /service follows certain marketing techniques. Marketing strategies decide the futuresucess of a product, be it services or a new product, it is the strategies adopted to identify the customers, positioning and pricing of the product which determines the life of the product in the market. In this paper we have researched on some of the Innovative strategies successfully employed by automobile companies for new customer creation This document is a study about...
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...Operation Management TOYOTA Team P.A.L Minchul Seo, Altanzul Table of Content 1. Introduction 2. Industries and Company Information 3. Explanation of OM Capabilities 4. How Company Uses OM 5. Identify Problems / SWOT analysis 6. Areas to use for improvements of Critical Business activities in Operations Management 7. Provide Multiple Solutions 8. Conclusion Introduction Toyota Motor Corporation is one of the leading automobile manufacturers in the world by not only its models but also its management. We can say that the principles that Toyota Motor Corporation uses are the way to their success. For instance, they do not only want to be successful by themselves but also they respect their partners and suppliers by challenging them and helping them improve. Toyota wants to be reliable to the customers, suppliers and to the organization. For this reason, they use some operating management technologies such as Just In Time (JIT), Quality Management (QM), Total Quality Management (TQM) and so on. Using these technologies they could reduce to time they spent on manufacturing, shipping, ordering, receiving, forecasting and many others. It also affected to their quality and the overall mission to be succeed. They do not try to hide their weakness and problems in the organization so that they can fix them easily by using simple visual indicators to help people determine their problems immediately whether they are in standard condition deviating from...
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...ANALYSIS OF THE INDIAN AUTOMOBILE INDUSTRY SUBMITTED BY : ANIKET SHARMA ROLL NO. 45 PG-C INTRODUCTION The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile majors are looking to leverage India's cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs. India also has the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. The automotive plants of global automakers in India rank among the top across the world in terms of their productivity and quality. Top auto multinational companies (MNCs) like Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their global pecking order. MAJOR DEVELOPMENTS & INVESTMENTS * Yamaha Motor Co (YMC) has announced to set up its fifth global research and...
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...Ford and the world automobile industry in 2012 At the beginning of 2012, the Chief Financial O cer of Ford Motor Company, Lewis Booth, was reviewing his nancial forecasts for 2012-16. Ford’s turnaround since the crisis of 2007-8 had been remarkable. After a loss of $14.7 billion in 2008, Ford earned net pro ts of $6.6 billion in 2010, and it looked as though Ford’s pro t for 2011 would exceed this. The recovery had been much more rapid than Booth had expected. Ford’s business plan of December 2008 projected that it would not break even until 2011.1 Booth attributed the speed of the turnaround to three factors: rst government measures in North America and Europe to stimulate demand through incentives for scrapping old cars and subsidies for purchasing new, fuel-e cient models; second, the recovery of demand in several major markets including China, India, Brazil and the US; third, Ford’s own restructuring. The “One Ford” transformation plan introduced in 2006 had closed plants, cut Ford’s workforce from 295 000 at the beginning of 2006 to 148 000 at the end of 2011, sold Jaguar, Land Rover and Volvo and a large chunk of Mazda; integrated Ford’s global activities; and accelerated product development including an increasing emphasis on smaller cars. Despite these successes, Booth looked to the future with much trepidation. Ford’s performance over the next ve years would depend on three main factors: Ford’s ability to continuing success with its One Ford strategy, the state of the...
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...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of increasing...
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...- Lessons in Post-Merger Integration - Jan Daniel Laufhütte 2304958 Individual Written Case Study Report in Strategic Management IHS-3-422 London South Bank University 17/12/2003 Table of Contents List of Figures................................................................................. i Introduction ................................................................................... 1 1. The changing world automobile industry .............................. 1 2. Reasons for mergers and acquisitions .................................. 3 2.1. 2.2. Daimler-Benzs’ motives..................................................................... 3 Chryslers’ motives ............................................................................. 5 3. The Post-Merger Integration Structure................................... 7 3.1. 3.2. 3.3. Preparations for the merger .............................................................. 7 Integration Structure of DaimlerChrysler......................................... 7 Expected Synergies ........................................................................... 8 4. Cultural Issues ......................................................................... 9 4.1. 4.2. 4.3. Daimler-Benz’s Culture...................................................................... 9 Chrysler’s Culture ............................................................................ 10 Key Integration Problems and Post-Merger Business Culture ....
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... | | Case Study: ‘The OSCar Project – Cars to save the world’ Question 1 – IT took Hugo about 6 years to secure funding for the LIFEcar project whilst at the same time he was keen to develop the Hyrban city-car as a parallel project. Comment on the creation, development and management of the two projects. Where they indeed separate, as presented? The creation of the LIFEcar project was based on opportunities that had been generated by the current practices of the automotive industry. In times were combating global warming is a big issue Hugo identified that the long term future of the automotive industry was uncertain as it relied heavily on finite fossil fuels. Hugo identified a market opportunity that would take advantage of the current issues the automotive industry had by proposing a vehicle that did not depend entirely on the consumption of finite fossil fuels. The creation of the LIFEcar project was Hugo’s answer to clean transport and it seemed to be the way forward and future of automotive technology. With the concept of the LIFEcar project underway Hugo identified another potential market for Hydrogen fuel cell Car, one which he believed seemed to be a more ideological market and moved away from the development of a HFC sports car. Hugo identified that a more promising early market would be for HFC city-cars, this lead to the development of a second project the Hyrban city-car. The Hyrban city-car had similar technological aspects to those that were introduced...
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...\ Weekly Case Analysis #1 Auto Industry This article describes the situation of the global auto industry in 2009. The industry was facing new challenges brought on in large part by the housing market collapse. The collapse of the housing market left many people scared to invest and scared to spend. Trust had been lost in banking institutions and no one was ready to take on new loans at this time. This meant demand for high priced items, such as automobiles was down in the United States of America. The United States and the global automobile industry were suffering big losses. United States auto sales were down eighteen percent from 2007 to 2008, while France’s automobile sales were down 15.8 percent from the previous year. The Big Three automobile companies in the United States, Ford, General Motors, and Chrysler, had dominated the market up to this point, but was starting to lose an edge to many foreign automobile manufacturers. Many foreign automobile companies, like Honda and Kia, were moving in on this gap that had been left by Ford, General Motors, and Chrysler. These foreign companies were able to continue to profit while Ford, General Motors, and Chrysler suffered losses because they were not stuck in an old business model like the older companies. They were able to find out what the consumer wanted and what would be most sustainable long term. Ford, Chrysler, and General Motors got caught up in doing what had always been successful and did not look at changing...
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