...is due to the critical details often being overlooked, such as selecting the right suppliers, matching inter- organizational needs and capabilities and clearly defining standards and goals. [Daugherty et al, 2006] Questions arise about whether buyers and suppliers benefit from collaborations. A study of collaborative relationships found that even though both the buyers and suppliers benefited from the collaboration but there was a feeling of inequality in the collaboration on the suppliers’ part. It is crucial for this issue to be addressed in order to achieve future success. [Terpend et al, 2008] The South African automotive industry “The South Africa’s automotive industry is a global, turbo- charged engine for the manufacture and export of vehicles and components.” [Van der Merwe, 2009] In the past years South Africa has been able to develop a major automotive industry with local vehicle manufacturing plans for companies such as Volkswagen, BMW,...
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...Limited Gipp Aero Investments Pty Limited Nomad TC Pty Limited GA 200 Pty Limited GA8 Airvan Pty Limited Aerostaff Australia Pty Limited Airvan Flight Services Pty Limited Gipps Aero Pty Limited Nature of Relationship Sector Products / Services Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Systech IP holder for Type Design Data IP holder for Type Design Data IP holder for Type Design Data Aero Components Aircraft Operating Company Aircraft 2 Aftermarket Mahindra & Mahindra Limited Mahindra Spares Business Mahindra First Choice Wheels Limited Mahindra First Choice Services Limited Division Subsidiary Subsidiary Aftermarket Spares Buying & Selling Used Cars Multi-brand Service of Cars 3 Agri-business Mahindra & Mahindra Limited Mahindra Shubhlabh Services Limited Subsidiary Automotive & Farm Fresh Produce, Agri-Inputs 4 Automotive Mahindra & Mahindra Limited Mahindra & Mahindra Limited - Automotive Division Mahindra & Mahindra South Africa (Pty) Limited Mahindra Automobile Distributor Private Limited Mahindra Navistar Automotives Limited Mahindra Vehicle Manufacturers Limited Mahindra Navistar Engines Private Limited Mahindra Automotive Australia Pty. Ltd. Mahindra Reva Electric Vehicles Private Limited Mahindra Overseas Investment Company (Mauritius) Limited Mahindra Europe s.r.l Mahindra Graphic Research Design s.r.l NBS International Limited Ssangyong Motor...
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...Current Macroeconomic Situation in US and Prospects for Automotive Sector The U.S. automobile industry is large and dynamic sector contributing significantly to the nation’s output and employment. Auto industry provides the basis for a mass of related service and support industries. The industry is highly volatile and sensitive to global and domestic economic changes. During the 1960’s & 1970’s the big three accounted for 90% of automobiles purchased in U.S. However, since 1980’s foreign manufacturers entered the U.S market. So, the industry faced intensive competition from Japan, Germany & other countries. During 1998’s availability of foreign substitutes flooded the U.S automotive industry. Foreign producers, particularly Japanese, provided solitary competition to The U.S. oligopoly. Besides, the demand for automotives are highly found to be fickle and sensitive to macroeconomic conditions like, income, unemployment, interest rate etc. Regarding cost of production, The U.S automotive firms are characterized by huge fixed and variable costs. The variable cost in terms of wages and other benefits are, because most of the automobile firms like GM, Ford, and Chrysler have long been unionized. The United Auto Workers (UAW) ensures higher wages and generous benefits in the form of health insurance and Medicare for automotive industry workers than in any other non unionized firm. Eventually, UAW contracts with the auto firms lead to mounting variable and fixed cost...
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...AUTOMOTIVE SECTOR REPORT An Introduction about the factors influencing the sector: 1. Infrastructure/ GDP: Automobiles sales revenue follows economic cycles very closely. This is especially true in the case of sales of HCVs. Availability of good roads is an important determinant for passenger vehicle demand. 2. Affordability: Movement in income and interest rates determine the affordability of new motor vehicles. The ready availability of cheap loans is an important factor driving demand. Disposable income in the rural agriculture sector is increasing. 3. Auto Financing: There are more than 35 financers in the market today, with the State Bank of India being the leader. Easy availability of finance has been one of the most important growth drivers for the auto industry since 2003. 4. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. The Indian middle class is growing and is estimated to grow from 50 million currently to 550 million by 2025. 5. Cost of ownership: i. Petrol prices: The price of oil affects the driving habits of consumers and the type of car they buy. During periods of high fuel cost as experienced in 2007 and the first half of 2008, demand for large cars declined in favour of...
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...mission is to help leaders in the commercial, public, and social sectors develop a deeper understanding of the evolution of the global economy and to provide a fact base that contributes to decision making on critical management and policy issues. MGI research combines two disciplines: economics and management. Economists often have limited access to the practical problems facing senior managers, while senior managers often lack the time and incentive to look beyond their own industry to the larger issues of the global economy. By integrating these perspectives, MGI is able to gain insights into the microeconomic underpinnings of the long-term macroeconomic trends affecting business strategy and policy making. For nearly two decades, MGI has utilized this “micro-to-macro” approach in research covering more than 20 countries and 30 industry sectors. MGI’s current research agenda focuses on three broad areas: productivity, competitiveness, and growth; the evolution of global financial markets; and the economic impact of technology. Recent research has examined a program of reform to bolster growth and renewal in Europe and the United States through accelerated productivity growth; Africa’s economic potential; debt and deleveraging and the end of cheap capital; the impact of multinational companies on the US economy; technology-enabled business trends; urbanization in India and China; and the competitiveness of sectors and industrial policy. MGI is led by three McKinsey & Company directors:...
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...Assessment and Options1 R Nagaraj2,3 Ownership reform in public sector enterprises (PSEs) initiated since 1991 has as yet been quantitatively modest. It is perhaps too early to judge the effects of these initiatives on their financial performance. While the slow pace of the reform can be perceived as an opportunity, there is perhaps merit in carefully reviewing the policy in light of economic theory, and comparative experience. As the bulk of the public investments are in industries with economies of scale and scope (with externalities that in principle invite considerable regulation), this study suggests an alternative institutional arrangement for improving PSEs’ financial performance: mutual stock holding among complementary enterprises tied around a public sector bank to minimise problems of soft budget constraint, dysfunctional legislative and bureaucratic interference, and to encourage close interaction between banks and firms to promote long term economic development. Introduction: Employing about 19 million persons, public sector currently contributes about a quarter of India’s measured domestic output. Administrative departments (including defense) account for about 2/5th of it, the rest comes from a few departmental enterprises (like railways and postal services), and a large number of varied non-departmental enterprises producing a range of goods and services. These include, close to 250 public sector enterprises (PSEs) owned and managed by the central government, mostly...
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...mission is to help leaders in the commercial, public, and social sectors develop a deeper understanding of the evolution of the global economy and to provide a fact base that contributes to decision making on critical management and policy issues. MGI research combines two disciplines: economics and management. Economists often have limited access to the practical problems facing senior managers, while senior managers often lack the time and incentive to look beyond their own industry to the larger issues of the global economy. By integrating these perspectives, MGI is able to gain insights into the microeconomic underpinnings of the long-term macroeconomic trends affecting business strategy and policy making. For nearly two decades, MGI has utilized this “micro-to-macro” approach in research covering more than 20 countries and 30 industry sectors. MGI’s current research agenda focuses on three broad areas: productivity, competitiveness, and growth; the evolution of global financial markets; and the economic impact of technology. Recent research has examined a program of reform to bolster growth and renewal in Europe and the United States through accelerated productivity growth; Africa’s economic potential; debt and deleveraging and the end of cheap capital; the impact of multinational companies on the US economy; technology-enabled business trends; urbanization in India and China; and the competitiveness of sectors and industrial policy. MGI is led by three McKinsey & Company directors:...
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...Project Report on US Recession and its Impact on Indian Economy Submitted to Prof. V.P.Singh Submitted By Sona Nair 38 Shrenik Shah 54 MansiKinjawdekar 32 ParleTilakVidyalaya’s Institute of Management Dixit Road, VileParle East,Mumbai-400057 Index Sr.no Table of Contents Page no 1. Introduction 2. Factors affecting Recession 3. Impact on Indian Economy 4. Corrective Steps taken to check Recession 5. Case Study- 6. Conclusion 7. Executive Summary 8. Bibliography INTRODUCTION What is Recession? A recession is a contraction phase of the business cycle. The official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research (NBER). They define recession as a “A period of falling economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.” This is normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. For this reason, the official designation of recession may not come until after we are in a recession for six months or even longer. Some economists also suggest that a recession occurs when the natural growth rate in GDP is less than the average of 2%. Typically, a normal economic recession lasts for approximately 1 year. The newspapers in America often quote theThumbRulethat...
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...Automobile Industry in UK - An Internal and External environmental study Introduction: The automobile sector in United Kingdom (UK) is very vibrant and innovative with Seven commercial vehicle manufacturers, nine bus and coach manufacturers, eight major premium and sports car producers, seven mainstream cars manufacturers; eight formula one teams; thirteen R&D centers; and over 100 specialist brands and niche manufacturers. Some of the best premium and sports cars manufactured in UK are Aston Martin, Bentley, Daimler, Jaguar, Lagonda, LandRover, Lotus, McLaren, MG, Mini, Morgan and Rolls-Royce. UK automotive industry is producing over 1.5 million vehicles and 2.5 million engines every year. Another key point about the UK automobile industry is that it exports around 75 % of its production which makes UK the largest exporter of cars in the world. Apart from automobile manufacturing, UK also has notable presence in motorsport industry and auto racing industry. UK motorsport industry contributes with an annual turnover of £6 billion out of which more than 50% is exported with about 4500 companies involved in this industry. UK automobile sector has undergone tremendous change since its inception in the 19th century. From being the second largest manufacturer of cars in the world (next to United States), it went down to be the 14th largest producer of cars by 2012 because of the rising competition from countries like...
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...Table of Contents * Introduction * Overview of an Automotive Industry * Place of the industry in an economy * Automotive industry in world’s economy * Automotive industry in Turkish economy * Trade perspective * Conclusion The automotive sector is a developing sector in the world. Its importance has increased drastically for the economies of countries. In this sector, the competition between companies has been increasing and with this expected increase; the elements such as efficiency in production, efficient use of resources have become an essential part of it. Therefore characteristics such as; investing on research & development , quality management , relationships between main and sub-industry collaboration , qualified employment has been on the competitors list in order to beat the competition. Automotive industry is one of the world’s largest industry that have been received the largest investments. In the scope of research & development and production, it has received 85 billion euros investment and the countries that have received an investment, have a tax income of 433 billion euros which proves us how big the industry is in the world. Automotive industry has a turnover of two trillion euro. Therefore this economy scale equals to economy of a country that is the sixth one of the world. In Turkish automotive industry, we would witness the same kind of structure. If we take a look at the proportion of it in the...
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...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 and sustainability in the UK automotive sector 4 Investing in people – ensuring the...
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...The European Journal of Development Research Vol. 20, No. 1, March 2008, 31–55 Staying alive in the global automotive industry: what can developing economies learn from South Africa about linking into global automotive value chains? Justin Barnesa and Mike Morrisb * Benchmarking and Manufacturing Analysts, and PRISM, School of Economics, University of Cape Town, Cape Town, South Africa; bPRISM, School of Economics, University of Cape Town, Cape Town, South Africa, and School of Development Studies, University of KwaZulu-Natal The insertion of the South African automotive industry into the global mainstream of vehicle manufacturing highlights a number of valuable analytical lessons for developing country automotive economies. The global value chains that dominate the automotive industry have fostered substantial upgrading within the South African automotive industry but pervasive international trends also limit the opportunities for value addition and more substantial increases in vehicle output. Key trends in this regard relate to tightening market conditions in the developed economies into which South African vehicle producers and automotive component manufacturers supply, excess global production capacity and the emergence of new low cost production locations principally in Asia. The benefits to the South African automotive industry of engaging in global value chains are clear but the long term sustainability and development of the industry remain in question. The importance...
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...UK AUTOMOTIVE AT A GLANCE UK AUTOMOTIVE INDUSTRY: PROFILE MANUFACTURING THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS MOTOR INDUSTRY FACTS 2014 REGISTRATIONS VEHICLES ON THE ROAD ENVIRONMENT CONTENTS WHAT IS SMMT? The Society of Motor Manufacturers and Traders (SMMT) supports and promotes the interests of the UK automotive industry at home and abroad. Working closely with member companies, SMMT acts as the voice of the motor industry, promoting its position to government, stakeholders and the media. SMMT represents more than 600 automotive companies in the UK, providing its members with a forum to voice opinions on issues affecting the automotive sector, guiding strategies and building positive relationships with government and regulatory authorities. As one of the largest and most influential trade associations operating in the UK, SMMT’s resources, reputation and unrivalled automotive data place it at the heart of the UK automotive industry. UK AUTOMOTIVE AT A GLANCE UK AUTOMOTIVE INDUSTRY: PROFILE MANUFACTURING REGISTRATIONS To find out how to join SMMT and for more information, visit www.smmt.co.uk/memberservices or e-mail membership@smmt.co.uk. VEHICLES ON THE ROAD ENVIRONMENT www.smmt.co.uk CONTENTS 02 CONTENTS UK AUTOMOTIVE AT A GLANCE ................................. 4-5 REGISTRATIONS ........................................................ 16 Cars by fuel type ......................................................
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...be one of the best players in the luxury automobile sector, growing despite the European markets’ crisis. The group is well positioned in worldwide market 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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...be investigated in this study is the economic importance of the automotive industry. It will explore the social impact it has brought worldwide and how it is affecting the world of commerce. It will also explain the foreign trade and the different automotive industries of each country. The following sub-questions will be evaluated: * What pollution-control strategies each automotive industry are practicing? * What are the latest in automobile safety measures? * How does motor vehicle production affect the economy? * What are the standards of manufacturing efficiency in an automobile? INTRODUCTION The automobile industry is concerned with profits and competition; with consumer demands for styling, safety, and efficiency; and with labor relations and manufacturing efficiency (“,” 2008). About 250 million vehicles are in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India (“” 2008). In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage (“,” 2008)...
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