...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, I would like to first of all investigate specific firm organization and interfirm market relations to which...
Words: 5732 - Pages: 23
...Ford Mondeo: A model T world car?1 Michael J. Mol Rotterdam School of Management Erasmus University Rotterdam Room F 4-66 P.O. Box 1738 3000 DR Rotterdam Phone: ++31-10-4081168 E-mail: mmol@fbk.eur.nl 1 The conceptual base of this case study is described in much more detail in: Mol and Koppius (forthcoming). 1 Executive summary This case weighs the advantages and disadvantages of going global. Ford presented its 1993 Mondeo model, sold as Mystique and Contour in North America, as a ‘world car’. It tried to build a single model for all markets globally to optimize scale of production. This required strong involvement from suppliers and heavy usage of new information technology. The case discusses the difficulties that needed to be overcome as well as the gains that Ford expected from the project. New technology allowed Ford to overcome most of the difficulties it had faced in earlier attempts to produce a world car. IT was flanked by major organization changes within Ford. Globalization did not spell obvious success though. While Ford may in the end have succeeded in building an almost global car, it did not necessarily build a car that was competitive in various markets. The Mondeo project resulted in an overhaul of the entire organization under the header of Ford 2000. This program put a heavy emphasis on globalization although it perhaps focused too little on international cooperation and too much on centralization. In terms of Ford’s own...
Words: 8253 - Pages: 34
...internationalization followed by the major carmakers can so far be split into three stages. The first stage is export. At this stage the goal is to create a car which fits into a world-wide car cartegory. After the expansion of exports comes the second stage. This is the setting up of transplant in major market regions. The automotive companies in the world is now confronting a third stage in the process of internationalization, namely globalization. It is mean complete localization of transplant one hand and the establishment of global business network another hand. Exports are the engine of the contemporary Korean motor vehicle industry's success. Korea emerged in the 1995 as a significant world producer in which 5 leading countries produced 2.6 million units in 1995. They plan to produce a total of 3.2 million cars this year, including those to be assembled at their overseas plants. In the last year the Korean automakers exported about 1 million units. In the 1980s, Korean automakers began to explore strategies to increase access to the overseas market. The strategy of internationalization in the first stage was to develop joint ventures with US automotive producers such as GM and Ford that would allow them to the development of world car concept. The growth in production and exports is required closely linked to both the advanced product design and process technology that Korean carmakers has been able to technology import from advanced carmakers. The original equipment manufacture (OEM)...
Words: 2290 - Pages: 10
...Student name: ________________________________ Student ID _______________________ York University Faculty of Liberal Arts and Professional Studies School of Administrative Studies AP/ADMS 4250 Marketing Strategy, Fall 2013 Instructor: A. Rusetski, Ph.D. EXAM 1: Case AP/ADMS 4250 Marketing Strategy Exam 1 Page 1 of 7 FIAT RETURNS TO CANADA1 A.RUSETSKI, PH.D F IGURE 1: A 2011 FIAT 500 On March 18, 2011 two hundred strange looking tiny cars lined up on the streets around the Quebec Business Centre. FIAT, a major European car manufacturer, was celebrating its return to Canada after 28 years of absence. This comeback became possible thanks to a partnership with one of the Detroit Big Three car manufacturers – Chrysler. From Montreal, columns of FIAT 500 cars paraded to designated Chrysler dealerships where FIAT opened its “FIAT Studios”. A number of important and at times sad developments led to this celebratory moment. Once a powerful player in the North American market, in early 2000s Chrysler Corporation was struggling with declining demand and decreasing market share. In 1998 the company “merged” with German Daimler Benz to form DaimlerChrysler AG. In fact, the German automotive giant took ownership of Chrysler, but after nine years the new owner acknowledged that the “marriage” was not successful and it could not improve Chrysler’s financial ...
Words: 1817 - Pages: 8
...a manufacturer of passenger and commercial vehicles. The company markets its cars under the following Brands: Volkswagen, Skoda, Bentley, Bugatti, Audi, Seat and Lamborghini. The company is headquartered in Wolfsburg, Germany and employs about 300,100 people. The Group operates 106 production plants in 19 European countries and a further eight countries in the Americas, Asia and Africa. Every weekday, 572,800 employees contribute to produce cars, to keep continuous relationships with customers, suppliers and partners in 153 countries. Volkswagen is a manufacturer of passenger and commercial vehicles. The company’s key products and services include the following: Products: Passenger cars Vans Light trucks Buses Pick ups Campers Brands: Volkswagen Audi SEAT Lamborghini Skoda Bentley Bugatti Some of the company’s data are given below: (* this data is for Volkswagen AG only) Revenues by Geography: Europe, Volkswagen’s largest geographical market, accounted for 44.1% of the total revenues in the fiscal year 2006. Revenues from Europe reached €46,211 million in 2006, an increase of 9.4% over 2005. Germany accounted for 27.2% of the total revenues in the fiscal year 2006. Revenues from Germany reached €28,544 million in 2006, an increase of 10.5% over 2005. North America accounted for 13.9% of the total revenues in the fiscal year 2006. Revenues from North America reached €14611 million in 2006, an increase of 6.5% over 2005. Asia/Oceania...
Words: 6228 - Pages: 25
... Video Case: GM Global Research Network Drivers want cars that are expressive with a strong sense of identity. Automobile manufacturers spend millions of dollars to design vehicles that will resonate with buyers. Years before new models go into production, engineers are at work seeking the next level of innovation in design and functional and safety features. To lay the groundwork for new generations of cars and trucks, General Motors has built a new business model that partners with other companies and uses an extensive global network of researchers and engineers. Competition in the auto industry has pushed manufacturers to focus on innovation. To innovate, venerable GM has changed its business model to reflect the technology revolution and to use technical capabilities from around the world. The days of the old business model with the “lone wolf researcher” are gone, says Alan Taub, executive director of global research and development. “We really are in a team environment for innovation and a global team environment.” That requires a network of research minds both inside the company and from universities and research labs, not only in the United States but all over the world. Today for every two researchers and engineers working inside GM labs, there is one external partner. GM has recruited engineers and scientists from North and South America, Europe, the Middle East, China, Taiwan, India, and Korea.1 This global research network enables GM to tap into a vast pool...
Words: 836 - Pages: 4
...participated for giving us their valuable time. We would also like to acknowledge and thank the following senior executives who participated in in-depth interviews to provide further insight: (Listed alphabetically by organization name) Dr. André Stoffels Head of Strategy Audi Steven Bridgeland Senior Product Manager, Windows Embedded Microsoft Special thanks to Moritz Pawelke, Meghan Bested and Martha Collyer for their efforts. © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved. Foreword Imagine the following scenario, involving an urban dweller, possibly living in a mega-city like Beijing, Sao Paulo, New York, London or Mumbai. As she walks out of her apartment, her smartphone directs her to the nearest available shared electric car, unlocks the door and starts the engine. Once inside, she gets an immediate report on traffic conditions and train times, voice messages from email and a sample from her favorite band’s new album. She drives to the station, takes a...
Words: 17036 - Pages: 69
...Introduction: In 1937, the Volkswagen was born in German it is an automobile company, through the 70 years of development it get the public favorite cars of all over the world. The company of Volkswagen means mass consumers can use and buy it; it has ten brands with them own enterprise. Such as Audi Porsche Skoda Bentley Lamborghini Bugatti Volkswagen Skoda Seat, the Volkswagen group’s portfolio is made up with nine successful brands that excite one billion of customers around the globe. In 2010 that groups further sharpened the individual, distinctive image of each individual brand. Focus on American and china most of customers are usually like to buy the car of Volkswagen. In china the company publicity their own culture and across the advertisement to tell the public it is contains one hundred years of brand. And the products high-end brand image at present was most consumers are recognized. Because official business is widely used the car of audi also gives the Volkswagen to promotion their brand in public mind. Analyze: Marketing mix of the Volkswagen in the international The brand of the Volkswagen is the successful marketing in the world. It used the 4ps in the different countries. Covering the international market, subsequent the most important concerns the implementation by touching the 4ps: product price place promotion. It changes the standardization and adaptation in the marketing Product: The Company concerns about the development and renew the product, cause...
Words: 3288 - Pages: 14
...Toyopet chain was established. The first vehicle to be sold under this name was the Toyopet SA. The product line was discontinued in the 1960s due to negative connotations with the words toy and pet. During the 1960s Toyota opened a new research and development facility as well as establishing a prominent presence in Thailand. During this time Toyota also celebrated the production of its 10 millionth model. In 1982 the Toyota Motor Sales and Toyota Motor Company formed a merger to become one company, the Toyota Motor Corporation. Following this the company entered into a joint venture with General Motors called the New United Motor Manufacturing Incorporated or NUMMI. Toyota operated a manufacturing plant in Fremont, California as part of the deal. In 1989 Toyota launched their new luxury product line Lexus. Toyota then followed this by focusing more on luxury vehicles throughout the 1990s, adding vehicles such as the Camry sport, Scion, Prius and Tundra to their product line. Toyota is currently one of the...
Words: 2837 - Pages: 12
...America One Car (AOC) dealership is moving into a newly built facility in a suburb town of Washington, D.C.. You are retained as a consultant by AOC dealership to design a network solution for their new location. The new facility is assumed to be wired with UTP and fiber, with outlets in specific locations. The basic network is to be a LAN that serves desktop computers in the general manager’s office, in the salesmen’s area, and the showroom area; mobile devices (laptops, smartphones, tablets, etc.); and various accessories (printers, etc.). A major component of the network is a file server (for storing the sale contracts, and other files). Of primary importance is the Internet access solution (e.g., leased lines, Cable, DSL, broadband wireless, fiber to the home, satellite). Other components (such as web server, and database server) may be added for completeness (to earn extra credit). Design a network solution, considering the following: •Type and topology of LAN •LAN cabling •Storage file server: data back-up/archiving, file consistency, file access logs, and data recovery •Internet access method (assume maximum availability of solutions) •Security (all pertinent issues) •Any other specific issues, such as web and database servers (for extra credit) Your deliverable is a Word document of 4-6 pages (not including the title page and the reference page). It's required to include in the report a diagram of your network solution, and a table of the components (hardware and software)...
Words: 262 - Pages: 2
...Introduction 2 Marketing communication concepts 2 The evaluation of IMC practice of BWM i8 in United Kingdom and United States of America. 4 1) BMW i8 target market in UK and US: 4 2) The key messages of BMW 5 3) An examination of the marketing communications tools and media used 8 Advertising: 9 Sales promotion 11 Direct marketing & personal selling 11 Public relations 11 4) Similarities and differences of the marketing communications in UK and US. 11 5) How the communication activities are helping BMW 13 The key challenges of practicing IMC of BMW: 14 1) The key issues impacting upon BMW’s IMC: 14 2) Measurement of level of IMC evident: 16 Recommendations on further use of the tools/media 18 Conclusion 19 References 20 Appendices 26 Appendix 1: Planning and Implementing of IMC 26 Appendix 2: Factor impacts on customer’s purchasing in UK 27 Appendix 3: Factor impacts on customer’s purchasing 27 Appendix 4: Levels of IMC 28 Appendix 5: Four pillars of IMC 28 Introduction This paper provide an overview about the integrated marketing communication of BMW Corporation for the BMW i8 model in the United Kingdom and the United Stated. In those markets, the BMW i8 is considered as the first car that revolutionized in utilization and release values of a sport car. The purpose of the paper is to give information about the strategies of BMW in order to announce the BMW i8 to customers by using marketing...
Words: 4572 - Pages: 19
...“One of the greatest discoveries a man makes, one of his great surprises, is to find he can do what he was afraid he couldn't do.” Henry Ford changed America and the way we live today. From working as an engineer to making cars affordable, he was one man who shaped America with his durable Model T, his mass-produced cars from the assembly line, and his high paycheck to his employees. Henry Ford enjoyed tinkering at a young age and was always curious in how things operated, which inspired him on working in the mechanism industry. Henry Ford started just like any other man growing up on a farm. Born on July 30, 1863 on a farm in Greenfield Township, Michigan, being the first child to survive to his parents. Growing up, Henry Ford disliked working on the farm; however, he showed a great interest in mechanics (United States History, “Henry Ford”). Henry Ford admired...
Words: 901 - Pages: 4
...CEO Carlos Ghosn, his leadership style, and the company's strategy. The questions focus on these issues and whether the strategy of Renault-Nissan is global or multinational. The case provides a good example of a firm that uses a global, integrated strategy for its worldwide operations. It is also a good example of a large company with ambitious goals to produce high quality products and sell them on every continent. BACKGROUND ■ Based in Tokyo ■ 2009- Sales were nearly $90 billion ■ Management planning to launch 48 new car models ■ A few years ago- on the verge of bankruptcy. ■ Renault- The French automaker took a 44 percent stake and installed Carlos Ghosn as Nissan’s CEO ■ Dramatic turnaround- Ghosn returned Nissan to profitability and became a celebrity in Japan ■ Ghosn- Born in Brazil, raised in Lebanon, and educated in France, he is a charismatic leader who speaks four languages and is idolized for saving one of the world’s premier car companies. ■ Ghosn closed inefficient factories, reduced Nissan’s workforce, curbed purchasing costs, shared operations with Renault, and introduced new products. NISSAN’S ORGANIZATIONAL CULTURE ■ Ghosn cut through antiquated thinking, defying Japan’s often bureaucratic and clubby business culture by, for example, reducing Nissan’s steel suppliers from five to three. ■ Ghosn introduced a proactive style, with fast decision making, and a culture of anticipating problems and eliminating them before they happen. ■ Ghosn is...
Words: 2174 - Pages: 9
...as international market, and its strategy of growth. And it is supported with different theories such as SWOT analysis, PEST analysis, Porter 5 Forces, 4Ps. 1.1 Chery at a Glance Chery is one of the Chinese fast growing state owned enterprise founded on 1997.with a capital of CNY 3.68 billion, and its first car came on a production on 1999. At present Chery owns for sub-brands, chery, karry , Rilich and rely. Currently Chery has 16 different module in maket and it possesses an annual production capacity of 900,000 automobiles. (Chery) . With the strategy of ‘Going out’ Chery become the first Chinese automobile company to export its production in overseas, including more then 80 countries. It offers cars, sedans, SUVs, and mini-vans on its different segment. Source – Chery International Co. ltd This figure show that, the total sale of Chery automobile is been increasing in every year, in the year 2008 its sale is 356,000 unit which is decrees by small present comparing to 381,000 on previous year 2007. Competition is the causes as Chery Chairma Yin Tongyue said “Competition in the Chinese automobile market would be extremely fierce this year” (Reuturs, 2009) and due to the effect of global recession. 2. Chinese auto market Source- china car times According to the, china car times. Top 3...
Words: 3039 - Pages: 13
...loss in 2008 and had to lay off many of their workers. They were also going bankrupt, so this was the best option to keep them afloat. They could not keep up with the economy and needed to get help from someone. This deal made sense for Fiat, since they could get the company at a low price and re-enter into North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year and eventually might have 51 percent of the company. This was not the most ideal thing for Chrysler, but it was necessary. 2. Chrysler has a brand name in North America, where Fiat lacks the visibility. Fiat has been very successful in Europe, where Chrysler does not have a strong dealer network there. Chrysler finds new markers by developing new range of vehicles. After the merger, Chrysler emerges from the bankruptcy and starts to restructure and Fiat gains a brand in North America and technology from here. 3. Chrysler had always been behind Ford and GM and was known as the “number three.” Since the merger, they were able to gain more in Europe and new technology. As they are still not the number one company they have bettered themselves and are on the rise. The other five companies are still on the rise as well, so Chrysler-Fiat will have to work extra hard to compete with all of the technology, market share and consumer satisfaction. 4. Chrysler’s strength has been in sport utility vehicles, pickup trucks...
Words: 550 - Pages: 3