...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...
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...Started over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward. Globalization Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities , 2012).As a result, many automotive companies such as General Motors, Toyota, Honda and Ford viewed strategic partnerships as a way to dip their toes into the water and expand into different...
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...Rubric =========================================================== CONTENT 70% Address the following topics: (1) New companies entering the market, mergers, and globalization, on pricing and the sustainability of profits: Identify the type of merger activity in your industry or one with which you are familiarhorizontal, vertical, or conglomerateand explain why you made that choice.: Content Grade / Comments: Good, meets expectations. Good amount of detail about auto industry globalization and competition. (2) Current and expected government policies and regulations, including taxes and regulations in place to address issues related to externalities Content Grade / Comments: Mostly good. You could have gone into more detail about the incentives created and the (unintended) consequences of regulations and how this impacts decisions made by the firm. (3) Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry Content Grade / Comments: Good, but this section seems more hypothetical and less applied. You should have given more details related to banking, but overall good points. (4) Recommend how the industry you chose may respond to each of the previous points. Content Grade / Comments: Meets expectations. (5) Paper is 1400-1750 words. Content Grade / Comments: Meets expectations. CONTENT POINTS: 66/70 =========================================================== READABILITY...
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...Study 3 The 2009 Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? When it comes to dealing with worldwide economic recession, grave steps have to be taken in order to ensure the survival of businesses, as too many livelihoods depend on it. Also, due to the investments that shareholders make, and the wide array of other businesses that the company would affect, it puts a lot of pressure on the board or the people running the company to make sure that they survive the bad times and emerge victorious. For Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely very important...
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...The 2009 Chrysler-Fiat Strategic Alliance Part-I What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The strategic alliance between Chrysler and Fiat was a beneficial step for both the companies. Chrysler was facing problem of financial crisis of 2008-2009 and was not able to perform after de- merging with Daimler in the year 2007. In North-America Chrysler was facing challenges of its bankruptcy filing and global financial crisis, because of which the demand of its car decreased in the domestic market. In order to recover from this loss, Chrysler had no other option but to find a partner with whom it could serve the foreign market. Chrysler surveyed the possibilities of various big automakers like Nissan, TATA Motors, Ford, Volkswagen, GM and Fiat. Finally they decided to create a strategic alliance with Fiat. In this alliance Fiat agreed for 20% of Chrysler stake and increased to 35% within five years. With this Alliance, Fiat got the opportunity to enter the US Market and instead of paying for the 35% of Chrysler stake, they provided Chrysler access to their technology in automobiles. (Calabrese, 2012) Fiat announced publicly their intention to open a production center in North America for manufacturing of Alfa Romeo and Fiat brands. By doing so they gained 35% stake in Chrysler and gained access to the Chrysler production center in America. Similarly, Chrysler also benefitted by gaining...
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...automobile industry in China, and GM opening up a historic challenges and opportunities to firm up China’s cooperation with SAIC. 1. Background Information General Motors (GM) is one of the world's largest car companies. Although GM lost its first-mover advantage to Volkswagen, in 2003, China became the second largest single market for General Motors, selling 201,188 vehicles, an 81.6% percent increase over the previous year. In that year Shanghai GM achieved a 13% market share in mainland China, second only to Volkswagen Group China among foreign carmakers. Sales dropped in 2004 when the company retired the Buick Sail and the release of its replacement, the Chevrolet Sail, was delayed to February, 2005, knocking General Motors Shanghai to seventh place in mainland China market share. 2. Automobile industry history and development Development situation can be divided into sevens stages as follows |Time |market demand |local competitor |foreign competitor |Economy |Technology |Political Social | |1950-1965 |small:only for |state-owned |No |the beginning of |Soviet Union provide |have no reference | | |party officials |company | |economy development|technology | | |1966-1976 |small:only for |state-owned |No |Economic stagnation|imports of foreign auto |rampant...
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...A STUDY ON SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Prof. & Hod of Commerce Dept. Govt. T.R.S.College, Rewa (MP) Govt. T.R.S.College, Rewa (MP) The changing business conditions of the 21st century has led to companies facing issues ranging from globalization, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today, where supply chain is a popular tool for improving the organizational competitiveness. OVERVIEW OF SUPPLY CHAIN MANAGEMENT IN AUTO-INDUSTRY [pic] The Auto Ancillary Industry can be Further Divided into Six Main Segments: ❖ Engine Parts - Engine assembly, fall into 3 broad categories: core engine parts; fuel delivery system; and others. ❖ Electrical Parts - The main products in this category include starter motors, generators...
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...Boiled Frog Phenomenon Irma E. Jimenez American Intercontinental University MGT 680 – Strategic Management August 30, 2013 Abstract The “boiled frog” phenomenon will be explained and how it relates to strategic management. An example of a business or businesses undergoing a similar situation will also be given and how could they have avoided the effects of the “boiled frog” phenomenon. Boiled Frog Phenomenon The purpose of this paper is to elaborate about the term "boiled frog" phenomenon which is a story about a live frog placed in a large pot filled with cold water. The experiment done with the live frog is also meant to compare it and how this story relates to strategic management in the business environment. An example in regards to a firm that has undergone a similar situation will be given as well and, how that business could have avoided the effects of the “boiled frog” phenomenon. A few questions will follow to explain the process. What is the "boiled frog" phenomenon? According to the article by Polynice, when a frog is placed inside a pot of boiling water, on top of a stove, the frog will react very fast and will jump out of the water immediately. But, if the same frog is placed inside a large pot filled with cold water and then put on top of the stove and it is turned on to be heated up slowly, the frog will not notice the change of temperature (Polynice, 2007). Eventually, the frog felt unconscious...
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...QUESTIONS FOR CASE STUDY ASSIGNMENT STRATEGIC EXCELLENCE Licensed for use by the students of the Executive MBA Program, The Icfai University. Not to be reproduced. QUESTIONS FOR CASE STUDY ASSIGNMENT STRATEGIC EXCELLENCE ANSWER THE QUESTIONS FOR ANY TEN CASE STUDIES Questions for 18 case studies are given below. Each case study assignment has 2 questions. Students are required to answer questions for any 10 case studies (20 answers). Students are advised to submit answers for all 10 cases in one go, for results to be adjudged in one instance. 01. McDonald’s in the United Kingdom a. When McDonald’s entered the UK market in 1974, it initially failed to attract British customers and reported losses. However, as of 2009, the UK was one of the most promising markets for McDonald’s. Many factors were responsible for this change in situation. First, identify the subset of factors that could be attributed to the organization’s strategies. Next, tabulate that subset of factors along with the associated strategies for each factor. Finally, classify these strategies into originally intended and subsequently emergent strategies. b. As of 2009, McDonald’s faced many challenges in the UK. In your opinion, what strategies should McDonald’s adopt at the corporate, business, and functional levels to continue its growth trend in the UK? Give reasons for your answer. 02. Emerging Markets Strategy: Nokia Life Tools for Rural Markets a. Business strategy is often compared...
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...Background note on Supply Chain management In Automotive Industry Auto SCM India 2006, Chennai 1 Supply Chain Management Automobile Industry in the major reasons for surge in demand for automobiles in India. Domestic sales have grown at CAGR of 14.27% from 2001-02 to 2005-06. The commercial vehicle segment, in particular, has increased at CAGR of 24.35% during the above-mentioned period; whereas total sales of passenger cars in domestic market have increased at CAGR of 14.02%. In terms of production, commercial vehicles have registered a CAGR of 24.55% from 2001-02 to 2005-06; while passenger vehicles have registered a CAGR of 18.24%. There is a declining trend in mopeds production as well as in sales in the domestic market. During 2001-02, mopeds production and sales have declined at CAGR 2.93% and 5% respectively. Exports on a roll The significant development in Indian automobile sector is the outstanding growth of its exports. From 2001-02 to 2005-06, total exports of automobile sector has gone up at CAGR of 44.56%. Exports of motorcycle segment have registered highest annual growth rate of 61.42% during this period. This has clearly indicated that Indian automobile sector is going global. Chart- 2: Export Trend in Indian Automobiles (‘000 units) 900 800 700 806.49 600 Overview of Indian automobile and auto components industry Indian automobile industry is riding high with overwhelming economic growth rate of 8.4% in 2005-06. The industry has been growing at CAGR...
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...Looking at the use of Jobber Management Software at Passage Auto Parts Ltd Leah Swaine Busi 2255- 01 0535895 Randall Fisher Due: November 22, 2011 Table of Contents Introduction 3 The industry 3 The Organization 4 The Software package 6 The Inventory Order Module 10 Conclusion 12 Works Cited 13 Introduction I currently work for Passage Auto Parts Ltd, a family owned aftermarket parts distribution business. The company is owned by my father John Swaine, operated my sister Johnna Swaine and myself, Leah Swaine. Throughout this research paper I will be discussing the automotive aftermarket industry in Canada, the specific details of Passage Auto Parts Ltd, and the Jobber Management System (JMS) that the organization currently uses to capture information and conduct daily business activities. I will be touching on the main functions of this software including: strengths, weaknesses, and overall effectiveness in terms of cost and information provided to the organization. I will be elaborating on the inventory order module of JMS, and how the order process is completed within the organization. Many of the areas discussed in the paper will come from my experience within the business, having worked there since it’s beginning, in November of 2005. The Industry Passage Auto Parts Ltd is a member of the...
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...INTRODUCTION General Motors Corporation, an American leading multinational auto manufacturing company was founded in 1908 in Flint, Michigan, and is commonly known as GM. They have the biggest number of employees in the world. They produce many brands of vehicles like Chevrolet, GMC, Buick, Cadillac, and Isuzu. Since GM has been a dominant force in the auto industry, we will list a SWOT analysis. A SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Mangers often use this analysis to create a company’s strategic position. STHRENGHTS GM is one of the most respected companies in the world and is the market leader in the world auto industry. It has assembly, manufacturing, and distribution in 55 other countries. This is one of the strengths for GM. It has already established itself as a business and world leader in the auto industry. Another strength GM has is its innovation and strategic marketing. Since GM has a good market reputation, it has acquired about 30% of the world’s auto market. Through improvement, GM has placed many new brands in the market. This has been done by investing in new technology and therefore has provided growth in the market. GM has also maintained a strong management team with a strong management structure. This has ensured standardization of operations through all departments. They also have in effective corporate organization. They ensure the disclosure on the performance of the corporation...
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...SIDRA PERVEEN IRFAN YOUNIS M.ARSHAD RAZIA KOMAL 2015 Table of Contents Executive Summary: 3 Foreword: 4 Testimony 4 Automobile Industry in China 5 Projected Capacity 5 Holistic Supply Chain 6 GM & SAIC Partnership 6 Joint Ventures 6 Foreign enterprises 7 Corporate Level Strategy: 8 Business Level Strategy: 9 Conclusion: 10 References 11 Annexure 12 Executive Summary: This is a Case base scenario of Shanghai Automotive Industry Corporation (SAIC) and the General Motor Company (GM). The world’s largest automaker, traces its roots back to 1908. With its global headquarters in Detroit, GM does business in some 120 countries. The General Motors-China relationship dates back more than eight decades. GM China’s vision is together with its partners to be the best automotive group in China The joint venture between General Motors (GM) and Shanghai Automotive Industry Corp. (SAIC) in 1997 was regarded as the largest single foreign investment ever made in China. The joint venture was considered by many as a high-risk investment for GM at that time. Eight years after signing the joint venture, GM proved to the world that its investment in China was justified, with its growing market shares and successful partnership with SAIC. Attempts to understand the strategic alliance between GM and SAIC and how the relationship contributes to the success and rapid growth of GM in China. Also analyzes the strategies adopted by GM and...
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...STRATEGIC MANAGEMENT ASSIGNMENT ASSIGNMENT ON ANALYSIS OF THE SECTOR USING PORTERS DOUBLE DIAMOND MODEL ON INDIAN AUTOMOBILE INDUSTRY Submitted To Prof. A. K. Kher Submitted By Rameez Bagban 03 Shahanawaz Mujawar 11 For the academic year 2014-15 INTRODUCTION: The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness captures the awareness of both the limitations and the challenges posed by global competition as an exogenous factor. Underdeveloped economies tend to be competitive by producing cheaper products, developing economies by producing better products, and developed economies by producing innovative products continuously. Though Indian automobile manufacturers are manufacturing innovative products and leading India to a new summit, there are various roadblocks, which prevent this industry from being a global player. COMPETITIVENESS DEFINED: Competitiveness has emerged as a paradigm towards the economic development. Michael Porter has defined competitiveness as productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting...
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...SIM336 (Off Campus) Strategic Management Case Study – Reconciling Managerial Dichotomies, Honda Motors in De Wit & Meyer Company Overview: Honda Motor Company was established in 1948 in Japan, on the backdrop of 1 million (Yen) and 34 employees. Over the years the company has grown to become the world's largest engine, motorcycle and automobile manufacturers, with more than 178000 employees and stock holder equity of 4,544265 million Yen (Annual Report, 2008). Honda is the 5th largest automobile manufacturer in the world. Moreover, it recently surpassed Chrysler as the 4th largest automaker in the US. It is the 2nd largest Japanese automaker, behind Toyota and ahead of Nissan (Just Auto, 2008). In the early years, the Company was focused in manufacturing locally and serving its domestic market, after which it began exporting its products internationally. In 1982, it became the first Japanese automaker to setup a plant outside its domestic boundaries (Ohio, USA). Now it has established plants all over the world, covering bases such as North America, South America, Europe and Asia. In terms of Japanese automakers, it has the largest share of plants as a ratio of total business outside its domestic boundaries (Dicken, 2007). North America, with Unit Sales of 1850 (thousands) is the largest Market of the company, noted for the year ended 31 March 2008. In 1963, the company set up its first international motorcycles production plant, in Belgium. Honda...
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