...rising is air pollution. The exhausts from gasoline-powered automobiles are among the main reasons for contamination. Ultimately, cars will not run only on gas. As gas supplies start to decrease, it will also become tougher to get what remains. The time ticking on the world’s clock will not stop for mankind to refuel. Alternate fuel automobiles are the trend of the future. Driving an automobile fueled by something besides gas or diesel fuel is no more the thing of science fiction. The public simply requires to be more informed concerning alternate fuels. Product Hybrid Electrical Vehicles (HEV) operates from a mix of an internal combustion engine and an electric motor. They have just the same characteristics like conventional unleaded fueled automobiles excluding the motor. Hybrid electric automobiles have the identical torque, frame, and even add on alternatives just like any other automobile. “Additionally, HEVs have the possibility to run in, "Electric only" setting. In this setting, the automobile can run without any emissions that are ideal in crowded places and in places where emissions aren't accepted” (U.S. Department of Energy). A few advantages of hybrid electric automobiles are better gas mileage, eco-friendly and less depending on foreign oil. “HEVs can go 40-70 miles for each gallon of gas” (U.S. Department of Energy). HEV allows the driver to travel much longer without needing to fill up the automobile with gas, which also permits savings on gas. This will decrease...
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...Comparative Advantage Christopher L Kearney University of Phoenix ECO/GM 561 International Economics Watson T. Ragin June 27, 2011 Comparative Advantage This writing will begin by defining the concept of comparative advantage while comparing the automobile industry in the United States and the industry in Japan and expound of the similarities and differences of both of the countries. According to InvestorWords.com comparative advantage is defined as the ability of a business entity to engage in production at a lower cost than another entity. Comparative Advantage, rather than absolute advantage is useful in determining what should be produced and what should be acquired through trade. Japan is the country being compared to the United States. Japan is in Eastern Asia and has a population of 126.9 million with the capital Tokyo. Most people who reside in the climate speak Japanese and the major religions practices are Shintoism and Buddhism. The money unit used in the country is yen and the country exports vehicles, computer parts, chemicals, scientific instruments, and watches. Whereas, the United States is l in North America, bordering the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico and has a population of 317.6 million with the capital being Washington DC. The predominate language in the United States is English and the major religion practice is Christianity. The currency used in the United States is the American Dollar. The...
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...petroleum supplies start to decrease, it will also become tougher to get what remains. Alternate fuel automobiles are the trend of our future, because now a days gasoline prices are at an all-time high. The United States' dependency on foreign oil is also at an extremely high level. Hybrid Electrical Vehicles (HEV) operate from a mix of an internal combustion engine and an electric motor. A few advantages of hybrid electric automobiles are better gas mileage, eco friendly and less depending on foreign oil. HEVs can go 40-70 miles for each gallon of gas. HEV allows the driver to travel much longer without needing to fill up the automobile with gas, which also permits savings on gas. This will assist decrease the country’s reliance on foreign oil. This is an advantage because it encourages self sufficiency for the nation. It can also save money in the overall budget for the country. HEVs assist the atmosphere by not liberating as much toxin filled exhaust into the air. Each day we notice how the auto producers are coming with various kinds of hybrid cars as creative types of fuel. Toyota has 3 models including the Camry, Highlander as well as the pioneer Prius. Honda has the hybrid Civic, the Insight and the Accord. Alternate fueled automobiles have a few similarities to HEVs. They copy a lot of the same features as conventional fueled automobiles and also have better ecological advantages. There are lots of alternate fuels, incorporating; ethanol, biodiesel, natural...
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...satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved. There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures The cost of managing complex infrastructure should not –outweigh the benefits of increased scale Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of production. A major factor in distribution is the transportation...
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...The Global Automobile Industry 1. The steep sales decline that hit automobile companies worldwide in 2008 and 2009 started with problems in the United States housing market. What does this tell you about the nature of the global economy in the first decade of the twenty first century? Answer: The economy today is indeed a global one in that events in one market influence events in another market. The rapid collapse of the global economy in late 2008 and early 2009 clearly illustrates that a crisis is one market can no longer be isolated within that market, and instead spills over very quickly into other markets. While the original crisis in the United States began in the housing market, other sectors of the economy were quickly affected. This ripple effect again demonstrated the interdependency of markets within and across national borders. In addition, the new global interdependency in the marketplace can lead to shifting power structures between countries and within industries. For example, the power of the Big Three auto companies has deteriorated, particularly in the last couple of years, and new competitors like India’s Tata Motors and China’s Geely have emerged. 2. Despite a global recession in 2008 and 2009, demand for automobiles continued to grow in countries like China and India. What are the implications of this for the future of the global automobile industry? How should established automobile companies respond to this development? What should their...
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...information for explaining the location choices which organisations have already made. One such framework isthe so called Diamond Model introduced by Michael Porter in 1990. This essay triesto determine its advantages and disadvantages as a tool for the examination of firm‟s home and host location decisions by focusing on two major MNEs: ikea and audi..Porter ‟s Diamond Model(1990: 73) argues that “nation‟s competitiveness dependson the capacity of its industry to innovate and upgrade and therefore is determined by a nation‟s level of productivity. From an organisational perspective this means that national competitive advantage depends on the nation’s ability to provide a home base for companies to sustainably improve their products and services in terms of quality, features, technology and so to successfully compete in highly productive industries internationally. Audi, a German automobile company, is a part of the Volkswagen group which is one the leading automobile manufacturers and the largest car maker in Europe. Ikea, Swedish furnishing companies known worldwide operating in 42 countries, started during the 1940, offer a wide range of well designed furnishing products at low prices making it affordable for everyone. Porter’s diamond model focuses on the competitive advantage of nation which helps to understand the competitive nation in a international market competition that, “it does not grow out of the country’s natural endowments, its labor pool, its interest...
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...The Automobile in American Society The automobile’s effect on America’s economy was huge, but that was nothing compared to its effect on the way Americans lived. Because of the automobile, cities grew and suburbs appeared for the first time. Until the invention of the automobile, factory workers were forced to live close to the factory or a railroad that led to the factory so that they could get to work on time. With the automobile, they no longer needed to live so close. They could live miles away from the work place yet still work at a factory. Communities began to show up that had few employment opportunities, instead of working in their home town, the people would work a good distance away and make the commute every day. These commuter communities were called suburbs, since they were a part of urban communities. Yet people still depended upon the cities for all of their shopping, so the suburbs were never too far away from their work place. It had a huge impact on the way people worked and lived. The automobile has changed society greatly. It gave people the opportunity to expand their lives. The automobile allowed people to travel much farther, so they could go nearby towns and cities to buy supplies if they needed. People could go to regional hospitals and attend school in town by travel car or bus. People no longer needed to live near railroad lines, so small towns grew larger. There are many advantages of automobile in our modern society because they can have transportations...
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...The Ford Motor Company established itself as one of the preeminent auto companies worldwide with a long, refulgent history of automobile development for over one hundred years. As one of the leading vehicles manufacturers and prestigious brands in the world automobile industry, Ford’s solid brand management is its major strength. In 2014, Ford stands as the second largest automobile manufacturer in the United States and fourth largest in the world (Forbes). Furthermore, the firm ranks eighth among the largest American corporations in the 2014 Fortune 500 companies list. In the past decade, Ford succeeded in building credible and reputable auto products – its vehicles are visible on the roads throughout the United States. The company has garnered a loyal customer base and reputation through its quality goods and services. In fact, due to its mature US market and loyal customer base, Ford ranked second on a best car brand perception survey about customer satisfaction and brand loyalty (Consumer Reports). Ford endured despite the major financial hits of the 2008 recession because of its extensive knowledge of US market and consumers, and its great reputation in its home market for reliability, performance, and durability. In fact, Ford has leveraged its strong market position and brand name to intensify its competitive advantage and expand into international markets in over two hundred countries. As a result, Ford has achieved magnificent profits, especially in major developing...
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...Ltd. (M&M) functioned as a steal trading entity established by two brother located in India. During 1947, they decided to join the automobile industry and created the UV and tractor vehicle which become the core competency. Even though the strategic method was effective domestically in India, M&M had to reposition its strategic position in South Africa and they have several alternatives. However, M&M was aware that entering the Indian automobile markets would be competitive but they still proceeded. This was a successful multinational venture that has contributed to a successful global economy. However, the strategy was not effective in South Africa and therefore several alternatives were considered. First strategic alternative was to assemble vehicles in South Africa. The second alternative was to establish M&M’s own manufacturing unit in South Africa would be beneficial to the company. The third alternative was to reconstruct the current business model that in India and expanding into Africa by using them as export hub. The last alternative was the wait and watch method after the automobile recession occurred in South Africa. This case will explore several alternatives available for M&M in order to expand the multinational company strategy and enhance integration to the global market. It will analyze M&M’s the advantages and disadvantage of all four strategic measures. The goal of this analysis is to improve the multinational company’s strategic plan...
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...Lear Corporation Business Model & Strategic Plan BUS/475 January 11, 2016 Table of Contents Executive Summary ……………………………………………………………………...….…3 Business Model and Strategic Plan Part I: Existing Business or New Business Division; Vision, Mission, and Value Proposition ………………………………………………....……4 New product or service for the new company division ………………………………...….….5 Describe how division addresses customer needs and competitive advantage ……………....6 Vision and business model for new division ……………………………………...….....……7 Explain how vision, mission, and values of the new division align with the company’s mission and vision ……………………………………………………….……….7 Summarize Division’s Strategic Direction ………………………………………….………..7 Guiding Principles and Values of Division ……………………………………….………….8 Business Model and Strategic Plan Part II: SWOTT Analysis – Internal and External …………………………………………….…………………….….10 Economic and legal and regulatory forces and trends ……………………………….……...11 Critique how well organization adapts to change ………………………..………….………11 Analysis and explanation of the supply chain ……………………………………………….12 Identify issues and opportunities …………………………………………………………….12 Business Model and Strategic Plan Part III: Assumptions, Risk and change Management Plan; Summary of Strategic Objectives; Balanced Score Card and its impact on stakeholders; The Communication Plan ………………….…………………………………14 Balanced...
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...Topic: Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy and international competitiveness.Michael Porter was born in Ann Arbor, Michigan. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Introduction Five Forces Model by Michael Porter Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly alsobusinesses asbeing influenced by five forces.Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive fiveforces model is probably one of the mostcommonly used business strategy tools and has proven its usefulness in numerous situations when exploring...
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...Assignment 1 – Competitive Strategy Group Members: Abhishek Rana, Matthew Ross, Michele De Simon, Mohit Kumar How would the different theories discussed by Conner (1991) explain differences in performance among firms? Conner has discussed the differences in performances amongst firms by analyzing the following list of theories: 1. Neo-Classical Theory: Performance is the same across the industry because the industry is characterized by ‘Perfect Competition’. Perfect competition comprises of the following assumptions – Larger number of buyers and suppliers, Homogeneity of the demand, Mobility of resources and Rationality of complete market information. Therefore in such a market setting firms cannot achieve economic profit. 2. Bain-type IO Theory: Above normal performance could be achieved only through collusion encouragement, which in turn leads to monopoly. In an industry characterized by collusion and monopoly, the largest firm has the power to set prices and expand its own market share further, leading to above normal performance. 3. Schumpeter Theory: The core of this theory states that the performance of a firm is driven by Innovation. Monopoly is a more favorable condition for process of innovation because it decreases inherent investment risks involved. Through innovation a firm can achieve indistinctive competence and edge over competitors leading to higher returns and performance. 4. Chicago Theory: This theory is driven by efficiency in production...
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...Aftab Automobiles Limited Dividend Policy |Year |Earning per (EPS)share |% Cash |% Stock dividend |Dividend per share (in|Pay out ratio | | |(in taka) |dividend (in Dividend| |taka) | | |2005 |86 |20 |- |20 |23.26% | |2006 |28 |20 |- |20 |71.42% | |2007 |18 |6 |10 |6 |33.33% | |2008 |25 |- |25 |- |- | |2009 |137 |10 |40 |10 |7.3% | Dividend policy: From the chart we can say that Aftab Automobiles pays non constant payout dividend to its shareholder. In 2008, company didn’t pay any cash dividend to its shareholder. Company paid stock dividend in year 2007, 2008 and 2009. Moreover, shareholders of Aftab Automobiles were paid both cash and stock dividend in 2007 and 2009. Payout ratio: The payout ratio indicates that how much the company has paid as dividend from its earning. In 2005, the rate was 23.26% which means the company had...
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...production (Hindle, 2008). It aims at eliminating the waste in the different stages throughout manufacturing system and process by empowering employees and developing smooth relationship with suppliers and partners. The other key strategy implemented by Toyota and Honda for greater efficiency is the global strategy. In order to expand and exploit potential scale economies, Toyota and Honda establish the global manufacturing system. Toyota and Honda’s home market is not large enough to gain cost efficiencies which leads the companies to look to international markets. They employ the method of foreign direct investment (FDI) to set up their plants and operations in their major foreign markets. They achieve greater efficiency by taking advantages of national differences on cultures, market conditions, politics and others. Besides, Toyota and Honda set up foreign plants that can decrease the input costs through reducing the transportation costs, which gain the distinct efficiency. Another important strategy implemented is the best-cost strategy that combines low-cost strategy and differentiation strategy. The main concept of Toyota and Honda’s business is reducing the costs of inputs includes tangible and intangible costs and...
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...Ltd. (M&M) functioned as a steal trading entity established by two brother located in India. During 1947, they decided to join the automobile industry and created the UV and tractor vehicle which become the core competency. Even though the strategic method was effective domestically in India, M&M had to reposition its strategic position in South Africa and they have several alternatives. However, M&M was aware that entering the Indian automobile markets would be competitive but they still proceeded. This was a successful multinational venture that has contributed to a successful global economy. However, the strategy was not effective in South Africa and therefore several alternatives were considered. First strategic alternative was to assemble vehicles in South Africa. The second alternative was to establish M&M’s own manufacturing unit in South Africa would be beneficial to the company. The third alternative was to reconstruct the current business model that in India and expanding into Africa by using them as export hub. The last alternative was the wait and watch method after the automobile recession occurred in South Africa. This case will explore several alternatives available for M&M in order to expand the multinational company strategy and enhance integration to the global market. It will analyze M&M’s the advantages and disadvantage of all four strategic measures. The goal of this analysis is to improve the multinational company’s strategic plan...
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