Free Essay

Research on Nissan Motors Philippines, Inc.

In: Business and Management

Submitted By keziahrt
Words 1425
Pages 6
Research on Nissan Motors Philippines, Inc.

Gallego, Reyjen
Ibasco, Robert
Marcelo, Mary Christine
Tolentino, Keziah
Ty, Rey Jumar

BSBA 4C

Nissan Motors Philippines, Inc.

Nissan Motors Philippines, Inc. (NMPI) is an affiliate of Nissan Motor Limited of Japan. It was established in April 1982. Shortly after its incorporation, it acquired the Volkswagen facility. As of the moment, it assembles passenger vehicles and serves its customers with around 200 employees. Moreover, there are seventeen authorized dealers of Nissan in the whole country.

Nissan Philippines Research

The ABS used in Mercedes-Benz, BMW, and Volvo cars is made in the Philippines. Ford, Toyota, Mitsubishi, and Nissan are the most prominent automakers that make cars in the country. A 2003 Canadian market research report predicted that further more investments in this sector were expected to grow in the next following years. Toyota has been the most used vehicle in the country. (http://www.termpaperwarehouse.com/essay-on/External-Analysis-Of-The-Philippines/38204)

Automotive industry in the Philippines

New Motor Vehicle Development Programs (MVDPs)
However, the economic and political crisis in 1983 had a devastating impact on the expanding industry. Because of the declining market for Philippine exports and the resulting capital flight, the industry was left with only two international participants (PAMCOR-Mitsubishi Nissan) and in 1984. Furthermore, only 40 local parts manufacturers remained in operation, dramatically less than the participation of 220 firms 2 years before the crisis.
More comprehensive programs such as the Car Development Program (CDP) and the Commercial Vehicle Development Program (CVDP) were implemented to address the shortcomings of earlier development programs and to provide a long-term solution to the ensuing economic crisis. Previous requirements such as the local content rule were adjusted to support the viability of the local automobile industry through the years. The requirement was lowered to 32.6% in 1988 and again increased to 40% in 1990. These changes in the local content requirement helped the assemblers to assess who among their suppliers were capable of the long-term manufacturing of their needed parts and components. Together with the government, the multinational assemblers aided in the rapid development of the industry by offering technical and financial assistance to their loyal local suppliers.
The Board of Investments (BOI) encouraged the large firms to continue to subcontract for the manufacturing of components. In the process, valuable engineering and technical knowledge were imparted to the country’s industrial firms. As a result, more foreign automakers saw the competitive advantage in the improved efficiency and cost effectiveness of Philippine automotive production. (http://www.termpaperwarehouse.com/essay-on/Automotive-Industry-Philippines/130151)

Studies conducted by economists in the past on the automobile industry (here and abroad) showed that the following economic indicators tended to affect demand for passenger cars as well:
- Disposable Income per capita (positively): 1% increase in disposable income will increase car sales by 12.3%
- Inflation (positively): a one-point increase in CPI will supposedly increase sales by 143 units
- Population (positively)
- Price index of cars (positively)
- Foreign exchange rate (negatively): Devaluation can cause prices to increase and demand to decrease. 1% increase would lead to 1.03% increase in price, which would lead to a 0.24% decrease in sales.

In the Philippines, ‘substitutes’ in the automobile industry can mean anything from pre-owned vehicles, public transportation in the form of trains, jeepneys, buses, tricycles, FX taxis, or passenger taxis, to motorcycles and bicycles.

The Philippines’ automobile industry is currently dominated by Toyota Motor Philippines (with Lexus) with a 39.03% market share, Mitsubishi Motors PH with a 24.76% market share, Isuzu Philippines Corp. with a market share of 7.98% as of April 2012 and Honda Cars Philippines, Inc. with a market share of 7.82%. Other major players include Ford Motor Co. Phils., Inc (with Mazda), and Columbian Auto car Corp. (Kia).

Refer to the table below:
CAMPI and TMA car sales - June 2012
YTD Ranking | Car Company| January to June 2012 | January to June 2011 |June 2012|June 2011|
-------------------------------------------------
1 | Toyota Motor Philippines (+ Lexus) | 29,400| 24,984| 5,893| 3,516 |
-------------------------------------------------
2 | Mitsubishi Motors Philippines | 16,956| 16,865| 2,830| 2,803 |
-------------------------------------------------
3 | Honda Cars Philippines Inc. | 5,961 | 6,991 | 1,262 | 1,053 |
-------------------------------------------------
4 | Isuzu Philippines Corp. | 5,769 | 4,578 | 967 | 667 |
-------------------------------------------------
5 | Ford Group Philippines (+ Mazda) | 4,149 | 6,422 | 728 | 1,116 |
-------------------------------------------------
6 | Columbian Autocar Corp. (Kia) | 3,898 | 2,185 | 652 | 470 |
-------------------------------------------------
7 | Suzuki Philippines Inc. | 2,531 | 1,955 | 410 | 384 |
-------------------------------------------------
8 | Universal Motors Corp. (Nissan CVs) | 2,129| 2,871| 454 | 416 |
-------------------------------------------------
9 | Nissan Motor Philippines Inc. | 825 | 1,612 | 138 | 294 |
-------------------------------------------------
10 | CATS Motors (Mercedes-Benz + Chrysler) | 402 | 492 | 97 | 85 |
-------------------------------------------------
Source: Innovation in the Automotive Sector of the Philippines, Quimba, Rosellon (2011)

NISSAN SWOT ANALYSIS
STRENGTH:
* It is a global brand. According to the business week global brand score card Nissan is the fastest automotive brand. In 2011 Nissans brand value grew by 27.1% to $13,237 million * Over the last five years the company has established the global brand by focusing on the silky design, vibrant experience, the interplay between serenity and diving pleasure. * Global financial position. One of the key strength of Nissan is global financial position. The five year financial position is as follows:-June 30 2012, in first quarter Nissan is reporting, consolidated net revenues of 2.136 trillion yen and operating profit of 120.7 billion yen, Operating margin of 5.6%. Net income was 72.3 billion yen, which represents a 3.4% net margin. Free cash flow for the auto business was a negative 39.3 billion yen Net cash position of 509.2 billion yen.
WEAKNESS:
* Dependence in overseas market. In the pace of globalization Nissan overseas dependendancy has improved faster than the home production. The major risk associated with this dependency indicates that risk of currency fluctuations, changing government policy and financial transaction. * Product innovation time lag: When compared to the other Japanese automobile companies Nissan was unable to perform at the edge of countries high profit margin and high volume pick up markets. Nissan company concentrate on high-level income groups so company has to find new designs to meet the changing trends of the people because the high value customers are always seeking for new models. There for the time lag affected the company’s profitability and eventually the competitors may take over the market share. * Lack of Diesel technology: - In the automobile market the vehicles sold for diesel are comparatively lower than the petrol vehicles .The advantage of using diesel is that it significantly reduced emissions and the cost for fuel consumption.
OPPORTUNITIES:
* Cost reduction: - Company has opportunity to change their production unit to other places where cost of manufacturing is less because company makes acquisitions to other company. * Opportunity for the Nissan to set up new distribution to Asian countries, due to low market share there is the opportunity for Nissan and Renault to set up a joint distribution network. This will serve to reduce costs for both Nissan and Renault. It would also serve to gain increased market exposure for Nissan across Europe.
THREATS:
* Cross- cultural disharmony: - After the merging of Nissan with Renault further increased the risk of cross cultural disharmony. * Rising commodity prices: Changes in commodity prices could affect the costs incurred by Nissan. Over the past 12 months, the price of steel used in car production has risen by nearly 30%. Company is using good quality steel material hot dip zinc coated steel. * Competition is high rate in automobile field because of technological advancement. Here demand is low but need wide choices. (http://www.termpaperwarehouse.com/essay-on/Nissan-Strategic-Analyssis/97268)

Conclusion
Nissan Motors is one of the most prominent automakers that make cars in the Philippines. Due to economic and political crisis in 1983, Mitsubishi Nissan was left in the industry. According to the studies conducted by economists in the past on the automobile industry, showed that Disposable Income per capita, Inflation, Population, Price index of cars, Foreign exchange rate are the economic indicators tended to affect demand for passenger cars as. Nissan Motor Philippines Inc. only ranks no.9 here in the country.
Filipinos prefer to use public transportation than pre-owned vehicles. Nissan company concentrate on high-level income groups so company has to find new designs to meet the changing trends of the people because the high value customers are always seeking for new models. There for the time interval affected the company’s profitability and eventually the competitors may take over.

Similar Documents

Premium Essay

Automotive Industry Philippines

...EXECUTIVE SUMMARY OBJECTIVES OF THE STUDY 1. To explore the history of the automotive industry in the Philippines 2. To examine the implications of various laws and regulations, whether domestic or international, on the local automotive industry 3. To provide and survey the current profile of the industry 4. To analyze the problems and challenges significantly affecting the industry, especially those which are economic in nature 5. To provide various recommendations that would address the problems identified and eventually, aid in the betterment of the industry I.   INTRODUCTION The Philippine automotive industry has been greatly characterized by parts and components manufacturing as a result of its participation in production sharing. Parts and components manufacturing accounts for more than 80 percent, while motor vehicle assembly accounts for about 17 percent of the local automotive industry. The components sector consists of: metalworking, rubber, seats and trims, plastics, electrical, and others. The components sector manufactures the following parts: * Suspension: tires steel rims, aluminum wheels, leaf and coil springs                   * Interior: carpets, seats * Electrical system: wiring harnesses, batteries, lamps, relays * Pressed components: mufflers, radiators, seat frames, sea adjusters, oil and air filters, pedals * Rubber and plastic components: fan belts, rubber hoses, small plastic parts *......

Words: 8979 - Pages: 36

Free Essay

Showroom

...ESTABLISHING THE ROLE OF THE PHILIPPINE AUTOMOTIVE  INDUSTRY IN THE EAST ASIAN PRODUCTION NETWORK:  IDENTIFYING INDUSTRIAL ADJUSTMENT POLICIES THAT WILL  FURTHER ENHANCE PARTICIPATION IN THE NETWORK AND  RESPONDING TO THE CHALLENGES POSED BY CHINA’S EMERGING  AUTOMOTIVE INDUSTRY1      Roberto B. Raymundo         I. INTRODUCTION    A.  Integrating the Local Automotive Sector within the International Production Network       One  of  the  major  industries  that  had  successfully  adopted  both  the  regional  as  well  as  the  global  approach  towards  locating  its  production  facilities  and  exploiting  locational  advantages is the automotive industry which has been predominantly driven by multinational  corporations (MNCs) originating from the United States, Japan and Germany. The expansion of  the  production  activities  of  these  MNCs,  particularly  those  originating  from  Japan,  into  the  economies  of  East  Asia  over  the  past  two  decades  have  been  primarily  responsible  for  the  creation  of  international  production  networks  which  continue  to  influence  the  extent  of  industrial development in the region. The international production networks in the automotive  sector have made substantial contributions to East Asian economies in the form of foreign direct  investments  (FDI)  to  the  host  countries,  creating  new  jobs  and  increasing  production, ......

Words: 33847 - Pages: 136

Free Essay

Jdasdka; D

...The Hyundai Motor Company (Hangul: 현대자동차 주식회사; Hanja: 現代自動車株式會社) (Hangul: 현대; Hanja: 現代; MR: Hyŏndae, IPA: [hjə́ːndɛ],[2] modernity; KRX: 005380) is a South Korean multinational automaker headquartered in Seoul, South Korea. Hyundai was founded in 1967 and it, along with Kia, together comprise the Hyundai Motor Group, which is the world's fourth largest automobile manufacturer based on annual vehicle sales in 2010.[3] In 2008, Hyundai (without Kia) ranked as the eighth largest automaker.[4] In 2010, Hyundai sold over 3.6 million vehicles worldwide. Hyundai operates the world's largest integrated automobile manufacturing facility[5] in Ulsan, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons worldwide. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms. Contents [hide] 1 History 1.1 Research and Development 1.2 Business 1.3 Hyundai in North America 1.3.1 United States 1.3.2 Hyundai in Canada 1.4 Hyundai In India 1.5 Hyundai in Europe 1.6 Hyundai in Turkey 1.7 Hyundai in Egypt 1.8 Hyundai In Russia 1.9 Hyundai in China 1.9.1 Beijing Hyundai 1.9.2 Hawtai partnership 1.9.3 Commercial vehicles 1.10 Hyundai in Japan 1.11 Hyundai in the Philippines 1.12 Hyundai in New Zealand 2 Electric vehicles 3 Environmental record 4 Motorsport 5 Model lineup 5.1 SUVs and vans 5.2 Commercial vehicles 6 Concept car 7 Corporate social responsibility 8 Controversies 9 See also 10......

Words: 7043 - Pages: 29

Premium Essay

Toyota Marketing Audit

...Department of Marketing Management COLLEGE OF ARTS AND SCIENCES San Beda College Mendiola, Manila Marketing Audit Report: Toyota Motor Philippines Presented to The Faculty of College of Arts and Sciences San Beda College For the Requirements in Practicum Part 2: On Job Training Part 2 Bachelor of Science in Business Administration Major in Marketing Management September 17, 2013 Table of Contents Marketing Audit Report: Toyota Motor Philippines 1 San Beda College 1 Executive Summary 4 Introduction of the Organization 6 Situational Analysis 8 Market Share 9 Cash Flow Statement 10 Product Life Cycle 11 Market Summary 12 Demographic 12 Psychographic 12 Geographic 13 SWOT analysis Matrix 15 Marketing Strategy 16 Company Mission 16 Overall Marketing Objectives 16 Positioning 16 Marketing Mix 17 Product 17 Vehicles 17 Price 20 Promotion 21 Place 22 People 23 Process 24 Physical Evidence 24 Competition 26 Product Offering 28 Fuel Efficiency 28 Product Offering 28 SEDANS & HATCHBACK 28 CROSSOVER & SUVs 30 MPVs 32 VANS & PICK-UP 34 HYBRID CARS 36 Reliable 38 Toyota Care Program 39 Keys to success and critical issues 40 CRITICAL ISSUES 41 Conclusion and Recommendation 42 Recommendation 42 Bibliography 44 Executive Summary The Toyota story begins in the late 19th century, when Sakichi Toyoda invented......

Words: 6626 - Pages: 27

Premium Essay

Global City Auto Sales, Inc. Ford Global City

...De La Salle University- Manila College of Business Global City Auto Sales, Inc. FORD Global City Strategic Management Paper Submitted to: Mr. Real So In Partial Fulfilment Of the requirement in Strategic Management (STRAMAN K36) Submitted By: Calantoc, Kimberly Kate L. Chua, Maris Danica T. Gamboa, Beatriz Suan, Ada Lynn M. Te, Krislynn Audrey C. 1 Table of Contents I. Table of Contents II. Acknowledgements III. Executive Summary IV. Introduction V. External Environmental Analysis 1. Definition of Industry 2. Analysis of Present Task Environment 3. Analysis of Potential Changes in the Macro-environment 4. Threats and Opportunities 5. External Factors Evaluation (EFE) Matrix 6. Industry and Competitive Analysis 7. Competitive Performance Matrix (CPM) VI. Analysis of Internal Environment 1. Company Overview 2. Corporate Values 3. Value Chain Analysis 4. Strengths and Weaknesses 5. Financial Analysis 6. Internal Factors Evaluation (IFE) Matrix VII. TOWS Matrix VIII. Strategic Plan 1. Vision and Mission 2. Objectives: Strategic and Financial 3. Evaluation of Present Corporate Strategies 4. Proposed Corporate Strategies 5. Corporate Social Responsibility 2 II. Acknowledgements Thank you to Ford Global City for answering all our queries about the company and its competitors. 3 III. Executive Summary Ford Global City is an automobile dealership that sells brand new Ford brand new Ford cars. They also provide car services, maintenance and repairs......

Words: 14032 - Pages: 57

Premium Essay

Recent Events in the Global Scene Have Had a Significant Impact on Supply Chains Especially Jit Operations. Discuss What These Events Are and Their Impact on the Role of Warehousing in the Supply Chain

...Warehousing and Inventory Management Assignment 1, Question:- Recent events in the global scene have had a significant impact on supply chains especially JIT operations. Discuss what these events are and their impact on the role of warehousing in the supply chain. JIT or Just-In-Time has been defined as an inventory control whereby is to maintain or control just right quantity materials in just right place at the just right time for the just right amount of products or manufacturing (Lee White, 1985). JIT concept was originated in Japan in the 1950s when the Toyato Motor Company developed a system known as “Kanban” to meet customer demand for various models with minimum delivery delays. When we talk about JIT we cannot run away from warehousing as warehousing is part of a supply chain logistic network. Warehousing is used for store or house of inventory for all stages of a supply chain JIT is a demand pull system in which manufacturing planning begins with the final assembly line and works backwards, not only through the various manufacturing processes, but also to the vendors and subcontractors supplying materials and components. Therefore two things must happen in order for JIT to work: ➢ All parts/materials/components must arrive where they are needed, when they are needed and in the exact quantity needed ➢ All parts/materials/components that arrive must be usable parts Hence any natural disasters occurred it will certainly affect the impact......

Words: 2724 - Pages: 11

Premium Essay

Toyota

...UNIVERSITY OF MUMBAI PROJECT REPORT ON MARKETING STRATEGIES & PLANS OF TOYOTA MOTORS BY MR. JITEN H MENGHANI ROLL NO 32 M.COM. (PART-1) ACADEMIC YEAR 2013-2014 PROJECT GUIDE PROF. MRS N.A. NERURKAR PARLE TILAK VIDYALAYA ASSOCIATION’S M.L.DAHANUKAR COLLEGE OF COMMERCE DIXIT ROAD, VILE PARLE (EAST) MUMBAI-400 057   DECLARATION I, MR. JITEN H MENGHANI OF PARLE TILAK VIDYALAYA ASSOCIATION’S, M.L.DAHANUKAR COLLEGE OF COMMERCE of M.COM (PART-1) (Semester-2) hereby Declare that I have completed this project on MARKETING STRATEGIES & PLANS OF TOYOTA MOTORS in The Academic year 2013-2014. The information Submitted is true & original to the best of knowledge. ----------------------- (Signature of student) JITEN.H.MENGHANI   ACKNOWLEGEMENT To list who all have helped me is difficult because they are so numerous and the depth is so enormous. I would like to acknowledge the following as being idealistic channels and fresh dimensions in the completion of this project I take this opportunity to thank the University of Mumbai for giving me chance to do this project. I would like thank my Principal, Dr. Madhavi.S.Pethe for providing the necessary facilities required for completion of this project. I would also like to express my sincere gratitude towards my project guide PROF. MRS N.A. NERURKAR whose guidance and care made the project successful. ...

Words: 9857 - Pages: 40

Premium Essay

Toyota

...your assignments and projects to be displayed here as sample for others at PAKASSIGNMENT@GMAIL.COM Project of Human Resource Management On Toyota Multan Motors [pic] Topic: Employee Monitoring Submitted to: Prof. Aysha Ghias Submitted by: Syed Ali Kamran Abidi. Roll no. 50 Mirza Ali Raza. Roll no. 90 M. Jaffar Tayar. Roll no. 48 Syed Hussain Zain ul abiden. Roll no. 85 Punjab Groups of Colleges [pic] TABLE OF CONTENTS [pic] Chapter no. 1 Topics Page a) Introduction to Organization. 3- 5 b) Mission Statement. 6 c) Vision Statement. 7- 8 d) History of Organization. 9-26 e) Duration of Operation. 27 f) Location of organization. 28 g) Organization’s Various Department. 29 h) Organizational Hierarchy. 30 [pic] The Toyota Motor Corporation, or simply called Toyota is a Japanese multinational corporation and the world's second largest automaker that manufactures automobiles, trucks, buses and robots and the world's eighth largest company. The company's headquarters are in Toyota, Aichi, Japan with factories and offices around the world. Toyota Motor Co. was established as an independent company in 1937. Although the founding family name is Toyoda, the company name was changed in order to signify the separation......

Words: 5507 - Pages: 23

Premium Essay

Porsche

...Proton: Its Rise, Fall, and Future Prospects For Dato’ Haji Syed Zainal Abidin Tahir (Syed Zainal, hereafter), Managing Director of Proton, recent headlines such as “Auto Sector Faces Numerous Challenges” and “European Carmakers Zoom in”[1] were simply reminders of the challenges his company faced. Proton had been troubled by its declining share of the domestic auto market (Exhibit 1) and consequent dwindling profits and margins. Without taking into account the government’s R&D grant in 2007/2008, the company suffered three straight years of losses from 2007 to 2010. Its finances recovered a little in 2009/2010, thanks to the government’s “cash for clunkers” incentive programme, a MYR143 million (USD48 million)[2] R&D grant from the government, and some improvement in sales. However, its net profit margin barely reached 3% — very low by industry standards — and most of its performance measures lagged behind those of the industry leaders (Exhibits 2 and 3). The stock price of Proton’s listed parent, Proton Holdings Berhad (Proton Holdings Limited), had been substantially lower than its net asset value for several years (Exhibit 3). Because of its low market to book ratio and the heavy government subsidies paid to Proton, Mr. Syed Zainal was under tremendous pressure to turn around Proton’s performance. Adding further pressure, the changing institutional environment had exposed Proton’s inability to compete. Since 2005 when the government committed to reducing import......

Words: 10122 - Pages: 41

Premium Essay

Morgan Motor

...Morgan Motor Company An analysis on Internal and external environment i|Page Table of Contents Executive Summary .................................................................................................................. iii 1.0 Current Situation.................................................................................................................. 1 1.1 Current condition ............................................................................................................. 2 1.2 Strategic Posture .............................................................................................................. 2 2.0 Corporate Governance......................................................................................................... 6 2.1 Board of Directors............................................................................................................ 7 2.2 Top Management ............................................................................................................. 9 3.0 External Environment: Opportunities and Threats ............................................................ 11 3.1 Physical Environment: Raw Material ............................................................................ 12 3.2 Societal Environment ..................................................................................................... 14 3.3 Task Environment .............................................................

Words: 14866 - Pages: 60

Premium Essay

Global Marketing

...PART 1 Introduction CHAPTER 1 Introduction to Global Marketing Case 1-1 The Global Marketplace Is Also Local onsider the following proposition: We live in a global marketplace. McDonald’s restaurants, Sony digital TVs, LEGO toys, Swatch watches, Burberry trench coats, and Caterpillar earthmoving equipment are found practically everywhere on the planet. Global companies are fierce rivals in key markets. For example, American auto industry giants General Motors and Ford are locked in a competitive struggle with Toyota,Hyundai,and other global Asian rivals as well as European companies such as Volkswagen. U.S.based Intel, the world’s largest chip maker, competes with South Korea’s Samsung. In the global cell phone market, Nokia (Finland), Ericsson (Sweden), Motorola (United C States), and Samsung are key players. Appliances from Whirlpool and Electrolux compete for precious retail space with products manufactured and marketed by China’s Haier Group and LG of South Korea. Now consider a second proposition: We live in a world in which markets are local. In China, for example, Yum Brands’ new East Dawning fast-food chain competes with local restaurants such as New Asia Snack.1 France’s domestic film industry generates about 40 percent of local motion picture box office receipts; U.S.-made movies account for about 50 percent. In Turkey, local artists such as Sertab account for more than 80 percent of recorded Exhibit 1-1: England’s Burberry Group celebrated......

Words: 23905 - Pages: 96

Premium Essay

China Auto Sector Policy 2012

...China’s Auto Sector Development and Policies: Issues and Implications Rachel Tang Analyst in Asian Affairs June 25, 2012 Congressional Research Service 7-5700 www.crs.gov R40924 CRS Report for Congress Prepared for Members and Committees of Congress China’s Auto Sector Development and Policies: Issues and Implications Summary The automobile industry, a key sector in China’s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers,......

Words: 19818 - Pages: 80

Free Essay

Strategies by Bimb

...INTERNATIONALIZATION STRATEGIES FOLLOWED BY THREE MEXICAN PIONEER COMPANIES GRUPO MODELO, GRUPO BIMBO and CEMEX ISSUES AND CHALLENGES José G. Vargas-Hernández, M.B.A;Ph.D. Profesor Investigador miembro del Sistema Nacional de Investigadores Departamento de Mercadotecnia y Negocios Internacionales Centro Universitario de Ciencias Económico Administrativas Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea.udg.mx,jgvh0811@yahoo.com,jvargas2006@gmail.com Mohammad Reza Noruzi, EMBA, PhD Candidate Policy Making in Public Sector Islamic Azad University, Bonab Branch, Iran Young Researchers Club Member, IAU Bonab, Iran Tell: +98- 412-7238893-5 mr.noruzi@modares.ac.ir mr_norouzi@pnu.ac.ir mr.noruzi.pnu@gmail.com Abstract The opening of the Mexican economy and globalization bring new opportunities for Mexican companies to expand their markets and get their products around the world. The internationalization process requires a sound strategy for the consolidation in foreign markets. The aim of this study is to analyze the different internationalization strategies followed by three Mexican companies with a global presence: Grupo Modelo, Grupo Bimbo and Cemex. We conclude that the differences in their strategies arise from the characteristics of each of these companies. Keywords: Mexican companies, strategy, expansion, internationalization. 1 INTRODUCTION The landscape of......

Words: 6968 - Pages: 28

Premium Essay

Ford Motor

...PART I. ITEM 1. Business Ford Motor Company (referred to herein as "Ford", the "Company", "we", "our" or "us") was incorporated in Delaware in 1919.  We acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford.  We are one of the world’s largest producers of cars and trucks.  We and our subsidiaries also engage in other businesses, including financing vehicles. In addition to the information about Ford and our subsidiaries contained in this Annual Report on Form 10-K for the year ended December 31, 2011 ("2011 Form 10-K Report" or "Report"), extensive information about our Company can be found at www.corporate.ford.com, including information about our management team, our brands and products, and our corporate governance principles. The corporate governance information on our website includes our Corporate Governance Principles, Code of Ethics for Senior Financial Personnel, Code of Ethics for the Board of Directors, Standards of Corporate Conduct for all employees, and the Charters for each of the Committees of our Board of Directors.  In addition, any amendments to our Code of Ethics or waivers granted to our directors and executive officers will be posted in this area of our website.  All of these documents may be accessed by going to our corporate website and clicking on "Our Company," then "Corporate Governance," and then "Corporate......

Words: 16716 - Pages: 67

Premium Essay

Strategy Case Studies

...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a......

Words: 71150 - Pages: 285