business must be seen as a crucial factor to the organisation. A business environment encompasses those factors outside the normal business activities of an organisation but directly affects its decisions and is uncontrollable by the organisation. A change in consumer's taste will likely result in a shift in demand of a product such as fashion. IMPORTANCE OF BUSINESS ENVIRONMENT The importance of analysing an organisation's business environment cannot be more emphasized. Most businesses operate
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Shifting Gears in the Auto Industry Question One Prior to taking over Chrysler, Fiat was an international business – exporting cars out of Italy to other countries and engaging in joint ventures around the world, including an extremely unprofitable partnership with GM in 2005. The brand had a negative reputation in the United States, and it was senseless for the brand to invest resources in the American car market. By 2006, however, Fiat was turning a profit, and in 2009, the company was named
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Case 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
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VENTURES AND THE U.S. AUTO INDUSTRY Darwin Wassink Robert Carbaugh In 1983 General Motors Inc. and Toyota Inc. formed a joint venture, the New United Motor Manufacturing Inc., to assemble auios in the United States. For Toyota, the venture was a first attempt to locate production in America. General Motors viewed the venture as a means of learning how to produce low-cost, high quality, small vehicles. Facing an onslaught of anti-union Japanese firms, the United Auto Workers had to demonstrate
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Downsizing of the US Auto Market. Automakers will begin reducing production, cutting sales, or preparing for price wars in order to get rid of inventory. This type of downsizing may hurt Big Auto, forcing layoffs and reducing services offered. The consumers will no longer be able to afford expensive cars and would prefer keeping the current car they purchased. Even if the car is not worth the balance owed. Big Drive Auto will no longer carry certain makes or models, which would hurt sales. (Carseek
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for others. The effects of importing automotive materials depend on the current situation of the particular country. U.S. imports of auto parts from China and South Korea have grown more over the past three years than auto-parts imports from any other country. While trade deficits with all countries fell in 2009, a more appropriate comparison is to examine changes in trade since the year leading up to the recession, 2007. Between the last business cycle peak
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economic integration of these two major trading partners. With two-way trade already valued at more than US$85 billion annually, KORUS is the most commercially significant U.S. free trade agreement (FTA) since the North American Free Trade Agreement (NAFTA). Businesses across industries in both countries stand to benefit immediately, and over the long term, from the trade liberalizing commitments in KORUS. Companies with U.S.-Korea business interests should carefully plan to take full advantage of
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the Japanese Auto Industry SEVERAL STUDIES published in the 1980s indicated that Japanese firms, led by Toyota, have achieved the highest levels of manufacturing efficiency in the world automobile industry. Physical productivity, which reflects the “throughput” speed for completing products and the amount of labor required, has been significantly higher than in most U.S. plants (although differences vary by company and U.S. firms have made improvements in recent years).1 Japanese auto producers have
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Case 34 General Motors What are key forces in the general and industry environments that affect the U.S. auto industry, and General Motors? General Motors (GM) has suffered different threats and difficulties that have put in risk the continuity of its production. Before the year 2000, GM has been going through different production, financial, and development problems. Wagoner has tried in different ways to address each problem in order to make GM more successful. Unfortunately
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Change in General Motors Tina L. Wilderman MGT435 - Organizational Change Professor Robert Vega 02/14/2011 Change In General Motors General Motors Corporation was founded by William Durrant in 1902, since their conception they have produced nearly 450 million vehicles globally. The goliath corporation operates in virtually every country in the world. Up until the past decade GM was enjoying rapidly growing sales and revenues across the board. However, with the current economic
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