The Path To Globalization Of China’S Automotive Industry

The Path to Globalization of China’s Automotive Industry
Perspective
Bill Russo Edward Tse Tao Ke
The Path to Globalization of China's Automotive Industry
Contact Information Beijing Bill Russo Senior Advisor +86–10–6563–8300 bill.russo@booz.com
Shanghai/Beijing Edward Tse Senior Partner +86–10–6563–8300 +852–3650–6100 +86–21–2327–
9800 edward.tse@booz.com Tao Ke Principal +86–21–2327–9800 tao.ke@booz.com
Booz & Company
EXECUTIVE SUMMARY
China is the world's factory for "everyday low price" merchandise. Sara Bongiorni's amusing yet
engaging book titled A Year Without 'Made In China' chronicles an American family's futile attempt
to boycott purchases of Chinese products for one year. The unexpected challenges of fulfilling such
a resolution were felt when attempting to purchase ... Show more content on Helpwriting.net ...
However, the highly fragmented industry that results from this creates enormous inefficiencies in the
area of capital investment. This fragmentation also makes it very difficult to focus and allocate
resources to the development of critical technologies related to safety and fuel economy. This is
2
Booz & Company
an area of particular weakness for Chinese OEMs who have relied on their foreign partners to lead
the development of key component technologies. The determining factor in whether a car company
can compete in the international markets is whether they have the capacity to meet local consumer
as well as regulatory requirements. While Chinese firms have learned very quickly how to assemble
cars and develop supply chains, they are very inexperienced at the vehicle development and
synthesis process. An automobile is a complex engineered system requiring advanced technology
and know–how in order to test and validate the achievement of benchmark targets in the areas of
performance, fuel economy, safety and quality. It is in this area that Chinese firms are weakest.
Chinese vehicles, while improving rapidly, are still not up to the world–class standards required to

compete in the mature markets of the world.
ThE BRAnd ChAllEnGE: ThE ChInESE VAlUE PRoPoSITIon
Savvy and pragmatic as they are, Chinese consumers understand this quite well–which is the main
reason why
... Get more on HelpWriting.net ...

Environmental Challenges Facing The American Auto Industry...
ENVIRONMENTAL CHALLENGES FACING THE AMERICAN AUTO INDUSTRY
INTRODUCTION
There are four major factors affecting the automotive industry: technology, market, customers and
the most influential factor – environment. Environment is a source of materials, infrastructure
necessary for manufacturing but everything is limited. The process of car or automotive
manufacturing is very complex regarding the usage of numerous resources and different
technologies ( P. Golinska & M. Kosacka).
GLOBAL COMPETITION IN THE AUTOMOTIVE INDUSTRY
Global competition brought about less market share for U.S. automobile manufacturers and
threatened company profits as more foreign car brands entered the U.S. market. The total market
share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big Three
car manufacturers also lost U.S. market share during this same period. Ford fell from 24.1% to
14.7%. Fiat–owned Chrysler now holds only 12.7% after having 15.7% of the market in 2000.
High labor costs, product lines that emphasized large vehicles with significant gasoline use and a
looming global recession caused a crash in U.S. automaker profitability in 2008. American car
manufacturers were struggling to compete against better, more efficiently manufactured products
from overseas companies. As of 2015, Toyota earns more than GM, Ford and Chevrolet combined.
Lower per–car costs have allowed foreign manufacturers to gain larger portions of the U.S. market.
Decades of

Ford Motor Company Analysis
External and Internal Environments
Automotive Industry – Ford Motor Company
Choose the two (2) segments of the general environment that would rank highest in their influence
on the corporation you chose. Assess how these segments affect the corporation you chose and the
industry in which it operates.
The general environment for Ford and the automotive industry in general can best be characterized
by weakened economy and emerging social and political trends that are demanding higher efficiency
vehicles. Although the economy has substantial stabilized since the Great Recession of 2008, it is by
no means made its way back to a full recovery. Ford was also in the strongest financial position of
the big three American automobile manufacturers and was able to post massive increases in sales
and profits in as early as 2010 after broad sweeping restructuring efforts (Hirsch, 2010). The
company also provided it could be profitable within a low volume sales environment which
indicates its resilience in a new automotive market.
Figure 1 – Job Growth in the Auto Sector (Hwang, 2012)
Another critical environmental factor is the new demand for more efficient vehicles. Much of this is
due to higher fuel costs as well as environmental concerns. Since June of 2009, vehicle sales are up
greatly year–over–year, and it is sales of fuel efficient vehicles that are driving overall sales growth
as consumers rank fuel efficiency as their top priority in seeking a new vehicle.

Essay On Sanger Automotive
1. Introduction
The United States of America is one of the biggest automobile markets in the world. This trend has
also created awareness for environmentalist to bring attention to rising level of pollution and
emission within the cities and metropolis. As response, the U.S. Government is encouraging the
automobile manufacturers to produce clean and renewable alternative vehicles that will drastically
reduce pollution and emission. Subsequently, the automobile industry has witnessed a gradual
introduction of environmental friendly vehicles that use clean and renewable energy to encourage
less pollution and safer environment. The manufactures of these vehicles have introduced into the
market three categories of electric passenger car ... Show more content on Helpwriting.net ...
 Unpopular brand: Fisker automotive Karma sedan is not well known in the auto market as
compared to other luxury brand such as BMW, Lexus etc. This will create skepticism among
potential consumers who are willing to purchase an electric car.  Pricing of electric vehicles: It is
widely believed that the prices of electric vehicles are relative high and consumers are only willing
to pay lesser than the suggested manufacturer retail selling price which means that Sanger
Automotive will be restricted on its profit margin.  Consumer Response/Knowledge: Majority of
potential electric vehicle buyers are not well informed about the technicalities of the vehicles
regarding the distance it can travel
3
on full charge and anxiety of running out of charge. This has plagued the market share of electric
cars resulting to loss of customers to conventional indirect competitors.  Brand Loyalty: Fisker
automotive is relatively a new company and its product line is still not widely known and accepted
by consumers. The brand does not have the customer loyalty which popular manufacturer of
gasoline powered vehicle possess. Therefore they have to embark on massive marketing campaign
and advertisement to create awareness and sensitized the market.
4. Market Details

General Motors
SWOT analysis of General Motors This is a General Motors Company SWOT analysis for 2013. For
more information on how to do SWOT analysis please refer to our article. Company background
General Motors Company (GM) is a corporate that designs, builds and sells cars and trucks. Name
Industries served Geographic areas served Headquarters Current CEO Revenue Profit Employees
Main Competitors General Motors Company Automotive Worldwide U.S. Daniel Akerson $ 152.3
billion (2012) $ 4.9 billion (2012) 202,000 (2012) BayerischeMotorenWerke AG, Chrysler Group
LLC, Daimler AG, Ford Motor Co., Honda Motor Company, Nissan Motor, Tata Motors, Ltd.,
Toyota Motor Corporation, Volkswagen AG and many other automotive companies. GM owns 18
brands, ... Show more content on Helpwriting.net ...
4. Car recalls. Last year, General Motors recalled 119,000 pickups due to missing hood latch. The
same year it had to recall it Chevrolet Volt and fix battery problems. Recalls are expensive and
damages brand reputation, especially when the company announces them so often. Opportunities 1.
Positive attitude towards "green" vehicles. Today consumers are more aware of the negative effects
(air pollution) caused by cars fueled by petrol and diesel. Large quantities of CO2 emissions
intensify greenhouse effect and negatively impact the life on earth. Thus, consumers are more likely
to buy new hybrid and electric cars that emit less CO2. 2. Increasing fuel prices. Increasing fuel
prices open up large markets for GM's hybrid and electric cars as consumers shift towards cheaper
fuel types. 3. Changing customer needs. By introducing new car models, General Motors would be
able to meet changing customer needs for smaller and more fuel–efficient cars. 4. Growth through
acquisitions. GM has successfully acquired many car companies in the past and should continue
doing so to gain new skills, assets and access to new markets. Threats 1. Fluctuating fuel prices. Due
to increasing extraction of shale gas, future fuel prices should drop and make electric and hybrid
cars less attractive. GM would treat the projects of hybrid and electric cars as losses, rather than
perspective future cars. On

Analysis Of Ford 's New Strategy
Over the past decade, Ford was struggling from strategic challenges in order to gain market share
against its competitors or even keep its competitive standing; as a result, Ford have liquidated its
luxury car brand in order to fund its new line up which is a part of its new strategy. This new
strategy calls One Ford which aims to reduce Ford lineup numbers. In other words, it means
producing one car platform to be sold worldwide rather than producing a particular car platform for
each marketplace which in turn will reduce Ford factories numbers. Implementing this new strategy,
Ford is going to shut down its factories in many countries like Australia. In terms of implementation
the new strategy of Ford in Australia, this paper aims to provide a competitive analysis study among
Ford competitors focusing on Australian automotive market by identifying Ford's major
competitors, their objectives and strategies, strengths and weaknesses, market share and size; beside,
it highlights the new trends of Australian automotive market to examine the effect on competition
during the next few years. Australian automotive market has great competition among the highest
worldwide selling car brands such as Ford, Holden, Mazda, Hyundai, Mitsubishi, Nissan and
Honda. In fact, this competition is more likely to reach the peak during the next decade. Actually,
there are two main things which may affect the competition in Australian automotive market. Firstly,
Australian automotive market

Challenges Facing The American Automotive Industry Essay
CHALLENGES FACING THE AMERICAN AUTOMOTIVE INDUSTRY 3 The American
automotive industry faces several environmental challenges. It has to stand up to foreign
competition in the global market. Laws that regulate things such as emissions are always a concern.
Automobiles produced by the industry may not be many consumers' first choice based on the
consumers' geographic whereabouts or that a certain foreign automobile brand almost has a
monopoly on a geographic area. The global automotive industry is constantly evolving, so the
American automotive industry must evolve alongside it. The American automotive industry must
come up with creative ways in order to overcome these environmental challenges. The American
automotive industry always has to defend itself from foreign competition. For example, in 2012 only
21,150 vehicles – cars, trucks, and buses – were imported from the United States into Japan, but
131,080 vehicles were imported from Germany (JAMA, 2013). This just goes to show that, at least
in certain geographical areas, the United States does not even come close to leading the market in
industry sales. Since there is really nothing that the industry can do to counteract this, it must
establish itself as a market leader in the domestic market. One of the ways that the American
automotive industry has incentivized purchasing American–made vehicles as opposed to importing
foreign–made vehicles is to impose a duty on most foreign–made vehicles. Canadian–made vehicles
are

What Is General Motors Swot Analysis
Financial Accounting
G.M. , TOYOTA & Chrysler
1.0 Introduction.
The main objective of this report is to analyze the financial statements of General Motors Company
to determine the financial performance of the Company. Additionally, this report will determine the
Competitive capability of the Company and also the market share that the Company has in the
market.
1.1 Industry.
General Motors is belongs to an automotive industry. This is the significant industry to the economy
of the United States of America. Despite the fact that there are many firms in this industry, the main
automakers in this sector are General Motors, Chrysler, and Ford. In the past few years, the
automotive industry has faced some challenges pertaining demand ... Show more content on
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For instance, GM's Chevrolet is very unique hence attracting more customers. Additionally, the
Company diversifies its products. The Company is producing different .kinds of motor vehicles
while it is providing other services like repair and maintenance services.
The General Motors Company today is in a state of complete turmoil, "surviving on Federal loans"
until it either "restructure[s] its debt or face[s] bankruptcy reorganization" come the first of June
(Detroit Free Press). According to Yahoo! Finance, the company most recently traded its stock at an
abysmal $1.09 on May 15, 2009, the lowest of the major players traded publically, trailing behind
Ford Motor Company's $5.49. (See Graph A for GM–F 3M Stock Prices)
GM's failure has been a long time in the making. In an advertisement issued by the company in
December of 2008 which was published in

How I Make Standard Automobiles More Eco Friendly
How To Make Standard Automobiles More Eco–friendly
There are many ways to make cars more Eco–friendly, but the least common way is to change the
engine to run on a different form of fuel. Jimmy Buffett changed his van to only run on vegetable oil
and now calls it the "green tomato". There are many different options for fuel replacements that
could save money as well. Converting the engine is the least common but probably the least
expensive. If the driver does convert your automobile to a non–fuel using machine, will save money
and have your car smelling like a McDonald 's french fry
The next alternative for the Eco–friendly theme is to consider Eco–drifting. Eco–drifting is an easy
way to save gas and money. The driver ... Show more content on Helpwriting.net ...
The average amount of miles an American drives is 13,476 per year.
Henry Ford once said, " I will build a car for the great multitude. It will be large enough for the
family, but small enough for the individual to run and care for. It will be constructed or the best
materials, by the best men to be hired" (New York Times Par 3). That statement is definitely true
because Henry Ford built the Ford Model T which was one of most popular automobile in the 18th
century. Henry Ford created one of the biggest car brands in the world. Ford helped Carroll Shelby
to construct the Shelby Cobra as well as the Shelby mustang. The most recognizable automotive
vehicles manufactured by Ford include the Ford Raptor, GT, Mustang, F–150, F–250, F–350, F–
550, Focus, Fiesta, Transit, Taurus, Explorer, Edge, Fusion, Escape, and many more. Many other
automotive companies have come and gone, but Ford seems to stay one of the most in demand
companies in history.
Another famous automotive engineer was Louis Chevrolet. Chevrolet is a competing American
automotive dealer. The two most well known car engineers from United States history include
Henry Ford and Louis Chevrolet. The two companies have prospered into billion dollar companies.
Each year when new automotive models come out the company raises money. In recent sales of
1989 to 2013 the automotive brands fluctuated about who was better. In recent years, the brands
traded car of the year spots and

A Report On The Company
Holden is one of nine car manufactures, who are capable to manufacture a car from the ground
level. It is the local brand of Australia, which is going to stop its production in Australia. This
document explains about the opportunities and threats to the company, I try to explain about the
present position of Holden, which is not very good. The final accounts of the company shows heavy
losses to the company. Australian Government also took many steps to save the Holden production
unit, because closure of the company is also not in favour of the country. The closure of the
company also force to close the other units which are producing parts for the Holden cars. It leads to
unemployment, people directly and indirectly employed with the ... Show more content on
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The program for automotive by government includes:
1. Automotive Transformation Scheme (ATS): This scheme encourages competitive investment and
innovation in the industry. Through ATS, Government provides up to $2 billion to help the industry
during 1st January 2011 to 31st December 2017.
2. Automotive Diversification Program (ADP): This program helps the supply chain companies to
automotive industry. Government invests $20 million in this program.
3. Automotive Industry Structural Adjustment Program (AISAP): the labour adjustment funds for
training are provides under AISAP to automotive workers.
Australian Government formulates productivity commission to know the public support for
Australian automotive industry. This commission finalizes its report on 26th August 2014.
(Department of industry Innovation and Science (Australia Government) 2015). Organization's
background
James Alexander Holden commences as a saddlery business in Adelaide, South Australia in 1856.
The firm became a full scale production unit of vehicle body shells from repairing car upholstery
with the hard work and good management. 1924 was a big year of company. It became the exclusive
supplier of American car manufacturer general motors in Australia. The company also supplied tram
cars throughout 1920's. In 1931, it became General Motors Holden's Limited (GM–H) by the merger
of two companies. Holden opened a new headquarter and

Case Study Of Lubricant Industry
Study of overall lubricants Industry in U.A.E
Table of content
1. Overall view of Lubricant industry.
2. Major Player's profiles in Lubricant industry.
ADNOC
ENOC
Total
Shell
British Petroleum
Castrol
Universal
AC Delco
3. Study of 4Ps of all major players in lubricants.
Product Mix: 1.Study of product line. 2. Product depth & width. 4. Product life of lubricant.
Price Mix : 1 .Pricing of different products
Promotion Mix: 1. Advertising strategies, promotional schemes, extra offers.
Place Mix: 1.About their global reach.
4. Study of channels of distribution of major players
5. Dubai market analysis of Major players. ... Show more content on Helpwriting.net ...
Operations are the activities that transform inputs into finished products (e.g. machining, testing,
packaging, equipment maintenance, etc.).
Outbound Logistics includes the activities that store and distribute products to buyers (e.g.
warehousing, delivery vehicle operations, order processing, etc.).
Marketing and Sales are the activities that provide the means for the buyer to purchase (e.g.
advertising, sales force operations, selection and management of distribution channels, etc.).
Service includes activities which enhance or maintain the value such as installation, repair, parts
supply, etc.).
BP's primary activities include research and development in terms of technological innovations,
production creation of fuels and other products, marketing and sales in terms of distribution via
service stations and lastly services to the customers and the supportive activities include the
company infrastructure like buildings and equipment's, information system, human resources (skill
employers) and finance in terms of cash.

Support

The Automobile Industry And What Effect Car Emissions Have...
Automotive in America
America is one of the biggest buyers of cars in the world. With great distances to cover in rural land
and impressive salaries spend on cars in places such as New York City or Beverly Hills, there is
always a market for domestic and international car manufacturers. The market has changed a lot in
the last 10 years, and that is why we will both look at the provided automotive industry analysis
from 2004 and go into the current landscape. We will look at the history of the American auto
market and see the changes since 2004. We will determine how the market is divided in the current
market and what global competition is prominent. We will continue by looking into new inventions
in the auto industry and what effect car emissions have on innovation. Finally, we will look at what
the consumer looks for in a new car in the current market.
Competition and Market share
Unlike other countries, Americans are very loyal to domestic brands. General Motors held the
dominating share in 2004 (Highfill, Baki, Copus, Green, Smith & Whineland, 2004) and does so
still in 2014 with 17.8% market share (Statista Statistics, 2015). Right behind General Motors is
Ford, another domestic manufacturer with 14.9% (Statista Statistics, 2015). Finally continuing to the
number three sales expert, Toyota with 14.4% (Statista Statistics, 2015). This makes America very
different from the global top manufacturers, where Toyota stands on top with 11.6% of the global
market share, followed

What Is The Weaknesses Of General Motors
A SWOT analysis of General Motors discloses the essential of useful strategies to increase the
values that benefits to the firm, and navigating the weaknesses that an organization needs to improve
areas where they believe that improvement must be addressed. Equally, a SWOT analysis enables a
company to explore opportunities in the marketplace where a firm can capitalize a market share and
introduce its products and services to the market as well (Wheelen, Hunger, Hoffman, & Bamford,
2015). Lastly, a SWOT analysis addresses threats from competitors or new entrant in the industry.
Strengths of GMC This component of the SWOT analysis enables the internal strategic planning
that help growth and development of General Motors (GMC). Moreover, these aspects contain
organizational capabilities and other potentials in strategic execution to bring up problems and
opportunities in the world auto industry. The strengths of GMC include financial strength, strong
brand name and competitive human resource. Financial strength Financial strength provides to the
effective execution of the popular strategy of GMC and its strategic growth in the long–term
operation in the world. Likewise, financial strength enables the firm to make intensive researches in
the latest technological advance to support its sales and strengthen the foreseeable earnings. In
addition, financial strength allows GMC invest in different strategic regions to capitalize new
market share. According to Joseph, N. (2015), GMC has invested more than $1.2 billion to build
new plant in Fort Wayne, Indiana. This plant will build Chevy Silverado and GMC Sierra pick–up
truck, and final assembly of other automobiles include paint shop, and e–coat equipment (Joseph,
2015). Equally, this plant enables GMC to present in the U.S mid–Eastern region in order to
increase its sales and earnings for coming years. Because of its financial strength, GMC is capable
to invest intelligently in its fuel to comply with the U.S environmental regulation. In February, 2014,
GMC has planned to invest $60 million in diesel–engine to meet coming law in the U.S. (Amend,
2014). This investment allows GMC increases its fuel efficiency and reduce the Carbon dioxide
levels

Case Study Of Lubricants Industry
Study of overall lubricants Industry in U.A.E
Table of content
1. Overall view of Lubricant industry.
2. Major Player's profiles in Lubricant industry.
ADNOC
ENOC
Total
Shell
British Petroleum
Castrol
Universal
AC Delco
3. Study of 4Ps of all major players in lubricants.
Product Mix: 1.Study of product line. 2. Product depth & width. 4. Product life of lubricant.
Price Mix : 1 .Pricing of different products
Promotion Mix: 1. Advertising strategies, promotional schemes, extra offers.
Place Mix: 1.About their global reach.
4. Study of channels of distribution of major players
5. Dubai market analysis of Major players. ... Show more content on Helpwriting.net ...
They are the key to BP's future growth.
Technology is key to both up and downstream operations.
HSE– raises health standards, no damage to environment or people.
Better relationships with countries where operations already exist.
Organization Structure BP's Facts and figures
(As at, or for the year ended, 31 December 2014, updated for IFRS 11 and IAS19 where relevant)
Countries of operation :Over 80
Number of employees :85,900
Sales and other operating revenues :$375,765 million
Cash flow :$20.5 billion
Replacement cost profit :$11.4 billion
Proved reserves :17,000 million barrels of oil equivalent
Retail sites :20,700
Refineries (wholly or partly owned) :15

Refining throughputs :2,354 thousand barrels per day
BP's Four Core Values
BP specifies four core values to express the way the organization does business and help translate
the mission into practical action:
Progressive: BP is always looking for new and better ways to conduct business. It has developed a
relationship with Ford to build hydrogen vehicles and fuelling stations in California, Michigan, and
elsewhere. BP also has reformulated its BP Amoco Ultimate fuel to reduce air

The Automotive Industry Is Characterised By High Levels Of...
The automotive industry is characterised by high levels of uncertainty, creating difficulties for
companies to follow prescriptive strategies. Many factors contribute to this unpredictability.
Pertinently, the financial crisis created instability: between 2008–2009 the Western automobile
market worth fell by $300billion. Damaging profitability and cash flows, creating excess supply. In
2007 worldwide production capacity of cars was over 70million although demand was less than
60million (De Moraes, 2016).
Growing environmental concern and pressures for car companies to undertake sustainable practices
has led to uncertainty (De Moraes, 2016). Movement in regulation and consumer preferences
towards environmentally friendly production has a cost burden (Hirsh, Kakkar, Singh and Wilk,
2015). Encouraging companies to misrepresent data; Volkswagen falsified emissions tests (The
Economist, 2015a).
Natural resource prices driven by regulative forces external to the automotive industry are another
source of uncertainty; 2009 onwards saw spiralling fuel prices, increasing the cost of manufacturing
and decreasing demand for vehicles (De Moraes, 2016). Conversely, current oil prices are
plummeting. When oil prices were high, consumers purchased economical vehicles. However, lower
prices have renewed demand for fuel–inefficient larger cars. These cyclical trends foster demand
uncertainties (The Economist, 2014).
Car industries are domestically important, providing employment,

Research on Hybrid Cars
[pic]
I. Introduction:
✓ Overview Of The Project:
This project is based on the latest technology in automobile (car) industry– HYBRID
TECHNOLOGY.
In this project we are going to discuss about the hybrid technology in cars, the impact of hybrid
technology on Indian automobile (car) industry, the companies which have adopted and benefited
through this technology and the findings & the conclusion.
✓ Hybrid Technology:
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle.
Power sources include: ▪ On–board or out–board rechargeable energy storage system (RESS) ▪
Gasoline or Diesel fuel ▪ Hydrogen ▪ Compressed air ▪ Human ... Show more content on
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In 1905, Mr. H Piper filed a patent for a gasoline engine–electric motor powertrain. According to
him, the electric motor would augment a gasoline engine, allowing a vehicle to accelerate from zero
to 25 miles an hour in 10 seconds, much faster than the gasoline engines of that time. Ironically,
when finally Mr.H Piper was granted the patent a few years later, normal engines were capable of
producing the same kind of acceleration.
Due to rapid advancements in the gasoline engine, the popularity of a hybrid car slowly diminished
untill again in the early to mid 1970s, the time of oil crisis. Many companies poured funds to build
experimental Hybrid Electric Vehicles. But as the oil became available again, the surge for HEVs
died down immediately.
The Europeans and Japanese researching on reducing production costs and making HEVs more
salable. Companies like Toyota, Honda, Volkswagen, Mitsubishi came up with ways to reduce
emissions and better the mileage.
Toyota introduced the Prius in 1997 (in Japan and in 2000 in the US) which proved to be a huge

success. Recent sales figures indicate that well over 300,000 units of Toyota Prius have been sold
the world over justifying the concept of a clean family car.
In 1999, Honda introduced its first production hybrid car, the Insight and then the Civic Hybrid in
2002.
Ford came up with the first hybrid SUV, the Escape, which hit the road in 2004. Quick on their path
are

Competitive Analysis : Porter's Five Forces Framework
Competitive Analysis Lauren Herter SIC Code: 3711 Motor vehicles & Passenger Car Bodies [1]
NAICS Code: 336111a Car & Automotive Manufacturing in US Industry definition: "Companies in
this industry manufacture cars and automobile chassis. These operations, which are referred to as
automakers, typically produce cars, including electric cars, in assembly plants. The manufacture of
light trucks (e.g. vans, pickups and SUVs), heavy trucks and motorcycles is excluded from this
industry." [2] Porter 's five forces framework assesses the competitive pressures a company faces
within the industry. The five forces of competitive pressure include: competition from rival sellers,
competition from potential new entrants to the industry, competition from producers of substitute
products, supplier bargaining power and customer bargaining power. The model helps us determine
the strength of competitive pressures and profitability of an industry. [3] FORCE STRATEGIC
SIGNIFICANCE New Entrants Weak Substitutes Moderate Rivalry within the Industry Strong
Suppliers Weak Customers/Buyers Strong New Entrants The threat of new entrants refers to the
threat posed by new competitors within an industry. If it is easy for new firms to enter the industry
barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more
competitors. Economies of scale, learning curve effects and other macro factors impact the nature of
an industry 's

Exxon versus Chevron Essay
Exxon versus Chevron Leanna Rigney ACC 303 Benson Kariuki–Mwangi Strayer University 02–
28–2015 Exxon versus Chevron Compare and contrast the limitations and usefulness of the single–
step income statement and the multi–step income statement. The single–step income statement
shows a company's net profit or net loss in a single mathematical equation. This statement does not
separate income and expenses. This is useful when showing financial information to individuals
who only need or want to see the end result. The single–step income statement is short and to the
point. It is also less time consuming to prepare and more easily understood. The major drawback of
the single–step income statement is the lack of information ... Show more content on
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9.58% 11.01% 11.58% Royal Dutch Shell PLC 5.73% 7.84% 8.91% Operating Profit Margin,
Sector Integrated Oil & Gas 7.82% 8.88% 10.03% Operating Profit Margin, Industry Oil & Gas
8.37% 9.20% 10.08% 2013 Calculations Operating profit margin = 100 × Operating income ÷ Sales
and other operating revenues = 100 × 27,213 ÷ 220,156 = 12.36% Chevron Corp., Gross Profit
Margin Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Selected Financial Data (USD $ in millions) Gross
profit 52,341 59,244 64,714 Sales and other operating revenues 220,156 230,590 244,371 Gross
profit margin 23.77% 25.69% 26.48% 2013 Calculations Gross profit margin = 100 × Gross profit ÷
Sales and other operating revenues = 100 × 52,341 ÷ 220,156 = 23.77% Between the Exxon and
Chevron companies, Chevron proves to be more profitable than Exxon since Chevron shrunk less in

Volkswagen Emissions Scandal Case Study
Volkswagen Emission Scandal: Reputation Recovery and Recall Strategy
KEY CHALLENGES
Volkswagen has lost its reputation due to the recent emissions scandal. Volkswagen needs to recover
its brand reputation and rebuild the relationships within its value chain, while pursuing its strategic
goals (improving fuel economy with lesser emissions), in order to remain competitive in the
automotive industry. To prevent future scandals, effective corporate governance needs to be
implemented at Volkswagen.
EXTERNAL ANALYSIS
The ecological environment necessitates clean, renewable energy sources, which requires
automakers to design motors with these new fuel sources in mind. The legal environment imposes
stricter regulations on vehicle ... Show more content on Helpwriting.net ...
Overall, the global competitive rivalry is intense amongst major automotive brands. The intense
competition combined with consumer expectations for socially responsible companies predicts
Volkswagen's post–scandal profit potential as marginal.
INTERNAL ANALYSIS
After the announcement of the emissions scandal, Volkswagen is fumbling to figure out how to pick
up the broken pieces of its brand image. Volkswagen had ruined the trust of all of its stakeholders.
The announcement of the cheated emissions test has crushed Volkswagen's stock price by almost
20%, which implies an almost $27 billion loss in market value. This scandal required the recall of 11
million cars with an expected cost of over $25 billion in penalty fees and the cost to fix recalled
vehicles. This scandal of much higher than stated emissions directly contradicted with Volkswagen's
branding of a clean emission diesel vehicle. It could not have gotten much counter–intuitive.
Volkswagen has spent 45% of its television advertising budget directly focusing on Volkswagen's
products' low emissions. That marketing budget is now valueless. However, most importantly,
Volkswagen upset its customer base. The owners of these recalled vehicles not only feel lied to and
betrayed, they have to take time to bring their recalled car in to get fixed. But, one of the biggest
complaints is the loss of resale value totalling nearly $5000. This may disrupt repeat customers and

The Automotive Industry Has Done A Good Job
The automotive industry has become one of the greatest industries today and is one of the world's
most crucial economic sectors by revenue. All the same, not only does automotive industry develops
and manufacture but it also markets and sale motor vehicles globally.
Social cultural varies for example population, social duty, ethnic differences, and the influence of
consumer mobility affects directly to the automobile industry. Most of the consumer 's concerns are
the price, and the brand of the automotive, design and trend, after sales service when purchasing a
vehicle and depends on what other another cause for concern is what people think about their
vehicle. Age distribution is another important aspect that directly influence ... Show more content on
Helpwriting.net ...
By investing in Research and development and innovating new technologies help to gain patented
and hike up future sales. Technological development is important in helping the driver to control the
vehicle with more confidence and ease. Ex: auto parking, navigation system which are standards on
some models.
Economic
Over time the prices of automobiles have become on expensive due to the rise in the inflation rate.
In terms of infrastructural development in the auto industry is one of most demanding fields of
business. One of the major external factors that can affect the price elasticity comes from the oil
dependence. Some other factors that cause shifts in supply & price elasticity; are the taxes that the
government place on automotive manufacturers. In addition, to the population figures, and the
buying potentiality of the consumers. Another aspect that can cause an area of concern is the price of
steel. Although a lot of cars produce today are made of fiberglass, steel is still a needed necessary
component in the automotive industry.
On the other hand, in an effort to lower the costs outsourcing of materials, components and services
would increase and technology advancement gap which could lead to drop the prices. The
automotive industry brings significant economic benefits to other countries.

Toyota 's Supply Chain System Essay
The Toyota Motor Corporation was founded in Japan in 1937 by Kiichiro Toyoda (Abdulmalek &
Rajgopal, 2007, p. 225). It was an offshoot of his father's company, Toyota Industries, and Kiichiro
purposed it to create automobiles. Today, Toyota is involved in designing, manufacturing and
assembling motor vehicles for sale around the globe. As of March 31st, 2014, Toyota had 338,875
employees from all around the world (Toyota, 2015). Some of Toyota's most popular brands are the
Lexus series, Prius, Camry, Noah and the Corolla (Toyota, 2015). It is currently the most valuable
automotive brand in the world, and in October 2014, it was ranked the best automotive brand
worldwide for the 11th year in a row. This paper aims will explore the motor vehicle industry as it is
today, the rise of Toyota as an international brand with respect to how it penetrated the American
market, a detailed look at Toyota's supply chain system and the role it had to play in its success, the
Toyota Learning Principles, and the v4L Framework, the biggest competitors it faces in today's
industry and conclude with how it gives back to the community. The automotive industry as it is
today is the home of numerous competing brands. Some of these dominant brands include
Mercedes, Volkswagen, BMW, Subaru and Nissan, with a vast array of motor vehicles for different
uses. Automotive manufacturers faced rough business conditions in final four years of the first
decade of the 2000's due to the sharp increase in fuel

Analyze a Global Trend and Explain the Driving Forces...
Analyze a global trend and explain the driving forces and/or contributing factors affecting the
competition within a specific industry. The world population will increase another 3 billion to 9
billion in 2044 (Figure 1), with the imbalance growing between population numbers and vital life
sustaining resources, humans must actively conserve cropland, freshwater, energy, and biological
resources. Humans need to develop renewable energy resources to reduce the damages of earth
resources and diminishes of human being. The World Health Organization says that about 2 million
people die prematurely every year due to air pollution globally. There were estimated that over
600,000,000 passenger cars in the world today ... Show more content on Helpwriting.net ...
A change in the price of a complementary product (e.g., gasoline, batteries, and tires) could have a
significant impact on the demand for automobiles. Recently, manufacturers are building interior
components using recycle products (Example). As the gas price are increasing, consumer main
concern when choosing the car is the vehicle composition. Recently, all car manufacturers are
building electric car which is generated by batteries. Even with sufficient of lithium–ion batteries in
the market (Eric Loveday) (Figure 2), the price of the batteries will increase when everyone are
replacing gas with battery. In UK, some car rental company offer short–term rentals of car within
communities and between neighbours. In this way, it allows the consumer to be both Eco–aware as
well as budget savvy (collaborative–consumption–car–sharing) With high technology and recession,
people tend to travel less. Most meeting, discussions or lesson are held online, this will decrease the
demand of car and traveling. The bargaining power of customers (buyers) – Consumers will have
the bargaining power over the dealer as the price is very competitive over different brands and
models with close range of specification. Consumer can easily switch dealers within the market,
depends on their preference of models and budgets. In additional, all consumers can access via
internet for the product details comparison (e.g. specifications and price). Overall, consumer

Exxon Mobil Corporation
This is the audit project memo of Exxon Mobil Corporation, at your request, it is consists of a brief
introduction of the background, the analysis of inherent risk, control risk and detection risk. In the
detection risk section, revenue recognition policy was been selected as the target of the following
analytical procedures and substantive procedures. At the end, based on the evaluation and analytical
procedures performed in this paper, the inherent risk is moderate to high, the control risk is low to
moderate and the detection risk is moderate.
Company overview
Exxon Mobil is the largest publicly traded international oil and gas corporation around the world.
The headquarter of Exxon Mobil Corporation is in Irving, Texas and the company running their
business in over 200 countries in the world.
Brief introduction of industry, market and competitors
Within no doubt that oil and gas are the most vital components of our daily life, this industry is
currently experiencing its transformative periods. There are a lot of changes that would bring both
opportunity and threat to oil and gas industry in the future. The oil and gas market showed a not
optimistic trend during the past year, according to England (2015), during 2015, the overall cash
flow keep diminishing and the situation also become weaker than before. The main competitors of
Exxon Mobil Corporation are Royal Dutch Shell, Chevron Corporation and BP.
Downstream structure and distribution channels
The downstream

Chrysler in Trouble
Executive Summary
The automobile market is one of the most lucrative markets in the world. They have focused on
international expansion since the late 1900s. This market has very successful international
companies such as Mercedes–Benz, Lexis, Hyundai, Chrysler, Camry, Fiat, etc. All of these firms
have held a position in the automobile industry. Even in economic hardships when demand for
automobiles was decreased, the market did not faze them. Two firms prominent in this industry are
Chrysler and Fiat which have both held successful positions in the late 1900s. Due to decreased
market demand and lackluster products both firms have drastically diminished their market appeal.
This has led to decreased profits which have led to European ... Show more content on
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The employment level first dipped below one million in 2007 and fell to 880,000 workers last year.
With the restructuring and bankruptcy of Chrysler and General Motors, and the ongoing recession in
the auto sector, employment in the nation 's automotive manufacturing industry will most likely
shrink in 2009 and 2010 as additional assembly, powertrain, and auto parts plants close.
Economically the automobile industry is an oligopoly. This is why the Big 3 remains the Big 3. The
nature of building cars makes it difficult for small players to enter the market. The cost of entry is
high. As an oligopoly, the Big 3 also tend to pay more attention to one another than to customers or
competitors. If GM adds airbags, Chrysler and Ford add airbags. Being the smallest, Chrysler tends
to follow rather than lead. Ideas generated outside the Big 3 tend to be ignored.
When times are good, automakers can sell anything they can produce. That includes bad cars. But
during recessions, automakers lose billions of dollars just maintaining operations. This is basically
due to the high fixed costs. And those costs are getting higher as tight union contracts make labor a
"fixed" cost.
The industry consists of six segments: three mature markets (North America, Japan and Western
Europe) and three emerging markets (Asia–Pacific, Eastern

Japanese Car Culture: The World Of Japanese Car Culture
Japanese Car Culture Japanese car culture is very popular among the world of automotive
enthusiast, it is the way people dress and modify their cars with certain concepts and themes which
was born and first found in Japan. Japanese Domestic Market or JDM is a global language of saying
Japanese car culture, it is famous since the birth of many legendary automotive brands. Japanese
cars are well known around the automotive world for their performance and well balanced all–
around vehicle specifications, completing the essences of being an impressive car which can cover
up all of the important vehicle elements such as fuel consumption, power to weight ratio, safety
precautions, which determines the quality of each cars. Of course people would have to choose
between variety of brands and the best among the others, these are some examples of popular
Japanese automotive brands; Toyota, Honda, Subaru, and Nissan. ... Show more content on
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The main theme of JDM is bagged or stance cars, stance cars are usually "lowered" or "chambered",
meaning the car position and wheel position are not authentic or it is modified. A "lowered" car is a
car that has lower suspension or in other words, the car body is closer to the ground. The big
question is, "what is so special about having a JDM car?". Basically it all depends on one's
prospective, because each and every individual have different point of views about the Japanese
modified cars. Seeing the world from the view of car enthusiasts, treating their beauties as if they
were a life form. "It's not about what you drive, it's about what drives you" – Keiichi Tsuchiya, a
famous Japanese drifter and street racer. People understood that what his words contains an
important value, that one's individual spirit and enthusiasm is what matters when building or
modifying a car, not only spending dozens of cash for costs, but also putting their hearts and minds
into the

Case Study On Exxon
Is Exxon's top spot in danger?
Ben Van Beurden, Chief Executive Officer of Royal Dutch Shell has laid out an ambitious plan to
overtake Exxon Mobil, the number one gas company in the world. Prior to 1990s, Shell was the
leader in total shareholder returns, however, it was overtaken by its rivals using the acquisition
route. Mr. Beurden believes that Shell will be able to regain its lost glory post the acquisition of the
BG group.
"I am determined to get us to that number one place," Mr. Beurden said after outlining the
company's long–term strategy in London. "I want to create a world class investment case for Shell
and our shareholders," reports Bloomberg.
Shell with a market capitalization of $216.6 billion has a lot of catching up to do if it wants to
surpass Exxon's market capitalization of $379.5 billion. ... Show more content on Helpwriting.net ...
The reason for higher valuation is the confidence that Exxon is in a better position to tide over the
current downturn in oil prices and it is a better–managed company than Shell.
Shell's gross and operating margins, return on equity, assets to cash flow are way below that of
Exxon.
Though Shell has narrowed the gap for total shareholder returns, Exxon still has an upper hand.
After the purchase of BG, the total debt of Shell has increased to $81 billion, whereas Exxon with
$43 billion of debt has options left on the table.
To impress the investor community, Shell plans to increase its free cash flow per share, improve its
returns and run the company conservatively. In order to do so, Shell has capped annual investments
at $30 billion until 2020 and it has left options open to reduce spending below its lower target range
of $25 billion in case crude price hovers close to the current levels of $50 per barrel or drops below
it.
It plans to slow down investments in the liquefied natural gas business as

General Motors Swot
STRENGTH: According to a source (SWOT) which concludes Ventures with local Chinese
automotive companies. A joint venture with local Chinese automotive companies has allowed GM to
overcome most of the foreign market entry barriers and accelerated the company's growth in China.
The company gained an access to the local brands and opened the market for its own brands. Few of
General Motors' rivals have succeeded in China so well. Moreover, I did mentioned
Sustainability...."Since GM has enrolled into U.S. Environmental Protection Agency (EPA)
ENERGY STAR energy–reduction challenge in 2010; the company has already avoided over $237
million in energy costs and reduced 1.8 million metric tons of carbon emissions in 73 of its U.S.
facilities. The company was able to cut its energy spending per vehicle produced by 5.6% in 2015
alone." General Motors (2016). General Motors is committed to sustainable clean environment
results in lower cost, happier communities around it, attracts plenty positive publicity while
strengthen brands image. Analyst making assessment strength company the change results, positive
outcome of the company ethic images working internally with staff and workers to reap the benefits
as well. WEAKENESS: Dependence on US generates most revenue. General Motors relied on home
marketing with US base automakers that are competitors to regional or countries An illustration:
Exhibit A Reliance on pickup trucks and SUVs for sale growth SUVs and pickup

Analysis Of Volkswagens Leadership Differs From Other...
External Analysis
A. Macro Environment
1. Cultural Trends
Volkswagens leadership differs from other German car makers in that their supervisory board which
governs over the executive board also includes local politicians (maybe a key factor in their recent
scandal). The other major auto makers in Germany all have supervisory boards as well but they are
in place primarily to govern the executives and look out for the interests of the shareholders. This
being said the two politicians are looking out for the best interest of the local workers and
executives, so between them and the eight local people elected to the supervisory board it gives
them an overwhelming majority in votes that may have a negative impact on the production of
vehicles there.
Their work culture is a demanding pace with expectations set high for management and workers
alike. Although they have a policy in place to allow workers to voice their concerns about the cars or
subsystems that is generally not the case as far as the executive level goes with many directors and
managers fearing for their jobs if anything subpar is brought up.(1)
2. Demographic Trends
Over the past fifteen years Volkswagen has set about to redefine their target audience in car buyers
to the more environmentally conscious consumer. This came about during a time when they had
acquired the Audi, Porsche, and Bentley lines of cars. Having those available as an income stream
allowed VW execs to gamble with the environmental movement going

GM Controversy
By 2008, the recession impacted the global marketplace, as automobile sales declined. This time
period became problematic for GM since the company was near bankruptcy. After weeks on Capitol
Hill in an effort save GM, an automotive bailout package was approved during the Obama
Administration. Gm would receive bailout loans from the America, Canada, and the Ontarian
governments to address the recession, record oil prices, and a serious global automotive crisis. As a
result of GM's bankruptcy filing, the company would reorganize itself. This meant that a popular
brand like the Pontiac would be phased out, while GM focus on North American brands like
Cadillac, GMC, Chevrolet, and Buick. In 2009, the old GM was replaced by the New GM in an
effort

The Automobile Industry Has Changed Throughout The Years
In 1769, the first human transport automobile was created and used the steam engine. The steam
engine evolved into the internal combustion engine that was powered by gas in 1806. Nearly eighty
years later, the petrol–fueled internal combustion engine was created. In the 20th century, the use of
electricity for power was also briefly utilized. Beginning in 1769 until present day, the automobile
industry has went through exciting innovative changes and there is no telling what lies ahead.
According to the Economist (2013) "A variety of driver assistance technologies are appearing on
new cars, which will not only take a lot of the stress out of driving in traffic but also prevent many
accidents." The Economist also states that ... Show more content on Helpwriting.net ...
automobile industry and have done so in a highly competitive way. The automobile industry is
categorized as an oligopoly. In this particular structured market, outside organizations have the
capability of entering the automobile industry, but in some cases there can be barriers of entry and
exit. According to Colander, D. (2010) "Implicit collusion among U.S. automobile firms led to
foreign firms' entry into the U.S. automobile market." Basically, a collective decision is made to
reduce or increase pricing in the industry without companies specifically meeting to do so. In the
global market, the automobile industry is competitive and creates opportunities to increase
production along with establishing operations in other countries throughout the world. The ability to
sustain a level of profits will be a challenge. With fluctuating market pricing, market share of the
automobile industry can be increased or reduced. In some cases, making a significant price
reduction can eliminate a competitor from the industry, which can result in long–term profits.
Merger Activity The automobile industry has a long history of mergers, acquisitions, partnerships
and alliances. In 1904 Ford Motor Company partnered with a Canadian carriage–maker. Though not
a vertical merger, the partnership increased Ford's production efficiency. The most recent
automobile

General Motors External
Executive Summary The United States has been experiencing a weak economy, which has
dramatically affected sales within the automotive industry. The industry as a whole has been
struggling, but the U.S. companies have had the worst results. Also, the desired product mix has
recently changed to more fuel efficient vehicles instead of large SUV's and trucks (S&P, 2008, p.1).
The following analysis will discuss in detail the external environment of the auto industry and then
transition to examining the internal environment of the U.S. firm, General Motors. GM is a large
and well known domestic auto manufacturer that was the leader in U.S. auto sales for many years
and at one time possessed a 47.4% market share. However, GM is now more ... Show more content
on Helpwriting.net ...
Until now, it was hoped that the fallout from the declines in home prices would be contained, first to
the sub–prime market, then to broader real estate–backed assets, and finally the hope was that the
damage could be restricted to just the financial sector. Unfortunately, each of these barriers have
been breached and combined with a broader unraveling of credit markets and a credit crunch. So, we
have seen continued spillovers into other areas of the economy, including the automobile industry
(New York Times). Not too long ago, the auto industry had room for small, independent
manufacturers such as Saab, Jaguar and Volvo. But since the mid to late 1980's the industry's big
players have been buying up their smaller rivals (Forbes.com). The economic downturn, rising oil
prices, and the cost of developing new technologies have made it much harder for new entrants to
come into the industry. Therefore, new entrants do not pose a threat to the existing competitors of
the automotive industry due to the economy and the large capital requirements needed in order to be
successful. For example, at General Motors alone the company must raise an estimated minimum of
$15 billion in new capital to stay competitive within the industry (New York Times). The new
capital requirements will mostly be used to perform research and development. This

Taking a Look at Volkswagen
Strengths
Global presence. Volkswagen is conducting its operations in more than 150 countries worldwide and
is expected to become the worlds best and biggest auto manufacturer by 2018. Volkswagen
manufacturing operations, for its cars, are currently being conducted in more than 100 plants across
the globe. Other than General Motors and Toyota, no other automotive company has the resources
available to compete with Volkswagen in terms of global presence.
Strong brand portfolio. volkwagen possesses the ownership and selling rights of 13 different
automotive brands: Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda, Volkswagen,
MAN, Scania and other commercial vehicles. With the possession of such diversed brands of
vehicle models the company has the ability to satisfy most of the consumer needs and thus they are
able to access each and every part of the immense consumer market.
Synergy. Synergy is strongly present between all 13 separate automotive brands. All 13 separate
companies greatly help each other in R&D and servicing costs, in promotion of best practices and
sharing of distribution channels.
Dominance in China. China is the largest market for automobiles and is a growing economy. It is
one of the biggest markets for Volkswagen vehicles. Volkswagen has 20% plus market share in
China mainly with its Audi and Volkswagen brands. extremely Well performing brands. Apart from
the companies own brand name "Volkswagen", the company is in possession of very hig

Royal Dutch Shell Corporation: Research And Analysis Matrix
About What's New Research & Analysis Knowledge Base Bookstore Archive
Royal Dutch Shell PLC Liquidity Analysis
6
Royal Dutch Shell PLC (RDSA)
Profile Financial Statement Common–Size Ratios Relative Valuation DCF Analysis Reporting
Quality
Liquidity Analysis
Liquidity ratios measure the company's ability to meet its short–term obligations.
Ratios (Summary) Current Ratio Quick Ratio Cash Ratio
See Also:
Exxon Mobil Corp. (XOM), Liquidity
Chevron Corp. (CVX), Liquidity
BP PLC (BP), Liquidity
Show More
Ratios (Summary)
Royal Dutch Shell PLC, liquidity ratios Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec
31, 2009 Current ratio 1.11 1.18 1.17 1.12 1.14 ... Show more content on Helpwriting.net ...
Royal Dutch Shell PLC's current ratio improved from 2011 to 2012 but then deteriorated
significantly from 2012 to 2013.
Quick ratio A liquidity ratio calculated as (cash plus short–term marketable investments plus
receivables) divided by current liabilities. Royal Dutch Shell PLC's quick ratio improved from 2011
to 2012 but then deteriorated significantly from 2012 to 2013.
Cash ratio A liquidity ratio calculated as (cash plus short–term marketable investments) divided by
current liabilities. Royal Dutch Shell PLC's cash ratio improved from 2011 to 2012 but then

deteriorated significantly from 2012 to 2013.
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Top
Current

The U.s. Automotive Market
The U.S. automotive market has had its fair share of challenges in the last ten years. In 2005, gas
prices started to surge wildly out of control peaking at their highest levels in mid–2008 that directly
impacted sales of less–efficient vehicles. ("Historical Price Charts", 2015) Since the bulk of the
profit margins the "Big 3" automakers generate is in the SUV and full–size product categories, the
consumer shift to more economical vehicles directly impacted the automaker 's profitability. As the
U.S. continued a slide into a full recession, auto manufacturers were faced with a financial crisis of
epic proportions. On the verge of bankruptcy, two of the largest auto manufacturers accepted a $2
Billion Government bailout to continue to ... Show more content on Helpwriting.net ...
based automobile manufacturers. As one of the largest industries in the U.S., the top manufacturers
rely primarily on their domestic market, along with Canada, to sustain their business. ("BERA: Issue
2 Automotive Industry: Global Automotive Industry", 2015)
The current business model for auto manufacturers is to locate their assembly plants as close to the
market as possible. As such, most manufacturers have plants located regionally near the countries
they are selling and marketing their vehicles. The hard and soft costs associated with transporting
large shipments of vehicles around the globe (time in transit as well as the cost of moving the goods)
means foreign automotive manufacturers must build their vehicles in the U.S. if they are to be
competitive. (Coffin, 2013)
There are many foreign competitors that have entered the U.S. market by either importing or
assembling their products in the United States. Foreign manufacturers to compete effectively in the
U.S. by assembling their products in the United States. However; there is still a stigma with
purchasing foreign engineered vehicles. To combat this in the U.S. and abroad, various
manufacturers have partnered with unlikely allies to product joint ventures. (Coffin, 2013) These
unlikely matches allow both manufacturers to take advantage of either specific technology (as is in
the case of GM and Toyota) or to take on the role as a supplier (as is

Toyota Motor Corporation : The Leading Automotive Company...
Introduction and company overview
Toyota Motor Corporation is the leading automotive company in Japan, headquartered in Aichi
Prefecture, Tokyo. Toyota is one of the strongest competitive companies and is the top ten
automotive companies in the world. They may be the second largest supplier of cars in the world,
but they are the most profitable company in the world. The firm has fifty–four overseas
manufacturing companies in twenty–eight countries and regions that employ about three hundred
and thirty–eight thousand people worldwide as of 2015.
Toyota has three main brands: Scion, Toyota, and Lexus. Scion is the youngest brands of Toyota;
they are affordable with "Toyota" quality and reliability brand. The aim of Scion's target market is
toward millennial who want a cool and affordable vehicle. Lexus is a more high–end luxury division
of Toyota. For Lexus, its brand aims to become a global luxury brand to push value and quality. Of
all the automobile industries, Toyota has also been one of the industries leaders in developing new
and innovative technologies that can take advantage of the industry current problems like the
environmental issues of the fossil fuel and pollution. Toyota Automobile industry in the eco–friendly
technology has great achievement in the hybrid vehicles. The Prius and Hybrid Camry Toyota have
innovated to be fuel saving and ego–friendly that became very popular in the market of many
countries. For many countries, Toyota hybrids vehicles have become

My Point Of View Of Franchising Essay
TASK ONE According to my point of view, franchising is simply a technique for extending a
business and distributing goods and services through a permitting relationship. It is a type of
business that is owned and operated by franchisees but that is branded and overseen by a usually
national or multinational company. Franchise is a business that you see in different cities. They are
recognizable because their company logo and products are same. A franchise is a type of business
that is the same all around you go. 1.1 Integrated business operations A term used to characterize an
organization that consolidates two or more operations or divisions and works as a specialty unit. It is
likewise called master franchise. Master franchise is a franchising contract in which the master
franchiser hands over the control of the franchising activities in a specified territory to a person.
Single product or service operations In simple words two or more company operated by single hand
is called single products or service operations. Manufacturing and whole sale Manufacturing and
Retail industry is subject to more opportunities, challenges as well as threats in other words supply
the products Manufacturing and whole sale. Manufacturing and retail Manufacturing and retail is
defined as when the product is ready to sell to the customers in other words direct transfer to
manufacture to retail. Wholesale and retail Retailers consist of small and large for–profit businesses
that sell

Oligopoly Analysis
The automotive industry has drastically transformed since World War II. In the early 20th century
America had many booming car companies with an array of beautiful designs. Early 20th century
automobiles were a thing of art, each brand having their own unique signature design. The article by
Thomas Lifson, titled Oligopoly and the fall of the American automobile industry describes this
event that unfolded in America's auto industry. The article highlights how oligopolies in the
automotive sector made for competitive prices, however, what consumers gained in bargain they lost
in the art that went into a unique design.
Post World War II the creation of what is known as the "Big Three" comprised of Ford, General
Motors, and Chrysler dominated the American automotive industry, earning massive profits. This
domination of the market known as an oligopoly was destroying the diversity of the American car
market. As Lifson mentions smaller manufactures such as Hudson, Nash, Packard, as well as,
Studebaker were doomed in wake of the big three. The oligopoly was making the car market less
and less diverse as time went on.
As competition rose between the top three manufacturers the products became more competitive to
one another by being more comparable. The consumer could now ... Show more content on
Helpwriting.net ...
These foreign options surprisingly were from countries were at war with a few decades prior. This
competition from once enemy nations brought controversy to the older generations of consumers.
"The first danger sign came with the growing success the Volkswagen Beetle enjoyed in the
American automobile market." (Lifson) With foreign automakers making a debut on the American
car market, the American manufactures lost their previous advantage of controlling the market. The
foreign auto makers now offered another advantage the American manufactures were struggling
with, fuel efficient

Corporate Social Responsibility Of Exxonmobil And Shell
Oil is the basis of industrial production and the necessity of economic development. Human life can
not be separated from the oil. Mobil was found in 1882 and is the largest producer of oil, natural gas
and oil refineries in the world (Mobil, 2014). Shell is made of the Royal oil of Holland and the
United Kingdom Mobil, and is the largest producer of oil, gas, and petrochemicals, and is the largest
retailer of automotive fuels and lubricants (Shell, 2015). As two world's largest oil companies,
Mobil and Shell play key roles in different areas, especially in the area of corporate social
responsibility, which contains extensive content referring to workers, customers, environment, and
community. This essay will compare and evaluate corporate social responsibility of ExxonMobil and
Shell in the criterion of safety, sustainability and education.
Safety is more than only a priority, but a core value and an integral part of the culture in
ExxonMobil and Shell. ... Show more content on Helpwriting.net ...
They both made the great contribution to take their corporate social responsibility. However, in the
aspect of safety, Shell is better than Mobil because what the Shell has done are more comprehensive,
considering the environment safety and energy safety. In addition, in the aspect of the environment,
ExxonMobil did worse than Shell because Mobil has difficulty in keeping a balance between profit
and the environment while Shell enhanced benefits of company and environment at the same time.
In the aspect of education, Mobil and Shell are both well done because though Mobil has cost much
more money than Shell, the direction of action in the education of these two companies is consistent.
To sum up, Shell did better than Mobil in corporate social responsibility. From these two company,
it is easy to understand that the ultimate intention of the emphasis on CSR is to realize ecological,
economic and socially sustainable

The Path To Globalization Of China’S Automotive Industry

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The Path To Globalization Of China’S Automotive Industry