The document discusses the global car industry and supermarkets in the UK. It provides statistics showing that China is the world's largest producer of cars, producing 24% of the global total. The UK car industry is a major exporter, producing over 1.6 million cars and 2.5 million engines annually, accounting for 10% of UK exports. The four largest supermarket chains in the UK - Tesco, Asda, Sainsbury's and Morrisons - have increased their market power, keeping prices low through sacrifices imposed on suppliers and low wages for employees.

1. Global Context of
Modern Business
Tutorial 6
Corporate and Political power
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2. Car industry
• Fordism
• Mass production
• Mass consumption
• Utilisation of semi-skilled labour
• Leading to the rise on living
standards
• Truly global business
• 1 car out of four is produced in
china
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3. Car industry
Rank Country
1
2
3
4
5
6
7
8
9
10
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China
Japan
Germany
South Korea
India
U.S.A.
Brazil
France
Spain
Russia
Cars
produced
% of total
world production
14,485,326
7,158,525
5,871,918
4,221,617
3,038,332
2,966,133
2,534,534
1,931,030
1,819,453
1,738,163
24.0%
11.9%
9.7%
7.0%
5.0%
4.9%
4.2%
3.2%
3.0%
2.9%

4. Car industry
•
Three period of dominance studies by Lugar
•
1916-1960s
• Business dominance over government policy
• - 1970s
• Bargaining and compromise
• -1988
• Triumph for the car industry
• Donation to the political parties
• Expert hiring government – industry- government
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5. Car industry
•
Availability of resources that is unmatched by
the government
• Lobbying
• Association (Society of Motor Manufacturers and Traders)
•
•
•
•
•
•
•
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1.6 million cars and 2.5 million engines
The world’s largest number of specialist vehicle manufacturers
based in the UK
59 Billion turnover
700 000 jobs
10% of total UK exports
80 % produced exported
1.7 Billion investment in R&D (technical research) ….

6. Supermarkets
•
Four large companies
•
•
•
•
•
•
•
•
•
•
•
•
•
Tesco
Asda (Wal-Mart)
Sainsbury’s
Morrisons
Increased power of sellers
Price competition
Low-prices achieved by sacrifices made by suppliers
Low prices paid to overseas farmers
Closure of smaller shops
Health issues
Air (transportation) miles
Lowest paid jobs in the UK
Graduate role at Lidl £35000+benefits+bonus)
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