Global-Automobile-Report - Group-4 AVA
Global-Automobile-Report - Group-4 AVA
Global-Automobile-Report - Group-4 AVA
Viewpoint: J.D Powers & Associates - produces quality ranking for automobiles in the US
rankings.
Time Context: 2008- Present
Short term- To lower the fixed cost, labor cost, Transformation cost, lean production
Long Term – How to create hybrid cars that can compete to global market that
promote sustainability development
Outcome
Threats
Opportunities
Outcome
Company’s Strengths
Company’s Weaknesses
V. Recommendation
A. State your recommended solution
B. Define your objectives
a. Short run (1-5 years)
b. Long run (beyond 5 years)
Invest on Research and Development – lifeblood
Your objectives must specify your market, market share, sales volume, and profit target
(21%), most specially on your short term run objectives
c. Functional strategies
Strategy
Objective
Plans/Programs
Example: Marketing
https://www.statista.com/statistics/269872/largest-automobile-markets-worldwide-based-on-
new-car-registrations/
https://www.investopedia.com/articles/markets-economy/090616/6-countries-produce-most-
cars.asp
What type of automotive business are you marketing? Who is your typical
customer?
The prospective customers have drastically different concerns, questions,
wants and needs when it comes to investing in a new car.
A. Internal Environment (Corporate Appraisal)
a. Marketing Operations
In the early days of the industry, cars were sold directly from the
factory or through independent dealers, who might handle several
different makes.
b. Production Operations
The emergence of the modern industry dates back to 1913 and Henry Ford’s
first implementation of the production technology – the continuously moving
assembly line – that would revolutionize so much of industrial capitalism
over the next few decades. Ford quickly became the master of mass
production. 540
Mass production dramatically lowered the cost of building cars and
paved a way for the emergence of mass consumer market.
After years of experimentation, by the 1970s, a new production system
emerged at Toyota started to tweak the mass production system first
developed by FORD – LEAN PRODUCTION
Lean Production was based on innovations that reduced set up times for
machinery and made shorter production runs economical. When coupled with
the introduction of just-in-time (JIT) inventory system, flexible work
practices, an organization-wide focus on the quality, and the practice of
stopping the assembly line to fix defects, the lean production system yielded
significant gains in productivity and product quality.
In turn, lowered the costs, improved brand equity, and gave Toyota a
competitive advantage.
a. Organization
Alfred Sloan – the CEO of General Motors, who in the mid -1920s realized
that the key to successs in the industry was serving customers by offering them “a
car purse and purpose”. Under Sloan, Gm segmented the market, producing a
differentiated range of models to consumers.
b.Financial Analysis
By the 1960s, General Motors, Ford, and Chrysler dominated the
United States market, by far the world’s largest.
**Toyota too, reported a loss of $3.6 billion for the financial year in
March 2009, its first ever as a public company, primarily due to the
sharp sales declines in the United States anad Japan. However, with
$19 billion cash on its balance sheet, the result of years of high
profits, Toyota was financially secure.
Outcome
Company’s Strengths
Company’s Weaknesses
STRENGTHS
1 Evolving/Growing industry : Automobiles represent freedom
and economic growth. Automobiles allow people to live, work and
travel in ways that were unimaginable a century ago. Automobiles
provides access to markets, to doctors, to jobs. Nearly every automobile
trip ends with either an economic transaction or some other benefit to
the quality of life.
Across the world, auto is a synonym for development. Automobiles have
been increasing the quality of life for the past century by giving mobility,
comfort, and safety.This industry is also contributing to job creation and skill
development. It brings both direct and indirect employment which directly
connects with economic development. It’s giving facilities in every aspect of
today’s civilized society.
4 Cost per mile will drop: This is due to falling driver costs, longer vehicle lives,
new energy sources, technologies and mobility scaling.
WEAKNESS
5.
**Benchmarking
**Surveys
** Emissions -