(Davis) Relevant Factual Information about the Problem or Decision the Organization Faced The collapse in industry profitability in 2007–2009 and the bankruptcies of General Motors and Chrysler were not simply consequences of the financial crisis. They also reflected the massive structural problems of the industry—most notably, too many firms with too much capacity chasing too little demand. The catastrophic decline in industry revenues and profits in 2008 promised a major industry restructuring. (Grant) Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials A SWOT analysis can work to generate effective solution for Ford and the auto industry: Strengths Strong position in US market. Ford is the second largest automaker in US, the second largest vehicle market in the world.
Introduction Caterpillar shocked the business world earlier this year when it announced that it would take a $580 billion write off for 2012 Q4. This write off was in relation to Caterpillar’s acquisition the previous year of Chinese firm Siwei. Caterpillar alleged that this was the result of fraud that had been committed by Siwei’s managers. There were a lot o f questions asked in the business press. People wondered if Caterpillar had done proper due diligence, how Siwei had perpetrated the fraud, and if any Caterpillar employees had been involved.
1. Mattel’s global sourcing in China, like all other toy manufacturers, was based on both low-cost labor, and a growing critical mass of factories competitively vying for contract manufacturing business. Do you think the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy? No, I do not think that the product recalls and product quality problems are separate from or part of pursuing a low-cost country strategy. There are many industries have been using the low-cost country strategy for their sourcing for many years, so when there are any cost increases on the cost producing the products, the suppliers will try to reduce their cost by using all the ways.
I chose the topic the birth of the automobile culture because researching something that is so important to society, intrigued me. The first production car ever made was the Model T by Henry Ford. It was a very simple two-seater mostly made of wood with very simple mechanics. The model T was intended with the average middle class American in mind. (The automobile industry, 1920-1980) This was very big not only for the new invention of the first production car but it also offered many new jobs for factory workers needed to produce the mass number of cars that were in high demand.
Article 25 says that “The state promotes family planning so that population growth may fit the plans for economic and social development”, and Article 49 states that “Both husband and wife have the duty to practice family planning”. In fact, the constitution cannot enforce jurisdiction directly in China, so the government has published many treaties, rules and ordinances to execute this policy, and finally in 2001, there was a law for family planning. However, as there is a serious decline of newborns and the population growth was slow down, China has lost benefits because of the large population. This means that the labor cost is gradually becoming higher, and the productivity of the whole country is a slowing down. Also, the aging society has become a big problem in China, which is only a developing country.
October 9 , 2009 The Effects the of One-Child Policy in China What are the results of the one-child policy in China? 30 years ago, the Chinese government launched the policy of one child per family. At that time, China, which has seven percent of the world's arable land, is home to one quarter of the world's population. The Chinese government decided that it was necessary to impose a one-child policy in hopes of economic reform. Delayed marriage, delayed childbearing age, and the spacing of births, which in exceptional cases, are forms of restrictions imposed for the planning of family size.
Introduction Toyota, the icon of operational excellence and pristine quality, recalled more than eight million vehicles in the six months before mid-February, calling into question everything we thought we knew about the Toyota way (Liker, 2010). The recent recalls have tainted Toyota, says Peter DeLorenzo, editor of AutoExtremist.com: "Toyota is in serious trouble, because now there are too many competitive models from savvy competitors — Ford and Hyundai for instance — that are presenting a real alternative to the consumer. (Healey, 2010) Perhaps even more troubling for Toyota is that the recalls uncovered glaring weaknesses in what was previously considered a model company with an innovative manufacturing process and impeccable reputation for quality. Toyota factories were famous for implementing lean manufacturing techniques and "just-in-time" production methods that kept part inventories lower than those of their American counterparts. Toyota also initiated a process of quality control that allowed any member of the assembly team to stop the production line if they noticed a problem.
Electrowide wishes to sell their equipment to Motosuzhou hoping that it will be able to be more successfully distributed throughout the world and across automotive industries, especially to those in China. However, the first few weeks of negotiation was spent on small talk and sightseeing, not business relations. The US team made up of Tom Sherman, Barb Morgan, and Mark Porter, were more interested in sight seeing and late night partying than getting down to business. At one point, Tom even began to skip the meetings all together. Barb took notes during the meetings and made several observations regarding the Chinese teams mannerisms, which may have been false.
Moreover, Mattel fought competitors in Japan by joining forces with Bandai, Japan’s largest toy company. They adapted Barbie to Japanese culture and realized that Japan’s market prefers well known American Barbie. Finally, partnership strategies had been eliminated but still Mattel had a huge success with 31% of total revenue. In brief, Global strategies are partnerships that adapt it product to local taste, economic condition and pricing. I think that Mattel is doing Fair in Middle East and well in the Asian market.
Mattel’s China Experience: A Crisis in Toyland Case Study Analysis Introduction Mattel is a company that has been around for decades and has long relied on its brand name to sell toys. It leveraged the post World War Two economic boom to become a giant in the toy industry. The rise to the top of the industry included many management changes and controversy along the way. Having a positive public image and portraying characteristics such as caring about the safety and quality of their products has been the cornerstone of their success. Being able to acquire and maintain partnerships in the entertainment industry to market products, as well as solidify product image has also been a large part of the success for Mattel.