ECON545: Project 2—Macroeconomic Analysis By Shawn M. Gilliam Professor Peterson 4/17/15 Looking at the decision of Melanin Car Manufacturing Company expanding their operations to meet the increasing demand from car manufacturers to produces parts for the auto industry. After strong research in various areas to make this expansion successful I concluded that through looking into the industry in the eyes of already profitable plans along with the resources we have there is no way to fail. Three years ago, the nation barely avoided a double-dip recession, after emerging in the second half of 2018 from the longest period of U.S. economic contraction in eight decades. Emerging from the Great Recession, the U.S. economy picked up in 2025 to nearly the level it is
Ford steadily lost market share to GM and Chrysler, as these and other domestic and foreign competitors began offering fresher automobiles with more innovative features and luxury options. GM had a range of models from relatively cheap to luxury, tapping all price points in the spectrum, while less wealthy people purchased used Model Ts. The competitors also opened up new markets by extending credit for purchases, so consumers could buy these expensive automobiles with monthly payments. Ford initially resisted this approach, insisting such debts would ultimately hurt the consumer and the general economy. Ford eventually relented and started offering the same terms in December 1927,when Ford unveiled the redesigned Model A, and retired the Model T after producing15 million units.
Ford Motor Company not only survived the financial crisis of 2008/2009, which had pushed General Motors and Chrysler into bankruptcy, but also emerged as a robustly competitive member of the world’s leading auto producers. However, Ford’s ability to sustain its strong financial performance depends critically on the state of the world’s automobile industry (Grant). Synopsis of the Case For decades, through the boom and bust years of the 20th century, the American automotive industry had an immense impact on the domestic economy. The number of new cars sold annually was a reliable indicator of the nation's economic health. (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.
Taking into thought the long run of the company instead of the losses that the company would inquire in the short-term. By taking appropriate steps to continue the consumer’s trust in the company; first, correcting the items not properly working within the cars’ equipment; second, recalling the automobiles that had been already purchased by the public. Once the consumers would have noticed that the company is doing something to improve their past mistakes, those investments would have helped them with the future of the company as well as the growth of the Pinto model. At the time I believe that the investors of the company made a bad business decision by selling the remaining cars with their defects and everything at a
Domestic vs. Import Vehicles In today’s economy many people are looking for what to invest their money in and when it comes down to it, a vehicle is the last thing that they are thinking about. Now for those people that are in need of a new vehicle, or are maybe looking to just find something a little bit nicer than what they currently have then this is for you. Should you invest your hard earned dollar in a domestic vehicle, or in an import vehicle? In this paper I will discuss some of the common misconceptions about our great American vehicles including longevity, gas mileage, and purchase price.
Creating more profit opportunities by increasing marketing and promotion will encourage the dealerships to bring in and stock more of Company S’s product. This strategy is advantageous because it increases the opportunities for profit for not only the dealerships, but for Company S as well. If the dealerships sell more units, then Company S will make more money as well. This will create trust between Company S and it’s dealerships. A disadvantage of this strategy would be costly.
After all, many believe that the commercial was used as a political statement to thank the Obama administration. Indeed, the argument seems to ignore the fact that if it had not been for Obama’s auto-industry bailout plan, Chrysler would be underwater. Although granted that the Obama administration saved Chrysler from liquidation, it is still maintained that Chrysler used the commercial as a way to show that the Chrysler Company is back from crisis and has beaten the odds. Furthermore, the controversial Chrysler Halftime Commercial represents the struggle faced by the Chrysler Company, and the company’s effort to rebound back to the top of the auto
Often consumers will argue to ensure that they receive the best possible deal in which they will benefit all areas equally. However, when a consumer strives for a lower price, they must be willing to make compromise in other areas such as features and availability. If a consumer desires a vehicle in a specific color, they maybe have to pay more because it may not be available where they are located and must be transported. The increased cost might deter the buyer from what they are looking for and the they may compromise and purchase something different. Automobile companies strive to have available what the consumer is after but often outside circumstance may dictate and or affect a dealers stock.
The specific market of new cars means less sales. Opportunities While the new car market is specific, it also shows opportunity. Harris can capitalize on the fact that the United States had new car sales totaling 9,853,000. By capturing 5% of this market DoorGuard has the potential of 6,100,000 sets sold. As the United States is slowly coming out of recession, people are still looking for ways to protect their investments.
Figure 1 Harvard Business Review, 2008 Industry Environment Evaluating an industries environment is based on well-defined analytical tools as described in Thompson, 2012, (p. 34). What are the competitive forces and how strong are these forces, What forces are changing in the industry and the impact these changes will have on profitability, what market positions do rivals occupy, their strategic moves, key factors in future success and outlook to good profitability. Competitors Has Apple been able to stay competitive in this industry? Yes, as stated by Gamble, 2012, “Apple’s proprietary operating system and strong graphics-handling capabilities” have differentiated them from their rivals, but allowed them to move forward and change with the industry. Tom Coughlin in Forbes Daily Posts states that though “There are some limitations to a company’s ability to change what it does, Apple proves the point that” they can continue to become a high-mobility company” and not become stagnant within the industry.