Eco 561 Current Event Paper

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Current Event ECO 561 January 29, 2013 This week’s current event is correlated with market structure, the company chooses to be evaluated is Goodyear Tire.The market structure displays a precise atmosphere of a company, the features that stimulate the company’s output and pricing decisions. Goodyear Tire strives to stay ahead of the competition. The company says its strength is to continue to be innovative and try to be the market leader of tires. Goodyear Tire’s is a company driven by pure competition meaning that the company is motivated to outperform the competition producing a similar product. Goodyear tire continues to structure the company with the changes in the world in many ways the company is working to be more eco-friendly.…show more content…
“The strength of our brands and steady stream of new and innovative tires such as our branded fuel-efficient tires provided marketplace momentum and led a strong third quarter performance,” said Robert J. Keegan, chairman and chief executive officer. “The success of our Top Line, Cost and Cash actions together with improving market conditions and lower raw material costs drove improved third quarter earnings compared to both last year and to the second quarter,” he said. “We are pleased that our results for the quarter were in line with our original operating plan despite more difficult conditions than we had expected at the beginning of the year,” Keegan added. Goodyear said it anticipates year-over-year global industry growth in 2010, especially in markets for tires featuring high-value-added features, larger rim diameters and fuel-efficient technology. The company’s industry-leading new product engine, advantaged supply chain and reduced cost structure position it well to capitalize on these market…show more content…
Sales were up 11 percent from 2009’s second quarter. Third quarter 2009 sales reflect the $276 million impact of a 7 percent decline in tire unit volume due to lower industry demand as well as a $279 million reduction in sales in other tire-related businesses, primarily third-party chemical sales by North American Tire. Unfavorable foreign currency translation further reduced sales by $159 million. Goodyear successfully launched 15 new products in the quarter, in addition to the 42 launched in the first half. The company has exceeded its goal of more than 50 new product launches during 2009. The company had segment operating income of $275 million in the third quarter of 2009, up from $266 million in the 2008 third quarter and $24 million in 2009’s second quarter. Compared to the prior year, third quarter 2009 segment operating income reflects continued weak industry demand, which resulted in a negative volume impact of $64 million and under-absorbed fixed costs of approximately $107 million. The 2009 quarter benefited from $207 million in lower raw material

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