If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas prices throughout the country simply because the smaller cars would be more gas efficient, more cost efficient, and a lot of money being lost through the lack of being able to sell the expensive SUV’s which also doubles in cost to fill up and drive on a daily basis. Most Americans are buying the smaller cars because of the recession or the public opinion that we are in a recession. Third, would be to go ahead and sell the premium automobile group to somebody that would be able to make use and profit off of the lack of sales year after year. Cars like Jaguar and especially Aston Martins which are one of the most expensive cars in the world, don’t really sell on a large scale in the US except for the wealthy percentage of the population, so selling the premium automobile group should be a good business decision especially since the PAG group doesn’t fit the way Ford intended their business to be operated.
11.20.14 In the 1970’s OAPEC (Organization of Arab Petroleum Exporting Countries) established an oil embargo that caused gas prices to rise from $3.00 to up to $12.00 a barrel. Due to this drastic increase, the government, under President Jimmy Carter administration, set price controls on the price of gasoline. This not only lead to higher gas prices, but caused a rationing of gas, which lead to extremely long waits at the gas pump. To remedy the long lines, consumers where assigned a day to purchase gas, based on their odd or even numbers license plates. This instability of the supply of gas was known as the “Gas Crisis “or “Gas Shock” of 1973.
The price for the barrels averaged at a high of $105 in the first week of May and the price of a gallon in Houston was at a decreasing $3.74 from $3.89 about three weeks ago. The test of economics relating to the cost of resources versus the product isn’t sufficient because even at the highest peak in a month for crude oil, prices were still falling per gallon which leads to the other factor, the number of sellers/ suppliers. Every under construction site lately has been the input of a new gas station. This supports the slow falling price as the market widens with new competition. In the Cypress/Katy area there have been over ten new stations
For a family of four that level is $22,000 annually or less. The thing, is a lot of people have to live way under that level because the jobs that they can get do not pay much at all. Many high school students are dropping out of school to get restaurant jobs to help their families out. Also, people who want to go back to school to better their lives can’t because the cost is too much and there is not enough aid to pay for college. Because of the recession many Americans are forced to leave their houses and move in with family.
Why Do Gas Prices Fluctuate? In the United States, most drivers are well aware of the persistent erratic gas price changes over the past few years. One day the prices might be at a lowered price, and the next day the prices could possibly be raised to an even higher price than it was before. This might lead to individuals being confused as to why these sudden price changes are occurring. Some people who may not understand what is going on might feel as if they are being cheated or ripped off.
But for my sister she has to go back and forth spending a lot of money on gas, then she has to get her home work in on time plus she has to deal with her two children and also house work. The only benefit that my sister has over me is that she is able to interact with her classmates and professor but I am not able to do that. With the subject I chose to write about I already have the opportunity to do both so I already know what to expect from both online and a classroom setting. I did my High School learning in a classroom setting and it was pretty difficult for me. Because I had no transportation and no one to take care of my children and to make things worst I was pregnant.
I was doing this for about three hours a night causing my hands to dry up needing lotion. Lastly the worst part of the job was earning minimum wage. At the time it was five dollars and fifteen cents an hour. Working only 4 hours a night, 4 days a week; it wasn't enough to do or buy anything. Part of my earning was going toward helping my mother.
Henry Clements is a friend of yours who has a car rental agency in a major metropolitan area. Although his is an independent company, Henry works closely with three other independent companies in the metro area. They share information and each week they forecast the number of cars each will need the following week. Then, if needed, they will transfer cars between location on Sunday when none of the agencies are open. If they have to go and get a car during the week, it will cost $75 per car, considering the lost time and good will of making the customer wait.
I was twenty and wanted a car so badly and assumed that since he was my neighbor he would give me a good deal. Unfortunately, after purchasing the car, I realized that was not the case. The car had bad mileage, squeaky brakes, and a very distinct and foul smell. I was stuck with the car for five years before I could afford another one. If I had taken the time to ask questions, evaluate the interior instead of just the exterior, and thought to question why it was priced so cheap, I would have saved myself from a lot of frustration and anger.
People mostly trust a brand which they bought and feel satisfied before, so they rely on the car of a stable brand; which means they will probably not change their direction of car brand when next time they want to buy a new one. Recently, it (Mintel, 2011) has been reported that hydrocarbons' price is rising, it lead to a same increase in petrol's price which related to car driving. This cost problem can be thought of a major disaster to this market. VAT also can be considered as a cost problem, and it is a barrier of many potential clients. And the number of obesity people has been proved that increased, so many people who want to buy a car may change their mind to walk.