Lotus Rental Car wants to reduce expenses and increase their consumer base by adding new fuel efficient and alternative fuel vehicles to the Lotus fleet if these measures would be profitable. Key problems With the high demand for car rentals, and having more ecologically aware consumers, keeping alternative fuel vehicles in stock has been difficult. Hertz Rental Car Corporation has 4,000 hybrids throughout the United States, rents the hybrids for more money and still has a higher demand than supply. The demand for the hybrids has jumped 40% in the last year. Because of high consumer demand, auto manufacturers do not offer big discounts to commercial accounts.
This affects rates on everything from mortgages to car loans. Fiscal policy is set by legislative action or executive order, so the auto industry plays a significant role in the U.S. economy. In October 2021, employment at auto and parts manufacturing and dealerships was more than 6.4 million, the health of the auto industry depends on the health of the economy. Monetary policy sets the tone for the economy so if interest rates are low, cars are more affordable, which usually means more auto jobs which is a good thing but if interest rates are high, dealerships have fewer auto jobs and more unsold cars . This leads to less tax paid by the industry and more unemployment insurance payouts, both of which affect fiscal policy.
An example of a product with an import surplus in the U.S. is cars imported from China. The U.S. auto industry saw significant job loss and was close to total collapse because of the rapid growth of cars imported from China at very competitive cost. Though the auto industry in the U.S. has rebounded with the help of a government stimulus program, they still have much ground to make up because of what many call unfair trading policies between the U.S. and China. As long as the U.S. is in a trade deficit the nation’s economy is in jeopardy. This hurts business in the long term and ultimately the American consumer since businesses will not be able to compete with the low prices
Executive Summary: General Motors’ AUTOnomy Project GM’S STRATEGY FOR DEVELOPING FUEL CELL TECHNOLOGY General Motors (GM) has invested heavily in technology to reduce emissions and vehicles powered by alternative fuels. Interest in alternative fuels was improved, driven by three factors: the concern over greenhouse gas emission, the increase dependency over US on oil and the concern that global demand for fuel would outstrip supply. GM has developed their strategy while facing many uncertainties regarding new alternative car technologies. In 1990, GM begins the development of electric and battery-powered vehicles. Given the high cost and limited range, sales were disappointing.
Under the guidance of Griffith, Zipcar's operating income rose to $one hundred million, which means this is a profitable, and the members are also increased. This will increase the new entrants, who may be compress the cost, thus reduce car rental prices. Bargaining power of customers (buyers): There are many car rental companies available, such as HERTZ, AVIS, so consumers make their choice depend on which company can give a discount and which is the cheapest one. This will influence zipcar’s profit. The consumer may ask more service, such as a more clean or new car, this will increase zipcar’s cost.
China's big cities, the increase of population and vehicles, are one of the reasons that led to the traffic congestion. With the further prosperity of the economy, the price of the car is also cheaper, low threshold for the purchase of vehicles, people have more vehicles, and the pressure of the road also causes vehicle increase. Driving (including public transport vehicles) do not obey the traffic rules, and some people mess running red lights, ignore traffic rules, as the red light furnishings, some car parking chaos in the already wide road, leading to traffic jams sometimes appear slightly touch the car, each side will accuse each other, ignoring the problem because they caused traffic jams, traffic problems because a small quarrel, alarm. Sometimes, the insurance company and the police after receiving the alarm, and then rushed over to deal with, they have more than half an hour. Also many cases because such a small accident caused traffic jams.
6 Social Responsibility within Company Q Social Responsibility within Company Q Daniel R. Beckerman Western Governors University WGU Student #000322976 For any given business, the greatest potential for revenue growth can be found through a mix of focusing on providing for the shareholders, as well as thinking of the stakeholders as a whole. This means focusing past short term profits and creating a plan that demonstrates a measure of social responsibility. Business reputation goes a long way towards creating how large a company’s customer base is going to be, and giving the appearance of not caring about the community can lead to a loss of customers and a loss of additional revenue in the long run.
P & G focuses on strategies that are precise for the long-term well-being of the business and will convey total investor return and hold the spot in the top one-third of their industry group. . P & G also intends to deliver earnings per share growth of high single digits to low double digits and to create free cash flow productivity of greater than 90%. The company’s long-term economic targets are to grow organic sales up to 2% faster than the industry market growth in geographies and categories in which the organization competes. To achieve these strategic targets, P & G plans to achieve by improving and touching the lives of more consumers, in more parts of the globe.
CASE-7 THE LINCOLN ELECTRIC COMPANY: The case about Lincoln electronic company is an anatomy case which describes management success in operating high efficient company. Over the years, Lincoln could record a steady growth, satisfied thousands of customers, and financed with internally generated funds. 1. How would you describe Lincoln’s approach to the organization and motivation of their employee? Lincoln had a lot of results control in the company.
Though some worry that the rapid increase of innovation has had too high of a demand on our economy, and we are not adept enough to fill the voids that technology is taking, and bear with the modernization it is infiltrating to our changing society. B. More details There are two major theories speculated for how technology may be harming employment rates, and or increasing our economy and demand for jobs. First, we must take into account that technology has been used to innovate and grow productivity, allowing for the creation and demand of more products and goods, thus allowing for an expansion on economy, and a greater need for jobs. So wherein some careers might falter due to their obsoleteness as technology increases, more jobs are becoming relevant due to the expansion of the economy and the production needed to operate the machines.