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.
Supply & Demand: Crude Oil and Gasoline According to David Ramberg and John Parsons (2012), “Several recent studies establish that crude oil and natural gas prices are cointegrated [sic]” (para. 1). Because the price of crude oil tends to change quite often, it causes the cost of gasoline to vary as well. Supply and demand is one of the main reasons why gas prices are driven up and down. More than likely, the price of crude oil will decline when the level of supply is at a high.
Rising gas prices impact on products and services: It seems hard to think that rising gas prices can have an effect on anything other than our wallets but when it hits our pockets other things in our economy suffer as well. Many products are shipped and delivered all around the world by trucks and other service vans. With the increase in fuel prices the rates for such trips must rise and that can have a negative effect on the bottom line. Not accounting for the extra cost in fueling trucks and other vehicles could cause a business to fail as they not be able to hand out contracts to other companies.
Unfortunately, investors around the world expected that the value of Volkswagen would decline given the state of the world economy in 2008, and these Investors had short sold 12.8% of Volkswagen shares. In their frenzy to cover their short positions in the wake of Porsche’s announcement, the price of Volkswagen shares increased dramatically. Porsche made over $6B in the ruse while hedge funds lost an estimated $35B. In the second
States held an estimated 250,900 drug offenders in 2003. That means it costs states approximately $16,948,295 per day to imprison drug offenders, or $6.1 Billion per year. (American) The French organization OGD points out the deeper economic impact from the eventual release of American drug felons: according to some estimates some 3.5 million prisoners will be released between now and 2010, and an additional 500,000 each year thereafter. “Such a large-scale release of unskilled people - most of them cannot even read and write - will have a negative impact on wages, which are already low in deprived urban areas, due to a massive influx of men desperate to get a job; especially, since the reform of the welfare system in 1996 severely reduced felons’ access to welfare money.
One area that is taking an impact on the company currently is the cost of commodities and fuel. Several factors have driven the abnormal oil prices such as war, shortages, and politics. As the cost per barrel of oil climbs the effects on the company and the general economy become greater. Coca Cola’s fleet is roughly around 200,000 red trucks globally ("The Coca Cola Company", 2006-2012). This
In the 20th century, it has gained a more civilized manifestation in the form of state lotteries. And though lotteries can make a few people rich, in fact they can inflict serious damage both to a state’s economy and to one’s personality. The first and foremost reason against state lotteries is that they harm national economies. For example, in the United States, only in the year 2009, more than $50 billion was spent to print state lottery tickets, set video kiosks, and on other preparations. From this total, in 2010 the most part of this money was wasted on the commissions for stores selling these tickets, and prizes; the government received only $17.9 billion, which broke down to 30 percent in profits and 8 percent in administrative costs.
Auto Industry in Crisis: The automobile industry is among the sectors that have been hit most by the recessions over the years. In the most recent recession, “demand for cars fell sharply, accentuating the difficulties of excess production capacity already faced before the crisis and deepening the economic downturn in major car-producing countries” (Dargay, Gately & Sommer, 2007). Relative to the general downturn, the decline in car sales was nonetheless not deeper than what was observed in the past. Role of Auto Industry in Economy: The size of the automobile industry relative to overall activity is small, but because of its strong linkages with other parts of the economy, the final impact of a shock in the industry on the broader economy is sizable, and is economically important. As Sturgeon & Van Biesebroeck (2009) point out that the “automobile and business cycles usually move in line with each other but the amplitude of the cycle is higher in the automobile industry”.
All the containers including water bottles are made from natural gas and petroleum. The cost to fuel 100,000 cars a year is what is spent to make water bottle that Americans use a year. In addition, the making of plastic materials, processing the water, fill and seal the bottles, and transporting water bottles to the various stores around the country is an expensive waste of energy and severely drains the limited fossil fuels. In “Bad To The Last Drop,” bottled water “is shipped at vast expense from one part of the world to another, is the kept refrigerated before sale, and causes huge amounts of plastic bottles to into landfills.” According to, “In praise of tap water,” only about 23% of the bottle will end up being recycled. Almost 77% of water bottles are not recycled.
The FBI reports for 2008 shows that the numbers of violent crimes dropped 11.6% in the city of Detroit. From 2000 to 2004 Detroit’s rate has dropped 23% drastically. In 2007, the city had the sixth highest rate of violent crime among the twenty-five largest U.S. cities. FBI reports In 2010, city of Detroit neighborhoods were not listed as among those in major cities with the 25 highest crime rates in the U.S. as reported by neighborhoods. Detroit recorded 308 criminal homicides in 2010, a 15.4% drop from the previous year’s count of 364.