MKT 545 1. Why did the contraction of the U.S and Japanese economies and the rise in the value of the yen hurt Sony’s exports from Japan? The size of the U.S. economy and political stability, even in the face of a presidential election in November 2008, tend to make the United States an attractive place for investment. Thus the fear factor seemed to be a critical vote for the dollar during the crisis. This is a short-term phenomenon, however, and will eventually be replaced by economic fundamentals.
In addition, strong competition in auto industry is kind of reason that reducing the Cameron Auto’s Sales. The pressure was come from the Japanese auto companies because they were taking an increasing share of the market. Therefore, the major North American auto producers were frantically hying to advance their technology and to lower their prices at the same time. Because of that, Alex had to make some changes for his products and company if order to cater to the customers and marketing environment. However, licensing would be the most viable option as it requires the least amount of capital, both financial and human.
This made it easy for GE to acquire opportunities in Japan and other Asian countries. In the end, the company was in a position to attain 40% of its revenues from global sales with an up to 20% increase from 1985. Increasing sales, increasing market share, reduction of budgets and acquiring economy of scale are some reasons why GE went global. In moving some of the headquarters from United States, GE is trying to escape the sluggish domestic spending in US hence turning more of their focus in overseas to get hold of the increasing demand for its products. The current state of the US economy is
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.
Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7. In reviewing Competition Bikes total selling expense, it was able to ascertain a huge 33% increase from Years 6 and 7 then managed to decrease that spending in Years 7 and 8 for about 14.9% (approximately $59,000) which is a strength for CB because they were managing their spending. For the Total General and Admin Expenses, Years 6 and 7 had a 20.4 % increase while the following years, 7
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
To top it the company also has a high wage bill and a very limited customer base in Italy. The company also faced stiff competition from Asian firms in other markets of Europe, which provided better value for money products to the customers. Overall the company faces a problem of high prices of its products with no tangible or intangible value associated. The company is thus confronted by the upward task of restructuring its product line, reducing costs and build scale. Evaluation of alternatives “target” The first alternative “relieve the compression chiller line” The implementation of the strategy suggested by the Italian management who thoroughly understand the industry constraints.The size of the compression chiller industry 20 bn dollars.The compression chiller comprise of 85% of the total market.
This shows that without a Laissez-Faire government, mass production would have struggled to prosper so much domestically. Mass production was however still greatly important as it meant that goods could be manufactured more cheaply and efficiently. These methods were pioneered by Henry Ford who completely changed the automobile industry, the mass production techniques allowed cars to be available to the average American and as a result, 23million cars were on the road during the period and the industry employed 7% of the countries workforce. This
They needed the support of the manufacturing company to have the town survive. Our Government needs to be more involved with helping the American businesses by using trade agreements and import quotas similar to the ones that Ronald Regan imposed. Regan imposed temporary quotas on some Japanese goods, trying to give American manufactures the time to compete with the reliability and efficiency of the cars arriving from Japan. However, the plan did not work as Regan had hoped it would. The Japanese opened factories in the United States.
In Japan, raw materials are twice as more expensive than in the US. Currently the Kawasaki’s material cost per thousand is $14.89 compared to the Sunnyvale’s cost is $11.49. Moving production to the US would cut a big expense for the material cost for DJC. The Sunnyvale plant needs to cut costs to remain competitive. They need to reduce the amount of work in progress inventory they currently hold.