When assets price bubble burst, people tend to save money rather than spend money. It arouse market and liquidity risk. Companies and all kinds of industries become harder to make money and gain profits. Therefore, these have done a very serious harm to the real economy. Further more, macroeconomic risk appeared.
Indeed, “In today’s globally competitive world, customers expect more, have more choices, and are less brand loyal”(Market-Based Management, 2009, 35 ) . They are all challenges to the transportation companies. All the evidence in Supershuttle case suggests that Supershuttle is not a successful company, which may prevent it from growing in the future and even yield a worse outcome. This paper attempts to analysis the problems that Supershuttle has, evaluate them and give some advices to Supershuttle so that they can improve their service quality and obtain more profits. Firstly, it explores the problems associated with managing people and relationships and the measures that Supershuttle can take to retrieve their service.
This is when the long term development plan or three pronged business strategy was enacted. It focused on continuing in large scale development partnerships and using their money to learn more about the technology, then developing in-house created products for production and licensing them out (turnkey manner). It was high risk, with high reward potential and many big companies were eager to throw money at Trexel. This approach failed because Trexel bit off more than it could chew. They picked up too many products without understanding the full limitations of MuCell and lost a lot of customers.
Due to significant proportions of markets lost it was decided that the country should leave the gold standard and revalue sterling which exacerbated matters further as it was overpriced, forcing British exports to be more expensive.  A combination of deflationary policies mixed with a lack of decisive action also added to the existing problems that Britain was facing.  With all these problems already troubling the British government which changed hands various times, from a coalition to the Liberals, Labour and the Conservatives, the Wall Street Crash finally affected the whole world by the early 1930s. The Wall Street Crash occurred in October 1929 where hundreds of thousands of Americans were purchasing stocks and bonds mainly on credit and when a panic struck, prices of these ‘securities’ dropped, over 13 million shares were traded on ‘Black Thursday’ and a further 16 million on ‘Black Tuesday’.  All in all, over $30 billion was lost on the stock market resulting in the entire economy collapsing.
The transition was not smooth and plagued with increasingly long production delays. Because of these delays, customers were irritated and dissatisfied with Engstrom. Engstrom had to come up with a plan to turn this condition around. The Engstrom plant had to focus on cost savings, which meant producing more per hour of labor spent. The Engstrom incentive plan therefore, focused mostly on extrinsic motivation (Beer & Collins, 2008).
Situation Analysis Five Force: The force of Supplier is powerful, they sell raw materials at a high price to capture some of the industry's profits. The force of customer is powerful, too. Our auto-producing customers have the erratic production schedules. The competitive also struggling with earn decrease and production decrease. The threat of the substitution and new entry are weak.
It’s the process by which solicited bids are divulged as leverage with contractors to lower their prices. This is seen more often in specialty and trade contractors. Bid shopping may lead to a breakdown in trust and collaboration and is likely to cause a more contentious atmosphere between owners, contractors, and subcontractors. No payment issues have become a fast growing problem. The economic downturn hit the construction industry hard.
Profits increased only when customers placed large orders and had a large drop in profit when many clients placed small orders. Wrong cost determination is given to individual customers as well as new DOP services. The pricing system for DOP is inadequate for its current operating environment because each customer required different product ordering and distribution ways which cost differently. These costs that were considered in the product pricing strategy were not accurately assigned to each order and needed to be reallocated. In order to set up a better pricing strategy, we need to set up an activity based costing method to figure out cost and profitability for DOP.
Considered that the financial crisis has started from the USA, its effects were quickly and strongly felt beyond the country, too. The crisis is still a challenge for the Euro zone’s unity and its economic and financial stability. Since 2008 the unemployment there has been rising, many of the countries have a huge public and private debt. The economy in the Euro zone has been developing so bad that experts and economists doubt if the euro currency can survive. One of the Euro zone members which used to have one the most powerful economies on the continent is Italy.
In addition, cost structures increased and revenue substantially decreased due to inappropriate strategies. The strategy changes as recommended by top management through their strategic thinking did not work properly because they were not aligned sufficiently to the internal and external environments. Hence, the execution of the strategies (implementation) was unsuccessful and created distrust by the shareholders. Finding a new, capable CEO who can provide a new, appropriate vision, mission and strategy to enable the company to greatly improve is a challenge ahead for Yahoo. The recommendation is that Yahoo should develop a new vision and mission as soon as possible to enable it to establish a clear direction to go forward.