of economies of scale to keep the production cost low‚ so that the automobiles can be affordable to the consumer. Capital requirements; It takes an extreme amount of capital and a large sum of investment to manufacture the automobiles. For Example GM makes no profit on a $ 20000 vehicle‚ most of the income actually comes through the financing portion [1]. Access to distribution channels;. In order to sale their products‚ manufacturers must locate dealerships across different markets. Space is limited
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around $3.2 billion A DAY in our current spending cycle. I have to assume that this is in part due to the spread of global capitalism‚ with the United States as its front-runner. As seen in the bailouts of the past decade‚ the public sector [the US government] is taking in the risks of the private sector [such as GM] by subsidizing and giving incentives to large companies in order to create more jobs. This was done with the intention of keeping jobs in the United States‚ and in turn creates this ‘race
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statement analysis‚ and valuation. (7th ed.). Mason‚ OH: South Western CENGAGE Learning. Young‚ A. (2014‚ Feb 13). Us new auto inventories highest since ’09; gm‚ volkswagen top list; kia‚ hyundai up most; toyota stock at ’healthiest ’ level. International Business Times‚ Retrieved from http://www.ibtimes.com/us-new-auto-inventories-highest-09-gm-volkswagen-top-list-kia-hyundai-most-toyota-stock-healthiest
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References: Amadeo‚ Kimberly‚ 2011. The Auto Bailout. Retrieved December 2‚ 2011 from http://useconomy.about.com/od/criticalssues/a/auto_bailout.htm website Basu‚ Chirantan‚ 2011. Monetary & Fiscal Policies in Automotive Industry Employment. Retrieved December 2‚ 2011 from http://www.ehow.com/facts_7505790_monetary
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on the planet‚ with more than 800‚000 units rolling off assembly lines. The Ford Explorer held the top slot in the hot SUV market. And the Ford Taurus had been a perennial contender for the top selling sedan. Ford was number two on the Fortune 500 (GM was number one) with $153 billion in revenues. A strong stock price gave Ford a market value of $73 billion. And according to Interbrand‚ the company was the sixth most valuable brand in the world‚ worth $36 billion. But in only 10 years‚ its position
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Company‚ soon after Henry Ford would move the Ford operations to the suburbs of Dearborn‚ Michigan. On September 16‚ 1908 William Durant and Charles Mott founded General Motors in Flint‚ Michigan. Today‚ GM is now the only major U.S. automaker that is still headquartered in downtown Detroit. Following GM‚ Walter Chrysler started the Chrysler Corporation‚ in Detroit. Like Ford‚ Chrysler would also move their
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PSA Case Study Q1 – Critically assess the strategic environment and the impact on the organisation. The strategic environment that exists in the motor industry is one of extreme volatility and uncertainty. Since the economic crash affected global car sales in 2008 by $0.4 billion dollars and by 33% in Europe and the US‚ there have been numerous strategies employed by the main players to turn around their fortunes. There has been a strong element of overproduction in the car industry for years
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Christine Herrington Dr. Fitzwilliam English 110.003 September 5th‚ 2014 Summary of “How Socialists Built America” In the article‚ “How Socialists Built America‚” author John Nichols starts with saying that America was founded as a capitalist country and that socialism is a dangerous and foreign idea; even though we believe in the concept of free trade. Radio talk-show host Rush Limbaugh often says that taxing the wealthy in order to provide healthcare for children and the unemployed
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Bankruptcy (2009): 4 SWOT Analysis: 4 Porter’s Five Forces Analysis: 4 Organizational Structure and Design: 4 GM Culture: 6 GM Goals and Plans: 7 GM Motivational Tactics: 7 Restructuring: 8 Company Analysis After Bankruptcy (2009): 9 SWOT Analysis: 9 Porter’s Five Forces Analysis: 9 Organizational Structure and Design: 9 GM Culture: 10 GM Goals and Plans: 11 GM Motivational Tactics: 11 Technological advancement: 12 Recommendations 12 References: 14 Executive Summary:
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Fordism). Henry Ford was an innovator; he used the marketing mix to become a successful entrepreneur. His company still exists today‚ over a hundred years later‚ and was actually profitable in the fiscal year 2010‚ unlike other automobile companies‚ like GM‚ asking for government
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