Henry Ford and his company prospered not only due to his eagerness to succeed but his eagerness to better the community. Henry Ford had a notable reputation which peaked when he announced the five-dollar wage. The existing wage of the motor car factory before he increased it to five dollars was 2.34 dollars. This hike in wage was due to Henry Ford’s excess amount of money and his desire to invest it back into his workers. This is a prime example of why the practice of the “Gospel of Wealth” was such a respectable act.
Henry Ford created the Model T’s and was rewarded a revolutionary figure in the automotive world. Model T was known back then and would improve the way cars are seen now. The assembly line was used to help create Model T’s and they had to use different factories to help the process go faster. During this entire process all the workers had to work an entire five work week and get paid $5 per every 8 hours they worked. “Today Henry Ford is credited for helping to build America's economy during the nation's vulnerable early years and is considered one of America's leading businessmen”(“Henry Ford”
The majority of these were Cars and a sizable minority in cases like General Motors (2.89 million or nearly a third of their vehicles) and Ford (2.67 million nearly half of their vehicles) were Light Commercial Vehicles (SUVs, pickup trucks, etc.). The luxury of being in the U.S. allows these two to tap in to the U.S. citizen’s taste for the LCV and exploit it to their advantage. The rest of the competition quickly slide in to the category of 2 million or more vehicles manufactured per year (Honda, Renault, Suzuki, BMW, Nissan, etc.). Here Fiat Chrysler Automobiles again demonstrates the manufacturers targeting the U.S. market for LCVs derive nearly half of their units produced from them (2.35 million units manufactured). Likewise, Toyota, Hyundai, Honda, Nissan and Suzuki all make the majority of their sales out of cars, not LCVs as their main markets are in Asia where the majority of customers do not care for SUVs or pick-up
In line of their massive success and growth, “Agile had implemented a few of the best practices in manufacturing in its operations, such as workplace organization, dashboards and visual management, which were incorporated on the lines of Toyota Production Systems. Its sales turnover had reached US$56.2 million in 2007, and was expected to grow at five percent annually for the next two years.” (page 2) Agile also have certified their organization with QS 9000 standards which applied for automotive industry requirements. Because of their good quality of product and delivery performance, Agile has been awarded with Automek business since 1998
An example of one threat is the government regulations that affect their profits. In Document E, Toyota is aware that “the strong dollar made exporting vehicles and components from its U.S operations are less profitable...,” It is a big challenge that Toyota has to deal with because it can be difficult to make a profit in North America because exporting cars and trucks can be expensive. As a result of these external issues, Toyota should have more factories in North America. To add to the issue, the value of the yen is decreasing which directly challenges the profits they make each year. “Toyotas wariness highlights the uncertainties it faces some of its biggest markets and the fact that much of its profit rise is being driven by the weak yen.” (Document E).
This case study is presenting Enterprise-rent-a car; while the main concern of the topic is motivation. Enterprise-rent-a car is an enterprise providing service which is renting cars. In 1957, Jack Taylor started the enterprise in ST. Louis U.S. in a car dealership’s basement. Nowadays, the company owns over 750,000 cars in service all over the globe. The international operations of the enterprise main concern are providing a well suited and trustable service at an acceptable price; moreover, customers will use the service over and over again.
Entering the industry can be just as tough as leaving the industry. Not only would companies like Toyota or Ford accumulate huge losses, they would ultimately mess up the competition if they were to leave. An important factor here is also customer loyalty. Consumer need drives the competitive market with the innovative products that the big players are focusing on. “Since no OEM wants to slip in the rankings, each is doing everything possible to retain each tenth of a point share; including speeding up product redesign or launch programs, while opting to avoid risky product programs that could cause disruption in their product portfolio,” (Lutz,
This model was invented in 1979 by Michel Porter. So, what the model explains is that there are five forces which determine the market attractiveness. The names of five forces are as follow: 1- Competitive rivalry within the industry 2- Threats of new entrants 3- Threats of substitute products 4- Bargaining power of customers 5- Bargaining power of suppliers Practical implementation of the Model:
Apparently, it involves the cooperation of nations in social, cultural, political, economic, industrial, technological and other institutional exchange. Japan’s automotive industry can be the best example of this phenomenon. One cannot deny the fact that Japan’s automobiles are the answers to the German’s expensive and efficient cars. Japanese automobile’s cost-effective and powerful engines are its best characteristics that lure the attention of most car consumers, whether local or overseas (Yeo, n.d.). One best example is the automobile company Toyota.
The disruptive innovation model In the Innovator’s Dilemma, Christensen (1997) identified three important elements of disruption: The rate of improvement that customers can utilize or absorb The pace of technological improvement The distinction between sustaining and disruptive innovation The first element represents the fact that not all customers are actually able to utilize the performance companies make available for them due to certain factors. An example from the automobile industry is that the companies are keep providing new and more powerful engines, but traffic jams, speed limits and safety concerns prevents certain customers to utilize all the performance. The second issue is the pace of technological improvement. Generally,