Impact Of External Business Environment On Automobile Industry

The Automobile industry includes many other industries as well for example, tires and seat manufacture. These industries are the suppliers of the Automobile industry. The automobile industry is are in a more power position that the suppliers. Many of the suppliers are dependent on the auto makers (Kallstrom 2015).Also, bargaining power of the suppliers depends on the reputation. If the supplier is able to provide high quality products of the auto parts than they can expand their contracts with other Auto companies.

The Geography of Nowhere, written by James Kunstler, discusses how the automobiles transformed America’s economy. As time continued, America’s geographical landscape was champing, as well as its economy. After Tom Ford’s Model T, changes in the country had to be made to keep up with the increasing number of cars on

These inventions change where people settled because now that automobiles have been invented they run on oil. "Producing cars required the growth of oil, chemical, rubber, and steel industries." ("On the Go" para.12). This provided individuals with jobs. The article also establishes how cars helped people to move out of the urban cities and into

Crossover vehicles have an extraordinary interest and more backing from the administration because of its eco amicable discharge. Indian Government has transformed its part from controller to facilitator with prime center on providing better base, development oriented financial arrangements and right environment to pull in investments. This has made giant automobile producers enter into India and erect the focused environment. The liberalization steps, for example, unwinding of the remote trade and value regulations, reduction of tariffs on imports, and reining the keeping money strategies, have assumed an equally important part in bringing the Indian Auto-rationale industry to incredible statures. Systematization of auto enhance has further prepared to support a long-term high development.

According to AAA (American Automobile Association), average fuel cost in US is $1,682, average maintenance and repairs cost $767, average car insurance cost $907, average taxes and fees cost about $665, and all add to up to $4,021 per year, which is very expensive for a lower class American family. Since lower class can’t afford to buy a new car, lower class family spend more money on maintain and fuel than average American. Those who can’t afford car at all move to cities or closer to their workspace. Which is why resident of inner of American cities are often

Because of Standard Oil’s size, the company had the ability to take over projects that smaller companies would not have been able to accomplish. This in turn, helped in developing the growth of the United States as an industrial nation. Whether these projects were reducing the prices of railroad rates or opening up new refineries, they all positively affected the

The automotive industry is facing changes due to ecological impacts on the environment. Many automotive manufacturers such as BMW and Audi are now entering into the electric car industry where Tesla has established itself in. In this environment, there is a need for rapid innovation a firm 's capability to produce new technological products become crucial to survival in this industry. For this reason, human relations management will be beneficial to an organization as it allows creativity in employees who will be able to respond to changes in the environment efficiently and quickly which gives a company flexibility. "CEO Elon Musk created a master plan to compete with other automotive manufactures which were to Build sports car, use that money to develop an affordable car, use that capital to create more affordable vehicles, produce zero-emission electric vehicle power generation options (Tesla)."

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

Although there is a drive in their economy for foreign investors for sectors such as power, aviation, and telecom etc. there exists a preferential bias for Saudi nationals in matters of employment and business. There has been a tremendous growth in GDP due to rise in revenues from oil as a quarter of the world 's oil reserves are in Saudi Arabia. There is a demand for taking measures and effective implementation towards environment regulations. The identification of major weaknesses and the government’s measures for them is helping towards the transformation of Saudi Arabia into a developed nation with a diversification of

With the Release of Model S it is competing with all the luxury brands like BMW, Mercedes, Porsche etc. Tesla is the third best-selling luxury car in California only behind Mercedes and BMW. Their direct interaction with customers through their website creates its own trend in marketing. With increasing charging stations, it creates a tough competition to the present gasoline cars. If Tesla can decrease the price and increase the production in near future Elon Musk dream would come true, replacing gasoline cars with electric cars and the environment will go