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 advancement of automobiles over time has directly affected the advancement of society as a whole. Society relies intensely and increasing on private motorized transport, vehicles are expected to become safer, more luxurious and powerful. These expectation, however do not take into account of the ensuring consequences such as greater emissions of air pollutants and greater exposure of people to hazardous pollution that causes serious health problems. All the evidence points to the magnitude of these adverse effects on health and to the need to identify solutions that both reduce risks to health and meet the requirement for mobility. This creates a major challenge to the governments, public health organizations, environment authorities and most importantly to the design engineers.
Customer’s preference for automobile is vary from each city, each nation. Nowadays, it is such a diversity of vehicle on the global auto market now. Despite the globalization trend, in EU, Japan and North America markets, there are clearly distinctive preferences for automotive. The auto companies need to adjust their vehicles
Looking at the impact of external environment on select companies, we’ll look at both Ford Motor and General Motor companies. The Ford Motors company approximately had 14 percent market share in the U.S. automobile industry (David, 2011). The company had recovered a lot after the impact of recession in the year 2008. The company has been investing in developing vehicles which use alternate energy sources, and is having global presence and brand reputation for its automobiles. The company has received government support during the recession period, and had to cut down thousands of jobs and adopted latest machinery for enhancing the productivity of the company.
SUMMARY In this report, I am explaining how the impact of External Business Environment on Automobile industry in UAE. Also, how the external environment factors are dominant on the growth of an industry including dimensions of management, human resource, marketing and IT tools used in the Industry. INTRODUCTION The Automobile business is a blend of organizations and companies engaged with the plan, advancement, assembling, promoting, and offering of vehicles. External environment is outside influences which has an effect on the industry. The environment factors help the industry to go through vast changes.
It is about evaluating the company’s planned actions by considering the impact of day-to-day tactical decisions and longer-term strategies on the organization’s stakeholders. (Chandler, 2013) For Tesla, this might be very useful because CSR is very important for its stakeholders. As corporate social responsibility is one of the points where Tesla distinguishes itself from other car manufacturers, the company should ensure that decisions are in line with its corporate social responsibility
These factors include population growth, age distribution, health awareness, occupational attitudes and so forth. These factors are particularly important because they have a direct impact on how the company understands customers and what drives them. Technological factors : How quickly the technology landscape changes and how it affects the way we market our products. Technological factors affect marketing and management in three distinct ways: New ways to produce goods and services New ways to distribute goods and services New ways to connect with target markets Environmental factors These factors have become important because of the increasing scarcity of raw materials, pollution targets, and business as a moral and sustainable company. These are just some of the issues facing the company.
The other giants in the game, the Volkswagen Group (11%), PSA (3%), Nissan (8%) and Hyundai (9%) as well as General Motors (11%) and Ford (8%) in the U.S. all contribute significant market shares to the world total, the reasons these players always come out on top are several. 1. Manufacturing & Exploitation
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)."
Their cities are built around roads and cater to driving so it's no wonder this has become such a popular method of transportation. According to the EPA, there are currently over 250 million registered passenger vehicles currently in use in the country. An additional 10-11 million reach the end of their lives each year and need to be taken out of service (Environmental Impacts from Automobiles, 2015). This shear amount of vehicles that are in operation have varying negative environmental effects. This is a concern for the American auto industry as they are the biggest user of vehicles and this is an ethical issue for many