Nissan, a Japanese car motor company and the sixth largest automotive company, follows a strong strategy during these years which make it more popular in Lebanon than Ford one of the first American automotive company who suffered from some lacks in its strategy. Ford is an American multinational automaker headquartered at Deaborn
Case study of American Apparel INC. Interpretation of Management and Financial situation 11/24/2014 By: Group 8 (SEC: B) Vivek Kr Sharma SMBA 14081 YSR Raghav SMBA 14070 Monty Singh SMBA 14038 Pratip Sinha SMBA 14089 Mohd. Wasim SMBA 14036 Case Facts – 1) American Apparel, a once upon a time prominent clothing line brand is now facing a major cash crunch as on April, 2014. 2) This is because they need to pay 13.4 billion USD as interest and have lots of other debt repayments. 3) The CEO Don Charney raised additional capital of 28.5 million USD by selling 61 million shares at only 0.50 cents per share.
• The threat from the competitors is persistent and unavoidable. As a brand Dacia must find ways to distinct itself from its competitors. For years, low cost cars were Dacia’s USP but now even big players like Volkswagen or Toyota are starting to offer products which are in direct competition with Dacia’s products. Dacia must embrace diversification, vertical and horizontal integration to stay
For over a century, Mercedes-Benz cars have epitomized expensive freedom of movement. It is becoming the point of reference for the future of revolutions and exciting generations of motorists. Company Background Established in 1958, Gargash is the authorized distributor of Mercedes- in Dubai, Sharjah, & Northern Emirates. Our collective knowledge of global expertise together with the understanding of local markets and regional insights enables us to deliver integrated, innovative and improved facility and resolutions to all UAE customers. At Gargash Enterprises, customers are guaranteed premium quality products with superior service and after-sales service.
3.4 Threats: Political strife and economic slowdown in markets: This threat is only weakly applicable to Porsche AG. For instance, in Italy where economic uncertainties persist in 2014, the premium segment showed solid growth of 39 percent year-on-year (Porsche AG, 2014). Moreover, in Europe, where its key markets (e.g. Italy, France, Russia, and Eastern Europe) suffered from the economic backlash of the Ukraine crisis, growth continued at 20 percent. However, political strike in Syria, Iraq, Yemen, and Nigeria resulted to economic issues that cut on its sales.
These factors are divided into two parts, macro-environment or micro-environment. Macro-environment factors are those external factors which are beyond the firm 's control, whereas micro-environment are controllable factors internal to the business. In ‘Modern Management’ by Tiernan et al (1), they say “The external business environment consists of two main elements” These elements would be the PEST environment (Political/Legal, Economic, Socio-Cultural, Technological) and secondly the competitive environment ‘Michael Porters 5 forces (Threats of new entrants, Bargaining power of buyers, Threat of substitute products, Bargaining power of suppliers and rivalry among existing competitors) PEST (Appendix 1) Michael Porters Five Forces (Appendix 2) For a company developing a strategy on Political factors
P4. Evaluate the relationship between organizational design and change management The changing environment: The environment of business change regularly in present business world. Internal and external environment are both can be changed. Internal environment is planned environment which can be manipulated by decisions but external environment is out of manager’s control which really impact on the business. Few factors might be changing whose have power to change the environment of organizations.
There are some ways in which an organization can comply with these limitations and make them their strengths. These suggestions are described as below: 1. To amend the industry life cycle, according to industry. The industry life cycle works differently for every industry and thus there is a need to tailor it according to the nature of the industry. In case of BMW and Audi, both are luxury brand and just evaluating their market share is not enough to plot them on an industry life cycle.
It holds the 2nd largest market shares in China of 14.4% which comprise of 3.67 million cars. Reports over the years has mentioned that Chinese state-own licensees has been merging with competitors. The joint venture between Volkswagen’s major competitor General Motors (GM) and the Chinese licensee Shanghai Automotive Industry Corporation (SAIC) would bring about a greater pressure on Volkswagen. The competitor is intending to develop environmentally friendly cars. Being a Self-Owned company, SAIC is one of China’s largest automobile competitor and has 63 joint ventures with suppliers, 55 subsidiaries network and a sales of $12 Billion back in 2003.
The automotive industry, through its internationalized supply chains processes, has been highly affected by globalisation in the last decades. Carmakers try to reduce costs and increase productivity by finding effective global value chains. Thus, they split production stages and target locations where they benefit of commercial advantages (Leech et al., 2014). After the 2008 economic crisis, most of foreign direct investments were made by established western carmakers in emerging markets such as India, thanks to cheap workforce. India became the sixth car manufacturer, and is now a manufacturing and innovative hub worldwide encompassing a major part of the production process (Makeinindia.com, 2015).