Saturn Corporation Case Summary
Towards the beginning of 1980, manufacturers of automobiles in the United States experienced a significant loss in the market share. The unexpected increase in the prices of gas and oil in the mid-1970s greatly influenced the consumer behaviors in car purchasers (Ingrassia, 2009). Saturn was developed through the cooperation of General Motors and United Auto Workers with an aim of introducing high quality small cars that were affordable to the ordinary citizen (Ingrassia, 2009). It was built from under a unionized labor-management that was fully integrated in terms of operation, product manufacture, dealership, customer relations, and marketing.
Throughout the 1990s, Saturn gradually gained popularity and received various industry mementos
…show more content…
The competitive global market created a trend of price negotiation, which thrilled many car purchasers (Ingrassia, 2009). Even though the company’s fixed price policy and affordable products helped retain loyal customers, competitors widely adopted this strategy and included better features on the supply chain, such as buyback incentives. New models of Nissan and Honda were threatening the company’s success as it mainly depended on a limited offering of small compact car models.
Eventually, Saturn’s success was cut short by the various challenges that GM and UAW faced throughout the 1990s and the beginning of the 2000s. By 1996, GM was experiencing capital constrains with new management taking over both GM and UAW (Ingrassia, 2009). The new managements in GM and UAW unanimously chose to discontinue further invest in Saturn’s operations as they did away with the existing traditional systematic learning network (Ingrassia, 2009). Over time, both management teams were unwilling to sustain the innovation systems and invest in product-based quality operations amid demand for new
…show more content…
This created economic and leadership challenges that created numerous pitfalls in Saturn’s operation (Ingrassia, 2009). Critics argue that the situation may have been in favor of Saturn if they introduced a new SUV model in its zenith era. It was important for the GM and UAW to share information and risks during the decision-making strategies, which were to be based on cooperation and coordination. Towards the end of 2009, GM shut down all of Saturn dealership and operations across
Ford Skyliner Essay
788 Words | 4 PagesFord Skyliner: The Leader of the Hardtop Convertible If you were around during the 1950s then without a doubt you will remember the introduction of the Ford Skyliner, the first hardtop convertible. The Skyliner set a trend that became prominent in the 1990s and still continues today, appearing as a feature on many prestige cars such as the Mercedes SLK and the Ferrari California T. Even before releasing the Skyliner, Ford were one of America’s favourite and top-selling vehicle brands. While their main competitors relied on the basic, early design engines, Ford was boasting the powerful Y-Bock V8. The public fell in love with the distinctive shape and design of cars produced by Ford and their affordability was certainly another factor contributing
Oubre V. Entergy Operations, Inc. Case Summary
623 Words | 3 PagesIn the Oubre v. Entergy Operations, Inc. Case, Dolores Oubre the plaintiff was a scheduler at power plant in Killona, Louisiana, which is run by Entergy Operations, Inc. (the defendant). In 1994, Oubre’s employer gave her two options: she can either improve her job performance or accept a severance pay. While accepting the severance package, Oubre signed a document that released her employer Entergy of all claims. Although the employer Entergy Operations was released of all claims, it failed to meet specific standards or requirements for a release under the Age Discrimination in Employment Act (ADEA), as decided or set forth in the Older Workers Benefit Protection Act (OWBPA). In procuring the release, Entergy failed to comply in at least three respects with the requirements for a release under the Age Discrimination in Employment Act, as set forth in the Older Workers Benefit Protection Act: It did not (1) give Oubre enough time to consider her options, (2) give her seven days to change her mind, or (3) make specific reference to ADEA claims (Twomey, 2013, p. 548).
Impact Of Consumerism In The 1950s
851 Words | 4 PagesHowever, automobiles like the Chevrolet, the Rambler and the Hudson Hornet were huge successes when it came to consumerism in the economy. Manufacturers in the automobile industry, would make small changes to every year’s model. These changes would persuade consumers to buy the new model and that they needed to update their cars every couple of years and ultimately expanded purchasing growth in the 50’s society.
Allegro Automotive Case Analysis
1681 Words | 7 PagesThe current state of the automotive industry is one of shrinking margins, changing consumer expectations and demands, as well as pressure from the government to increase fuel efficiency. There is increased competition in the American market as foreign companies challenge the “Big Two” automotive manufacturers. Costs increase while the price for their products has remained stagnant. One way that manufacturers have managed to stay profitable is actively working to decrease costs while needing to keep the selling price the same in order to be competitive. The most successful ones have changed their relationships with suppliers to a partnership between the two companies.
1920's Advances In Technology
1142 Words | 5 PagesAutomobiles were affordable and were designed carefully. The majority of these cars were produced by the Ford Motor Company, led by Henry Ford, who designed a different model each year to satisfy the insatiable crowd. Many of the automotive innovations that we think of as being modern—like electric powered cars, four wheel drive, front wheel drive, hybrid fuel and electric cars—were introduced during the 1920s. The automobiles had various different colors in order to get the attention of people, especially woman, and through time, they evolved to become more comfortable to drive for men (Scott ,1). The automobiles were beneficial to the U.S because they expanded the area of habitat.
The Rise Of The Automobile In The Great Gatsby
1196 Words | 5 PagesThe Rise of the Automobile in 1920s in The Great Gatsby Perhaps no invention affected American everyday life in the 20th century more than the automobile. The invention and improvement of the automobile not only changed the America society, but also the whole world. The rapidly growing automobile industry led by Henry Ford and the Ford Motor Company produced new and better models every year to supply the insatiable public demand. Increased wages and lower cost vehicles made possible through mass production meant that cars became increasingly affordable, although 3 out of 4 cars were bought on installment plans.
Five Forces Auto Insurance Industry
864 Words | 4 Pages3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?
Analysis Of The Buyer Decision Process Of Porsche
1875 Words | 8 PagesPorsche 1. Analysis of the buyer decision process of a traditional Porsche customer. There are five stages in buying decision process which are shown through following diagram: Porsche is a reputed company and it is well known to customers. In case of difficult situation of purchase, customer can follow all the five stages such as purchasing of durable goods of new brand.
Pontiac Plant Case Summary
1345 Words | 6 PagesAlthough the profit margins of Pontiac Plant is low with several issues coming up everyday, it is absolutely critical for Pontiac, at this point of time, to maintain good relationship with the workers and maintain a good reputation with the United Automobile Workers of America. Investing in in plant tooling and attempting to develop a viable operation requires negligible capital investment and in turn promotes a ray of hope and communal harmony amongst the workers of the plant. Furthermore, this alternative directly addresses to the major problem of Pontiac plant i.e. all the machineries are antiqued , the overhead costs are high and the workforce does not have the zeal , enthusiasm or the motivation to work hard for the company. Considering the present challenges that Allen is facing today with respect to the Pontiac plant , this is perhaps the only solution with a minimum investment that can not only increase the communal harmony in the workplace but also increase sales of the plant which would eventually stabilize the Pontiac plant for few years. This decision by Allen would indeed boost the morale of the employees and in turn help the revival of Pontiac plant which is old and
The Pros And Cons Of The Automobile Industry
832 Words | 4 PagesThe United States has one of the largest automotive markets in the world, and is home to many global vehicle and auto parts manufactures. In 2016 year alone, vehicle production reached almost 17.5 million passenger vehicles. Automobile industry involves many industries in it. It includes original equipment, manufacture, and adverting industry as well as oil and natural gases industry. Main players of the Automobile industry are Toyota, General motors, Volkswagen, Honda, Ford and more.
External Environment Of Ford Motor Company
969 Words | 4 PagesLooking 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.
Montagne Company Case Summary
949 Words | 4 PagesBusiness risk of GSAP they are going to buy: that it will not fail o Business risk= more business risk means more variability in operating profit which means a higher beta so adjust the Beta coefficient to match it with the level of financial risk incurred by the company. • Beta: Sterling’s proposed acquisition is 0.99 (beta is leveraged on the debt/equity ratio) [Exhibit 7] • Growth opportunities were limited and its business was under constant pressure • The company’s annual sales volume (in units) had increased by less than 1% per year, because of weak growth in overall demand and other company competition, which gives consumers the ability to choose other products • Business risk of buying at $265 million: relevantly low (where there
A Case Study: Human Relationship Management In Tesla
1249 Words | 5 PagesThe 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).
Marketing Segmentation Of Mercedes Benz
916 Words | 4 PagesThe customers of Mercedes Benz look for products that have certain benefits that hold value for them. Therefore, in terms of benefits sought, they seek for high-end integrated technology and functioning of the car, along with consistency in performance and most importantly they will look to purchase cars that will offer high sustainability and reliability. The Mercedes is purchased among customers that heavily use the product on a daily basis. As mentioned in the demographics segmentation section that people who purchase these cars are in the high income class group, which means that these customers will regularly use a mode of transportation to travel to workplaces.
Toyota Business Level Strategy Analysis
836 Words | 4 PagesHowever, since 2010, this longstanding quality reputation has been unabatingly shattered by increased vehicle recalls that have seen virtually every class of consumer affected (Rajasekera, 2). Recognizing that its reputation and brand is at stake, Toyota has endeavored to not only publicly apologize, but also settle a class-action law suits totaling $1.1 billion. While this strategy may look inept to many, research provide that leadership requires swift acknowledgement of mistakes and fitting solutions which is what Toyota has done. Going forward, Toyota will need to fully embrace innovation as its key strategy, especially given the fact that the current industry life cycle has overstayed its maturity, which means that most automakers will be looking to create new demand and create more innovative
More about Saturn Corporation Case Summary
Ford Skyliner Essay
788 Words | 4 PagesOubre V. Entergy Operations, Inc. Case Summary
623 Words | 3 PagesImpact Of Consumerism In The 1950s
851 Words | 4 PagesAllegro Automotive Case Analysis
1681 Words | 7 Pages1920's Advances In Technology
1142 Words | 5 PagesThe Rise Of The Automobile In The Great Gatsby
1196 Words | 5 PagesFive Forces Auto Insurance Industry
864 Words | 4 PagesAnalysis Of The Buyer Decision Process Of Porsche
1875 Words | 8 PagesPontiac Plant Case Summary
1345 Words | 6 PagesThe Pros And Cons Of The Automobile Industry
832 Words | 4 PagesExternal Environment Of Ford Motor Company
969 Words | 4 PagesMontagne Company Case Summary
949 Words | 4 PagesA Case Study: Human Relationship Management In Tesla
1249 Words | 5 PagesMarketing Segmentation Of Mercedes Benz
916 Words | 4 PagesToyota Business Level Strategy Analysis
836 Words | 4 Pages