The Automotive Industry & Its Evolution
Added on 2020-05-16
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Management and Organizations in a Global Environment
1EXECUTIVE SUMMARYIn modern industrial world many industries that have failed to make similar profits asthey were doing in the past. This is due to many types of challenges that these industries arefacing. Automobile firms have developed several kinds of concepts such as World car for thedevelopment of the industry. Automobile industry has expanded their business in everycorner of the world with the help of strategies like merger and acquisitions. Companies suchas Ford have given extraordinary ideas that revolutionised the industry. They have not onlytransformed Automobile industry but have changed working style of many other industries.From the last few decades IT industry has replaced the leadership of Automobile industry.This report highlights the ways in which Automobile industry is carrying out their business aswell as the strategies they have adopted for the growth of the firms. It also showcases thedecisions made by the car companies for maintaining their growth in the market as well assurviving in the competition that is present in the market.Content
2sINTRODUCTION.................................................................................................................................2Individual components..........................................................................................................................4Bringing work to the worker..............................................................................................................4Alfred P Sloan: Cost centres..............................................................................................................6The world car concept.......................................................................................................................9Mergers............................................................................................................................................11CONCLUSION...................................................................................................................................14REFERENCES....................................................................................................................................15INTRODUCTIONIndustries all around the world are facing several kinds of challenges irrespective oftheir current positions in the market (Aghion, Dechezleprêtre, Hemous, Martin and Van
3Reenen, 2016). This is due to various types of reason and may have occurred because ofimproper management of operations. In the age of globalisation, it has become important forthe organisations to manage its work properly so as to have competitive edge over the othercompetitors (Neffke, Henning and Boschma, 2011). This can only be possible when therewill be clear understanding of the environment prevailing for the industry. There are severalinternal and external factors that are affecting the future of many industries and it is essentialfor the firm to understand all those. There are several issues faced by the industries and thefirms in it (Ahern, 2012). It is the role of the leadership and the management to make plan fortackling all these issues that arise in this regard. Automobile industry was once the mostprofitable industry of all. From the discovery of powered engines the growth of this industrywas unmatched and was considered as one of the golden business in the early 20th century.But after the innovation that took place in the technology, IT superseded AutomobileIndustry. The downfall of the Automobile industry and the rise of IT industry were seen inlast two decades. There are several factors that were responsible for this situation. Policies, improper decisionsare some of the reasons that are responsible for the downfall of this industry. Automobileindustry has taken many kinds of decisions for surviving in the demands of the market(Castillod, 2016). This industry has a long experience of working in different kinds ofenvironmental conditions especially in political and economic scenarios. This field hasexperienced innovations at much faster rate as compared to many other industries.Automobile industry has become backbone of many nations all around the world since theyare employing a huge number of people as well as providing larger amount of financialsupport to the economy. Apart from this it is also to be understood that there are manystrategies that have been adopted by the Automobile manufacturers in the past years so as toenhance the sale of their products (Chakravartty and Schiller, 2011). This industry is one ofthe prime examples of how the firms survived in the great depressions of 20th century.Companies like Ford have given new working methodologies to many other industries andwhich is prevalent till date. This report revolves around the decisions made by theAutomobile industry as well as the concepts that they have developed over the years so as toensure sustainable growth of the firms.
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