International Business - Sample Assignment
Added on 2021-04-16
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RUNNING Student Details[Email address]INTERNATIONAL BUSINESS
International Business1IntroductionAn automobile industry is a wide platform where huge number of companies andorganizations get involved in designing, developing, manufacturing, marketing and sellingvehicles which also aims at contributing the world in terms of revenue. Major trends in Automobile IndustryThere have been drastic changes in the automobile industry in last few years. The major twochanges seen are mentioned below.Increasing number of hybrid and electric carsHybrid cars and electric cars are in trend in recent years. According to the research conductedin United States, it has been found that the sale for these cars has raised 45% in 2017 ascompared to the demand in 2016. The trend of these cars will be followed because they aimat manufacturing cheaper batteries and more robust charging infrastructure which helps to cutthe cost of electric cars. They basically aim at focusing on the power and drive train systemswhich include clutch, rear axle, propeller shaft yoke and propeller shaft. The taxes charged bygovernment on these cars are comparable lower than those involved in diesel cars (Youngs,2012).For example, Volvo is expected to emit 30% less CO2 and save the fuel of 5-10% byadopting a hybrid long haul truck. The company has also planned to update its drive trainwhich will decide the best time to use diesel cars and electric cars.Likewise, Tesla has built its image by selling 28000 of S model and Chevy has sold 25800 ofits hybrid volts. However, Toyota’s Prius Prime is known as the third highest selling electrichybrid company in 2017.CollaborationToday, many companies are highly involved in building partnership with IT companies suchas Toyota and Microsoft, Google and Honda and Volvo and NVidia and many more.Similarly, many automobile companies are also getting more involved with each other whichwas not in trend few years back. The main reason behind the interconnection is the strategicalliances. For an instance, Mahindra and Mahindra entered into a strategic alliance with US Companynamed Ford Motor in order to create cooperation in terms of products, technology,
International Business2functioning and electrifying of cars. They have collaborated and decided to work together forthree years. Likewise, UK has also expected to produce 100% zero emission cars by 2050which will help to create a healthy environment (Oberholtzer, 2016).Source: Society of Motor Manufacturers and Traders, February 2018.From the above diagram, it can be stated that at the end of the year 2017, more than 47000plug in cars had been registered which has already made a new record. Earlier, it was provedthat in the year 2016, it was reduced to 10000 units. By the end of 207, it has reached to 2.9%of the total number of registrations. Today, electric cars are present in 1.9% of the totalmarket of cars in the UK (Lily, 2018).GVC/GPN assistance in IndustryGlobal Production Network is an idea which belongs to the nexus of interconnectedfunctions, operations and transactions with the help of which a product is introduced,scattered and consumed.
International Business3A GPN is the concept where the nodes are connected across the national boundaries. GPNframework aims at combining the insights what are available from global value chain. It alsofocus to encompass all the factors that are involved in the production and manufacturingprocess. It also helps to create a platform which is analytical in nature (Antràs. and Chor,2013).GPN has played a major role in the Industry since long time. From the above diagram, in1977, Commodity Chains were introduced by Hopkins and Wallenstein which focused onbuilding a quality products along with the processing of all the departments. Later, in 1985,Porter’s model was proposed which included bargaining power of supplier, buyer, threats andsubstitute products. Similarly, in 2007, Global Value network was introduced (OECD, 2012).Strength of the framework1.It is a tool which helps to enhance the business by competing with the competitorsand creating values for the company. 2.It also helps to diagnose and build advantages on two factors i.e. cost anddifferentiation. 3.It helps to understand the issues involved in an organization to deliver the customercommitments and promises. 4.This Framework helps to understand business well using SWOT analysis. 5.This framework is easily adapted by any kind of business such as retail,manufacturing, schools and many more. Weakness of the framework
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