Management of Organizations in the Global Environment

Running head: MANAGEMENT OF ORGANIZATIONS
Management of organizations in the global environment
Name of the student
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Management Summary
The automobile industry was always the best in line for a long time. The wheel is the
most important invention in the history of the man. The discovery has changed the lives of the
human beings and has scripted the future of the mankind. The wheel today is used everywhere
including the cars, planes, trains, wagons, as well as the machines. The mankind would have
been paused to the pre historic times without the invention of the following organization.
Automobile has been one of the major advancements of the world and the history and
development of the automobile has been one of the most enriching experiences of the world.
There are different kinds of impacts from the automobile economy. The automobile industry is
the industry involved in the design, development, manufacture, marketing and sales of the motor
vehicles. The largest number of automobiles is present in the US followed by Europe and China.
It is predicted that approximately 1 billion vehicles will hit the road by 2020. The industry has
provided the world with a number of different techniques that has been proven to be the best and
is applied and implemented in almost all the industrial sectors. The most important of them are
as follows;
1. Just in Time System- Just in Time is a management system of producing only what is
needed and what is required in an exact time. There is always confusion on the JIT
system as it is believed to be the inventory strategy. However the following is not an
inventory strategy and is rather a process of continuous improvement in the policies and
strategies. The following program helps to reduce time, improve quality, freeing up space
and changing the demands of the different customers. It also reduces cost and reduces the
response time of the organization to the customers.

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2. Kanbans- Kanbans system is a particular system that triggers production and the service
processes. It uses an array of simple visual signals, like the presence or absence of a part
of the shelf or some other things. The Kanbans system is a part of the JIT system and
generally leads to the dramatic improvement of the organizations with a major
improvement in the performance and the quality.
One of the most important milestones of the automobile industry is the merger between
Renault SA and Nissan Motor Co. The two companies generally cooperate each other on
engineering, manufacturing, purchasing, human resources and supply chain management. The
best example is the production of Nissan’s Micra small car designed especially for the European
market has been produced completely in Renault production line at Flins, France. The need for
the alliance has been made since a long time as the Japanese company has become the biggest
contributor to the profits of the three-pronged alliance which also involves Mitsubishi. Yet its 15
percent stake comes with no right to vote at Renault shareholder meetings, as opposed to the
French state. Therefore going with the agreement will help to prepare the companies for the day
when there will be no such deals left to coordinate the relationships of the companies and also to
round them together to formulate and implement a strategy that will help to increase and boost
the manufacturing capability of the electric cars of the future and also experiment with new
opportunities like that of autonomous driving technologies in future cars.
The following report has discussed and mentioned the importance of a number of
innovative automobile concepts that has changed the way the automobile companies operate.
The revolutionary changes have been possible just because of the innovative ideas of the
companies. The report has discussed all these aspects in a proper and efficient manner.

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Table of Contents
Sections 1.........................................................................................................................................5
Introduction..................................................................................................................................5
Section 2..........................................................................................................................................6
Individual Components....................................................................................................................6
First Component- Henry Ford: “Bringing the work to the worker”............................................6
Second Component-The “World Car Concept”..........................................................................8
Third Component- Alfred P Sloan “Cost Centers”......................................................................9
Fourth Component- Mergers such as the Chrysler Mercedes-Benz or Nissan Renault............11
Section 3........................................................................................................................................13
Conclusions................................................................................................................................13
References......................................................................................................................................14