Just as the economic status effects industry, the industry itself has a tremendous effect on the economy. The economy and the industry offer many benefits to one another, it is difficult to decipher which is more influential. The Recession of 2007-2009 The recent recession in the United States had a significant consequence on certain American automotive companies. Companies like General Motors (GM) and Chrysler have been forced to file for bankruptcy due to losses in the recession. The economy’s downfall has proved to be fatal in terms of profits and employment all over businesses in the United States.
The climax of the 2008-2009 financial crises, the largest ever since the Great Depression of the 1930s, witnessed the near collapse of multibillion-dollar industries in the United States. Concerns over the economic impact of the possible collapse of these industries compelled the then administration and Members of Congress to seek legislative options to salvage them. Consequently, two of the industry biggest players in the auto industries, General Motors and Chrysler, were offered financial support by the government and in return, shareholders and other stakeholders had to make necessary sacrifices in order to fundamentally restructure their businesses and commit to the tough decision of returning the companies to financial viability. In fact, close to 700 companies, which also included companies in the banking sector, were bailed out by the government and the total amount of taxpayers’ money that is supposed to be spent on the bailouts is about $12.5 trillion (New York Times, 2011). So far, the U.S Treasury has spent at least $2.5 trillion (2011).
Even according to President Obama, GM has the upper hand. By offering high-paying jobs to American workers. GM also puts American manufacturing back in the high-tech race on American soil. GM lives up to its ‘for every purse and purpose’ slogan.
Future Outlook For the past many years, the American automotive companies rode the economic booms and success that was built by them long ago. They also knew that the American governments employ the “Too Big to Fail” philosophy, believing companies that are too large and too interconnected to the economy are too valuable to be allowed to fail. It was this lack of incentives that lead to their demise. Apart from ford, the other two big players in the American Automotive industry failed to become competitive and they paid a heavy price. Now that they had their wake up call, consumers can only expect better things in store.
Moreover, the major goals of a marketing manager are to reduce risk and capitalize on returns in profit. Global expansion has developed a tactical imperative for nearly all large organizations and marketing managers have a great deal on their hands in developing, monitoring and changing these strategies. Harley Davidson has been no stranger when it comes to crossing into international sales. Global Recession With the emergence of the subprime meltdown, the United States economy was beginning to spiral into a recession in 2007. A downturn in the U.S. housing market turned into a global financial crisis.
However, market forces create solutions to problems long before government regulations are put in place. After banking stocks fell due to the 2007/2008 financial crisis, risk management committees were set up and boards were reorganized to include directors with “finance and investment” experience. Because self-regulation focuses on maximizing shareholder value, it tends to be financially efficient. To say nothing of simple bureaucratic bloat, government regulations take a public opinion/stakeholder-focused approach, and therefore costs to businesses are far higher than what they would be under self-regulation. For example, General Motors recently announced t... ... middle of paper ... ...tates today - 12.2 percent of the $25.2 trillion in total assets under management tracked by Thomson Reuters Nelson - is involved in some strategy of socially responsible and sustainable investing.” Although the transgressions of a tiny percentage of corporate managers have hurt investors and the economy, market forces have mostly been able to direct proper corporate governance.
Retrieved June 23, 2011, from ABI/INFORM Global (1436135321). Weil, N. (2008, September 1). Saving Chrysler; At the struggling automaker, private-equity ownership drives IT to slash costs through outsourcing and retool to compete globally. CIO. Retrieved June 23, 2011, from ABI/INFORM Global (1559192691).
Finally, the IT managers must interpret all of the requirements put forth by corporate management that will outline the technological strategy of the company (Hax & No, 1992). At this point, the creation... ... middle of paper ... ...ler, L., & Musthaler, B. (2008, March 26). IT governance best practices are critical for business success. NetworkWorld.
Including what goes into the products, how they are advertised and sold, and how they are disposed of. Wal-Mart, the world's largest retailer, is the largest corporation and private employer in the United States. Wal-Mart is consistently listed among America's most admired companies by Fortune magazine. At the same time, it is frequently the target of criticism for its employment practices and its effect on the larger economy and community. How should consumers evaluate these issues?
CMA - the Management Accounting Magazine, 66, n3. p.34(1). Retrieved January 16, 2011, from Academic OneFile via Gale: http://find.galegroup.com.proxy.davenport.edu/gtx/start.do?prodId=AONE&userGroupName=lom_davenportc Rucci, A J, Kirn, S P, & Quinn, R T (Jan-Feb 1998). The employee-customer profit chain at Sears. Harvard Business Review, 76, n1.