The ability to invest in India’s motor industry makes it possible for companies to acquire a unique position. The demand for new car models is increasing. However, this increase in demand for new car models needs to be complemented with models that are fuel-efficient. Dhawan, Swaroop, and Zainulbhai (2012) notes that India posses the ability for close collaboration within individual industries. The regulatory framework encourages collaboration making it easier for companies to form mergers or partnerships for better market positioning.
This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This enables it to exert a lot of pressure and power on extremely small firms. Production in the automobile market is dominated from lead firms in Japan, USA, and Germany. It is without a doubt that the automobile industry has resulted to massive effects on globalization.
The mass production method inspired from Ford and Taylor lead to the success of the American motor vehicle companies. About Taylor and Scientific Management The major change came through the work of Fredrick Winslow Taylor and his theory of scientific management system. It was not that Taylor was unique or completely new; only time and motion study could be put in that category. The trend was already moving towards systematic management such as formal management methods or by cost ... ... middle of paper ... ...and Fordism that lead to the increasing productivity and decrease in skilled workers between the years 1919 and 1929. Taylorism and Fordism both help capitalists take control over the worker and a means of increasing production.
The collaboration between the back office (i.e. finance and administration; operations planning and execution; purchasing; vehicle manufacturing; human resources; and inventory management) and front office (i.e. sales, marketing and customer service experience) systems implemented to produce an integrated supply chain that rapidly adjusts based on customer needs is now a great reality, therefore making it likely for all of a enterprise’s IT to be tightly integrated and architected for the Internet (Moodley, 2001). Throughout this research paper, an examination of the history of the South African automotive industry and the influence that IT has had it making... ... middle of paper ... ...agement In The Automotive Industry: Preliminary Findings The Automotive Industry: Preliminary Findings Benchmarking Club Pilot Surveys, Kwazulu-Natal: University of Natal. Neville, C., 2007.
This paper examines the inundation of American society by the automobile during the post war era as a key catalyst for the rise of consumer culture, its role in facilitating suburbanization and some of the negative impacts the automobile has had on America. Over the past sixty years America has changed greatly to become what it is today, and these changes have largely been driven by our national love affair with the automobile. Starting in the 1920’s America began its shift towards a consumer culture as the economic growth of the nation began to depend more on the proliferation of consumer goods than of capital goods. Even at the outset of this trend, the automobile held a significant place in the new consumer economy. The automobile, which was once thought of as a rare luxury, was being sold by the millions.
Fundamentally, these cultural objects embody and represent a sense of safety, mobility, and freedom. Many people all over the world are buying and using cars because they are products of globalization. The process of globalization has effects “on the environment, on culture, on political systems, on economic development, and on humans’ physical well-being in societies around the world” according to Lianna Amirkhanyan, a translator and specialist of cross-Cultural communication (2). In pursing the field of Global Cultures, the main goal as taught in courses at UCI is to explore the problems and processes of globalization from a humanistic perspective. Cars are global products and should be dealt with in a global perspective.
Therefore, in order to sustain profits and grow in this global economy, car manufacturers need to adopt mitigation strategies, seek avenues from different approaches, and form a partnership or alliance with other stakeholders in the economy. The automotive industry refers to companies that are specialized in designing, manufacturing, marketing, selling and offering services for motor vehicles. They are then categorized into three types comprising of light duty, medium duty, and heavy duty. Since the light vehicles, including cars, SUVs, vans, and light trucks under six tons gross vehicle weight, contribute the most to the whole industry, this report focuses on the manufacturing sector of this vehicle segment. The industry, without doubts, is highly dependent on the economic conditions, government regulations, social factors and technological advance.
There are many environmental factors militating against every business organization. Some of these factors are briefly explained as follows. GLOBAL COMPETITION IN THE INDUSTRY Much more like any industry, the American Automobile industry is subject to global competition. According to history automobile was first perfected in France and Germany. In 1995, the United States and Japan made a trade agreement that provides more dealer outlets and allowed easier replacement and parts selling in each other countries (Nauss 1995).
The economy has always responded to the fluctuations of the automotive industry as well as the automotive industry responding to the economy. The future of the United States economy is dependent on the automotive industry and with the population encouraging more fuel efficient and lower polluting transportation the future of the automotive industry will likely respond to those demands. The environment will likely become an increasing concern with the automotive industry. The effects of a change to a more environmentally friendly automotive industry are yet to be seen but I can assure you that all American households as well as the United States government and other countries will be watching.
The automobile industry is one that is affected by globalization. More firms are expanding their operations and market reach beyond the borders of their “hom... ... middle of paper ... ... efficiency, safety, and comfort.” In IDC Manufacturing Insights’ report, it’s basically saying that strategies should shift from economy of scale to economy of scope, which focuses on global flexible manufacturing capabilities. The world’s population of cars has reached one billion as of 2010. High growth rates of car ownership in China, India, and Brazil has reflected economic development and demand in those countries. As a final point, Globalization has had some positive and negative effects on the automobile industry.