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International strategy management
Impact globalization is having on the US economy
Impact globalization is having on the US economy
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World Class in Dixieland One thing that Mercedes has been able to do is to build a reputation for itself, built on quality and customer satisfaction. For some, when we hear the name Mercedes, we think of sleek, sexy, and expensive automobiles. However, we also know that when they turn that key, the German engineering behind that vehicle will not fail us. Mercedes relies on the rock solid reputation, and for them to build a vehicle outside of Germany is a huge risk, high reward endeavor. However, they believe that their new facility in Vance, Alabama will help them to get the new M-class into the market faster to compete with the Ford Explorer and the Jeep Gran Cherokee. Mercedes' Plan. Before we can make an educated answer to the question, if Mercedes risks' diluting it's made in Germany reputation, we need to look at Mercedes' plan. They certainly got a sweet deal from the state of Alabama to build their factory in Tuscaloosa County. With the money that they saved by investing in Alabama, they were able to build a state of the art factory. They have also reinvented the way they run their production line. The new factory has many innovations for Mercedes, like the new design of their production floor, that lets workers unilaterally stop the assembly line to correct manufacturing problems. The administration offices run through the middle of the manufacturing area, providing easy access to the administrators. Mercedes has gone through a rigorous overhaul to appeal to their new U.S. workers and it seems to be working out well. The American workers are learning to say that they are building a Mercedes instead of saying we are just building a car. Mercedes' Reputation Although we looked at the vision... ... middle of paper ... ...t the autoworkers are lazy, inefficient, or uneducated? Alternatively, is the severity of these claims unfounded? However, the autoworkers employed by Mercedes are not part of the United Autoworkers Union, which is affiliated with the events of the 70's and 80's. Mercedes seems to be taking every opportunity to offer the best training, the best facilities, and the best equipment to insure the success of the Alabama plant. However, the specter of past actions and the presence of the U.S. government could bring that reputation to its knees. The reality of the dilution of the Mercedes reputation is far greater and outweighs any of the accolades that they could get by building the M-class in the U.S. Mercedes has a chance to Page 6 rejuvenate not only the economy of Alabama, but it might also be able to reincarnate the reputation of the U.S. autoworker.
The Big Three automobile companies, General Motors, Chrysler, and Ford, also had a very demanding labor union, the United Auto Workers or UAW, which asked for many benefits and salary requirements which lowered their ability to compete with other companies on the market, foreign and non-union. The average...
The case study of GMFC provides an example of a company attempting to avoid unionization of its workers. GMFC is expanding by building a new U.S. plant which will manufacture motorized recreational equipment. The company plans to hire about 500 production workers to assemble mechanical components, fabricate fiberglass body parts, and assemble the final products. In order to avoid the expected union campaign by the United Automobile Workers (UAW) to organize its workers, GMFC must implement specific strategies to keep the new plant union-free. GMFC’s planning committee offers suggestions with regards to the plant’s size, location, staffing, wages and benefits, and other employee relations issues in order to defend the company against the negative effects of unionization and increase...
During the Great Depression, every work place was hit hard and many were out of work. The demand for vehicles declined, and the automotive industry took a hit. Once the Second World War began, the automotive industry was given a push in the right direction, and their vehicle production flourished...
...rers. The UAW won over the Detroit auto manufacturers into giving profits to be used toward their R&D savings to the UAW affiliates in the form of raises. The follow-on action was Detroit lagging distant at the back the rivalry in the “green movement” towards more fuel competent cars, which may have been designed using the cash that was given to unions (Saint-Paul 6).
The last bolt is screwed on as a relieved automotive worker marvels at his wondrous creation: a car. With the roar of an engine, the car slowly disappears into the distance. The worker gradually turns around, picks up his tools, and continues to work on a new car. As a consumer, we rarely wonder how things are made; we simply take everything we own for granted. For once, have you wondered how many hours of hard labor many automotive workers must go through? The automotive industry has been around for many years, but it has not always been as efficient as it currently is. As the industry continues to evolve, many new innovative ideas are still being developed. In the past, automotive workers have had to work in harsh conditions without much security or job benefits. Nevertheless, through the continuous development of organized collective bargaining, workers are being treated as they should be. Being the largest automobile manufacturer in the world, General Motors Corporation has been greatly affected by the needs of their workers. Rick Wagoner, CEO of General Motors, is currently in charge of “running the show” at GM. Being the most successful automotive company since 1931, it is obvious that he not only has to satisfy customers, but also the workers within the company. From the smallest things such as a work raise to bigger things such as the working condition, the management of General Motors has been pressured to make both positive and negative changes to the way the company is run as a whole in order to satisfy the workers who are part of the UAW Union. Therefore, the formation and development of unions encompasses both pros and cons.
one of the biggest car manufactures in the world, announced it would be moving its
... the world. From humble origins in the late nineteenth century, the auto industry grew explosively in the early and mid-twentieth century’s, scattered and decentralized, and reconstituted its work force. The impact on everyday life, from where people live to what kind of work they did cannot be underestimated. The hard work people put in to making the assembly line helped almost all companies succeed in making more cars. Just imagine if the assembly line was not created. It would take years to make a car and the cost of a car would be very expensive. Those changes were especially visible in Detroit which was the capitol of the auto industry automobile nation. The automobile industry would not be where it was today if it wasn’t for all the hard work people put in it in the 1900’s. Ford, Chrysler and general motors’ help create what we call today as the automobile.
Investing more on building a facility would be a long-term consideration. For the short-term, we suggest BMW should concentrate on production of the Z3 in the Spartanburg, and ship the 318 back to Germany for production. The 318 has worldwide demand, while the trend in the U.S. prioritizes the Z3. 318 or other 3 series have high potential on gaining market share in the future, and eventually the production will be shift to low cost production line to stay competitive. With international production, having the flexible manufacturing capabilities to produce a broader group of products will play a crucial role in future vehicle industry.
Detroit was once the mecca for workers pursuing the American dream. In the early 1900’s an innovative inventor named Henry Ford brought mass production of the automobile to this area, turning Detroit into a beacon of opportunity and economic success for many. This Automotive Industry has been at the base of Detroit’s economy for decades; however, it’s not like it once was. During the 20th century the auto industry had many high and lows. Many factors lead to the recent downturn of this industry that led to mass layoffs and displaced workers, which had a negative impact on Detroit, as well as the United States economy.
BMW has captured the attention of automobile drivers from all around the world with their “Ultimate Driving Machine.” The BMW Company was originally established in Germany and has extended nationally reaching over 12 countries. With Germany and the United States being the top two target countries, BMW has established their products as a combination of luxury, safety, and comfort with product lines to suit all styles of living. Revenues have been increasing each year since before 1996 with profits coming from product line of automobiles and motorcycles. In 2001, BMW came out with a new product group, the Mini. The Mini also contributed to the revenue increase in 2001. BMW has current developments in their sports cars, the Z8. BMW has created a trustworthy name for the automobiles they produce and has all the potential to continue their success in the future.
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
Until recently, Ford Motor Company was in possession of most of the production and distribution of all materials and parts needed to produce cars. Ford Motor Company owned everything from steelworks needed for the frame of the car down to the rubber farms needed for the tires and hoses. Ford Motor Company even retained railways so that supplies and finished cars could be transported to their intended destination (Muthusamy, 2014). However, owning all the supplies in the world would be ineffective if the company was not capable of using its resources in the appropriate manner. For that reason, Ford Motor Company revolutionized the Industrial Era with its concept of the assembly line which would enable it to dominate its industry for a long