StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Corporate and Global Strategy - Essay Example

Cite this document
Summary
Using Ellis & Williams 4Cs framework (1995, p.107), analyse the global automobile manufacturing industry in 2007. The answer should address the following issues: Are the industry's products truly 'global', i.e. the same products in all markets Are the industrys products becoming more or less global What are the key pressures facing MNEs in the automobile industry today And also refer to the macro-environmental analysis for question one the Global Automobile industry.
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Corporate and Global Strategy
Read Text Preview

Extract of sample "Corporate and Global Strategy"

Download file to see previous pages

The fast development of previously less developed countries in East Asia and Latin America also means higher disposable income which the customers can spend on durable goods like automobile. Recognising the wider market and huge profit potential from these transformations, players in the global automobile manufacturing industry opted to pursue globalisation strategies. They have expanded beyond their local markets to serve and cater to the needs of customers abroad. Thus, the current global automobile manufacturing industry is currently comprised of large players going beyond their traditional markets to foreign markets with the prospects of larger market, higher revenue, and higher profit.

With the players' decision to pursue internationalisation, they face important decisions about their product offerings and strategies. It should be noted that as industry players seek foreign markets, they are actually exposing themselves to an entirely different set of customers who can have different preferences and expectations about their products. . er the global manufacturing industry is approaching globalisation or localisation, this paper will use 4Cs model which assesses the operations and external macroenvironment of car producers.

In the discussion below, it can be seen that the global automobile manufacturing industry is currently midway between globalisation and localisation. However, it can be noted that the sector is approaching localisation as multinational organisations continue to respond to the specific preferences, culture, laws, and rules in its specific market. The 4Cs framework is a strategic management tool which "can be used to assess actual and emerging trends and can assist in determining the extent to which an industry is moving towards globalisation or localisation" (Ellis and Williams 1995, p.107). This looks at three factors in the external environment of the sector namely customers, cost, country, and competition.

The customers' factors in this model are subdivided according to customers' requirements, distribution, and uniformity of marketing. Cost drivers are in terms of new product development, scale economies, and transportation costs. Country drivers include trade barriers, technical standards, and cultural and institutional barriers. Lastly competitive forces refer to competitive interdependence and entry of new competitors.Customers The current global manufacturing industry is described as hypercompetitive which can is characterised by the more intense competition among players and high bargaining power of the customers (Kotler 2005).

With automobile manufacturers becoming aware of the importance of tailoring their products to customers' preferences, market niching and customisation has become a popular trend. According to Donald Peterson, former chairman of Ford Motor

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Corporate and Global Strategy Essay Example | Topics and Well Written Essays - 3250 words”, n.d.)
Corporate and Global Strategy Essay Example | Topics and Well Written Essays - 3250 words. Retrieved from https://studentshare.org/miscellaneous/1503869-corporate-and-global-strategy
(Corporate and Global Strategy Essay Example | Topics and Well Written Essays - 3250 Words)
Corporate and Global Strategy Essay Example | Topics and Well Written Essays - 3250 Words. https://studentshare.org/miscellaneous/1503869-corporate-and-global-strategy.
“Corporate and Global Strategy Essay Example | Topics and Well Written Essays - 3250 Words”, n.d. https://studentshare.org/miscellaneous/1503869-corporate-and-global-strategy.
  • Cited: 0 times

CHECK THESE SAMPLES OF Corporate and Global Strategy

Corporate Strategy Assessment: British Airways

This essay discusses corporate strategy assessment: British Airways.... From a strategy standpoint, BA could actually afford to offer the lowest airfares, as compared to other airlines due to their application of the full-service business model.... hellip;  , that BA focuses on cost minimization and maximizing the potentials of a fewer and leaner management team that would enable them to channel the funds, previously allotted for compensation and benefits of managers, to other strategic areas such as intensifying efforts for exemplary corporate service....
10 Pages (2500 words) Essay

Global Corporate Strategy - The Merger between Air France and KLM

The firm was clearly able to use its links with the American and other global leaders in order to successfully challenge the new firms which started to follow the same merger strategy after the success of Air France and KLM.... The merger which took place in 2004 between two companies created a global leader in the airline industry.... There have been many factors which created the overall synergies for the new firm to develop itself into a leading global firm in airline industry....
4 Pages (1000 words) Essay

What Lies Ahead for Electrolux

Electrolux's marketing strategy had always advocated going to the customer rather than the customer coming to them.... Door-to-door sales gave way to demonstrations at trade fairs and retail shops, but the strategy did not have the desired effect.... In a business environment, a visible brand name such as "Electrolux" can easily determine success or failure in the marketplace....
11 Pages (2750 words) Essay

Corporate Strategy of Nike

The cse study underlines tht Nike obtins strong position of the mrket.... In generl, when compny succeeds in creting more vlue for customers thn its competitors, tht compny is sid to enjoy competitive dvntge in n industry.... Competitive dvntge is mesured reltive to rivls in given industry.... hellip; ccording to Porter, generic strtegies re bsed on the competitive methods nd scope of the orgniztion, both of which compromise its strtegy....
8 Pages (2000 words) Essay

Nesting Strategy of Riordan Manufacturing Directory

Universal groups can also incorporate other universal groups and global groups within the same forest.... This paper presents the AD nesting strategy for Riordan manufacturing in line with their business and locations. Universal Groups - These are formed in the forest comprising of multiple trees (that is, multiple domains).... o support the above policies, the following Nesting strategy has been proposed for Riordan Manufacturing:Primary Domain: Riordan....
3 Pages (750 words) Essay

Corporate Strategy for Global Steel Manufacturing Industry

(Euro strategy Consultants, Global Steel Industry Outlook to 2014, p.... The global Steel Industry refers to the production of large family of metals.... The growth of global steel market transformed the business activities and outlook of steel companies....
9 Pages (2250 words) Essay

Business Strategy of First American Cooperation

Realizing that opinions and attitude towards insurance services differ in every country a unique strategy was adapted by First American cooperation.... First American's core business include Title insurance and closing/settlement service; title plant management service; title and other real property records and images; valuation… First American title is the largest Subsidiary of the now First American Financial cooperation....
3 Pages (750 words) Essay

Impact of International Trade and Globalisation on Corporate Strategy

The present writing "Impact of International Trade and Globalisation on Corporate strategy" will outline the main principles used to achieve the objectives of the corporate strategy in order to reflect the business strategy employed, such as training and development recruitment, etc.... f we abide by the 'best fit' theory in order to achieve the objectives of the corporate strategy, these elements must be continuously linked back, in order to reflect the business strategy employed....
4 Pages (1000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us