Share
Explore BrainMass

how global competition affects your organization

Integrate Current Market Conditions.

Give an overview of the history of the auto industry, the market in which it operates, any issues or opportunities that the auto industry faces. Discuss market Trends (Cost structure, Productivity, price elasticity of demand, competitors).

Address the following:
1. Determine how global competition affects your organization
2. Should the organization or industry continue, expand, or reduce current operations to maximize profits? Explain your reasoning. [Recommendation a reduction.] Should the organization or industry reduce production or shut down operations? Explain your reasoning.

Solution Preview

Determine how global competition affects your organization:

Global competition in the automobile industry significantly affects my organization in several ways. First of all, increasing global competition is resulting in cut throat price war in the automobile industry in today's recessionary times and tough economic conditions. Manufacturers from all over the globe and especially Asian countries like Japan and Korea as well as India are offering high quality automobiles at competitive rates, thereby forcing American manufacturers to reduce their pricing.

As Japanese and Korean manufacturers are operationally much more efficient than their American counterparts, they are able to survive the impact of rising raw material costs and price cuts in a much better manner. Further, these companies have set up manufacturing bases in countries like India and China and made these low cost nations as global manufacturing and sourcing ...

Solution Summary

Determine how global competition affects your organization? Should the organization or industry continue, expand, or reduce current operations to maximize profits?

$2.19