Bmw (Project Proposal on Bmw)

To study the BMW case, the background information and role of new plant at Spartanburg will be described at the beginning. Secondly, the 3 alternatives options will be analyzed and compared accordingly to determine a proper conclusion. Finally, the recommendation will be presented with various considerations.

AutoZone is not immune to the economic downturns in the United States of America. However, AutoZone finds itself in a weird position whereby it experiences high-profit margins during the economic recession and low-profit margins during the economic boom. During economic downturns, you expect companies such as AutoZone to experience hard times during economic downturns. The truth is during economic downturns AutoZone makes profits compared to when there is an economic boom. The reason for this assertion is the fact that during economic downturn most consumers prefer to repair their cars rather than buying new ones as during such times buying a new car is not economical. This situation leads to companies such as AutoZone making profits during economic downturns as most consumers prefer repairing their cars rather than buying new ones.

It shows how the Chrysler plant was to lay off thousands of people and because of this the Mega Burger restaurant of Mr. Diamantouros also went into recession and had to layoff 15 of his employees. This is considered bad times, but say the demand for cars increased Chrysler would have to hire more people opening job opportunities, this would also lead to Mr. Diamantouros business to increase as he would receive more customers from the plant. Also the cars that the plant manufactures will be delivered to dealers who sell them to us. This is considered good times. It all just depends on a businesses relationship with another business this then influences our economy in a good way or a bad

With the upcoming Presidential election, there is a very real possibility of big political challenges; as well as, major changes to international trade policies facing the American Automotive Companies. Political changes, locally and abroad, are having an effect on the automotive industry. Britain recently voted to exit the European Union; this event, which is being called Brexit, is having a ripple effect across the world. The full result of Brexit won’t be known for two years or more, but with the automotive industry having such a large presence in the U.K, an anticipated change is in full effect. In general, for the next two years, global automakers will need to pay attention to the market; be prepared for unanticipated changes; and ready for the possible need of contingency plans. This is especially crucial as negotiations take place between Britain and the EU. Ian

While BMW was the world’s 16th largest car maker, and held only a 1.5% share of the world

Question 4: What changes would you recommend in the way BMW develops new models? What attributes of newly launched products would you expect to improve as a result of these recommendations? Which attributes might deteriorate?

| * The effect of 2008 recession has impacted the company. * A new car for the new driver is the socio-cultural factor targeted.

In car sales I have to look at 3 components the producer price index and gas and fuel prices. Looking at auto sales is a good way to look at demand for automobiles. The higher the consumer demands the more or less should be produced. Fuel prices as well as oil have a dramatic impact on auto sales, if prices are up the less likely the consumer will opt for a large vehicle.When buying a vehicle is good to look at buying a “CPI (Consumer price index) measures the average change over time in the selling prices received by domestic producers for the output” (Bureau of Labor Statistics 2015) Another thing to analyze are interest rates as they are important to our economy. Interest rates lead to more businesses borrowing money; if interest rates are low that means consumer will buy the product.” Interest rates are charged by the country’s central or federal bank loans and advances to control money supply in the economy in the banking sector which is typically done in a quarter bases to control inflation and stabilizes the country’s exchange rate”. ( Kirch,Vick 2006). Interest rates and unemployment rates usually go hand in hand in the auto industry it seems. When the auto industry is going steady and heading towards a peak performance, unemployment is low and interest rates are a little higher due to supply and demand. During recession in the automobile industry

Our study for U.S GDP covers the period of time from 2000 until 2015. During this time, the U.S economy has been in several economic recessions, a significant drop in the U.S. stock market, increasing in the national debt, and low Unemployment rate. In addition, household saving dropped by more than $10 trillion during the recession . (Figure 2-1). This trends affected the U.S economy’s productivity, slow the consumers’ spending, and reduced the U.S. export. However, since 2013, the economy growth has been in continues improvement despite the fact that the national debt is in increase. The strong raise of the economy brought so many jobs to the market, increase the consumer spending which positively affect the auto industry.

With the increase of global competition, the manufacturers of vehicles in the US had been negatively

Asian and European car manufacturers became major threats to the US market shares. The economic

After a self-satisfied period, American auto manufacturers encountered formidable competition from the Japanese (the most intense competitor, holding a combined U.S market share of approximately 25%) & German manufacturers. American market share was lost to these foreign brands as a result of better gas mileage, attractive design features & affordability provided by these foreign entities. Consequently, U.S car sales struggled in the European market while these foreign auto makers established production facilities & or expanded their already existing facilities (the Japanese manufacturers) in the U.S. Japanese manufacturers have instituted innovative productions by modifying U.S. manufacturing models, adapting & utilizing technology. Even so, the U.S. have merged with & established strategic commercial partnerships with other

The United States automobile industry is one characterized by incumbent behemoth corporations whose distribution channels span the world. Companies like Toyota, General Motors, and Volkswagen form entire segments of their respective countries’ economies and have dominated the auto industry for generations.

The purpose of proposal is to evaluate the correlation of the automobile industry, and the financial (and unemployment) crisis in the United States.

For an example a negative viewpoint, we can look to the the German auto manufacturer,