The Issue Of Mounting Debt

1762 WordsJun 8, 20168 Pages
The lack of sales and higher costs mentioned above led to the obvious internal issue of mounting debt. It is so obvious we will only touch briefly enough on it to mention that mounting debt to the tune of over $340,000,000, nearly half that owed to the parent company Suzuki Motor Corporation, proved to be an insurmountable mountain to scale (Szczesny, 2012). The last internal factor we will discuss is hardly a negative aspect of Suzuki’s business, but it certainly fits the definition of an internal factor that directly led to the decision to pull out of the States. This internal factor is their success in other regions of the world. While market share in the U.S. plummeted to well under 1%, Suzuki was doing quite well in other regions. They were the leader in India, a country that accounted for 40% overall sales in early 2012 (Hagiwara & Hagiwara, 2012). Other emerging markets in Southeast Asia were strongholds for the company as well, believed to be because of the smaller frame of their cars. In markets used to suffocating small roads, these small, inexpensive and durable cars were in high demand. And because of the success in these non U.S. markets the decision became clearer, as there was an alternative place to allocate resources. If other successful markets hadn’t existed it is easy to see how a decision to simply attempt to repair itself and compete in the U.S. could have been justified. External Unlike internal factors in which a certain amount of control is
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