Brief description of organization
Automotive industry has been one of the most vibrant industries globally; this is because of the high demand for the wide variety of automobiles. (Townsted et al, 2014). Apart from production of automobiles and its accessories, the company in study offers other services to their customers such as financing, leasing and offering automobile maintenance. Automotive industry is characterized with steep competition, and therefore the organization has strategies for successful marketing of its products. Among these strategies are branding, diversification and creation of divisions or subsidiaries. Divisions ensured that the company produces a wide range of automotive products where customers can choose from, subsidiaries are created in different countries but under control of the parent company, and through this approach the company becomes close enough to its target market, and consequently results in higher sales as well as better service delivery to its clients.
Assess three factors, either economic, social, or both, impacting the performance of the organization
Logo, slogans and branding are very important for this industry; it not only identifies the company but also describes the strengths and quality within products. (Robbins et al, 2013). The organization is also a big participant on social affairs such as sports. It produces sports vehicles, sponsor teams and also purchase naming rights for venues. The organization’s philosophy revolves around problem solving, quality products and long-term thinking. On environmental matters the company has been on the fore front towards environmental friendly vehicles, this has been achieved by use of technology to produce hybrid vehicles. In terms of production and sales the company has been recording satisfactory figures, and for the past 3 years it has been registering an increase in its sales and production.
Despite being successful, the company has been facing a number of social and economic challenges that have a great impact on its ultimate performance. One of the greatest challenges is competition; automotive industry has attracted a lot of investors. And this has resulted in steep competition for market of manufactured goods. Greater competition is posed by companies that were first-movers in the market; these companies are a major threat since they are established globally. (Zorpas et al, 2012). Competition has forced the company in study to lower cost of its products, intensify on marketing strategies and also incur high cost of production in order to produce quality automotive products.
The other challenge that not only affects the industry in study but nearly all automotive industries is responding to pressure from customers and the dynamic society. Customer preference keep on changing based on the current market. Customers always need efficient and safe automobiles, which might otherwise be impossible or costly to produce within the scope of the current technology. And alternative options to these products might not be accepted and embraced. It is due to this that the company has been spending a lot on research in order to understand what the end customers expect. At times these researches may provide wrong information or become outdated resulting in losses. There have been instances whereby the company produces automobiles that never embrace customers at all, and therefore this unnecessary venture brings loses to the company.
Lack of skilled labor is also a great challenge, in some countries where subsidiaries are situated are faced with shortage of skilled labor. This at some point forces the company to seek for costly alternatives. Automotive industry involves more of mechanical skills and experience which is a challenge as most academic institutions fail to provide practical skills to their students.
Environmental considerations and concerns which entails making sure the environment is kept safe and also making sure that workers are healthy has forced the company to spend a lot. Compliance to policies e.g. CO2 levels post a big challenge for the company to achieve based on the technology available.
Propose four business actions to overcome the factors
In order to remain valid, the company needs to pay attention to some of the critical factors. These factors are; quality products, consumers are always interested in efficient and safe automobiles and therefore the company should work to achieve this requirement. Road accidents claim a lot of souls annually and it is because of this fact that most clients priorities on efficiency and safety when selecting an automobile. The company should also be keen of customer expectations. Comprehensive study should be done on customer preferences to understand fully what they need.
The company also has to make sure that it maximizes on its strengths while at the same time working to overcome the weaknesses. From the challenges facing the company in study, some of the approaches that the company can use to overcome these challenges are as follows: On competition, the company should produce quality automotive products. The current society has social media platforms and forums where quality goods from different fields are discussed. Quality goods get easily noticed and sell themselves. The company should also try new marketing strategies in order to conquer new markets.
Customer demands can easily be taken care of through comprehensive research and using this information to forecast on the future of automobiles. Analysis of the current trends in market might also provide valuable information. (Daft, 2012). On matters concerning skilled labor, it would be a good idea for the company to offer training to individuals. This can be done through offering industrial attachments and internships to graduates as practiced by other companies that require technical knowledge. In order to comply with the set standards on environmental and health issues, the organization can maximize on technology available to provide cheaper and efficient ways to meet these criteria.
References
Daft, R. (2012). Organization theory and design. Nelson Education
Robbins, S., Judge, T. A., Millet, B., & Boyle, M. (2013). Organizational bsehavior. Pearson Higher Education AU.
Townsted, J. D., & Calantone, R. J. (2014). Evolution and transformation of innovation in the global automotive industry. Journal of Product Innovation Management., 31(1), 4-7.
Zorpas, A. A., & Inglezakis, V. J. (2012). Automotive industry challenges in meeting EU 2015 environmental standard. Technology in society, 34(1), 55-83.
