The Power of the Customers in the Automobile Industry Essay

1. The power of Customer There are two categories of customers in the automobile industry: final customer, the actual users of the end product and industry’s customer, for instance manufacture company buying the necessary items from the supplier. The power of customer is the extent of an impact that the buyer has on a supplier or manufacturing business. Buyers are powerful if: †¢ Purchase of large volumes †¢ The product is standardized †¢ Low switching costs †¢ Price sensitive †¢ Threat of backward integration 1.1. Ultimate customer Private customer is price sensitive. The cost of purchasing the car represents a significant percentage of consumer budget, therefore the price will become very important factor while choosing a product. Consumer†¦show more content†¦1.2. Industry’s buyers There are many different items needed, in order to manufacture a car. Therefore, the firm has to have very high control and insight on their supply chain. Kraljic’s matrix is a tool that helps to segment suppliers into 4 categories. By using the matrix, it is possible to differentiate items based on the their availability on the market and the extent of significance for the company. For instance, if there are only few alternative suppliers for an item and it is of high value for the company, possibly because of the large purchase volumes or nature of the item is of high complexity, it is categorized as a Strategic item on a producers market. In this case, the company faces potential shortages of future deliveries also the threat of losing control over supplier. There are two available strategies that the company could perform in order to secure deliveries and to gain the customer power. First option is to develop a close relationship with the supplier, to sign a long-term coo peration contract. Second solution is to use backward integration strategy, which is when the manufacturer enters the supplier’s business. Ford Motor Company experienced tough times during the early 20th century. Many suppliers could not survive low economical situation, therefore Ford faced shortages in deliveries and could not produce the quantity of cars demanded. First thought that Henry Ford tried to implement wasShow MoreRelatedEnvironmental Challenges Facing The American Auto Industry Essay775 Words   |  4 PagesChallenges facing the American Auto Industry The American Auto Industry has evolved for many decades with pioneers such as Ford Motor Company. The United States Auto Industry was once upon a time a global leader in the automotive industry but due to knowledge and skills acquisition by other automobile manufacturers such as Toyota, the once American Auto Industry leadership has been surpassed. I will give discuss this following paragraphs. 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The United States Auto Industry was once upon a time a global leader in the automotive industry but due to knowledge and skills acquisition by other automobile manufacturers such as Toyota, the once American Auto Industry leadership has been surpassed. I will give discuss this following paragraphs. Global Competition in the Industry So far the Toyota Motor Corporation of Japan has surpassed all the AmericanRead MoreGeneral Motors: The Decline of an Automotive Giant1345 Words   |  6 PagesQuestion 1: Using Porters five forces framework, discuss the competitiveness of the global automobile market. Porters five forces framework is a model of competitive industry structure. These are the threat of entry of new competitors, the threat of substitutes, the bargaining power of buyers and of suppliers and the rivalry between the existing competitors. 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In this assignment, I would like to discuss about the challenges that the automobile industry of USA is struggling with. Specifically, there are four main challenges that will be looked into details which are global competition, new technology, emission’s effect on the environment and the government’s reaction, and the consumers’ opinion about the productsRead MoreIndustry Analysis Using Porter ´s Five Forces Model Essay1226 Words   |  5 PagesSECTION ONE: INDUSTRY ANALYSIS 1.1 Features of the Industry The automobile industry experienced intensive competition and low profitability in the past due to crisis. The ‘Five Forces’ model advanced by Porter is influential in its capability to designate many market conditions. This framework predicts the profitability of a market, it is a powerful tool for analysing industries, but firms should consider number of problems experienced when it is used. 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A closer consideration of the impact of consolidation, demand and supply, fixed costs, product differentiation, and exit barriers on rivalry within the industry reveals how new entrants and weaker competitors were able to take advantageRead MoreFive Forces1027 Words   |  5 Pagesand automobile industries. Determinants of Entry By entering into car manufacturing market is very costly and risky as the initial costs required a large capital investment on technologies, economics of scale and accessibility to distribution channels has restricted the entry of new entrant to the industry. Toyota is a popular brand and constant market presence in different sectors with largesize that allows Toyota to have a competitive advantage over the new entrants in the automobile industry

Multicultural Awareness As A Clinical Mental Health Counselor

Journal: Multicultural Awareness This paper will introduce and define the need for Multicultural awareness as a clinical mental health counselor. It will further explore examples of various topics in Multicultural counseling such as: Racial and ethnic diversity, gender and social economic status. As a result of this research, in Multicultural awareness, the self-assessment rendered the identity of myself. It allowed me to realize what and who I was as â€Å"other.† In realizing who I was as â€Å"other†, I saw my own self-identity, and some of my flaws. Therefore, this assessment made me realize the need to develop a plan to correct areas of which demonstrated lower scores in: acceptance of change, stereotyping, and assuming may interfere as a mental health counselor if not corrected. Multicultural Self-Assessment After taking the multicultural self-assessment, my results revealed the following about myself. For the most part of this assessment, my strongest points were rounded in cultural diversity a nd understanding. Contrary to such, I scored lower in the areas of â€Å"assuming something is when it’s not,† â€Å"stereotyping,† and â€Å"adapting new changes† (Petrone, M. C. 2004). Lastly, more often than not results displayed equality, and positive outlook type of personality. For example, in posting to the discussion board, I tried to respond to topics without, disrespecting ones’ values, and at the same time introducing awareness about the topic. First Time I Realized I was â€Å"Other† The firstShow MoreRelatedMulticultural Counselor Competencies Reflect On Culturally911 Words   |  4 Pages Multicultural counselor competencies reflect on culturally sensitive counselors, that are mindful of several foundational principles. These principals include, activation of schema and confirmatory bias; awareness; group differences; racial and cultural identity development; and multiple. 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The emotional intensity of the clinical material (real life stories about torture, beheadings, sex trafficking or so) can inflict providers with vicarious traumat ization. Hence, care providers apply self-care strategies for themselves when working with the victims of torture. Williams and Berry (1991) proposed a few suggestions to make changes at systemic level. These changes comprises developing school curricula that promote multicultural and multiracial understanding and toleranceRead More Multicultural Counseling Critique Essay1004 Words   |  5 PagesMulticultural Counseling Critique: Counseling Utilization by Ethnic Minority College Students Although the practice of counseling has evolved considerably since its inception, the concept of multicultural competence remains novel. Engrossed in the lives of every clinician are underlined biases and prejudices that act as filters in which every interaction with a clients is affected. Current research on the topic of multicultural counseling has shown that although multicultural awareness is on theRead MoreCultural Diversity : A Cultural Assessment, Diagnosis And Or Treatment807 Words   |  4 PagesEngaging into the importance of multicultural competence, awareness of such competency has become a significant necessity in the area of mental health, and various fields of psychology (Hayes, 2008). It is essential for a counselor to be multicultural competent in order to develop a therapeutic alliance with a client, while understanding their cultural identity. Therefore, culturally competent knowledge, attitudes, and skills of diverse culture, is necessary, in proper treatment an d diagnosis. Read MoreMy Goal As A Licensed Counselor961 Words   |  4 Pagescompared to other mental health professions. 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MA in Virgin Airlines

Question: Discuss about theMA in Virgin Airlines. Answer: Introduction In terms of sales departments, the management has emphasized upon disseminating the different roles of management reporting into several sets of job profiles. These posts comprises of Accounts Managers, Operational Executives and sales analysts. The key revenue indicators comes from passenger ticket sales, this is to be followed by the revenues generated through the freighting activities coupled with providing logistical solutions. Instead of machine hours as used in manufacturing and production operations, the airline uses Block Hour (BH). A synonym for Aircraft Hour, the BH is determined by the duration that a particular flight takes between moving out of departure gate until entering the arrival gate (Belobaba, Odoni and Barnhart 2015). The productivity of airlines is computed using the BH unit; Virgin too utilizes these unitary measures in order to gauge the degree of efficiency of its operating activities. The primary fleet of airbus operated by the company comprises of Boeing 7 37-400 and 737-800 (Virgin Australia 2016). The airline sets a particular benchmark for utilization of its aircraft carriers based upon the industry standards and thereby computes the degree of variance based upon the frequency of its flight schedules. In terms of measuring the overall unit costs of operations, the cost per unit of available seat mile (CASM) is utilized by the Virgin Airline likewise other airline companies. The basic methodology for computing CASM is through determination of aggregate operating costs followed by computing the quantum of available seat miles and then dividing the former with the latter (Web.mit.edu 2016). The actual CASM is derived and analyzed periodically; mostly on a quarterly basis in order undertake comparison with the industry standards. The benchmarking of the costs as against Virgin Airlines domestic and international competitors assists in evaluating the effectiveness of cost management operations currently implemented by the company. Revenue Passenger Miles (RPM) is the measurement unit of computing the degree of passenger traffic managed by the airline in the last quarter, half year or annual period. The RPM is a indicator of the salability of the airline due to the fact that computation of RPM entails determining the number of airline seats sold by the company. A high RPM tends to indicate the fact that the company has succeeded towards retaining its existing consumer base along with attracting newer sets of flyers (iata.org 2016). The analysts undertaking the evaluation of sales activities tends to use RPM as a parameter to make recommendations regarding current management policies concerning the sales activities. The load factor is another costing unit utilized in order to assist in determining the quantum of consumption of airline output. The load factor comprises of using the RPM as a percentage of Available Seat Miles (ASM). Moreover, the computations as regards to load factor is done by the company on a w eek by week basis in accordance with the industry norms which is then aggregated at the end of a particular quarter. The revenue generated by the company through carriage activities pertaining to its passengers are categorized as passenger revenue (PR). Moreover, they are appropriated on the basis of schedule flight operations thereby attributing the costs in accordance to each activity. The passenger revenue is a representation of a division among the sources of revenue generation by the airline. The generated revenue by the airline is segregated amongst the revenue earned from passengers and those earned purely from logistical activities. Another form of measurement of revenue relates to the fact that the total revenue is to be computed with regards to ASM in order to facilitate evaluation of revenue generated per ASM. Airline industry in general has diverse sets of costs comprising of regulatory expenses, operating expenses, services costs and costs pertaining to security, technological up gradation expenditures among others. Virgin Airlines has numerous expenses that are variable in nature and cost of which tends to vary upon several relevant factors. Primary among them being the travel routes in which the airline operates. Moreover, the purchasing mechanism for aircraft carriers, maintenance costs, staff salaries, aviation fuels costs among others. Further, the maintenance costs relating to aircrafts vary in quantum. This is owing to the fact that the specification, fuselage and efficiency along with the engineering involved in manufacturing the aircrafts vary from aircraft to aircraft. The airlines follow ABC method of costing in order to compute aircraft maintenance costs due to the inherent nature of cost allocation facilitated by ABC costing. The ABC method of costing has been developed with an intention towards providing a enhanced set of platform for cost ascertainment than what was provided by Traditional Cost Accounting (TCA). The benefits as regards to ABC Costing arise from the fact that the product cost behavior can be adequately evaluated by companies implementing the method (Drury 2013). In terms of Virgin Airlines, the usually distorted sets of cost computations resulting from implementation of TCA can be reduced substantially by applying ABC. In case of TCA, the allocation of overhead costs has been facilitated through accumulation of costs from each department. This is followed by allocating them to the services or products (Levant and Zimnovitch 2013). On the other hand, ABC costing tends to undertake cost ascertainment and allocation based upon different sets of activities (Kaplan and Anderson 2013). Thereby, the allocating processes under ABC are more transparent and rational in nature for airline companies like Virgin. Airline industry in general incurs heavy maintenance costs that can be segregated into both direct and indirect costs. Every set of Airline Company, including Virgin Airlines, tends to have their activities distributed amongst aircraft maintenance, cabin and crew maintenance, structure maintenance coupled with upkeep of relevant tools. The aircraft maintenance activities comprise of preflight checking and functioning, inspection of aircraft decks, performing onboard operation checks along with cleaning of airbuses. Further, in terms of cabin maintenance, the activities entails maintaining the rugs, seats and carpets inside the flights coupled with installation and upkeep of emergency medical aids. The structure maintenance pertaining to airbuses comprises of repairing, oiling and painting, overhauling and wielding activities. The direct costs in relation to airline operations includes engine maintenance costs, direct labor costs as in salaries of cockpit crews and aeronautical engineers directly involved in operating in the predetermined routes. Moreover the leasing, rents relating to airbus maintenance, both heavy and base aircraft maintenance consumables falls under direct costs. The primary form of overhead costs includes regulatory fees to be paid to aviation authorities, depreciations as regards to airbuses and the rent relating to aircraft hangars. The majority of MA functions are undertaken by the Finance department whose functions includes initiating the financial analysis, financial forecasting, preparation of internal audit report, management of expansionary and up-gradation projects (Virgin Australia 2016). The relevant job roles pertaining to the finance department comprises of Auditor, Project Managers, Business Analysts and Accountants along with specialization in IT architecture and softwar e. The major forms of reports generated by airlines in order to facilitate managerial decision making comprises of preparation Flight Load on a daily basis. The flight load pertaining to a particular period comprises of flight numbers, the operating flight routes, details regarding the departure and arrival time. Further, such report also takes into account the volume of passenger booking the flights coupled with no show. The next line of reports tends to provide details regarding BH, RPM, ASM and PR in order to facilitate performance evaluation of activities undertaken by the company. Moreover, preparation of budget forecasting under the supervision of Finance Department tends to assist in mitigating the prevalent degree of cost overruns. References: Belobaba, P., Odoni, A. and Barnhart, C., 2015.The global airline industry. John Wiley Sons. Borenstein, S. and Rose, N.L., 2014. How airline markets work or do they? Regulatory reform in the airline industry. InEconomic Regulation and Its Reform: What Have We Learned?(pp. 63-135). University of Chicago Press DRURY, C.M., 2013.Management and cost accounting. Springer. Hill, G., 2016. Cost management.MHD Supply Chain Solutions,46(4), p.16 Joseph, J. and Vetrivel, M.A., 2013. Impact of target costing and activity based costing on improving the profitability of spinning mills in coimbatore-empirical study on spinning mills.Journal of Contemporary Research in Management,7(2). Kaplan, R. and Anderson, S.R., 2013.Time-driven activity-based costing: a simpler and more powerful path to higher profits. Harvard business press. Kaplan, R. and Anderson, S.R., 2013.Time-driven activity-based costing: a simpler and more powerful path to higher profits. Harvard business press. Levant, Y. and Zimnovitch, H., 2013. Contemporary evolutions in costing methods: Understanding these trends through the use of equivalence methods in France.Accounting History,18(1), pp.51-75. Raeesi, R. and Amini, A., 2013. Developing a Grey Activity Based Costing (G-abc)Method to Capture the Inherent Uncertainity in Identifying Cost Drivers Consumption Rates. Academy of Accounting and Financial Studies Journal,17(2), p.41. Virgin Australia. (2016). Department Profiles | Virgin Australia. [online] Available at: https://www.virginaustralia.com/au/en/about-us/careers/department-profiles/ [Accessed 18 Oct. 2016]. Web.mit.edu. (2016). Airline Data Project. [online] Available at: https://web.mit.edu/airlinedata/www/Res_Glossary.html [Accessed 18 Oct. 2016]. www.iata.org, (2016). [online] Available at: https://www.iata.org/whatwedo/Documents/economics/passenger-analysis-jul-2016.pdf [Accessed 18 Oct. 2016].

International Economic Development free essay sample

This paper has presented an overview of some of the most important issues in the arena of international development and trade. This paper presents an overview of some of the most important issues in the arena of international development and trade. Obviously, especially in the aftermath of Sept. 11, the balancing of the economic, political, social and cultural interests of all members of the international community is a complex and difficult task ? and may in the end prove not to be possible at all. As last months events have once again demonstrated, we are all linked together in a single world, one in which the idea of the modern nation-state itself is becoming increasingly less meaningful. Even as political alliances bind the world together, we found ourselves powerfully reminded of the way in which the world is a single entity in terms of its economic systems as stock markets rocked throughout the world after Sept. We will write a custom essay sample on International Economic Development or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 11 and talk was of how a recession in the United States would have international implications even as U.S. markets themselves had been weakened in the past several years due to weakness in Asian markets. This economic interdependence is in part due to the importance of international trade.