The automotive industry includes all companies that involve themselves in manufacturing motor vehicle parts and components. The principle product in this industry is passenger automobiles and light trucks. Commercial vehicles are secondary to this industry. There are many companies in the world. Among the top companies in this industry, include Toyota motors, Volkswagen group and Bayerische Motoren Werke (BMW) group among others.
Toyota motors’ is based in Japan with its headquarters in Toyota, Aichi, Japan. In terms of revenue and market capitalization, Toyota motors’ is the largest listed Japan Company. It produces vehicles under five brands, which include Hino, Toyota, Lexus, Scion and Ranz. It also has joint ventures including TPCA based in Czech Republic, GAC Toyota and Sichuan FAW Toyota Motor located in China and Toyota Kirloskar located in India. The company’s’ culture is hiring people as individuals and not as employees. The company understands that people are different with different strengths and abilities. This benefits the company by exploiting different talents in a particular area (Pauwels, Silva-Risso, Srinivasan & Hanssens, 2004). This employment approach is the source of the company’s ever-emerging new ideas. Again, the company also believes in being ethical both social wise and business wise.
Volkswagen group, based in Germany with its headquarters in Wolfsburg, manufactures commercial and passenger vehicles, engines, motor cycles and turbo machinery. The company sells cars under the brands Audi, Bugatti, Bentley, Lamborghini, Porshe, SEAT, Skoda and Volkswagen marques. It has two major joint ventures namely Shanghai Volkswagen and FAW-Volkswagen (Pauwels, Silva-Risso, Srinivasan & Hanssens, 2004). The company’s culture is balancing between demands and ability. Through this, the company attains optimum performance and results while making sure the employees are not over or under stretched. In this entire process, the company assumes a decisive role. For active involvement, the company has developed an employee standard survey that allows the employees to voice their opinion anonymously. This forms the basis for exploiting the potential brought to light.
Bayerische Motoren Werke (BMW) is based in Germany with its headquarters in Munich. The company produces motorcycles, mini cars and Rolls-Royce. The motorcycles are produced under the brand Motorrad. It has ten development and research centers. For a competitive edge in the international market, the company has close cooperation with plants, which ensures flexible and fast production. The culture of the company is passion for high performance with teamwork, equality and diversity (Pauwels, Silva-Risso, Srinivasan & Hanssens, 2004). The company has also set up research and development centers all over the world. This helps the company to know what the customers need are develop them.
For Toyota Motors, the most appropriate culture is research and development. Research is very important in all aspects of business. It enables one to know what is currently in demand and any improvements consumers need made. The company depends on new ideas from the diversity of employees with different talents. Consumers might not always perceive the new ideas as helpful. Thus, if the company researched the consumers to know what they really need and then integrate those needs in to the new ideas from employees, they would be more productive in terms of certifying the consumer (Conklin, 1991).
An economic system that relates to BWM group is sustainability and value creation. To do this the company has research and development facilities all over the world. Research helps in value creation in that it informs the company about the consumer preferences and demands. The ability to meet the consumer demands leads to sustainability. Corporate responsibility includes anti-corruption, compliance and risk management (Bauer, 2013). This kind of an economic system creates employment. A large workforce is required to maintain the activities associated with this kind of system. Again, through research and development activities in the society, technological innovation increases there by promoting a technically proficient workforce. In addition, such a sustainable company makes a lot of profit, which translates to high taxes, which goes into developing the society.
For Toyota motors, maximizing on the consumers safety is their economic system. The company has always endeavored to produce automobiles that are safe and reliable. It has broadened its safe mobility strategy to include urban environment, partnerships and energy. This kind of a system has different effects to the society. First, it gives the society a chance to invest in the company through partnerships. The urban environment strategy also ensures that the economy and the environment coexist harmoniously in that by producing environment friendly machines, it reduces the cost of maintaining the environment (Bauer, 2013). In addition, the company has reduces the unemployment rates in the society.
Volkswagen group thrives to increase the satisfaction of the existing customers and at the same time acquire more customers. To ensure this, the company is customizing its products to meet the requirements of the local customers as well as focusing on the features of individual markets. This way the company is able to increase demand. This kind of a system will develop the local society in that to meet the requirements of local customers, local suppliers and sales people will be involved thus bringing business to the local people (Bauer, 2013). Again, increased demand translates to increased profits and thus increased taxes. In addition, local expertise will be utilized, as the company will need employees with expertise in different areas.
In terms of economic development, some countries are lagging behind than others. One of the reasons why this happens is that some countries are poor in job creation. It is agreeable that the countries lagging behind have high unemployment rates. An increase in the employment rate will automatically increase the output of a country (Bauer, 2013). It will also lower the social safety cost in that the ratio of workers to pensioners is to rise. Again, some countries lag behind because of poor technology. With high advanced technologies, production becomes easy increasing the output per time.
BMW, Toyota motors and Volkswagen group can improve the economic progress of the undeveloped countries by setting up production plants in such countries. This will create employment in such countries lowering the unemployment rates. In addition, by employing local expertise, they will be able to improve technological advancement in the society. Improved technology will help other economic sector become more efficient (Conklin, 1991). These companies can also come up with social programs that will benefit societies in the underdeveloped countries. Such programs should aim to improve the lives of the people in the society. Again, the companies should ensure that such programs can self sustain themselves in later time.
If given a chance, I would be interested in leading the BMW group. This is because the company is always striving to balance between its production ability with demand. The company understands the dynamics of demand and supply without overstretching the employees (Pauwels, Silva-Risso, Srinivasan & Hanssens, 2004). It maximizes on the employees personal capabilities. In order to lead such a company I would need to study more about automobile technology .Again, since the company cannot separate from the society, I would need to be aware of how to run community activities aimed at giving back to the society. Running such a multi national company also requires bargaining skills to be able to struck powerful deals with other multinational companies and suppliers. Again, since there will be a team of employees behind me, conflicts are bound to arise. I will have to manage such conflicts thus the need to have knowledge about conflict management.
As the CEO of BWM group, I would increase the number of research and development centers to cover all sales destination. This will greatly help in meeting the customers’ expectations and preferences in production (Tidd, 2001). To increase sales, I would leave marketing to the local experts who know the audience better. I would also make customer service more available and very efficient to meet the customers enquires and complains. As pertains to human resource, I would ensure that all employees are treated fairly and equally.
Bauer, P. (2013). Economic Analysis and Policy in Underdeveloped Countries. Hoboken: Taylor and Francis.
Conklin, D. (1991). Comparative economic systems: Objectives, decision modes, and the process of choice. Cambridge [England: Cambridge University Press.
Pauwels, K., Silva-Risso, J., Srinivasan, S., & Hanssens, D. M. (2004). New products, sales promotions, and firm value: The case of the automobile industry. Journal of marketing, 68(4), 142-156.
Tidd, J. (2001). Innovation management in context: environment, organization and performance. International Journal of Management Reviews, 3(3), 169-183.
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