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"To be competitive a manufacturing firm must adopt "Just-in-time" JIT methods". Using examples, carefully evaluate the accuracy of this statement.
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There are many factors, which are responsible for the "love affair" and adoption of Japanese techniques and philosophy by many North American and European managers. Four main factors are global competition, limitations of Taylorist-Fordist production paradigm, application of new technology requiring a skilled and cooperative workforce and the apparent success of the Japanese paradigm. Japan a completely devastated country has emerged in the post war period as the world"s second largest economy after the United States. This miracle has been attributed to well-planned and executed methods of production management especially in the manufacturing industry. The competitiveness of companies such as...
discussed above will find that it will not make them competitive and may result in total failure. However one cannot ignore the advantages of JIT manufacturing technique, as it is a very useful tool in ensuring competitiveness if the system is set up properly in conjunction with the other factors in the Japanese model. It is important to understand that to be competitive, a company must have a well-planed production system. This can be done using several management strategies as long as they are well planed and suitable for the nature of the company and its national culture.

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In the automobile industry, a great...In the automobile industry, a great proportion of income comes from selling automobiles. Globalization is the inclination of world investment and business to move from a country and local markets to a worldwide environment, is a major factor that affects the auto market. More than ever, it has been easy for foreign auto dealers to enter the American market creating competition. Competition is a major factor that takes a toll on the auto industry. In America the car making market is driven by what"s known as the "Big Three:" Investopedia.com says, "The profits and losses of the big 3 are thought to be an indicator of the overall US economy" · General Motors - produces Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. · Daimler Chrysler - Chrysler, Mercedes, Jeep, and Dodge. · Ford Motor Co. - Ford, Lincoln, Volvo, and Jaguar. However, Two of the biggest foreign car manufacturers are: · Toyota Motor Co. · Honda Motor Co. Mr. Michael E. Porter identified 5 competitive aspects that shape all industries in his book called "Techniques for Analyzing Industries and Competitors" The below 5 forces by Porter show the relationship between the various competitive forces: Porter"s 5 Forces Analysis 1.Threat of New Entrants- It was thought that the American automobile industry and the Big Three were safe. But this was not true when Honda Motor Co. opened its first office in Ohio. The expansion of foreign competitors began to decrease the market of American companies. Some factors that decrease foreign cars from becoming a threat are: loyalty to American made cars and the cost it would take to replace damaged parts that are manufactured in foreign countries. 2. Power of Suppliers "“ A lot of suppliers depend on a certain automaker to buy a majority of their products. If an automaker decided to change suppliers it could be the end of the supplier"s business. Consequently, suppliers have little power. 3. Power of Buyers - American consumers became discouraged with many of the products being offered by auto dealers because of value and began looking for replacements, like foreign cars. 4. Availability of Substitutes The bigger cost of operating a vehicle, the more chance people will look for other transportation options. The price of gas has a large effect on buyer's decisions to buy automobiles. 5. Competitive Rivalry - Highly competitive industries earn lower profits because the cost of competition is high. However, recently the competition has become more intense preferred financing, and long-term warranties have made buyers more interested. And also put pressure on the profit for auto sales. It is thought that advertising increases the global competition on the US from foreign automakers. So a school of thought in industrial economics seeks the informative side of advertising, saying that advertising does make markets more competitive and reduces income by giving buyers information about price and quality. These views are being distinguished by examining the effect of advertising on competition in the US auto industry. The data included advertising, sales, profit, and market-share figures for General Motors, Ford, and Chrysler over a 25-year period from 1970 to 1994. Asking if advertising increases or decreases profit. It is discovered that these attributes cannot increase their profits above normal levels by increasing their advertising expenditures. This supports the view that advertising is used to provide information and not to create entry barriers. According to yahoo finance: GMC HOLDING CORP NEW Last Trade: 0.33 Trade Time: 12:26PM ET Change: 0.07 17.50% Prev Close: 0.40 Open: 0.40 Bid: N/A Ask: N/A 1y Target Est: N/A Day"s Range: 0.32 - 0.40 52wk Range: 0.20 - 3.15 Volume: 7,269 Avg Vol 3m: 42,238.5 Market Cap: N/A P/E ttm: N/A EPS ttm: N/A Div & Yield: N/A N/A 1d 5d 3m 6m 1y 2y HONDA MOTOR CO ADR Last Trade: 28.46 Trade Time: 2:16PM ET Change: 0.50 1.79% Prev Close: 27.96 Open: 28.40 Bid: N/A Ask: N/A 1y Target Est: 31.82 Day"s Range: 28.35 - 28.56 52wk Range: 23.75 - 29.59 Volume: 678,500 Avg Vol 3m: 378,758 Market Cap: N/A P/E ttm: N/A EPS ttm: N/A Div & Yield: N/A N/A 1d 5d 3m 6m 1y 2y 5y max Just to give a view on what was going on in the stock market today Yahoo.com listed in its finance report. If these two reports are compared we see that GMC is down by 0.07 and Honda a foreign automaker is up by 0.50 this clearly indicates the difference in business these companies are. Does the United States car industry have Global competition? The answer is Yes it does. In conclusion, The United States car industry does have very high competition whether it's from foreign countries having better offers or people just simply prefer the look of foreign cars. When looking at the American car industries competition we should understand that our country is very diverse with many minority groups with people that have different taste and that plays a major roll in the business of automobiles.   

In the automobile industry, a great proportion of income comes from selling automobiles. Globalization is the inclination of world investment and business to move from a country and local markets to a worldwide environment, is a major factor that affects the auto market. More than ever, it has been easy...

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Global business benefits may include allowing...Global business benefits may include allowing firms to increase their profitability in ways not available to purely domestic enterprises. Firms operating internationally are able realize location economies. Location economies are value creation activity in the optimal location, using lower-cost locations reduces overall costs and product differentiation for super pricing and creating a Global web for value creation. I use to ask myself why the Le Mans car continues to be sold even though it was considered in the U.S. as a low rating vehicle. That question was answered as I read more into global and international business. Because of location economies and cost the car was a great production for GM. In Germany the car was made cheap but the gain for GM was great. If we look at Hyundai cars we use to say it was a piece of junk but the company use of location economies created a continuous gain. In Korea the Hyundai factory made outstanding cars but for the U.S. they were made with just enough quality to create a gain and start a name. Longtime goal had to be the focus of Hyundai for the U.S. market in which they have succeeded. Global business also benefits the use of cheap labor. We all wonder why a business move to overseas and the answer is "cheap labor" which is part of product and skills localization. Because of low employment rates and lack of trades a country like Mexico have skilled workers that will work twice as hard and half the pay of Americans. A globalize business will relocate or expand to reap the benefits to maximize productivity. Large businesses normally get a big tax break from the country it setup in. Can we call this type of business strategy a greedy business? No, it's just business. Now that I have a clear understand of the Global and international business I would like to break it down in my terms. Global business refers to the exploit of other country resources to include labor rate, tax cuts and etc"¦.. Where as international business is to expand your product to other countries that can use your product over their own. Where there are advantages there are also disadvantages. The following are some advantage and disadvantage with global business strategies: "¢ Advantages "“ Facilitate entry into foreign markets. "“ Enable partners to share fixed costs and risks associated with new products and processes. "“ Facilitate transfer of complementary skills between companies. "“ Help establish technological standards. "¢ Disadvantages "“ Risk of giving away technological know-how. "“ Risk of opening local market access to foreign alliance partner. "“ Risk of not getting anything in return When dealing in the realms of global and international business communicating across cultures will place a major role. Cross culture communication simply deal with getting to know the culture of the country you will be dealing with. The first step in a successful cross culture communication is to familiarize yourself with that culture work norms, address terms and attitudes toward time. Most countries have different culture background therefore it is best to study ones culture. Though it is impossible to fully understand all the intricacies of other societies, it is worth learning at least the basics -- how to greet and address others, how to dress, how to handle business cards, personal space, eye contact, and punctuality to name a few. First impressions are always important so showing cultural respect when greeting others is essential. In many western countries a handshake is the preferred greeting, but even differences exist there. In Germany a firm, brief handshake with good eye contact is expected at introductions and departures while in Italy handshakes can be warm and spirited in business meetings. And in both countries it is customary to shake hands with everyone in the group upon entering and leaving, avoiding general group salutations. Some cultures, such as the French, may kiss one another when greeting at work, but it is best to refrain from the behavior unless they initialize it, extending your hand instead. The Japanese often shake hands with westerners as a sign of respect and appreciate when westerners bow out of respect to their culture. Chinese may bow or shake hands. In respect to the different cultures that you may face it is operative that we master this communication barrier and over come it.   

Global business benefits may include allowing firms to increase their profitability in ways not available to purely domestic enterprises. Firms operating internationally are able realize location economies. Location economies are value creation activity in the optimal location, using lower-cost locations reduces overall costs and product differentiation for super pricing and...

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