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Avoid the Hustle

The Global Automobile Industry in 2009

Category: Essay Writing

Assignment Overview
Using the information from in The Global Automobile Industry in 2009 case found on page C66
in the course textbook and various course materials; answer all elements of the following topic areas
completely. Your answers should be based on the facts in case and course materials only and not on
any outside research or personal opinion (unless stated in any question).

The entire case paper can be effectively written in between four (4) and five (5) pages.

Make sure to carefully review the Grading & Evaluation Standards sections of the course syllabus.
It is critical that you follow the guidelines as outlined in these sections.

All papers must be submitted through the appropriate TurnItIn link in Blackboard by
11:59pm on Friday, course-week #3. Papers submitted after that time will be considered late
and are subject to grade reduction as outlined in the Grading & Evaluation Standards
section of the course syllabus.

Papers will not be accepted after 11:59pm on Wednesday of course-week #4.
Topic #1: Porter’s Five Forces Analysis – Competitive Rivalry
Part I: From the perspective of Michael Porter’s Five Forces Model – covered in the textbook
chapter three, the Harvard Business School article and the video both found in Blackboard | Course
Material | Week #2 | Reading, Listening and Viewing – write an assessment of the impact of five
(5) of these eight (8) important points on the intensity of rivalry in the automobile industry in 2009.

Each of these points of consideration has an impact on the rivalry within the global automobile
industry and each will contribute on some level, to the power of rivalry as discussed in the Porter
model of industry environmental analysis.

Point of Consideration
 Product Differentiation  Consolidation
 Demand & Supply  Fixed Costs
 Demand Trends  Market Fragmentation
 Exit Barriers  Product Life-Cycles

James D. Lux – LDR6140 – Case #1 Paper – Page 2

Your assessment should address each of the following areas at a minimum:

1) Definition and discussion of the state of the selected point of consideration in the industry
2) Discussion of the current and near-term impact of the selected point of consideration on the
industry
3) Assessment of the relative power – HIGH. MODERATE, LOW – the selected point of
consideration has on the industry.

Part II: Discuss whether the global automobile industry is an attractive industry or not and
specifically why or why not. Your answer should be rooted in the concepts related to Industry
Rivalry in Porter’s Five Forces Model and should be based on your analysis of the problems with
rivalry.
Topic #2: Evolving Structure of the Global Automobile Industry
Clearly the automobile industry has significantly evolved over the past century and particularly in the
past 25 years. The industry has become truly global with competitors, operations and markets in
both developed and developing countries. This evolution necessitates a new type of business
strategy; one suited to the new realities in the industry.

1) Discuss four (4) of the seven (7) strategic imperatives listed below, that the competitive
companies in the automobile industry must consider. The evolving structure of the industry
has necessitated change for the automobile companies competing within. Strategic
imperatives would be developed based on the changing nature of rivalry, suppliers, customer
desires and competitive entry. This is your opportunity to convey your understanding of the
concepts in the course and how to apply them to challenges in an industry.

Potential Strategic Imperatives
 Build to Order  Improved Inventory Turn
 More Component Parts  Product Development
 Economies of Scope  Supplier Relationships
 Flexible Factories

A strategic imperative is a critical strategic change that a company or companies must
undertake to remain competitive. Strategic imperatives are developed and implemented in
response to external changes in the industry or the general economic climate that will or are
very likely to significantly impact the industry.

Your assessment should address each of the following areas at a minimum:

2) Discussion and definition of the chosen strategic imperative – what is it, how will it impact the
industry and which industry stakeholder group does it impact.
3) Discussion of how individual automobile manufacturers should use the strategic imperative to
address the new, changing realities in the industry.

James D. Lux – LDR6140 – Case #1 Paper – Page 3
Assignment Grading
Grading Area Points
Case Paper Follows Writing Papers Guidelines
 Name, date, course name & paper title (1)
 Line spacing, font and margins (1)
 Appropriate use of headings (1)
 References & citations (1)
 APA formatting for references & citations (1)
5
Topic #1 – Porter’s Five Forces Analysis – Competitive Rivalry
 For each selected point of consideration
o Accurate definition & discussion of each point of
consideration (1 – somewhat, 2 – fully)
o Accurate assessment of the current and near-term impact of
the point of consideration (1 – somewhat, 2 – fully)
 Discussion on attractiveness of the global automobile industry to
existing rivals and potential entrants (1 – incomplete, 2 – meets
requirements, 3 – clear & complete)
23
Topic #2 – Evolving Structure of the Global Automobile Industry
 For each strategic imperative
o Accurate definition & discussion of each strategic imperative
(1 – somewhat, 2 – fully)
o Accurate discussion on how strategic imperative will be used
to address industry changes (1 – incomplete, 2 – meets
requirements, 3 – clear & complete)
20
Writing Proficiency – High = 4; Moderate = 2; Minimal = 0 4
Total 52