Business & Economics of Strategy Essay Example | Topics and Well Written Essays - 2250 words

Business & Economics of Strategy - Essay Example However, the government still holds an important role to play prior to the success of the industry. Porter believed that the government has an important role to play prior to the success of a company or an industry in general (Porter, 1990). The government has substantial control in the business sector because it is its task to provide a promising For instance, the government’s lack of focus attention towards the automotive sector and inconsistency when it comes to long-term strategic policy framework have considerable impacts on the UK’s auto industry (House of Commons, 2009; Holweg et al. 2009). This has become one of the specific weaknesses of the sector. In short, the UK’s auto industry is dependent on the government’s important policy and procedure. The Automotive Products Trade Agreement affected Canada because of the economic downturn. This in return brings forward positive association between politics and performance of the auto industry. The issue of global warming encourages the car manufacturing industry to go for alternative designs that will minimize fuel consumption and green house gas emission. This is in line with government policies especially in Europe to take considerably the issue of global warming. ... Sales for automobile have substantially decreased and car manufacturing companies have feared the eventual impact of this in their business. Social Analysis Distracted by the aftermath of economic downturn, customers are more willing to compromise the need for a car. In a society where economic activity is unstable plus oil crisis has substantial impact, having a car is considered a luxury. People are most likely to go for their basic needs first and set aside other secondary needs in life. In the midst of oil crisis and economic downturn, public transportation was in demand. This is also influenced by educating the people about the possible implications of too much green house gas emission that most of it comes from automobiles. This only shows that social considerations have important impacts on the auto industry. In short, social business environment is another important consideration for the automobile industry in order to create a substantial need for its offerings. Technologica l Analysis Grant (2009) pointed out that in order for a company to have long-term survival; there is a need to consider resource and capability base upgrades. In line with this, the auto industry is consistently observed to promote different car models suited to the ongoing trend and created needs through technological innovation. Toyota is known to produce cars that are known for their cutting-edge technology. Part II. Industry Analysis The automobile industry is good at stimulating demand or needs for their products. In fact, it is the latest trend of every company to stimulate needs for their product and service offerings (Kotler et al., 1999; Boone and Kurtz, 2006). Car companies from Asia, Europe, North America and