The Importance Of Automobile Industry

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For the last century, the car culture has spread over the entire globe. As much as any other product, the car has shaped not only the global economy but how billions of people live. In Europe alone, the automotive industry accounts for roughly 12 million jobs (including related jobs); in the US, more than 8 million; and in Japan, more than 5 million. For all of its staying power, though, the industry has also seen constant change. Today’s cars – with their drive-by-wire electric systems or drive assistants – would have astonished Henry Ford, Ferdinand Porsche, and Kiichiro Toyoda. They would also have been taken aback by the increasingly demanding environmental requirements and the rise of new players, particularly in China. So what’s next?…show more content…
THE IMPORTANCE OF STRATEGIC MANAGEMENT Managing the internal activities of the company is only a part of the modern day executive’s job. Today’s business requires the executive to be responsive and adapt to the immediate and remote external environment of the business as well. The immediate external environment includes factors such as competitors, suppliers, scarce resources, government agencies and the political scenarios, customers and their ever changing preferences. In addition to these, the economic and social conditions, technological advancements, etc. must also be anticipated, monitored and incorporated in the decisions made for the business. In order to deal effectively with everything, the company employs management processes will position it optimally in its competitive environment by maximizing the anticipation of an environmental changes and of unexpected internal and competitive demands. Take the example of Xerox which failed to anticipate the external…show more content…
First, there must be a time limit that the managers have on spending on the strategic management process. Managers must be trained in order to minimize that impact by scheduling their duties to allow the necessary time for strategic activities. Second, if the formulators of strategy are not intimately involved in its implementation, they may shirk thrie individual responsibility for the decisions reached. Thus, strategic managers must be trained to limit their promises to performance that the decision makers and their input on selected issues to extend to other areas of decision making. Third, strategic managers must be trained to anticipate and respond to the disappointment of participating subordinates over unattained expectations. Subordinates may expect their involvement in even minor phases of total strategy formulation to result in both acceptance of their proposals and an increase in their rewards, or they may expect a solicitation of their input on selected issues to extend to other areas of decision

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