current trends
- brexit (add costs for car manufacturers / dealerships esp tariffs, customs, regualtions)
- economic uncertainty (rising interest rate and cost of living has lowered, demand decrease impacting capacity utilisation)
- electric vehicles (ban on sale of new petrol and diesel cars from 2030)
- environmental regulations (UK & EU set emission standards and carbon dioxide targets, manafacturers must invest and meet these- costly)
- online sales & comp (rise of online car sales platforms changes how cars are bought and sold increasing comp. rise of ride sharing affects demand for personal car ownership
- labour shortages (car manufacturers facing labour shortages as EU workers who filled these roles are less likely to work in UK)
porters 5 forces on comp environment
rivalry amongst competitors:
- increased in last 40 years as market has become more globalised, esp on cost leadership
threat of new entrants:
- expensive to start up as high capital investment. quality / safety/ reliability is hard to establish. biggest threat is existing companies diversifying into EVs
threat of subs:
- public transport, bikes
buyer bargaining power:
- buyers have lots of power due to wide variety. consumers likely to ship around and find best price between dealerships
supplier bargaining power:
- manufacturers rely heavily on suppliers, and cost of changing can be high, lack of supply and high sales quantity can lead to high supplier power
types of quality management
quality control:
checking quality at end of production
quality assurance:
checking quality throughout production
TQM:
where improving quality is embedded into culture
kaizen:
attitude of continuous improvement
why staff are important (recruitment, selection and training)
manufacturing- mostly capital intensive so not much
dealership- main selling agents, important as they encourage sales
servicing- must provide good service to gain loyalty. small businesses need retention and positive rs
motivation theory
financial motivators: commission likely in dealerships
non financial: job enrichment, rotation
leadership styles
autocratic:
leader is in charge, makes all decisions
democratic:
leader makes decisions but consults staff
paternalistic:
decisions made w employees
laissez faire
left to employees
entrepreneur roles and characteristics
roles:
- generates business
- generates ideas
- grows business
characteristics:
- risk taking
- communication
- creativity
- vision
impacts of protectionism
- imposes trade restriction to disincentivise imports therefore encourage domestic production
trading blocs:
- promotes trade
- removes tariffs / quotas
car manufacturers, dealers, services
M:
- large multinational corporations
- benefit from large eos
- many mncs own several brands
D:
- often franchises
- importance of customer loyalty and repeat customers
S:
- often independently owned, small
- comp is usually w larger dealer garages
- local competition
- rs w customers / loyalty so importance of staff
