Products

About

©2018 StudyMode.com

Analyze How Should Mcthai Maintain Its Market Competitiveness During the Global Recession with Specific References to the “Porter’s Five Forces Analysis”

Topics: Toyota, Daihatsu, Maslow's hierarchy of needs Pages: 2 (699 words) Published: January 11, 2010
{draw:frame} {draw:frame} World’s largest carmaker Toyota has announced that it will reduce its worker’s working hour and wages in the UK by 10% (BBC Business). The aim of this strategy is to reduce its high labour turnover which is caused by the global recession. Toyota announced from its annual report that during the year of 2008 the company has experienced difficulties in its sales, production and marketing, which lead to the loss of $ 1.6 billion (see Toyota Announces Results for January 2009 for latest update). “This would be Toyota's first operating loss since 1950”, Toyota spokesman Steve Curtis said (CNNMoney.com). This announcement will take effect on the 1st of April 2009 and has been described as a “positive move” by the Unite union as they were the representative for the workers who negotiated this plan. This plan will provide stability to the Toyota workers as they will not be made redundant and a steady income will still made. On the other hand, Toyota can still maintain a high-level skilled work force ready when the upturn comes. Toyota tries to maximize its profitability by reducing costs and even downsizing as a measure to counter the global recession. In the UK, Toyota has already suspended a night shift production line for a total of four weeks in order to reduce operating costs. Toyota is also considering downsizing in the UK, it has already cut 200 temporary jobs and opened a voluntary redundancy scheme. A voluntary redundancy scheme is a financial incentive offered by an organization to its employees with the purpose of attracting volunteers to leave the organization, due to downsizing or restructuring situations. The purpose is to circumvent union employee regulation laws. {draw:frame} {draw:a} The advantages of this plan would be that it has provided a motivation towards its workers as they only lose 10% of their wages rather than being made redundant which fits the Taylor’s motivation (Wikipedia, Scientific management) as money is the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Porter's Five Forces Analysis Essay

    ...simple way of describing a company's competitive advantages. Company's with a strong competitive advantage have large moats, and therefore higher profit margins. And investors should always be concerned with profit margins. This article looks at a methodology called the Porter’s Five Forces Analysis. In his book Competitive Strategy, Harvard professor Michael Porter describes five forces affecting the profitability of companies. These are the five forces he noted: 1. Intensity of rivalry amongst existing competitors 2. Threat of entry by new competitors 3. Pressure from substitute products 4. Bargaining power of buyers (customers) 5. Bargaining power of suppliers These five forces, taken together, give us insight into a company's competitive position, and its profitability. Rivals Rivals are competitors within an industry. Rivalry in the industry can be weak, with few competitors that don’t compete very aggressively. Or it can be intense, with many competitors fighting in a cut-throat environment. Factors affecting the intensity of rivalry are: * Number of firms – more firms will lead to increased competition. * Fixed costs – with high fixed costs as a percentage of total cost, companies must sell more products to cover those costs, increasing market...

    Read More
    1013 Words 5 Pages
  • Porter’s Five Forces Analysis Essay

    ...Porter’s Five Forces Analysis Michael Porter provided a framework that analyses an industry as being influenced by five forces. It has been suggested that management, attempting to establish a competitive marketing advantage over rivals, can use this model to understand the industry context in which the business operates and take appropriate strategic decisions. Threat of entry This means the ease with which other firms can join the industry and compete with existing businesses. The threat of entry is greatest when: economies of scale are low in the industry technology needed to enter the industry is relatively cheap distribution channels are easy to access, e.g. retail shops are not owned by existing manufacturers in the industry there are no legal or patent restrictions on entry The importance of product differentiation is low, so extensive advertising may not be required to get established. The power of buyers This refers to the power that customers have on the producing industry. For example, if there are four major supermarket groups that dominate this sector of retailing, their buyer power over food and other producers will be great. Buyer power will also be increased when: there are many undifferentiated small supplying firms, e.g. many small farmers supplying milk or chicken to large supermarket businesses the cost of switching suppliers is low...

    Read More
    475 Words 3 Pages
  • Porter’s Five Forces Analysis for Microsoft Essay

    ...Mid-Term Assignment Porter’s Five Forces Analysis for Microsoft Lillian D. Anderson Strayer University Prof. Ghodfrey Ekata Information Systems for Decision Making - CIS 500 July 24, 2011. Abstract Our company is a small investment company that specializes in technology investments. The company has a significant amount of capital invested in Microsoft. We were made aware that a new company by the name of Strayer Holdings has just released an operating system that plans to compete with Microsoft’s operating system. Our team was charged to compile a Porter’s Five Forces analysis for Microsoft to ensure that our company’s Microsoft investment is not at risk. The following report is a Porter’s Five Forces analysis and three generic strategies that were compiled to ensure our company’s investment in Microsoft is secure. Analyzing Microsoft using Porter’s Five Forces Analysis The Microsoft Corporation (Public, NASDAQ:MSFT) was founded in 1975 by William H. Gates III. The company’s mission is to enable people and businesses throughout the world to realize their full potential. They have worked to achieve this mission by creating technology that transforms the way people work, play, and communicate. They develop and...

    Read More
    750 Words 3 Pages
  • Beats Porter's Five Forces Essay

    ...such as headphones, earphones or speakers but also a software called Beats Audio as well as a streaming music service called Beats Music. Dr Dre came with the fact that listeners, with most headphones, were not able to listen properly to music. He stated that Beats audio product would allow a much better way of listening “hear what the artists hear, and listen to the music the way you should: the way I do." Porter’s five forces analysis: Rivalry among industry: The headphone market is a very competitive market in which we can’t even name all the brands when we talk about all categories headphones. However when we talk about high quality headphones such as beats the number of companies competing is reduced, the most known between them are Beats, Bose, Sony or Sennheiser, but there also are some of them emerging with the same way that Beats did for example famous rappers Jay-Z and Ludacris each have their own line of headphones called respectively Skullcandy and Soul. Despite the competition Beats was able to conquer 64% of the market of 100$-an-more headphones. Threat of new entrants: During the last years many celebrities, following Dr Dre and Iovine formula, launched their own brand of headphones (Usain Bolt, Tim Tebow, 50 cent in partnership with Timbaland, Denon…). Also, the technology to produce headphones is quiet simple and does not...

    Read More
    458 Words 1 Pages
  • Porter’s Five Forces Analysis of Sbi Essay

    ...STATE BANK OF INDIA Porter’s Five Forces Analysis 1. Competitive Rivalry: High Top Performing Public Sector Banks a. Andhra Bank b. Allahabad Bank c.Punjab National Bank Top Performing Private Sector Banks a. HDFC Bank b. ICICI Bank c. AXIS Bank Top Performing Foreign Banks a. Citibank b. Standard Chartered c. HSBC Bank The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the bestand fastest services. 2.Buyer Power: High With the emergence of larger number of players in the Banking Industry, the switchingcost of the buyer has gone done significantly. The onus is now on the effectiveness andspeed with which the services are provided to the customers. Financial institutions - byoffering better exchange rates, more services, and exposure to foreign capital markets -work extremely hard to get high-margin corporate clients. Options in the Auto FinanceSector also give the customers more power to decide upon the kind of financing.Introduction of specialized products for Women and Students etc also show that thebuyer power is high in this Industry....

    Read More
    999 Words 5 Pages
  • Essay about Analysis of Global Camera Accessories Market

    ...mainly used to improve the efficiency, accessibility, and usability of a camera. They act as an add-on or support for a camera, help with special effects, and enhance image quality. Global statistics have indicated that more than 400 billion images have been captured per year since 2010. The popularity of digital photography is contributing to the sales of digital cameras and their accessories around the world. Analysts forecast the Global Camera Accessories market will grow at a CAGR of 4.51 percent over the period 2013-2018. Complete Report is Available @ http://www.sandlerresearch.org/global-camera-accessories-market-2014-2018.html Covered in this Report The Global Camera Accessories market can be divided into four segments: Bags and Cases, Lenses, Supports, and Flashes. To calculate the market size, the report takes into account revenue generated from the sales of camera accessories and unit shipments. The Global Camera Accessories Market 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas and the EMEA and APAC regions; it also covers the Global Camera Accessories market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors...

    Read More
    417 Words 3 Pages
  • Essay about Porter's Five Forces Analysis

    ...Question: 1. Identify an organization with which you are familiar and conduct a Porter’s Five Forces analysis. 2. What are the key success factors of the organisation identified? Businesses worldwide experience some form of competition whilst operating in their respective industry. In the macro-environment there are factors that exist that can determine whether or not an organization gains competitive advantage or becomes viable. Michael Porter developed a Five Forces model to aid in analyzing the industry. These Five forces are:- • Competitive rivalry • Threat of entry • Threat of Substitutes • Bargaining Power of Buyers • Bargaining Power of Suppliers A Porter’s Five Forces analysis is being conducted on Island Dairies Ltd a dairy company in Jamaica. COMPETIIVE RIVALRY – Competitive rivals are organizations who produce similar products and/or services who targets the same market. THREAT OF ENTRY:- This is dependent on the various barriers that exist when a firm is entering the industry/market. Barriers to entry are viewed as equilibrium adjustments that markets make. There are stiff requirements as to the production of certain products due to health regulations and requirements imposed by the Health Ministry...

    Read More
    583 Words 2 Pages
  • Porter's Five Forces Research Paper

    ...Porter’s Five Forces 1 In talking strategy for any company, Porter’s Five Forces Model is likely to come up. It has served as a strategic planning guideline for years. If a company is just starting out, they would have to analyze the model and apply it to themselves from every aspect. If a company is well established, the model can serve as points that need to constantly be revisited. In going global, the tool becomes invaluable. It still only serves as a guideline, but it delivers significant points that have to be examined in a different culture of diverse laws and governmental controls. The following paragraphs will describe Porter’s Five Forces Model, describe how it can assist in going global, and examine possible limitations to the model. Porter’s Five Forces Model is a framework by which an organization can create its strategy. The forces determine the profitability of an industry because they form the prices that can be charged, the costs that can be handled, and the money required to be able to compete in that industry. The five forces include rivalry, threat of substitutes, buyer power, supplier power, and threat of new entrants/entry barriers. Rivalry is the competition for...

    Read More
    894 Words 3 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free