The Economic Growth of Automobiles..
- Submitted by: coraleah
- Views: 948
- Category: Politics: Economics
- Date Submitted: 07/19/2010 08:45 PM
- Pages: 3
- Report this Essay
Appropriate Course For Chosen Organization/1 Economic Future For Industry
The auto sales industry is a business that has two types of growth during certain economic periods. The auto industry is pro-cyclical which means it can be positively measured by the overall state of the economy. In this case it grows during economic good times and it slows down during economic bad times. With this in mind Big Drive auto must anticipate what cycle the business is in and make their business decisions accordingly in order to increase the overall bottom line of Big Drive Auto. Big Drive Auto not only sell vehicles but also services them as well as selling parts for repair. Big Drive Auto also does lucrative business, in motor oil, coolant, and replacement tires. Management must always pay attention to macroeconomic environmental signals that will help the company better plan business strategy.
The GDP is an economic indicator that Big Drive Auto must pay close attention to. For example the historic data of the company for the last ten years shows that between the period of 1998 and 1999 the GDP in the auto industry grew from $434.7 to 494.4 Bn. There was also a big increase in vehicle unit sales compared to a small increase in auto service revenue and a decrease in oil, coolant and tire sales.
When the economy is expanding it is recommended that Big Drive Auto borrow money to buy the big ticket items, such as those vehicles associated with going green (hybrid cars) Recently in an article in the Boston Globe, Derrick Jackson, columnist was quoted in saying that President Obama himself should say to the industry "Fellas, give us one car, one car that will make Honda and Toyota turn their heads. Give us one car that is green for the environment and puts green in American wallets. Give us one green car that 20-somethings will text-message each other about. Give us one car that will convince Americans - not just the eco-elite in the cities but the uncles and aunts in...
The auto sales industry is a business that has two types of growth during certain economic periods. The auto industry is pro-cyclical which means it can be positively measured by the overall state of the economy. In this case it grows during economic good times and it slows down during economic bad times. With this in mind Big Drive auto must anticipate what cycle the business is in and make their business decisions accordingly in order to increase the overall bottom line of Big Drive Auto. Big Drive Auto not only sell vehicles but also services them as well as selling parts for repair. Big Drive Auto also does lucrative business, in motor oil, coolant, and replacement tires. Management must always pay attention to macroeconomic environmental signals that will help the company better plan business strategy.
The GDP is an economic indicator that Big Drive Auto must pay close attention to. For example the historic data of the company for the last ten years shows that between the period of 1998 and 1999 the GDP in the auto industry grew from $434.7 to 494.4 Bn. There was also a big increase in vehicle unit sales compared to a small increase in auto service revenue and a decrease in oil, coolant and tire sales.
When the economy is expanding it is recommended that Big Drive Auto borrow money to buy the big ticket items, such as those vehicles associated with going green (hybrid cars) Recently in an article in the Boston Globe, Derrick Jackson, columnist was quoted in saying that President Obama himself should say to the industry "Fellas, give us one car, one car that will make Honda and Toyota turn their heads. Give us one car that is green for the environment and puts green in American wallets. Give us one green car that 20-somethings will text-message each other about. Give us one car that will convince Americans - not just the eco-elite in the cities but the uncles and aunts in...