Key trends on Strategic Management Uncertainties Order Instructions: The essay is the exact questions based on the following case study: The first question must includes a matrix by plotting Key trends and uncertainties in order to create four possible scenarios, this is followed by a six hundred word explanation of the two of the scenarios (Key trends and Uncertainties) NOTE: Each quadrant must have a name however only the above mentioned topics must include pointers on the matrix.

The second question nclude a stakeholder map or a (power/interest matrix)followed by four hundred words explaining the impact to the organization both positive and negative.

Key trends on Strategic Management Uncertainties Sample Answer

Strategic Management Analysis

1.0          In the automobile industry, key trends on the habits of consumers towards the purchase of automobiles have been identified. To survive in the increasing global automobile markets, automobile companies are looking at the increasing demand for cars in the expanding middle classes in the developing nations for market share and profits since demand in the mature global markets are beginning due to factors such as the global recession and the high fuel costs. Market growth in developing nations has become a new trend in the current automobile landscape and many big companies. This has led to the development of corporate partnerships between many automobile companies making diversification into emerging markets and corporate mergers as the key to success, while automobile suppliers are focusing on expanding their logistics and distribution as they build new plants in the developing markets (Prideaux, 2011).

Another key trend in the automobile industry is the increasing demand for environmentally friendly hybrid cars. Eighty five percent of automobile companies are increasing investments in research and development in order to produce better innovations in power electronics, battery technology, better fuel efficiency, and lower carbon dioxide emissions. This is because the e-mobility of cars is beginning to be an important global goal in order to reduce the increasing cost of fuel and fuel consumption. The craze for pure electronic cars has gradually reduced to the acceptance of hybrid cars and the internal combustion engine improvement (Bishop, 2005). The customers in the mature markets are also getting rid of less fuel efficient cars and focusing their attention on more fuel-efficient cars and hybrids. Fuel efficiency and the improvement of the internal combustion engine have resulted from the changing urban environment. In the developing world, sixty-six percent of the rising middle class is more comfortable with owning bigger cars such as SUV’s (Plunkett, 2003).

Uncertainties still exist as to the increased excitement of hybrid and fuel efficient technology from the customers. Customers on a global level are increasingly demanding fuel efficient cars that will reduce their fuel costs. However, a recent trend has been arising where a quarter of automobile companies are reducing their ICE research and development budget with China leading at 40 percent (Graves, 2003). 24 percent of the companies are continuing to invest in plug in hybrids, which have also proven to be cost effective in terms of fuel efficiency and consumption. Only eight of the automobile companies in the survey were keen on enhancing their battery technology while 12 percent did not know their research and development budgets. The use of cars in urban centers and the increase of traffic jams in many of these areas will lead to serious legislative agendas towards the use of cars in urban centers. Eighty three percent of the respondents who were interviewed in the KPMG global automotive executive survey for 2013 identified that the impact of vehicle design is likely to impact greatly in the new urban city development and design. Cash cows are viewed as the products of a company that have a high market share in a slow growing market. The slow growing markets are mature industries and hybrid and fuel efficient cars are the most demanded for cars in this market. Hybrids are the new thing with cash generating properties and therefore should be incorporated in the growth strategy for better place. Dog products in the industry include investment on battery technology and as much as this business unit provides social benefits and synergies that assist other business units’ better place should not consider investing in battery advancement unless they are directly related to the production of more efficient hybrid vehicles for the mature markets. The high market growth sectors in this industry are the developing world but vehicles especially those that sell for a higher margin have a low market share (Brown & Flavin, 1979). Due to their potential to sell more cars in the emerging and growing middle class market and gain the market share to grow the business. Therefore, the emerging markets need to be penetrated well to determine if these markets are worth investing in order to grow the market share to become stars.

2.

Power

Interest

The stakeholders in the automobile industry are made up of various groups including the shareholders of automobile companies, the employees of these companies, the customers, dealers, communities, government agencies and regulatory bodies and suppliers. The success of every company depends on employee involvement and support. Positive relationship between employees and the owners of the company who are shareholders help improve efficiencies, cost effectiveness and increases on the quality of the products. It also allows for more development and innovations as these stem from environments that foster and enhance inclusivity. Effective communication with customers helps to deliver the products that customers want and they are therefore high interest stakeholder groups (Eskerod & Jepsen, 2013).  The suppliers are also stakeholders with a high power and low interests as the company largely rely on them for vehicle parts. Supplier involvement is also important in the development of competitive global advantage for these companies. Engaging suppliers in the production and distribution processes also ensures that they identify and implement safety measures as well as determine quality cost and productivity improvements. The dealers are also important stakeholders for the companies they are involved in the sales and distribution areas. They need support from the company in many ways including programs that impact positively towards the environmental impacts in the supply chain.  Community groups, the local police and other safety organizations are stakeholders with low power and low influence. However, they still matter as stakeholders because they live and work in the communities from which the automobile companies operate. They also make up the customers who buy automobile products. Companies also need to partner with road safety initiatives and organizations including the local traffic police in order to market their products as safe and also ensure that they deliver and communicate to the local communities about the dangers of not pursuing safe driving behavior and following traffic rules (BPP Learning Media, 2012).

The state governments from which these companies operate are also key stakeholders in the operations and running of these companies. Usually, they provide the basic framework in which these companies operate and usually provide tax laws and government incentives on tax payments. A positive relationship and support from the federal and state governments as well as other governing and regulatory bodies by the company, together with goodwill from the people, impact the success of a company. Governing regulatory bodies include environmental agencies that deal with carbon dioxide emissions.

 Key trends on Strategic Management Uncertainties References

Bishop, R. (2005). Intelligent vehicle technology and trends Boston, Mass.: Artech House.

Brown, L., & Flavin, C. (1979) the future of the automobile in an oil-short world Washington: World watch Institute.

Buckley, P. (1999). The global challenge for multinational enterprises: Managing increasing interdependence. Amsterdam: Pergamon.

Eskerod, P., & Jepsen, A. (2013) Project stakeholder management Farnham, Surrey, England: Gower.

Graves, A. (2003). International competitiveness and future trends in the world automobile industry Brussels: EC.

Media, B. (2012). CIM 4 Stakeholder Marketing 2012 Study Text London: BPP Learning Media.

Plunkett, J. (2003). Plunkett’s automobile industry almanac Houston, TX: Plunkett Research.

Prideaux, B. (2011). Drive tourism: Trends and emerging markets. London: Routledge.