CORPORATE SOCIAL RESPONSIBILITY Vibhuti

MOTOR VEHICLES

VIBHUTI KUMAR

CONTENTS PAGE

INTRODUCTION PEST ANALYSIS FIVE FORCES ANALYSIS RESEARCH UK INDUSTRY ANALYSIS AUTOMOBILE SECTOR IN INDIA AUTOMOBILE SECTOR IN UK AUTOMOBILES SECTOR IN EUROPE KEY PLAYER QUESTIONNIARE BARGRAPHS CONCLUSION BIBLIOGRAPHY

In the U.S., the recession that started in late 2007 had a profound impact on the

automobile industry. Americas car and light truck market dropped dramatically in 2008, to approximately 13.2 million units for the year, down by about 2.9 million from the number of units sold in 2007. In 2009, the market was much worse, with sales for the year expected to total about 10 million units. About 690,000 of those sales were made with the stimulus of a cash for clunkers program paid for with federal dollars. This was easily the worst year in decades for the car business, with two giant manufacturers filing for bankruptcy, GM and Chrysler, while a large number of dealerships, suppliers, parts manufacturers and other auto-related businesses also failed.

PEST Analysis

For this report I have investigated the motor- vehicle industry in Political, economic, social and technological ways. 1. Political Legislation Environment Company cars Competition

2. Economic Excess capacity Economies of scale Diversification Mergers and strategic alliances

3. Social Environment Car culture Fashions and taste Redundancies

4. Technological E Commerce Safety Plant efficiency Gizmos

FIVE FORCES ANALYSIS

The Porter's 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current

competitive position, and the strength of a position you're looking to move into. The five elements of this tool are threat of entry, buyer power, supplier power, substitutes and competitive rivalry. Threat of entry for the motor- vehicle industry is that the power is also affected by the ability of people to enter your market as it costs little time and money to enter you market and compete effectively, if there are few economies of scale in place or if you have little protection for your key technologies then the new competitors can quickly to enter your market and weaken your position but if you have string barriers to entry then you can preserve a favourable position and take fair advantage of it. Supplier Power in the motor vehicle industry is to assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. Buyer Power in the motor vehicle industry is easy for buy to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you. Competitive Rivalry in the motor vehicle industry is important here because of the numbers and capacity of your competitors if you have many competitors, and they offer equally attractive products and services, then youll most likely have little power in the situation. If suppliers and buyers dont get a good deal from you, theyll go elsewhere. On the other hand, if no-one else can do what you do, then you can often have tremendous strength. Threat of substitution in the motor vehicle industry is affected by the ability of your customers to find a different way of doing what you do for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.

RESEARCH

Successful motor vehicles implementations all over the world over a decade of exposure in the motor vehicle arena and a combined expertise to develop and implement. Industry sector reports gives unrivalled flexibility and depth of information and these reports have two elements which is online access to analysis of the whole sector and bespoke printed reports for targeted benchmark analysis of the companies of most interest to you. Every company in the industry sector according to the size and performance and also identify your peer companies by locality and include new entrants which flags new businesses entering the market.

There are different type of analysis when we discuss about sectors of automobiles such as real time analysis which is when you subscribe, every time you log in you are seeing the latest information filed for all the companies analysed in the motor vehicles retail industry sector as every company in the industry sector is being constantly analysed and we update the analysis of key trends for the whole sector every day, Followed by Printed reports which are unlike traditional hard copy reports, the printed reports are not published and then immediately out of date. A login account to the industry sector report enables you to request printed reports whenever you wish because each time a report is printed, it reflects the same current information that you see online. MOTOR VEHICLES RETAIL INDUSTRY ANALYSIS A subscription to the industry report gives you an overview of the entire industry, the key financial trends over the last three or more years, and a full written commentary exploring the status of the sector and assessing sales trends, profitability, liquidity, gearing, interest burden, and solvency. The report highlights the movers and shakers, reveals new entrants into the motor vehicles retail market sector, and indicates the fastest growing companies to watch. COMPETITORS ANALYSIS If your business operates in the UK motor vehicles retail sector, you have competitors. Reports provide a detailed financial analysis of each of your rivals. Not only that, but the online sorting options will allow you to confirm known competitors and identify new ones. You can sort all the companies in the sector by measures of size, performance, or geographical location. You can then draw up a list of all the companies of interest to you, and compare their performance using bespoke online benchmarking tools. BESPOKE FLEXIBILITY Researchers have covered all the main companies in the sector, but if you want to add any other UK company to your analysis you can do so online. The whole industry sector analysis will be revised to include the data on any new company you add, and there will be a detailed analysis on the new company. BENCHMARK REPORTS Our industry competitor analysis not only allows you to study the strengths and weaknesses of the competition, but we also give you the facility to benchmark all your key rivals. You can examine the performance of every competitor and compare them to your own company, and to each other, and benchmark them against the motor vehicles retail industry sector averages. You choose the companies, you select the performance measures. MONITORING You can also receive alerts by email about key changes in companies in the sector. You decide which companies you want to receive alerts about - you can be told about changes for every company in your sector, or select the companies of most interest to you.

UK INDUSTRY ANALYSIS

In the UK sector, the database this updated daily and each time you log in to your account you see the very latest data for all the companies analysed in the sector and the information for each company is analysed in real time and all the trends for the whole industry sector are updated in tandem and as a result the entire analysis is revised daily to reflect the most recent information available. Every company in the sector is profiled with a full page report listing the directors, holding and parent companies up to 3 years profit and loss and balance sheet figures and also an individual written financial status and performance assessment of each company. Status and performance assessment for each company is very vital because each industry sector report lets you sort and rank all the companies in the sector by numerous measures of performance and you can identify the key competitors and place their performance in the context of the industry as a whole and we then analyse the entire industry and show the key financial trends over recent years and present a detailed appraisal of sales trends, profitability, liquidity gearing and interest burden and solvency. My market research reports on the motor vehicle industry are primary source of in depth research and quantitative analysis covering industry segments and the reports are a rich source of analytical and statistical information on the motor vehicle industry sector of a country. Automobile Marketing in Asian countries The competitive nature in the automobile industry has prompted the companies to take up new and innovative marketing strategies to thwart the competition. The B segment of cars is the segment which sees maximum competition as the consumer has a number of models to choose from and it's the volumes which drive the margins. All the companies as a part of their marketing strategy offers a range of vehicles in all the segment to make sure that the customer is driving one of their vehicles only. Advertisements on the Audio visual medium are a rage as it gives the car makers an opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it comes to the finger prints of the cars, print and online media comes to the rescue. The online medium offers a greater flexibility to the car companies since they come with a lot of interactive features like demonstrating the interiors of the car with its salient features. The print medium on the other hand provides an opportunity to the car makers to explain the function of a car in detail. Automobile Projects in India Automobile Projects are the in thing at this moment. The automobile industry has gathered immense pace in India in the last few years and hence is flying very high. It was only after globalization, liberalization and privatization that the Indian markets were opened up for the major global automobile players to invest in Indian. This completely changed the Indian scenario and the Indian automobile market made a huge leap towards modernization. The latest models of all the brands were slowly introduced to test their adaptability with the Indian customers. And to the surprise of all the makers, they were readily and highly acceptable by the Indian buyers. Even the Indian consumers wanted to feel the luxury of the high end cars and have a feel of the new technology as well. This resulted in the healthy growth of the automobile industry in India. The next step was to make India a perfect automobile hub for Asia, South-East Asia and if possible then a global hub. To add to this, the strategic importance of India played a major role in the development of the Indian market. The focus right now is on funding the experiments that are being carried on the innovative projects in the automobile industry. A lot of experimental work is also being carried on the implementation of indigenous technology along with the adaptations of imported technology for Indian standards. The new age Bio Fuels and hybrid vehicles are the most growing areas of the Indian automobile industry. Along with that the field of Infotronics, is also catching up very fast. The long term aim for

this particular sector is to make India the manufacturing workshop of the world. The research centre that has been opened in Tamil Nadu for automobile research and development is going to make India a leading candidate in the field of auto research. The hybrid and alternate fuel projects have already taken a step forward with the introduction of the Hybrid Hydrogen fuel enabled Scorpio by Mahindra & Mahindra. It's the first indigenously manufactured hydrogen fuel vehicle. They are planning to launch it commercially by the year 2008. Along with this the Indian Government is saying that by 2020, there would be approximately a million hydrogen fuelled vehicles on the Indian roads.

AUTOMOBILES SECTOR IN THE UK The UK has a diverse, vibrant and world-class automotive industry. It is one of the five major automotive manufacturing countries in Europe, with over 5000 companies active in the sector. With seven out of the top ten global vehicle makers and 19 of the top 20 auto parts makers having a UK manufacturing presence, its no wonder that every year the UK manufactures 3 million engines and 1.8 million cars. UKTI is running a series of events designed to provide a comprehensive picture of what Government is doing to support UK businesses. The events will focus on the range of assistance available from Government for businesses in the Advanced Engineering sector. In addition to a series of seminars consisting of briefings and Q&A sessions held by the various participating organisations, attendees will also have the opportunity to meet with industry experts and engage with other potential strategic partners. The events support the UK's strategy to develop new industries that will lead to subsequent growth, new jobs and prosperity for the UK. The UK's Advanced Engineering sector is seen as a potentially world class R&D intensive, knowledge based sector and the Government has therefore developed a range of support to help companies in the sector to develop and enter new markets. Key Facts

The UK automotive sector is worth over US$9 billion and currently accounts for over 11% of the UK's total exports The UK automotive industry employs around 820,000 people with 180,000 directly in manufacturing. UK Company Johnson Matthey is the world's largest manufacturer of catalytic converters - helping vehicles reduces potentially harmful emissions. More than 65% of UK commercial vehicle production in 2006 was exported. Six out of 9 Formula One teams are based in the UK Brawn GP, Renault, Williams, McLaren, Red Bull Racing and Force India (Red Bull and Force India are both based at Silverstone). The Nissan plant in Sunderland and Toyota plant in Derbyshire are two of the most productive car plants in Europe. The new BMW MINI is exported to over 80 countries

Advanced Engineering The UK possesses world-class capability in advanced engineering. UK-based companies are prominent in global supply chains covering a number of major sector areas such as aerospace, automotive, energy, environmental technology, food and drink, medical and pharmaceuticals. The UK

Advanced Engineering Sector Team is looking to create value and synergies in a number of crosscutting areas such as design engineering, manufacturing technology and materials.

In the UK, there are over 10,000 active businesses in the sector, ranging from large plants operated by multinational manufacturers to small and medium-sized businesses focusing on innovation in component design and technology. The sector has an established infrastructure for innovation and growth and is the largest industrial investor in research and development (R&D) in Europe (1.4 billion was reinvested in the UK in 2007). R&D projects into cleaner engines, lighter cars, plug-in hybrids and components for electric vehicles are top priority as reducing the UK's carbon footprint becomes a matter of urgency.

KEY PLAYERS Research and development to decarbonise cars, vehicles and the fuels they use is the single most important driver for the sector. This comes as countries and governments work towards reducing their carbon footprint by using new technologies and ever more stringent standards to reduce emissions and other environmental pollutants such as noise. A new Low Carbon Economic Area for ultra low carbon vehicles in the North East taps into and brings together the various research and production strengths in the region. Cleaner engines, lighter cars, plug-in hybrids and components for electric vehicles are likely to be among their key projects. Global harmonisation and economies of scale are also key drivers. It is widely considered that the global car manufacturing industry has reached over capacity in traditional vehicles in existing markets. Manufacturers are now looking towards emerging economies under a system of type approval that will allow any vehicle to be sold in any market under a single set of harmonised global technical regulations. AUTOMOBILES SECTOR IN EUROPE

The automotive sector is increasingly international vehicle manufacturing is dominated by a small number of global organizations with multiple locations across both economically advanced and less developed countries. For graduates this can mean opportunities to travel and work abroad, but it also requires a broad understanding of the global industry. Decisions on business strategy and how to improve market competitiveness and performance are made at an international level. Its an important time for European graduate engineers and designers who want to work in the sector. Specialist skills and an open-minded approach to flexible team working are increasingly valued by recruiters as Europe seeks to increase competitiveness and simplify its regulatory framework. The drive for increased efficiency remains strong as European vehicle manufacturers strive to maintain parity with Japans advanced working practices

While fewer people in Europe are employed in vehicle manufacturing, there has been an increase in employment with suppliers. Best practice methods implemented in the supply industry mean that

shifts in consumer demand can be handled more cost-effectively, while changing legislation has focused manufacturers on safety and environmental issues related to vehicle and component designs, as well as in their operations. Emissions and waste recycling (such as the end-of-life vehicle directive) are key drivers. Germany employs more people in automotive manufacturing than any other country in Europe, although the largest percentage per capita is in Sweden, where one in ten people work in automotive manufacturing. These traditional sites of manufacturing now compete for business with factories based in economies where wages are significantly lower and working hours are more flexible. Chinas dramatic entry into the sector has shaken up the global marketplace: 8.8 million vehicles were produced in 2007, a 22 per cent increase on the previous year, according to the Chinese Association of Automobile Manufacturers. China is expected to surge ahead of European producers, replacing Germany as the third largest producer in the sector. Many analysts predict that this is just the start of a trend that will see Japanese, European and North American dominance of the industry challenged in the next few years. Automotive manufacturers in Eastern Europe are also making their mark in the sector. In fact, the area between Warsaw and Bucharest, nicknamed Detroit East, is the worlds second fastest-growing site for automotive manufacturing after China. Even within central Europe, relatively expensive countries such as the Czech Republic now compete with the rising markets opened up by EU accession, such as Slovakia. This is having a significant effect on the numbers of hours worked and on working practices.

Questionnaire 1) What do you consider regarding environment when you buy a motor vehicle? Use battery operated car Using hybrid car Use hydrogen powered car

2) Do you consider the brand of the car? Yes No Dont know

3) Do you use alternate mode of transport, even if you have a car? Yes No

4) Do you imply CSR in your day to day office works? Yes No Not sure

5) How important is CSR for your purchasing decision?

Very important Not important

1) What do you consider regarding environment when you buy a motor vehicle?

battery operated

hybrid

hydrogen powered

2) Do you consider the brand of the car?

4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Category 1 yes no dont know

3) Do you use alternate mode of transport, even if you have a car?

4 3.5 3 2.5 2 1.5 1 0.5 0 Category 1 yes no yes no

4) Do you imply CSR in your day to day office works?

70 60 50 40 30 20 10 0 not sure no yes yes no not sure

5) How important is CSR for your purchasing decision?

purchasing decision

very imortant not important

BIBLIOGRAPHY

https://www.uktradeinvest.gov.uk/ukti/appmanager/ukti/sectors?_nfls=false&_nfpb=true&_pageLabel=Se ctorType1&navigationPageId=/automotive

http://targetjobseurope.com/business-sectors/business-sector-overview-automotive

www.wikipedia.com

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1078097361

Journals Newspapers