Introduction
Prosperity and Excellency are always the dreams of every business organization. In relation to this, business organizations strive to expand their operation to enjoy the benefits of economies of scale as well as enjoying market leadership. In this perspective, the ideas and decisions made by any business organization should be keenly selected. On this basis, the strategies made by any business organization should incorporate unforeseeable global market conditions so as to ensure the sustainability of the business operations in the long run. This paper will review the recommendations of Big Drive Auto based on its economic projections and the global market situation (McConnell, 2009).
In this case, Big Drive Auto is a multinational company which deals with the manufacturing of varied types of trucks and cars. Over the years, Big Drive Auto has been prevailing in the market whereby it has enjoyed favorably high profits and ready markets for its products. The management of this company is working on a number of strategies to improve its performance and expand its market. Based on market information the company management is analyzing the macro-environment issues which may influence its process of business expansion. This will help the company in establishing sustainable developments in the coming years; whereby various macroeconomic factors, as well as global environmental factors, will be put into consideration (Builders, 2009).
Main body
In information, the company’s performance of the past years is quite impressive. The company is seen to have a constantly increasing demand for its products over the years. It’s however noted that the sales volumes are fluctuating between the years though at a small margin. For instance, the sale of vehicles increased from 139,000 in 1998 to 160,000 in 1999 but later decreased to 133,000 in 2001. The same fluctuating trend is also evident from the years 2002 to 2007. These trends are attributed to changes in global markets due to the effects of recession (McConnell, 2009).
The recent global economic crisis which affected all corners of the globe has not exempted the Big Drive Auto. Due to these expected challenges in the global market, the company management should resolve to sustainable sources of finances and credit to the company. During the time s of recession, interest is usually high thus the private sector has limited access to credit; this will mean that the company should go for other sources. In this case, the management may resolve to reap funding from the government to evade the effects of this financial crisis (Builders, 2009).
To evade, the market crisis, the company should roll into an intensive marketing procedure. The company should also resolve in educating its potential customers to trade out their old vehicles. This strategy will also help in creating a new market thus increasing the sales. For the company to remain competitive and trusted amo0ng its customers, it should establish strong customer relationships which will guarantee a stable market thus helping in profit maximization (McConnell, 2009).
The issue of emerging competition from newly established automobile companies and the effects of recession is a good challenge for the company to lay down sustainable strategies. There are many problems in the global market which include hiked petroleum products. In the recent past, the Middle East has gone into massive hiking of petroleum products thus causing turmoil in the global market. In order for Big Drive Auto to survive this crisis; it should push the government to put adequate legislations that will help in stabilizing petroleum products. This will be a major boost to the company since customers will be assured of cheap fuel to fuel their new vehicles. Further, the idea of setting up electric vehicles is also viable since it will ensure that the effect of increasing petroleum products doesn’t affect vehicle users (Builders, 2009).
Additionally, advancements of technology have been associated with many benefits and catasprophies; whereby theft and vandalism are not exempted. In relation to this phenomenon, the company should strategize on the improvements of its products to ensure that they can cope with increasing cases of crime. This will require the installation of efficient security gadgets which will ensure maximum monitoring of the vehicles (McConnell, 2009).
The various recommendations on pricing in respect to future global markets are viable and will help in establishing a sustainable market operation. With the facts on the global market, the management will be able to utilize this information in setting the best prices which will be able to meet the current and future global crisis. At this point, all the aspects of processing, advertisement and distribution should be cater5ed for. Despite that, the company enjoys some monopolistic powers it should be very conscious in the setting of prices. This is dictated by the global market situation and the projected future developments (Builders, 2009).
With the basic information about the market trends, the management should establish a pricing strategy that will bring the optimum profit for the company. This should be wisely chosen to avoid overexploitation of the customers which may have a negative impact on the company in the long run. From the market research, it has been evident that Big Drive Auto exercises market leadership thus giving it the power to decide on the price without impacting negatively its sales (McConnell, 2009).
Conclusion
In sum, the management of Big Drive Auto should be very consultative and critical in any measure or strategy they put in place. The desire to establish sustainable strategies should be the guiding factor so as to ensure the company’s operations are accommodated in future global situations.
Reference list
Builders, N. (2009). Home Buyer Tax Credits. Web.
McConnell, R. Et al. (2009). Economics: Principles, Problems, and Policies (18th Ed.). New York: McGraw Hill/Irwin.