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Homework answers / question archive / Competencies In this project, you will demonstrate your mastery of the following competencies: Utilize information from industry and scholarly sources to inform problem solving and decision making Analyze quantitative and qualitative data to solve problems and make decisions that impact organizations and their stakeholders Communicate professionally to diverse internal and external audiences Scenario Your presentation to the leadership panel of your company was well received
In this project, you will demonstrate your mastery of the following competencies:
Your presentation to the leadership panel of your company was well received. Now you must create a presentation for a wider audience—stakeholders from inside and outside the company—and include your decisions and recommendations, which were approved by the leadership panel. Remember that your presentation must convey professionalism and be visually appealing as well as informative.
Create a presentation of your research and data findings from Project Two including your decision and rationale.
BUS 225 Milestone One Template Scenario You are the sales department manager for a U.S.-based company that builds engines for the automotive manufacturing industry. Your company is considering diversifying into other business opportunities where your motors can be sold in order to bolster the company's portfolio and increase revenue. Based on your knowledge of the national sales landscape, your manager would like you to conduct preliminary research and prepare a presentation with your recommendation for an opportunity in a new industry to diversify through a new sales division and increased sales. You have been asked to make your presentation at the next stakeholder meeting, where you will address internal stakeholders from across the company as well as external stakeholders such as customers, investors, and suppliers. As a preliminary step in developing this presentation, your manager would like to see an executive summary of your research findings and evaluate your decision modeling. Executive Summary July 17, 2021 Even as the current year continues to register an increase in sales as the country transitions into the post-COVID period, it is imperative that effective planning take place to prepare the company for such adverse changes. The purpose of this report will be to provide a way forward for the company even as it adapts to a more favorable period (Manzi, 2021). The report will provide comprehensive information on how to diversify its business approach in order to maximize its current yield. The core focus of the report will be on expanding the business to determine new approaches which entail the provision of machinery to other related businesses other than the automotive sector. Description of Problem One of the aspects that are made apparent concerning market trends is their enhanced sensitivity to sudden shifts that often have adverse effects on desired outcomes. The most notable market shift that took place within the past five years is the COVID-19 outbreak, which caused paralysis in business systems across the globe (Kanwar, 2020). As businesses were forced to shut down and potential clients were forced to adhere to stringent safety measures, business owners and hierarchy were forced to rethink strategic approaches to survive the pandemic and continue to bear with the negative effects. In order to survive such drastic changes, a number of policies were immediately implemented, with the automobile industry being no exception to the trend. According to statistics collected for sales revenue for 2020, there was a 14.9% decrease in units sold. Prompting new changes from various players in the industry. Description of the Current U.S. Automotive Industry Before we examine some potentially lucrative segments of the economy which the company can capitalize on to increase its sales revenues, there needs to be an in-depth examination of the current trends in the automotive industry (Jones, 2019). Since the inception of the industry in the 1890s, the automotive industry is considered one of the largest globally as it can have approximately 17.2 million units sold annually. The automotive industry owes its increased yield in manufacturing and supply to the enhanced levels of production and a robust domestic market that consistently moves to attain the best quality of vehicles that serve a host of client needs. 2 Despite the positive changes that took place since its inception, there have been periods in which the automotive industry has undergone turbulence. A notable example is during the Great Depression, when the number of independent car markers declined considerably, leaving larger, more established companies to exist, such as Ford Motors and General motors. In addition, governmental regulations have also placed an impact on production, with the Vehicle Air Act of 1965 being a clear example as it led to the reduction of the use of Gasoline in the 1970s. Since then, the automobile industry had experienced exponential growth until 2020, when production levels, as well as sales, reduced as a result of the economic paralysis experienced during the pandemic. Current Automotive Market Trends Considering the current demand levels that are in the market, certain trends have been manifest in the industry. For example, the largest demand for automobile products comes from the light-Truck segment. The pandemic was able to produce a total of 11 million units for 2020, even though the pandemic was rife during the same year (I.Wagner, 2021).In the same period, the number of units sold for other categories of cars reduced considerably from 11.4 million to an estimated 3.4 million cars, with sudden demand shifts. Even with the fuel prices remaining relatively lower than current world prices, the U.S. market continues to show a preference for alternative sources of fuel, an aspect that drives the current market trends towards E.V. vehicles from companies such as Tesla, which specifically caters to a high-end market base. An estimated 300,000 EV vehicles were sold in 2020, making it an emergent trend for companies looking to capitalize on technological advancements that coincide with a societal focus on environmental awareness. Description of the New Industry 3 With the company specializing in the assembly and manufacture of Direct Current (D.C.) motors as a result of its vested focus on car-making, there is the potential capitalization in the Heating, Ventilation, and Air conditioning (HVAC) industry (Grand View Research, 2021). Both automotive and HVAC industries utilize D.C. motors for different purposes (Grand View Research, 2017). Thus, the company can tap into the HVAC market to produce products that are more suited for a wider market, with revenues set to increase as a result of the move. In line with the prospective approach, there a new HVAC division would need to be established to work in tandem with the automobile faculty in producing products that are more efficient for the current market. Current Market Trends in the News Industry With the desired expansion being focused on the HVAC industry, an analysis of the current trends in the industry must be examined. The market is currently valued at$15.16 billion, with projections showing a high probability of increased demand at a 6% growth rate from 2021 to 2028. The projected increase in demand is largely due to the extreme weather conditions that are being considered as a result of climate change, coupled with the need to enhance construction by having air conditioning facilities (Grand View Research, 2021). Even though the market was affected by the pandemic, there has been an increase in the sales revenue in 2020, especially as more people would find the need to work from isolated facilities as a result of the COVID-19 facilities. The height of the interest being generated in the HVAC industry also comes from its diverse application, which includes having A.C. provisions in medical facilities. Another notable development that is the HVAC industry is the tax benefits that it enjoys as a result of revised policies that support its existence (Grand View Research, 2021). The Bipartisan Budget Act of 2018 that allows exemptions for renewable energy products used in residential facilities caters 4 also extends to the HVAC appliances, giving any exploration into the industry new advantages that would play a role in increasing total revenue. Appendix A Explanation from Porter's Five Forces Analysis of the New Industry The application of Porter's five forces into the HVAC industry shows key aspects that would prove to be instrumental for the company as it considers exploring such interests. The industry has no few players, especially within the country, despite the high demand. An apparent trend within the industry is to form partnerships with serve to strategically place the companies in a position where they could be able to accomplish key organizational objectives. A notable example is a move by EMCOR Group Inc. to acquire Batchelor & Kimball Inc., a company is that is known for its high-quality products within the construction industry, specializing in the HVAC provisions. A consideration of the bargaining power of the suppliers shows that the production is mainly focused on making products that are centered on customization depending on the diverse needs of each client. Companies such as J&J conditioning and Southland conditioning majorly focus on the overall construction of facilities with added installations for air conditioning (Grand View Research, 2021). Given that most of the companies are focused on providing HVAC installation and maintenance as part of the overall construction, the products have minimal variation, with a specific focus on Smart HVAC being the defining factor in the production. A subsequent threat of subsequent products could arise from the technological advancements of companies such as EMCOR and Batchelor & Kimball, who have specific interests in developing Smart appliances that detect client preferences and modify A.C. based on ambient conditions. 5 Appendix B Summary of Findings from Porter's Five Forces Analysis Comparing Both Industries From the market analysis, it is clear that the company should explore positioning itself as a manufacturer for construction firms, where the main focus is on creating products that are energy efficient. Also, the products need to incorporate smart technology with a high level of customization to fit the specific needs of each consumer. Perhaps the company could consider forming strategic partnerships with producers to enable better market reception. 6 References College of Engineering. (2021, July 17). Common Industrial Motor Types. Retrieved from Oregon State University: https://eec.oregonstate.edu/common-industrial-motor-types Collins, M. (2015, August 24). The Argument For Market Diversification In Manufacturing. Retrieved from Forbes: https://www.forbes.com/sites/mikecollins/2015/08/24/theargument-for-market-diversification-in-manufacturing/?sh=146518ee524e Grand View Research. (2017, August 10). Electric DC Motors Market Worth $34.25 Billion By 2025 | CAGR: 6.1%. Retrieved from Grand View Research: https://www.grandviewresearch.com/press-release/global-electric-dc-motor-market Grand View Research. (2021, April 7). U.S. HVAC Systems Market Size, Share & Trends Analysis Report By Product (Heating, Ventilation, Cooling), By End-use (Residential, Commercial, Industrial), By Region, And Segment Forecasts, 2021 - 2028. Retrieved from Grand View Research: https://www.grandviewresearch.com/industry-analysis/ushvac-systems-market I.Wagner. (2021, April 27). Automotive industry in the United States - statistics & facts. Retrieved from Statista.com: https://www.statista.com/topics/1721/us-automotiveindustry/#topicHeader__wrapper International Trade Administration. (n.d.). The Automotive Industry in the United States. Retrieved from Select USA: https://www.selectusa.gov/automotive-industry-united-states Jones, D. (2019, August 22). Diversification—and Survival—in the Auto Industry. Retrieved from Trade and Industry Development: 7 https://www.tradeandindustrydev.com/industry/automotive/diversification%E2%80%94a nd-survival%E2%80%94-auto-industry-15685 Kanwar, N. (2020, April 7). To survive and thrive, it’s time for the automotive sector to diversify its supply chain.
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