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Business Environment

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Desiree Davis

on 7 May 2015

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Transcript of Business Environment

5 FORCES(Competitive environment)
Value Chain
A - Additional Volume
D - Decrease Cost
D -Differentiate
I - Improve Industry Attractiveness
N - Normalize Risk
G - Generate Knowledge
Reduced barriers to entry over the years
role of toyota, isuzu, honda
Reduced production costs
Family- owned businesses/parts suppliers
Industry clustering
Thailand: 9 boxes
Thailand: 9 Boxes Presentation

Group 4
: Ngozi Fagbohun, Drismia Yilla, Desiree Davis, and Carlos Jones
Automotive Industry
- WHO ARE we?

Family- oriented
high context culture
High power distance
Unskilled labor force
Competitive sectors: Automotive
Educational-deficient programs
Underdeveloped technology and or lack of it
entry mode: Joint Venture
A joint venture with a local supplier .
keep costs low by buying from one supplier.
export finished products and sell for a higher profit.

Government corruption
strong trade agreements
Geographic distance
Transportation development
Anti-Government sentiment
collective &family focused
Sense Of respects & collaboration
mixed economy encouragement of small buisnesses

Rationale->Ownership -> Networks->networks
Heavy Govt regulation of most industries
Deregulation of car industry
GOvt Effect on buyer seller ngotioans= lower profits
higer level of competion in deregulated industries

Human Capital->Socil Capital->Ideational Logics
basic level of education offered through govt
thai support locals
joint ventures are encouraged to increase local support
Full transcript