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Submitted by dennis7682 on July 3, 2006
Category: Miscellaneous
Words: 1033 | Pages: 5
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Running head: ENVIRONMENTAL ANALYSIS
Environmental analysis
Instructer: Khalid Abdalla
University of Phoenix
MBA/501 – Forces influencing Business in the 21st Century
Week 5 – March 19, 2006
Introduction
As the Chrysler Group continues its pursuit of achieving world-class levels by 2007, it is important to understand the competitive nature of today's automotive industry and how DaimlerChrysler is performing against the competition.
Description of the business environment
To understand the automotive business environment, the reader first needs to recognize that the automotive industry is a very mature industry. The automotive industries growth only comes with the addition of new markets such as China, India, and Brazil. With the knowledge that the automotive industry is mature, we can begin to take a closer look at the business environment.
Some of the top short-term environmental issues for DaimlerChrysler include high gasoline prices, increased volatility of material prices, and the record number of new vehicle offerings.
Due to the uncertainty in Iraq, and the increased demand from the emerging economies of India and China, high gasoline prices will continue to be an issue for DaimlerChrysler and the industry as a whole. Inflation adjusted crude oil prices have raised steadily since 2002, from $20 per barrel to $52 per barrel in December 2005 (McMahon, 2006). High gasoline prices can affect such metrics as consumer confidence, material prices, and vehicle segments with low fuel economy.
Material prices, especially in the steel industry have caused many tier 1 suppliers that are under additional pressure from the OEM’s to keep prices down, to file bankruptcy and/or caused suppliers huge decreases in...
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