Daimler Chrysler - Environmental Analysis

Paper Summary:

This paper identifies and analyzes Daimler Chrysler's opportunities and threats. A short SWOT analysis is made and the influences of the company's external environment on its strengths and weaknesses is examined. The paper looks at inflation versus sales, and unemployment versus wages for the years 2003-007 in the analysis to show that productions sales will have to decrease and a cheaper labor force must be found in order for the company to avoid financial problems. According to the writer, the current situation of the automotive industry environment presents more threats than opportunities. The paper concludes with a recommendation that the company move its production facilities to China, India, or other Asian regions where the labor force is significantly cheaper. This paper contains tables.

From the Paper:

"The automotive industry is influenced by a series of macroeconomic variables. The most significant impact is given by variables like: inflation, interest rates, productivity, employment and unemployment, consumer expenditures, public debt, personal disposable income, medium wages. In 2007, the following values were reported for most important macroeconomic variables: GDP - $13.84 trillion, GDP real growth rate - 2.2%, labor force - 153.1 million, unemployment rate - 4.6%, inflation rate - 2.9%, public debt - 60.8% of GDP."

Sample of Sources Used:

• The Automotive Industry (2004). Business & Economics Research Advisor. Retrieved September 3, 2008 from http://www.loc.gov/rr/business/BERA/issue2/industry.html.
• United States (2008). Central Intelligence Agency. The World Factbook. Retrieved September 4, 2008 from https://www.cia.gov/library/publications/the-world-factbook/geos/us.html#Econ.
• United States Inflation rate - consumer prices (2008). Index Mundi. Retrieved September 4, 2008 from http://indexmundi.com/united_states/inflation_rate_(consumer_prices).html.
• Carrick, Alex (2008). Motor vehicle sales are driving into some potholes. Journal of Commerce. Retrieved September 4, 2008 from http://www.journalofcommerce.com/article/id29889.
• Highfill, D. et al (2004). Automotive Industry Analysis. AcademicMind. Retrieved September 4, 2008 from http://www.academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive-industry-analysis.html.

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