External Environment Hyundai Assignment

External Environment Hyundai Assignment Words: 1190

American Council for an Energy-Efficient Economy (CACHE). The best-scoring vehicles are those that have high fuel economy and meet one of several higher emissions standards. B. Economic 1 . What major developments and trends in consumers’ income, prices (Consumer Price Index), savings, and credit will have an impact on the company? Handy is priced for under $20,000 to lure consumers. Nevertheless, with the increase in the income levels, consumers tend to navigate towards the pricier vehicles such as Honda, Toyota etc. On the contrary, if the income levels reduce, consumers will have a difficulty making car installments.

Handy entered the U. S. Market in 1986 with a single model, the Excel, which sold for $4,995 a price that so captivated bargain-minded Americans that Handy set a first-year record by selling 1 26,000 cars. Its second year in business, Handy adopted the slogan “Cars that make sense” and set another record, selling 264,000 Excels. In its haste to grow, Handy made two near-fatal errors. It made fragile cars and sold them to non-creditworthy customers. When the cars were repossessed, their quality was so poor that they were worth less than the outstanding loans. Handy learned its lesson after these errors.

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Since then, it worked on quality of product and safety. 2. What action has the company taken in response to these developments ACTIONS TAKEN: Made in the U. AS. Handy is a Korean company. The majority of vehicles Handy sells in the U. S. Are produced at our Montgomery, Alabama plant, which was recently recognized as the state’s Large Manufacturer of the Year for 2011. ACTIONS TAKEN: Close eye on quality control. Parts shipments are tracked from the time they leave the supplier until they reach a plant. Cameras peer into assembly lines from Beijing to Montgomery ND keep a close watch on Handmaid’s quality of product.

Modeled after the CNN newsroom in Atlanta with dozens of computer screens relaying video and data, it also keeps watch on Handy operations around the world. Handy benchmark Toyota, then the industry’s quality leader, to understand its processes. It installed Six Sigma at its engineering center to measure its improvement. It made quality a cross-functional responsibility, with involvement from procurement, finance, and sales and marketing. It enlisted outside suppliers and put them together with designers and engineers to work out problems before they occur. More than doubled Handy market share from 2009, this in 2011 accounted for 5. Percent of the U. S. Auto market. ACTIONS TAKEN: Assurance Program increased Goodwill. Nothing shows off Handmaid’s opportunistic culture better than its U. S. Marketing team. Headed by Joel Enhance, who joined Handy in February 2007 after stints at Propose, Yamaha, and Hinkle Yachts, it operates like the war room of a political campaign, making lightning strikes when it sees an opportunity. A couple years ago Handy noticed growing fears among customers about unemployment, so it developed a program that allowed hem to return their new Handmaid’s risk-free if they lose their jobs.

Pulling together such a program ; which included production of a TV commercial shown during the 2009 Super Bowl – would take several months at other companies, but Handy marketers got the job done in 37 days. The campaign, called “Assurance,” won Handy enormous amounts of attention and goodwill, even though only about 1 00 customers returned their cars. C. Ecological 1 . What is the outlook for the cost and availability of natural resources needed by the company? What steps has the company taken with respect to natural resources? The main resource for an automaker is steel.

With steel pricing and availability a dependent factor on the mill production, the Handy decided to build its own steel mill nitrous producing steel but to make it challenging in technology. Handy now has a $ 5 billion steel mill that produces light weight and high tensile steel. Handy CEO Chunk said: “Beyond the products which simply satisfy consumers, it is time for us to touch their heart by providing them with the best level-quality products. ” In February of 2012, Handy Steel won the European Union (EX.) quality certification which now enables them to expand overseas sales of its products. . What concerns have been expressed about the company’s role in pollution and conservation? What steps has the company taken with respect to pollution and conservation concerns? Http://www. Forbes. Com/2008/10/01 ‘cleanest-cars-poll lotion;for feasible- xx_jam_1 001 cars-HTML Need to find EPA report through reliable library search. D. Technological 1 . What major changes are occurring in product class technology? In production process technology? What is the company’s position in these technologies? In the past, Handy made two near-fatal errors.

It made fragile cars and sold hem to non-creditworthy customers. When the cars were repossessed, their quality was so poor that they were worth less than the outstanding loans. Handy Eleanor is rated as a top safety pick in the year 2011 by the insurance industry. 2. What major generic substitutes (products that satisfy the same need) might replace this product? Competitors like Ionians is close with its Japanese technology. E. Political 1 . What laws now being proposed could affect marketing strategy and tactics? EPA regulations, fuel efficiency regulations etc. Deed reports from Trade mass. 2. What federal, state, local agency actions should be watched? What is happening in the areas of pollution control, equal employment opportunity, product safety, advertising, and price control, that is relevant to marketing strategy? F. Cultural 1 . What attitude is the public taking toward business and toward products such as those produced by the company? Still people think that it is a cheap car with all needed accessories but not of quality. Sound suppression is still a consumer concern. Do not have a reliable source. 2.

What changes now occurring in consumer and business lifestyles and values have a bearing on the company’s marketing strategy? Http://money. CNN. Mom/2010/01104/ autos/handy_competition . Fortune/ index. HTML Market Assessment Team Assignment #2 A. Markets 1 . What is the approximate stage in the industry life cycle, product form life cycle, and brand life cycle? 2. Define the relevant market (broad and narrow boundaries). 3. Analyze the primary demand (ability and willingness to buy). 4. Analyze the selective demand (usage, benefits, demographic, and cryptographic dimensions). . How is the market currently segmented by the company? Is the current segmentation effective? 6. Identify the position your offering occupies in the market (market and psychological) Define the value proposition of your product. The majority Of vehicles Handy sells in the U. S. Are produced at our Montgomery, Alabama plant, which was recently recognized as the state’s Large Manufacturer of the Year for 2011 http://handicapper. Us/an-American-success-story/u-s-demand-sales- market-share/ B. Customers 1 .

How do current customers and prospects rate the company and its competitors particularly with respect to reputation, product quality, service, sales force, and price? 2. How do different classes of customers make their buying decisions? 3. What are the evolving needs and satisfactions being ought by the buyers in the market? Handy ranks highest among automotive brands in retaining customers when they buy a new vehicle, and improves its retention rate by four percentage points from 20101 to 64 percent in 2012. Handmaid’s retention rate is primarily driven by the Eleanor and Sonata models.

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