Real World Situation



Real World Situation

Introduction

As per the current scenario, automotive industry is facing a prodigious storm in terms of its economic conditions. Automotive Industry is interpreted as the industry which is linked to the design and development of the motor vehicles. Along with the manufacturing, marketing and sales of the motor vehicles. The scenario now for the automotive industry tends to stand at a separate ground since the inception of the financial crisis not only in the American market but all over the world. The financial crisis has greatly affected this industry and has forced many big names in the industry to seek help of the government in this regard. However, the increasing oil prices and an increase in the prices of the raw material have forced the companies to come under enormous pressures (Gordan & Stuart, 2010).

Plus the hurdles created by the companies for themselves such as technological blunders, which risked the, life of the consumers. The scandal of the Toyota motor corporation in regard to its safety scandal caught the attention of the media from all over the world. In the context of this paper, a comparison will be chalked out between the two big names of the automotive industry which includes General Motors and Toyota Motor Corporation. Both companies will be analyzed from different perspectives in order to understand the subject much efficiently.

Discussion

General Motors

General Motors today stretches its business units which are involved in the development, production and marketing of cars, trucks and several other automobile parts. The companies also have been able to stretch its wings to render the services f finance and insurance operations. General Motors today tends to compete in the markets of Europe and North America. However, it manages its operations form the Detriot, Michigan. Currently the company holds 202,000 employees into its fold with the intention of inducting others in order to improve the final picture of the company.

Toyota Motor Corporation

Toyota Motor Corporation is counted among the leading auto manufacturers in the world. However, like General Motors Toyota Motor Corporation also stretches its wings to operate in the arena of manufacturing and sales of the motor vehicles. Along with the marketing, sales and other budgetary areas. Although the market, where Toyota Motor Corporation tends to operate is much bigger than the market of General Motors. Since it operates in more than 170 countries and has an intention of stretching it even further. Toyota Motor Corporation manages its operations form Toyota City located in Japan. Currently Toyota Motor Corporation holds 317,716 employees into its fold and intends to increase it even further.

Social Environment

This section of the paper will be discussed in the context of the factors relating to the environment and the contribution of the company in the social context. This demarcation needs to be implemented in order to develop a better understanding of the subject.

General Motors and Toyota Motor Corporation tend to stand on the ground which ensures the unremitting improvement in the way the motor vehicles tend to affect the ...