Social Business Analysis of the Automobile Industry

Social Impacts

Social Business Analysis — the Automobile Industry

The modern day automobile industry is extremely complex and subjected to the influence of a series of factors from the economic, social, political, technological or otherwise fields. At the level of the economic state — both nationally as well as internationally — the trend up to the end of 2007 was that of increasing consumer purchasing power and as such the growing demand for the industry’s products and services. Nevertheless, as the American real estate crisis quickly spread throughout the rest of the American industries, as well as the rest of the global countries, this purchasing power decreased. “The down-trend exhibited by the U.S. economy is hemorrhaging at a rate that is alien to the previous five decades” (

The economic crisis generated a social impact — unemployment. In a context in which more and more firms were downsizing or even filing for bankruptcy, the American citizens were left without jobs. Families had to live by on lowered incomes and the direct consequence was that of decreasing the household spending.

This impact can be analyzed from two different angles — the spending allocated to necessary commodities and the spending allocated to large household purchases. While the necessary commodities are imperative, they have been maintained, but the budget allocated has generically been decreased. On the other hand, the large household purchases were cut to a minimum and families only engaged in such purchases when these were absolutely compulsory. In terms of daily commodities, the most relevant example is offered by one stop commodity stores such as Wal-Mart, which have been registering steady or even increasing revenues, indicating that commodities are still needed and purchased.

Automobiles however belong to the second category and a massive reduction in purchases has been observed, as the American automobile industry entered a depression (Global Economic Forum, 2009). In 2006 for instance, cars totaled over 53 per cent of all transactions in the U.S. By 2009, they represented less than 45 per cent. The graph below reveals:

Source: The Oildrum

In the simplest formulation, the socio-economic problem of unemployment materialized in decreased demands for automobiles. The situation reveals a series of threats for the players within the industry. The three most important such threats refer to the following:

1. The necessity to reduce organizational costs. This virtually implies the necessity to rethink the entire organizational budgets in order to register savings. Examples as to how this could be achieved include the reduction of marketing budgets, the replacement of the current technologies with more cost efficient ones, the reduction of personnel expenditures and so on.

2. The necessity to implement various processes of organizational change in order to increase operational efficiency and as such reduce operational costs. This is the sole mechanisms of improving the organizational position within the industry and consolidating a solid competitive strength.

3. The need to develop and implement stronger and more efficient marketing campaigns which appeal and attract more consumers. This is directly linked to the overall organizational necessity to increase the market penetration and the market share. The approach to this implication would be that of selling the company vehicles in other foreign regions. Through the lenses of the Ansoff matrix, this indicates the necessity to develop and implement a strategy of market development through which the existing products are sold onto new markets.

Another force which is impacting the automobile industry has a technological nature, but also a social manifestation. Throughout the past years, technology has evolved dramatically and it has come to impact virtually all life activities. Within the automobile industry, it has translated in the development of more powerful and hi-tech automobiles. The customers grew accustomed to technological evolution and the integration of the technologies within their vehicles. The direct implication of this situation is that of increased consumer demands for the automobiles to be highly technological, well developed and to serve a wide array of complementary functions. Modern day customers for instance expect their vehicles to be more personalized, to be safer or to be more comfortable — all requirements which are created with the aid of technology. In other words, the advent of technology has materialized in the social impact of more demanding and pretentious customers. The industry implication is revealed by the necessity to integrate technological developments at higher degrees and as such satisfy the growing demands of the consumers.

Another social issue impacting the automobile industry is given by the population’s pressure towards environmental stability. The United States of America generates one third of the entire global consumption and pollution levels. And the finite nature of the resources means that this life style is unsustainable. As the populations accept this fact, they strive to become more environmentally responsible. Aside personal changes such as recycling or lowering the levels of consumption, individuals also pressure the economic agents to become more environmentally responsible.

In a context of environmental instability and decreased purchasing powers, a trend has been observed in an incremental demand for small size, fuel efficient engine vehicles. These automobiles consume less combustible and generate benefits such as decreased levels of eliminated waste, lower levels of carbon dioxide emissions, as well as reduced gas budgets. The American industry was initially unable to understand this trend and it continued to manufacture large size and luxurious vehicles. This decision was in fact supported by the American history and life style, but it soon proved unsustainable and environmentally and financially unsound.

As the American automobile manufacturers continued with their initial production models, the Asian manufacturers capitalized on the new social demand for small size and fuel efficient engines. It has even come to a situation in which the domestic consumers were no longer purchasing U.S. made automobiles, but were waiting for Japanese vehicles to be manufactured and delivered. The direct result was the demise of American automobiles not only in the international arena, but also within the United States. The increasing popularity of Asian automobiles in the U.S. was named a “critical cause of Detroit’s affliction” (Ingrassia, 2010). The table below reveals the increases in imported cars sales in the United States.

Source: The Oildrum

As the economic crisis hit, national manufacturers proved unable to independently resist the pressures. The firms have received funds under the Troubled Asset Relief Program (TARP) and still have a long way to recovery. In light of this situation, the implication for the automobile manufacturers is that of correlating the need for more affordable automobiles with that for more environmentally friendly vehicles. This could be achieved through internal efforts such as:

Enhanced processes of automobile design

The use of organizational efficiency to reduce costs which can be reflected in reductions of the retail prices to consumers

The development and implementation of internal programs of social and environmental responsibility. Not only will these programs help the company become a more valuable member of the society, they will also improve the organizational reputation and as such support an increasing demand for the company’s products and services.

The integration of more environmentally friendly techniques and procedures within the manufacturing processes

The support for recycling of materials, including the provision of an environmentally safe manner of disposing of the used vehicles.

In a different formulation, the automobile industry is presented with the following threats:

Decreasing demands for its products and services

Increasing organizational costs

Intensifying environmental pressures

At the level of the opportunities, these refer to the following:

The ability to expand the operations and the products to new regions

The technological support to develop better products

The customer pressure to develop newer, better and more competitive automobiles.

At the broadest level, the implication most important to be remembered is that of always remaining alert to modifications in the social community, but also in the economic, political, technological, environmental or otherwise fields. As the situations previously discussed have shown, most of the social changes have their roots in other fields, which means that automobile manufacturers have to constantly assess and review the totality of the modifications which reveal an ability to impact the industry, as well as its consumers. The targeted situation is that of being able to identify and serve customer needs even before the clients become aware of the existence of these needs.

Additionally, there is a vicious circle in the meaning that the society generates impacts upon the automobile industry, but then, the change sin the industry generate changes in the society. For instance, as the automobile industry responds to customer demands, these demands increase and change. They for instance request higher levels of social responsibility at all global, national and social level, which include elements such as: environmental responsibility through the reduction of industrial pollution, as well as automobile emissions; community support or employee respect.


Ingrassia, P., 2010, Crash course: the American automobile industry’s road from glory to disaster, the Washington Post, last accessed on October 4, 2010

Nascimento, L.F., Technological innovation and ecological concern in the automobile industry: case studies in Brazil, Portal Gestao Ambiental, last accessed on October 4, 2010

Orsato, R.J., Wells, P., 2007, the automobile industry and sustainability, Journal of Cleaner Production, Vol. 15, No. 11-12

2009, Auto industry in global depression, Global Economic Crisis, last accessed on October 4, 2010

US economic crisis: impact on automobile industry, Buzzle, last accessed on October 4, 2010

2009, Clucker Flunker? An Observation in Hindsight, the Oildrum, last accessed on October 6, 2010

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper