Multinational Car Manufacturing Assignment Example | Topics and Well Written Essays - 2500 words

Multinational Car Manufacturing - Assignment Example Due to the company started manufacturing motorcycles. One of its models R32 is also known for its speed during 1930's. Though not allowed to produce aircraft the BMW company entered automobile business by taking over Eisenach vehicle factory. Later it went on developing large touring cars and sports cars one of the model 328 sports car which was highly successful. The ending of World War II also witnessed the dismantling the company by the Allied forces. Though the company was dismantled it recouped and started making automobiles, and again came to the marked in 1950's it rose to success after it begun manufacturing sports seadens and turning cars. It was giving a tough competition to mercedez benz in luxury segment. The other two competitors like Toyota and Nissan gave tough competition and sales started steeply falling. Collapse of Berlin wall led B.M.W to outsold Mercedez Benz in Europe for the first time. An establishment in any country whether an industry or a Car manufacturing unit or for that matter any other plant shall give innumerable benefits that may be enjoyed by the countrymen as well as by the Government. There may be employment potentiality for the skilled and unskilled people which being the direct employment. People's standard of living and the lifestyle would grow above for the pleasant environment and the economical growth. The government would also derive financial and economical benefits out of the revenue they get by the way of taxes. Indirectly as a result the subsidiary industries will boom and the production units also would start producing more number of product items. There are still some bottlenecks, which may hamper the very growth as the Iceland country is having less population and because of the prevailing weather climate dipping to Sub 0 level it is just about difficult to live a normal life. So the citizens may prefer to shift to other places with the effect. Hence it may give adverse effects related to absence of the manpower and the productivity may hinder. A company or a manufacturing unit intending to set up its own plant in any country has to look up, analyze and study the respective location then plan to take up the initiative. It has to take into consideration - all the aspects related to starting a unit, develop it and to see it turn into a successful, lucrative unit, in its own terms. When the matter concerns to a car-manufacturing unit there arise two kinds of firms vying for the plant to set up. 1. Domestic Firms 2. Foreign firms. 1. Domestic Firms: Domestic firms have good foothold on the area, climatic conditions, contact ability, without any language barriers, they have access at a much more faster rate than expected. Even then domestic firms also have a sort of impulsive effect on a few problems with regards to setting up of the unit as well as benefits. The firm has to incur a heavy capital at the initial stages like acquisition of land or lease /purchase of land. It has to take steps to tie up with the countries, government and its states. Capital is the most important factor and is to be kept aside apart from other things more than what is actually expected. Man Power, recruitment, talents and skills is where the ultimate spice of the life lies. As the perfect personnel managing all the departments with utmost dedication