12 Dec In this project, you will demonstrate your mastery of the following competency: Communicate professionally to diverse internal and external audiences Scenario Your presentation
Competency
In this project, you will demonstrate your mastery of the following competency:
- Communicate professionally to diverse internal and external audiences
Scenario
Your presentation to stakeholders was wildly successful and the company has determined that it is in their best interest to move forward with the diversification strategy you recommended. Since you did so well with the presentation, you have been asked by company leadership to prepare a draft of the press release that will go out to announce this new strategy. Your press release is meant for the external audience that was not represented at the all-stakeholder meeting: a group that includes customers, vendors, suppliers, and the general community.
Directions
Complete the Project Four Worksheet in your Soomo webtext and submit it for instructor feedback.
Using the template provided in the supporting materials section below, draft a press release that reflects your company’s new venture and how it affects the general external audience. Your press release should address the following rubric criteria:
- Address the key points appropriate for external audiences.
- Summarize the diversification decision.
- Explain why the decision was made.
- Explain where in the marketplace the new products are launching.
- Identify who benefits from this product in both the company and the community.
What to Submit
To complete this project, you must submit your completed press release template of 1 to 2 pages using the provided templates, or the document you downloaded from Soomo. Sources should be cited according to APA style.
Supporting Materials
The following resources support your work on the project:
BUS 225 Project Four Template Press Release
(Replace the bracketed text with your responses. Remove this note before submitting to your instructor.)
[INSERT ATTENTION GRABBING HEADLINE IN ALL CAPS.]
[Insert strong lead sentence.]
[Address the key points appropriate for external audiences.]
[Summarize the diversification decision.]
[Explain why the decision was made.]
[Explain where in the marketplace the new products are launching.]
[Identify who benefits from this product in both the company and the community.]
[Insert closing paragraph incorporating the who, what, when, where, and why.]
Sales Department Manager
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BUS-225 7-1 Project Three Submission
Cole Staats
Southern New Hampshire University
December 9th, 2022
Auto Manufacturing industry standing
As internal combustion engine motor manufacturers in the auto industry, we have made profits from providing quality motors to various car companies in the US. The auto industry is stable, with high net worth and steady sales. This equals revenue in the trillions. While the industry is safe, it is stagnant, having dealt with a dip in sales and revenue in the past year due to the Covid-19 virus and a recent increase in fuel prices across the US. I believe this is an opportunity for us to diversify into a similar yet profitable industry. Based on the above graph, it is evident hybrid, plug-in hybrid and the all-electric car industry is the new sales trend in our industry. Venturing into it would be a viable and reasonable diversification option for our company (Borgstede & Scholz, 2021).
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Auto Manufacturing Industry Projected sales trends
In the auto manufacturing industry, sales are highly influenced by market trends. Due to changes in environmental concerns and upgrades in technology, many current trends are focused on improving manufacturing plants for the climate and automation in these plants. The power of the consumer also affects sales. Consumers are demanding much more fuel-efficient vehicle types and other options for engines, including hybrid and electric. These demands weigh heavily on us and our ability to create these motors, to supply the vehicles (Madichetty et al., 2021).
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Current Consumer Information
The consumers favor fuel efficiency, safety, low prices, suitability for everyday use, high quality, driving comfort design, and good customer service when buying cars. All these factors are pushing for environmentally friendly and more technologically improved cars. For several years, consumers have demanded more model types, with new customizable features and sleek styling. Thus, positioning our company to offer such consumer demands in our cars will benefit both the internal and external stakeholders. Diversifying into hybrid, plug-in hybrid, and all-electric car manufacturing industries will give a competitive advantage in the changing auto manufacturing industry (Madichetty et al., 2021).
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New Trends in the Auto Manufacturing Industry and expected growth
From the figure above, it is clear that the electrification of cars is one of the key trends in the auto manufacturing industry. Changes in consumer purchase preferences such as wanting more environmentally friendly cars as well as the uncertainty and high prices in the oil industry are pushing consumers to adopt electric or semi-electric cars. Thus, it is important for our company to lean towards electric or hybrid car manufacturing to meet the needs of customer demands in the auto manufacturing industry (Madichetty et al., 2021).
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The fuel to Electric transition car story
The transition from fossil fuel to electric vehicles is a key element in the US’s path to net zero emissions by 2050. Unlike domestic, this transition is already well underway. Alternatively-fuelled vehicles made up more than a fifth of new car sales and around 3 percent of all cars in 2020. Hybrid cars were still only 1.1 percent of new car sales in 2010 but had risen rapidly to reach 14 percent of total sales last year. Pure electric vehicle sales grew very slowly at first, just reaching 1 percent of new car sales in 2019, but leaped to 6 percent of sales last year. Because the average car stays on the road for 14 years, the share of electric cars in the total stock of cars is much lower. By 2025-26, our latest forecast assumes that hybrids will make up 31 percent of sales and 9 percent of all cars, with the corresponding figures for fully electric vehicles being 16 and 4 percent (MarketLine, 2021).
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Likelihood of Success of Electric Cars
The likelihood of success for the business is medium to high. There are a few factors driving electric vehicle adoption: increasing use of tax breaks and other supportive government policies; rapidly declining costs of batteries (the most expensive component compared with normal internal combustion engine cars); and the declining lifetime cost of ownership of EVs compared with normal cars. The last one is where the cost of fuel comes in; the rising prices of fuels will most likely push consumers to abandon fuel cars and adopt electric cars. Also, as technology improves and more cars are sold, the cost of batteries will come down dramatically. Thus, the overall cost of electric vehicles (including their lifetime fuel consumption) will drop. Ultimately, EVs could become less expensive than internal-combustion vehicles between 2020 and 2030. China is likely to be the biggest EV customer (Pantalon & Matt, 2022).
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Impact of Diversification to the organization
Diversifying our company and moving to the production of hybrid and electric cars will position us to secure a market share in the future of the auto manufacturing industry. Diversifying will help the company to adopt a new source of revenue. New revenue sources will increase our company’s market share in the auto manufacturing industry and increase our investor’s dividends. Based on the data about the current state of the fuel auto industry, electric cars will dominate the biggest share of the auto industry, and diversifying now will boost our competitive advantage. The company will also take a direction towards adopting “clean energy”, one of the core principles in fighting climate change or global warming (MarketLine, 2018.
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Summarize findings of the research performed.
While the electric car has a checkered past, there is a consensus in the auto industry that a tipping point is approaching where mass adoption will become unavoidable because of falling battery costs, pressure from regulators and generous government subsidies. These factors have come together to force the traditional industry to take electrification seriously — faster than we had previously expected. A dramatic decline in the price of batteries will allow leading automakers to sell fully electric vehicles for less than cars powered by gasoline and diesel as soon as 2025. Electric cars are already gaining traction: As recently as 2010, annual sales were close to zero. Today, an incredible amount of money is being poured into electric cars and its success and dominance in the auto manufacturing industry are unstoppable now. Thus, it is critical to start diversifying and adjusting our organization to lean in the direction of electric cars (Borgstede, & Scholz, 2021). .
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Demand for fuel-efficiency cars will push consumers towards electric cars
Government regulations and market forces will demand for use of electric cars in future
Ban of internal combustion engines in the UK and EU will promote electric car use
Diversifying to electric car production will benefit the organization
Conclusions and Reasoning
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I believe it is justifiable to diversify our company towards the production of electric cars. We should seek to increase electric car production rapidly in the next decade.
The laws in major markets including the EU and UK seek to ban new internal combustion engines as part of the effort to curb carbon pollution from transport. The US and China are also looking to cut down greenhouse emissions towards zero by 2050.
Thus, the demand for electric cars will increase, and placing ourselves strategically for the production of such cars will increase our market share, competitive advantage, revenue, and adoption of clean energy.
An increase in demand for cars with fuel efficiency in the midst of increasing gas prices will also push many consumers towards electric or hybrid cars.
Rationale behind recommendation
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Atlassian. (n.d.). 5 Decision-Making Models to Try if You’re Stuck | The Workstream. https://www.atlassian.com/work-management/team-management-and-leadership/decision-making/models
Automotive Motor Market Size & Share Report, 2019-2025. (n.d.). https://www.grandviewresearch.com/industry-analysis/automotive-motor-market
Bari, Shahool Al. (2022, June). Hybrid & Electric Vehicle Manufacturing.https://my-ibisworld-com.ezproxy.snhu.edu/us/en/industry-specialized/od4516/industry-outlook
Borgstede, M., & Scholz, M. (2021). Quantitative and Qualitative Approaches to Generalization and Replication–A Representationalist View. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.605191
FOTW #1200, August 23, 2021: Sales of New Electric Vehicles in the U.S. Were Up for 2020 While Conventional New Light-Duty Vehicle Sales Were Down. (n.d.). Energy.gov. https://www.energy.gov/eere/vehicles/articles/fotw-1200-august-23-2021-sales-new-electric-vehicles-us-were-2020-while
Highlights of the Automotive Trends Report. (2022, November 15). US EPA. https://www.epa.gov/automotive-trends/highlights-automotive-trends-report
Madichetty, S., Mishra, S., & Basu, M. (2021). New trends in electric motors and selection for electric vehicle propulsion systems. IET Electrical Systems in Transportation, 11(3), 186–199. https://doi.org/10.1049/els2.12018
MarketLine. (2021, April 28). Hybrid & Electric Cars in North America. North America – Hybrid & Electric Cars. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/north-america-hybrid-electric-cars-58394.
MarketLine. (2018, April 5). Electric Vehicles: A deep dive into the technology that is the future of the Auto industry. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/electric-vehicles-a-deep-dive-into-the-technologythat-is-the-future-of-the-auto-industry.
MarketLine. (2021, April 28). Global – Hybrid & Electric Cars. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/global-hybrid-electric-cars-130182.
Pantalon, Matt. (2022, August). Automobile Engine & Parts Manufacturing in the US. https://my-ibisworld-com.ezproxy.snhu.edu/us/en/industry/33631/industry-performance
Roth, R. (2021, January). Hybrid & Electric Vehicle Manufacturing. US SPECIALIZED INDUSTRY REPORT OD4516: Hybrid & Electric Vehicle Manufacturing. https://my-ibisworldcom.ezproxy.snhu.edu/us/en/industry-specialized/od4516/about#major-players.
References
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Automotive Industry Data Analysis and Trends
Cole Staats
Jennyfer Puentes
November 27, 2022
This presentation is the collection of data and trends in the current automotive industry. This data will show that the Hybrid and Electric car industry is on the rise, and with us diversifying into this industry would prove to be productive. Also, I will be providing detailed visualizations showing this data making it easier to comprehend. I hope by the end of this presentation you will agree with me and that making this move into the Hybrid and electric car industry is the best way to diversify our company.
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Introduction
Qualitative and quantitative methods of data analysis complement each other.
Quantitative methods focus on numerical values that represent a given trend or phenomenon.
Qualitative methods rely on explanations – facts and descriptions.
Qualitative and quantitative methods of data analysis complement each other. Quantitative methods focus on numerical values that represent a given trend or phenomena (Borgstede & Scholz, 2021). Qualitative methods rely on explanations – facts and descriptions.
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Automotive Trends in the US: Sales by Fuel Type
The data shows that full electric car sales are on a constant rise from 2011 to 2020. Hybrid car sales are on the decline as well as gasoline operated. The US registered about 240,000 electric car sales. However, fossil car sales still represent a dominant share of the sales.
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Trends by Motor Type
From the bar graph, with the evolving electric car technology, there is a progressive switch toward traction motors. Brushed DC and stepper motors are slowly being phased out – as the technology becomes more sophisticated. Increased friction promotes more torque (Madichetty et al., 2021).
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Customer Demands and Preferences
Customers in the US preferred white cars; at 30% compared to yellow and green cars which had a paltry 1% preference. There was also an increasing preference for fuel-efficient cars; 56%. The cars’ safety and cost were also the focus of the consumers. Little regard was given to car design and service warranty.
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Trends by Vehicle Body Type
Research shows an increasing demand for sports utility cars (Highlights of the Automotive Trends Report, 2022). There is a marked decline in the demand for saloon cars. The demands for pickups and vans is also on the decline.
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New Industry Trends: Expected growth areas
There is increasing integration of technology in car manufacturing. Artificial intelligence has resulted in the development of autonomous cars, with additional features such as human interaction, and data analysis.
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New Industry Trends: Sales
Fully electric cars are replacing plug-in hybrid cars as the switch towards eco-friendly cars takes effect. The advancement in battery technology and charging efficiency has contributed to the increasing popularity of electric cars.
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New Industry Trends: Customer Demands
Automotive customers want increased technology integration in cars to improve the driving experience. Drive-assist, motion sensors, distress assist, navigation controls, and voice commands; are some of the features that customers want to be integrated in car manufacturing.
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Summary of the Visualized Data
There is increasing popularity for electric cars.
Fossil fuel cars still command the biggest sales in the car industry.
Customers demands are influencing new trends in manufacturing – demand for SUVs, technological integration, the pricing and color.
There is increasing popularity for electric cars. Fossil fuel cars still command the biggest sales in the car industry. Customers’ demands are influencing new trends in manufacturing – demand for SUVs, technological integration, pricing, and color.
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What the Data is Not Showing
The cost implication of the improved car features on the manufacturers and consumers.
The projected automotive sales per fuel type are based on emerging trends.
External factors that influence the automotive industry trends in fuel type, sales volumes, or consumer preferences.
The cost implication of the improved car features on the manufacturers and consumers. The projected automotive sales per fuel type are based on emerging trends.
External factors that influence the automotive industry trends in fuel type, sales volumes, or consumer preferences.
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The Rational Model
This is a data-driven approach to decision making.
It involves data analysis, wide consultation, and brainstorming.
It portends the least risk and is more effective for large teams.
Requires more time and resources to reach a decision.
This is a data-driven approach to decision-making (Atlassian, n.d.). It involves data analysis, wide consultation, and brainstorming. It portends the least risk and is more effective for large teams. This model requires more time and resources to reach a decision due to massive consultations within a team.
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The Intuitive Model
It’s an unstructured decision-making process.
Relies on emotions rather than evidence.
Best fit for faster decisions and resource constraints.
It’s an unstructured decision-making process. Relies on emotions rather than evidence. Best fit for faster decisions and resource constraints.
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The Recognition-Primed Model
Analyzes solutions based on experience and suitability (Atlassian, n.d.). The most promising solution is adopted. Best fit for faster decisions and constrained resources.
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Best Choice Rational Decision-Making Model
The best choice for a decision-making model in the automotive industry is the rational model. This is because:
It is based on credible data analysis and tangible information.
It relies on a team approach hence the decision arrived at is binding and every member of the team can work towards a similar goal.
It has the least risk of errors and thus more suitable due to the huge capital investments required in the industry.
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Conclusion
From the statistical and graphical data, consumers are switching toward electric cars.
There is increasing innovativeness and technology integration in car and car component designs.
Consumer requirements are critical in determining car manufacturing sales volumes.
The rational decision-making model is the best-suited method for analyzing alternatives and making data-driven evidence.
From the statistical and graphical data, consumers are switching towards electric cars. There is increasing innovativeness and technology integration is car and car component designs. Consumer requirements are critical in determining car manufacturing sales volumes. The rational decision-making model is the best suited method for analyzing alternatives and making data-driven evidence.
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References
Atlassian. (n.d.). 5 Decision-Making Models to Try if You’re Stuck | The Workstream. https://www.atlassian.com/work-management/team-management-and-leadership/decision-making/models
Automotive Motor Market Size & Share Report, 2019-2025. (n.d.). https://www.grandviewresearch.com/industry-analysis/automotive-motor-market
Bari, Shahool Al. (2022, June). Hybrid & Electric Vehicle Manufacturing.https://my-ibisworld-com.ezproxy.snhu.edu/us/en/industry-specialized/od4516/industry-outlook
Borgstede, M., & Scholz, M. (2021). Quantitative and Qualitative Approaches to Generalization and Replication–A Representationalist View. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.605191
FOTW #1200, August 23, 2021: Sales of New Electric Vehicles in the U.S. Were Up for 2020 While Conventional New Light-Duty Vehicle Sales Were Down. (n.d.). Energy.gov. https://www.energy.gov/eere/vehicles/articles/fotw-1200-august-23-2021-sales-new-electric-vehicles-us-were-2020-while
Highlights of the Automotive Trends Report. (2022, November 15). US EPA. https://www.epa.gov/automotive-trends/highlights-automotive-trends-report
Madichetty, S., Mishra, S., & Basu, M. (2021). New trends in electric motors and selection for electric vehicle propulsion systems. IET Electrical Systems in Transportation, 11(3), 186–199. https://doi.org/10.1049/els2.12018
MarketLine. (2021, April 28). Hybrid & Electric Cars in North America. North America – Hybrid & Electric Cars. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/north-america-hybrid-electric-cars-58394.
MarketLine. (2018, April 5). Electric Vehicles: A deep dive into the technology that is the future of the Auto industry. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/electric-vehicles-a-deep-dive-into-the-technologythat-is-the-future-of-the-auto-industry.
MarketLine. (2021, April 28). Global – Hybrid & Electric Cars. https://advantage-marketlinecom.ezproxy.snhu.edu/Analysis/ViewasPDF/global-hybrid-electric-cars-130182.
Pantalon, Matt. (2022, August). Automobile Engine & Parts Manufacturing in the US. https://my-ibisworld-com.ezproxy.snhu.edu/us/en/industry/33631/industry-performance
Roth, R. (2021, January). Hybrid & Electric Vehicle Manufacturing. US SPECIALIZED INDUSTRY REPORT OD4516: Hybrid & Electric Vehicle Manufacturing. https://my-ibisworldcom.ezproxy.snhu.edu/us/en/industry-specialized/od4516/about#major-players.
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Project One: Executive Summary
Cole Staats
Southern New Hampshire University
BUS 225: Critical Business Skills for Success
Jennyfer Puentes
November 14, 2022
Project One: Executive Summary
Problem
With the restricted economic activity expected because of the COVID-19 outbreak, and the rise in inflation the revenue for the automobile engine and parts manufacturing industry has been adjusted to decline by 10.9% by the end of 2022 (Pantalon, 2022). Based on the current challenges the automotive industry faces, we must diversify our engine manufacturing and its operations to expand our revenue. In this presentation, I will be using qualitative and quantitative data to explain why I think our company should rapidly explore the ever-evolving and growing popularity of the electric car industry and develop electric motors. I will show the qualitative data which will focus on the industry reports of engine manufacturing inside the automotive industry. The quantitative data that I will provide will estimate the projections for future operations and provide fact-checked historical data on the automotive industry.
Automotive Manufacturing Industry
After conducting extensive research into the current automotive industry status, where I focused on the performance and expectations for the industry's future, the 2021 measured revenue of the US car and automobile manufacturing was $75 billion. This is compared to previous years, such as 2020 $69 billion, and in 2019 and 2018 $92 billion (MarketLine 2021). Although we saw a rise from 2020 to 2021 in revenue the automobile manufacturing industry revenue will continue to not keep pace with previous years. As the domestic demand for new vehicles trends higher, three automotive hubs are expected to gain greater traction over the next few years. With that said the US automotive industry is heavily established in the Great Lakes region. This region represents just over 36% of the automobile manufacturers in the US. Some of the most successful automobile making are located here which include the Ford Motor Company, General Motors, and Fiat Chrysler. All these manufacturers are in Michigan which makes up 15% of all automobile manufacturing revenue in the US. With that said there are 2 more regions whe
