Case Study: The Automobile Industry There are more than 1.2 billion cars and light trucks on...

  

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Case Study: The Automobile Industry There are more than 1.2 billion cars and light trucks on the road throughout the world, a number that is estimated to reach 2 billion by 2035. With almost 90 million vehicles sold worldwide in 2015, experts predict this number to climb to 100 million by 2018, with China alone accounting for 25 mil-lion vehicles sold. In addition, countries such as Brazil, Russia, and India and other emerging economies (especially in South-east Asia) will significantly contribute to this growth. Currently, there is growing global demand for small, energy-efficient vehicles. Since 2006, the "World Car of the Year" has been selected by a large jury of international auto- motive journalists from 22 countries. Cars nominated for this award need to have been sold in at least five countries and on at least two continents. In addition to the overall winner, there are other categories including luxury, performance, and green automobiles. In recent years. the Audi A3 (2014), BMW 2 Series (2015), and Mazda MX-5 (2016), all small and relatively efficient vehicles, have been chosen as the overall winners. In the meantime, the automobile industry continues to explore other ways of responding to global market demands. Many automobile manufacturers have dramatically evolved their global networks of suppliers (such as Bosch and Continental from Germany, Magna and Lear from the United States, and Yazaki from Japan), leveraging these broad supply chains to bring new innovations to market, ranging from USB portsto hard drives for storing music to mobile data connectivity. In addition, manufacturers and technology companies are finding interesting ways to make cars safer and more convenient. Electric cars are also gaining a growing market share. In 2013, justover 400,000 electrical vehicles were sold globally; in 2015, this number grew to 1.2 million. In Norway, more than 22 per-cent of all new car sales were electric in 2015. Another coming trend in this market is driverless cars. Forseveral years, Google has famously been working on technology to support a self-driving car. The system drives the car at the speed limit it has stored from Google's mapping database and maintains distance from other vehicles using an array ofsensors. In addition to Google, many other technology companies and automobile manufacturers are focusing a lot of their R&D budgets to driverless cars. Key players include not only Google but also Apple, Ford, General Motors, Tesla, Baidu, and numerous universities around the world. Beyond optimizing supply chains and adding new innovative features, automakers are trying to attract new customers by finding new ways to present their newest models. For example, automakers are using virtual reality (VR) technology to create virtual showrooms in upscale shopping centers or justabout anywhere. In 2016, Audi is using VR headsets to allowpotential customers to move around the exterior of the virtual vehicle, open the trunk and doors, check out the headlights and taillights, look underneath the hood, and even get inside and sit in the driver's seat. In such immersive environments, customers can experience all aspects of the shopping experience except for the new car smell. Answer all the questions below. Questions 1. How has globalization changed the business processes of auto manufacturers? (5 marks) 2. What innovative technologies may be included in the cars of the future? 3. List and explain at least 3 information system used in automation industry. (5 marks) (5 marks) Case Study: The Automobile Industry There are more than 1.2 billion cars and light trucks on the road throughout the world, a number that is estimated to reach 2 billion by 2035. With almost 90 million vehicles sold worldwide in 2015, experts predict this number to climb to 100 million by 2018, with China alone accounting for 25 mil-lion vehicles sold. In addition, countries such as Brazil, Russia, and India and other emerging economies (especially in South-east Asia) will significantly contribute to this growth. Currently, there is growing global demand for small, energy-efficient vehicles. Since 2006, the "World Car of the Year" has been selected by a large jury of international auto- motive journalists from 22 countries. Cars nominated for this award need to have been sold in at least five countries and on at least two continents. In addition to the overall winner, there are other categories including luxury, performance, and green automobiles. In recent years. the Audi A3 (2014), BMW 2 Series (2015), and Mazda MX-5 (2016), all small and relatively efficient vehicles, have been chosen as the overall winners. In the meantime, the automobile industry continues to explore other ways of responding to global market demands. Many automobile manufacturers have dramatically evolved their global networks of suppliers (such as Bosch and Continental from Germany, Magna and Lear from the United States, and Yazaki from Japan), leveraging these broad supply chains to bring new innovations to market, ranging from USB portsto hard drives for storing music to mobile data connectivity. In addition, manufacturers and technology companies are finding interesting ways to make cars safer and more convenient. Electric cars are also gaining a growing market share. In 2013, justover 400,000 electrical vehicles were sold globally; in 2015, this number grew to 1.2 million. In Norway, more than 22 per-cent of all new car sales were electric in 2015. Another coming trend in this market is driverless cars. Forseveral years, Google has famously been working on technology to support a self-driving car. The system drives the car at the speed limit it has stored from Google's mapping database and maintains distance from other vehicles using an array ofsensors. In addition to Google, many other technology companies and automobile manufacturers are focusing a lot of their R&D budgets to driverless cars. Key players include not only Google but also Apple, Ford, General Motors, Tesla, Baidu, and numerous universities around the world. Beyond optimizing supply chains and adding new innovative features, automakers are trying to attract new customers by finding new ways to present their newest models. For example, automakers are using virtual reality (VR) technology to create virtual showrooms in upscale shopping centers or justabout anywhere. In 2016, Audi is using VR headsets to allowpotential customers to move around the exterior of the virtual vehicle, open the trunk and doors, check out the headlights and taillights, look underneath the hood, and even get inside and sit in the driver's seat. In such immersive environments, customers can experience all aspects of the shopping experience except for the new car smell. Answer all the questions below. Questions 1. How has globalization changed the business processes of auto manufacturers? (5 marks) 2. What innovative technologies may be included in the cars of the future? 3. List and explain at least 3 information system used in automation industry. (5 marks) (5 marks)

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Question 1 How has globalization changed the business processes of auto manufacturers 5 marks Globalization has had a significant impact on the business processes of auto manufacturers Here are some k... View the full answer