Automobile production chain Essay Example | Topics and Well Written Essays - 750 words

Automobile production range of mountains - Essay ExampleThis paper aims to demonstrate how globalization exactly impacted this process.First, in the automobile production process, the component which has the greatest impact on whether the automobile pull up stakes became a success in the marketplace is the deign stage of the production chain. In here engineers, suppliers, marketers, distributors, and even customers collaborate to pee-pee a new automobile. After the specifications of the new car, a effigy is created to validate the assumptions made by the design team. After the prototype, the parts for the new automobile product will be sourced.In sourcing out the demand components, close coordination between and among the third-, second-, and first-tier suppliers, company, production staff, and the design team is necessary to pave the way for an efficient company line for the product. After the final assembly, the company coordinates with its distribution networks to create an effective and efficient distribution programs for the car to decease the end consumers or the consumers to be able to reach the car.In the above production chain, almost all its stages are affected by globalization all the same such impacts were driven by different factors for each of the production chin stages. For example, major auto assemblers invested severely in the emerging markets, building new capacity and modernizing existing plants (Humprey 2003, p. 121) because of cost reduction possibilities (for the final assembly chain), for the long-term growth prospects (for the distribution chain), and many much.On the other hand, the assembly and component manufacturing portion of chain is the most global process. In the assembly and component manufacture, the economic activities of organizations across national boundaries are tumefy coordinated. Never have we seen a single economic activity so global it is now unimaginable to create an automobile just from the economic resou rces of a single nation (Liu, Sui & Gu 2008, p. 11). As Sturgeon, train Biesebroeck and Gereffi said, the world automotive industry, like many others, is in the midst of a profound transition. Since the mid-1980s, it has been shifting from a series of discrete national industries to a more integrated global industry (2008, p. 302).An impact of the increase globalization of the automobile industry on the production chain is the creation of affiliated design centers and centralization of the heavy engineering work of vehicle development (Sturgeon, van Biesebroeck & Gereffi 2008, p. 302). In terms of the usual removed(p) relationship of the automobile manufacturer with its suppliers, this is no longer the case now. In Thailand for example, the foreign manufacturers spend unending effort in developing the topical anaesthetic suppliers by offering resources, training, feedback and solutions (Petison & Johri 2008, p. 76). Such support had enabled few local automobile parts suppliers to become global as in the case of Brazil (Grisis & Ribeiro 2004, p. 415). In some places, this close coordination had resulted in the creation of supplier parks either as a modular crime syndicate or industrial condominium (Morris, Donnelly & Donnelly 2004, p. 129 Howard & Squire 2007, p. 1192).As the business environment of the automotive industry becomes more and more global, so as does the complexity of this environment (Li & Chandra 2007). Geffen and Rothenberg observed that automobile assembly plants worldwide face increase pressures in the environmental arena