“Ford and GM Take a Hit in China” by Xu Elegant Essay

“Ford and GM Take a Hit in China” by Xu Elegant Essay

Main Ideas of the Article

The article focuses on outlining the recent occasions on the automotive market of China. It is stated that the gross sales of cars by the American automaker, Ford Motor, in China dropped significantly, according to a press release from Ford. The rate of decline slowed down compared to 2018, whereas China was recognized as the most important vehicle market globally. At the same time, Ford and General Motors ‘sales in China are falling for the third yr in a row, having more than doubled in 2019 from the height degree recorded in 2016. The article additionally discusses the subsidies, arguing that the tax incentives of the government allowed maintaining automobile prices. Furthermore, Chinese customer needs are reviewed within the context of the talked about decline and future views. It is assumed that General Motors and Ford paid little attention to the truth that they worth innovation and a few new features.

Important Facts That the Author Uses to Support the Main Ideas

The recession on the Chinese automotive market turned out to be particularly painful for American automakers: along with local corporations, the gross sales of Ford and General Motors were most critically affected. At the same time, German and Japanese manufacturers elevated their share within the given market. To assist the key concepts, the author refers again to the numerical information and presents convincing numbers. For instance, it’s famous that 570,000 vehicles have been bought by Ford in 2019, which is a half of the revenue that was obtained in 2016 (Xu Elegant, 2020). More to the point, the creator cites the credible references, such as the Wall Street Journal, which exhibits this text is reliable.

It should also be confused that the opinion of an equity analyst working for Morningstar company, Ivan Su, adds extra worth to the article and makes information more comprehensive. As for the client preferences, the place of the writer is clearly described via the comparability with Honda Motor and Toyota Motors, both of which reported a 9% growth in gross sales in 2019. In spite of the current decline that is skilled by General Motors and Ford, there’s a extra nice future because the Chinese market presents the place for progress. In general, the key underlying purpose for such positive predictions is expounded to the under-penetrated nature of this market.

Holes within the Main Ideas and Supporting Arguments

The crucial review of the given article reveals that the author lacks an goal presentation of the decline in the Chinese car market. Namely, one could suggest that the opinion of the only skilled cannot provide a full image. It would be better if the creator also talked about other peoples’ attitudes in the course of the target event. Another hole is associated with the supporting arguments that appear to be one-sided and lacking any positive data with regard to Ford or General Motors. Nevertheless, the necessary thing arguments offered by the writer seem to be strong enough to take them under consideration while inspecting the automotive market of China.

Point/Counterargument

The article underneath discussion claims that the failure to concentrate on customer wants and expectations is the key factor that led to their decreased revenues. However, some automakers are still betting on the Chinese market, emphasizing its measurement and growth potential. This applies, to start with, to manufacturers of electric automobiles, which receive assist from the Chinese authorities. It is essential that Ford gross sales started to decline earlier than the general fall in the Chinese market – in 2017. According to Yale Zhang, the analyst at Shanghai Automotive Foresight consulting company, quoted by The Wall Street Journal, the main downside for the American company is its outdated lineup (Kubota, 2020). It seems to be somewhat important to level out that previously two to a few years, they haven’t launched new products quick sufficient, and traditional models haven’t been up to date for years.

Although none of the administration theories are recognized in the article with regard to the target occasion, it’s evident that a few of them are present. A communication concept implies sharing information between two or extra stakeholders: on this case, the companies and clients. The details that prospects play an necessary position for any firm and are its most vital stakeholders cannot be overestimated. However, when the disaster begins, a question arises for the companies, the reply to which is not all the time clear. Should the disaster be reported, and will prospects be consulted to improve the situation? (Certo, & Certo, 2016). These questions give rise to extra particular ones, for example: what goes to we win (or lose) if we don’t inform clients about the crisis; how they will react after we inform them about it. Ford and General Motors failed to interact effectively with their customers to find out about their wants, which resulted in a gross sales decline.

The impact of the environment on organizations requires correct management from an organization. An understanding of the importance of assessing the external surroundings when managing the enterprise is important as the external setting of the organization is the supply of many problems of managers. It can be described as the whole set of factors affecting the organization’s activities, namely: customers, suppliers, monetary organizations, rivals, labor resources, and the state of society. Peter Drucker, a specialist in the subject of management, believed that the only true aim of any enterprise is to create a customer (Certo, & Certo, 2016). Meeting the needs of the patrons is useful for the rationale that number of consumers determines the required manufacturing sources, a range of goods and providers together with their quality.

Examples of Bias or Faulty Reasoning

Faulty reasoning refers to logical errors that are made based mostly on a lack of awareness, the restricted proof, or other components. Many of them are intrusive and common that they have their own names. To understand logical errors, it is essential to find out which rules they violate. One of probably the most widespread defective reasoning examples is the will to attract conclusions based on a quite small number of details. In case of Ford and General Motors, the businesses proceeded from erroneous judgments, and, subsequently, their actions were additionally mistaken. If heir decision-making could possibly be extra informed and adjusted to the model new tendencies which would possibly be dictated by the surroundings, it might be a lot easier to keep away from the failure. One might note the case of Tesla, a automotive that was developed in consistence with the great enthusiasm of individuals to innovations and ecologic consumption. The sales of Tesla are huge, and it is anticipated that the revenues would increase in future years.

References

Certo, S. C., & Certo, S. T. (2016). Modern administration: Concepts and skills (14th ed.). New Jersey: Pearson Education.

Kubota, Y. (2020). Ford indicators more China bother on the highway ahead. The Wall Street Journal. Web.

Xu Elegant, N. (2020). Ford and GM take a hit in China as German carmakers thrive. Fortune. Web.

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