Hyundai Auto Company Essay Example | Topics and Well Written Essays - 2250 words

Hyundai Auto Company - Essay Example With focus on the automobile industry of the US, it can be apparently observed that the market structure prevailing in the economy is a monopolistically competitive market (Nguyen & Kira, 1998). The major features of a monopolistically competitive market include: The inclusion of a large number of market players, availability of substitute (but not identical) products, Higher price-elasticity with minimum influence of producers on commodity price increasing the bargaining power of customers, Fierce competition in terms of promotion, quality as well as other non-price factors, In a MCM structure, a firm also enjoys the liberty of ‘free entry and exit’ which again raises the threat of new entrants (Nguyen & Kira, 1998) Hence, operating in the MCM structure, Hyundai needs to face steep competition along with the barriers of high price and demand elasticity along with greater bargaining power of both suppliers as well as customers owing to the availability of close substitut e products. This can be better illustrated with the assistance of its demand-supply curve. For instance, if the price for Hyundai Sonata increases with a single unit (e.g. from US$ 37.79 as on 2009 to US$ 38.79) it is quite likely that the demand for the brand will reduce proportionately with the availability of close substitute product of Toyota Camry. Therefore, its demand-supply curve can be formulated as below. Figure 1: Demand-Supply Curves of Hyundai As can be witnessed from the above diagram with a shift in the demand curve, the brand also needs to shift its supply curve in order to satisfy the equilibrium condition. Due to the fact that firms have limited influence over price structures, it... It is in this context that both Hyundai Sonata needs to focus on their competitive strategies to preserve their leading positions in the monopolistic ally competitive market of the US. The company is further observed to focus on its profit maximization strategies, placing emphasis on the aspects of marginal costs as well as average total cost. This, in turn, depicts the impact of an MCM structure on the company strategies. Operating within the MCM structure, a company needs to maintain its MC as equal to MR. The competitive position of Hyundai Sonata, in relation to its profit maximization strategies, can be better observed in comparison to the position of Toyota Camry, which is a close substitute of the brand in the MCM structure of US automotive industry. In this context, the total cost of Toyota at the end of the year 2009, 2008 and 2007 stood at  ¥20.99,  ¥24.02 and  ¥21.71 million respectively. Moreover, the quantity of units sold by the organization in the year 2009, 2008 and 2007 was recorded as 7.23, 9.23 and 9.49 million units respectively. Therefore, the MC for the year 2009 is 1.52 and 8.47 for the year 2008 in the case of Toyota. On the basis of the aforementioned figures, the ATC of Toyota for the year 2009 and 2008 is 2.90 and 2.60 million respectively. Similarly, the revenue of Toyota for the year 2009 was  ¥6.22 million and for 2008 was  ¥9.42 million.Thus, the calculated MR for the year 2009, in the case of Toyota, is  ¥ 4.29, whereas, the AR for three consecutive years is  ¥ 8 million.

Week three assignment Essay Example | Topics and Well Written Essays - 500 words

Week three assignment - Essay Example The major cause of the Buddhist riots was the ban to raise the Buddhist religious flag in the city of Hue by Catholic Ngo, Dinh Diem. The protesters were fighting for their religious freedom and fair treatment by the Diem’s government. In response to the protest, Diem reacted by commanding his soldiers to get rid of the unarmed civilians protesting against the ban and went on to arrest the Buddhist leaders. The use of force to stop the riots caused loss of life to many Buddhist which inflicted a lot pressure to the quest to continue their fight for freedom and fair treatment. According to Tucker (2013), the riots took a new phase after a Vietnamese bonze openly burnt himself at a busy street in Saigon to mark the climax of the protest. The photographs of the scene and other serious demonstration attracted attention worldwide. Some communities and countries that never supported the Buddhist community in the past stepped in. for instance, John Kennedy, the American president by then, backed the Buddhist in their struggle by offering booth material and moral support. The American intervention on the issue pushed Diem to assert a martial law which he applied in raiding the masterminds of the protest. The continued support of the liberals by the American government overpowered the Diem’s government and on November 1963, he was overthrown and assassinated (DeBenedetti & Chatfield1990). Soon after Diem’s death, Kennedy was assassinated and Lylond took power as the US president. The assassination of Diem left a power vacuum which resulted in political disorders. In addition the country was left very poor and had to restructure its economy. In fact, the country became fully dependent on America for its survival. In addition, the liberal leaders took advantage of the unstable political situation to dominate the rural population of South Vietnam. Diem’s overthrow and death can be solely attributed