Mba 510 Business Proposal Essay

2919 words - 12 pages

Business Problem PAGE \* Arabic 12
Running head: BUSINESS PROBLEMBusiness ProblemKakela HallAye HninMaria MooreCurtis Newberry Jr.Christine RichardsonUniversity of PhoenixMBA 510/ Managerial Decision MakingMBAK07UJW8Jud FaurerNovember 24, 2008IntroductionA former frontrunner in car manufacturing, USAuto now struggles to maintain a foothold in the industry. Its old line plant assets are outdated, and labor contracts negotiated in the company's heyday have ensured that inflated labor costs will put a squeeze on profitability for years to come. As if that were not enough, USAuto-like many American businesses-has lost significant market share to foreign auto producers who have built domestic plants to keep pace with U.S. demand. To date, foreign carmakers have not expanded into Central or South America, but given the ease with which they entered the U.S. marketplace, they assume local manufacturers-such as AutoMex-would provide little resistance. This paper will include the dependent and independent variables that companies should focus on, the analyses that will assist in making decision, all primary and secondary data sources, the right sample size that will deliver an accurate result, the methods used in selecting the appropriate and representative samples, and final recommendations relating to solution to the problems. Business companies often have to struggle depending on the economic flow and carry out economic tasks that any business has to discharge for performance and results. Importantly, knowing how to analyze the economy around and organize these tasks will assist management perform systematically, purposefully with understanding and reasonable probability of accomplishment in a timely manner.Dependent and Independent VariablesUSAuto was a former frontrunner in a car manufacturing market; however, USAuto is currently facing major issues and trying not to lose a footing in the industry. Their intensions are basically to increase the company's profit. Compared to the rate of the technology speeding up, their plant assets are outdated which demand for replacement or a major rebuild. Inflated labor cost is a possible danger to the business in the years to come. Therefore, USAuto is looking to merge with AutoMex for cheaper labor cost.The dependent variable is USAuto modernizing its plant and equipment in order to enhance its international competitiveness. USAuto must merge with another automotive company with a broader consumer market than the domestic loyalty this will reduce the operating cost. Develop a more effective system of international trading discipline and procedures. USAuto can increase quality control on the products and that will automatically enhance the company's revenue. The independent variable is the marketing and the cheap labor that is provided to the company from AutoMex. "An independent variable is a variable that provides the basis for estimation. It is the predictor variable" (Lind, Marchal & Wathen, 2004,...

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