Competency
In this project, you will demonstrate your mastery of the following competency:
• Utilize information from industry and scholarly sources to inform problem solving and decision making
Scenario
You are the sales department manager for a U.S.-based company that builds engines for the automotive manufacturing industry. Your company is considering diversifying into other business opportunities where your motors can be sold in order to bolster the company’s portfolio and increase revenue. Based on your knowledge of the national sales landscape, your manager
would like you to conduct preliminary research and prepare a presentation with your recommendation for opportunity in a chosen industry that will allow for this diversification through a new sales division and increased sales. You have been asked to make your presentation at the next stakeholder meeting, where you will address internal stakeholders from across the company as well as external stakeholders such as customers, investors, and suppliers.
As a preliminary step in developing this presentation, your manager would like to see an executive summary of your research findings and evaluate your decision modeling.
Part 1: Define
You will first conduct research on the U.S.-based automotive manufacturing industry using the Shapiro Library database links provided in the supporting materials section below. Then, prepare
an analysis report that addresses the following:
1. Define the problem.
a. Explain the type of qualitative and quantitative data you will be targeting in your research.
2. Provide a broad description of the U.S. automotive manufacturing industry and its value. Include:
a. Total value of the industry
b. Sales by region
c. Sales by fuel type: electric, hybrid, and gas
3. Describe the current trends in the automotive market.
a. The trend toward different types of motors for the vehicles being made and sold, such as electric and hybrid
b. Trends in customer demands such as vehicle color, extra features, and styles
c. Trends in the body types of vehicles sold (SUVs, trucks, sedans)
Part 2: Research
In assignment 1, you chose an industry that you think would provide opportunity for your company. Now, using industry-specific and scholarly resources to inform your decision, prepare
an industry analysis report that includes the following:
1. Provide a broad description of the chosen industry.
a. Describe the overall attractiveness of the industry.
i. Is this a growing industry?
ii. Is this an industry that has a lot of growth potential?
iii. What outside factors are affecting its growth?
b. Identify the factors that have allowed competitors to be successful in this
industry thus far.
c. Summarize the overall value of the industry.
i.
How is the industry currently trending?
d. Summarize the sales. Speculate if sales vary based on the region of the
country. (For example, there would be very few snow plow sales in the
southern United States, if any at all.)
e. Define expected growth areas.
2. Describe the current market trends for the chosen industry.
a. What products or services are trending?
b. What are some current customer demands?
3. Perform a Porter’s Five Forces analysis to determine the potential success of moving
into this chosen industry.
a. Explain your rationale.
Part 3: Compare
Compare the two industries and summarize your findings.
1. Perform a Porter’s Five Forces analysis to compare the two industries.
2. Summarize how your findings address the problem.
Objective: Define the problem you will solve through diversification and describe the
automotive industry and the trends impacting it.
Review the instructions and the steps to complete this worksheet. You will begin your project by
defining the problem your company is trying to solve. Then you’ll use research to provide an
overview of the U.S. automotive industry and its current trends.
Define the Problem
Begin Part 1 of your executive summary.
To begin the executive summary for your manager, you will draft an introduction. Your
introduction should describe the problem you are trying to solve for your company and the types
of qualitative and quantitative data you will need to review in order to recommend a new
industry for diversification.
➢ Describe why your company needs to diversify. What problem will diversifying the
company solve? What kinds of quantitative and qualitative data will you target in
your research on the current auto industry and the new industry?
Conduct Research on the Current Industry
Gather information about the U.S. automotive manufacturing industry.
Now that you’ve defined the problem you will solve by diversifying your company, you’ll need
to conduct research on the U.S. automotive industry. The data you gather in your research will
help you to complete your executive summary by giving you the information you need in order
to make informed business decisions.
These project resources include the following databases and websites that will be helpful in
researching both the automotive industry and the new industry you recommend for diversifying
your company.
▪
▪
▪
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IBISWorld provides industry reports with qualitative and quantitative information on
the automotive industry and a wide range of other industries that you may choose to
investigate.
MarketLine industry reports are useful for finding information such as an industry’s
market value, which is related to its net worth.
The National Automobile Dealers Association tracks a range of industry-related
statistics. Its annual and mid-year reports include total automobile sales by state.
The Alliance for Automotive Innovation compiles industry data such as auto sales by
state and the number of registered vehicles by body type and powertrain. From the
Resources menu on their website, review the Economic Insights and Market Reports
options.
▪
What Data Am I Looking For?
As you conduct your research, you’ll want to find sources that can provide accurate information
about the total value of the automotive industry as well as information about sales. You can
narrow your search and provide more specific information in your description by looking for
information about
▪
sales by region,
▪ sales by fuel type (e.g., electric, hybrid, gas),
▪ sales by body type of the vehicle (e.g., SUVs, trucks, sedans), and
▪ the total value of the industry.
You’ll also want to look for trends in the data as you conduct your research, since they will help
inform your decision making. You can do this by asking yourself what kinds of vehicles are
being purchased more than others. You should be able to find data on
▪
▪
▪
▪
trends in the types of motors consumers are wanting in their cars (e.g., electric, gas),
trends in customer demands like vehicle color, style, and extra features,
trends in fuel efficiency that customers are demanding, and
trends in the body types of vehicles sold (e.g., SUVs, trucks, sedans, motorcycles).
Tip: Different sources might focus on different segments of the industry. For example, a report
that includes information on new car sales may not address sales of motorcycles, new hybrid or
electric vehicles, or SUVs and other light trucks, all of which are separate categories. Similarly,
automotive engines are sometimes classified separately from the larger category of engines and
turbines, which include diesel engines. Keep track of the market segment covered by each source
that you find useful.
Describe the Current Automotive Industry
Now that you’ve conducted your research, you’re ready to write a broad description of the
current state of the U.S. automotive manufacturing industry for your executive summary. Make
sure to include the following information:
▪
▪
▪
▪
the total value of the industry
sales by region
sales by fuel and motor type (electric, hybrid, gas, diesel)
sales by body types of vehicles sold (e.g., SUVs, trucks, sedans)
▪
any other relevant data that will help your manager understand the current
automotive industry
➢ Using information from your research, provide a broad description of the U.S.
automotive industry. Be sure to include information related to each item listed
above.
Describe Current Trends for the Automotive Industry
Now that you’ve defined the problem you want to solve and described the automotive
industry, it’s time to describe the current trends impacting that industry. You can illustrate
these trends by either (1) providing data such as how sales for different types of cars have
changed over time, (2) quoting forecasts by experts, or (3) discussing the results of
customer surveys. Be sure to include the following information:
▪
▪
▪
▪
trends in products, such as different types of motors
trends in the body types of vehicles sold (SUVs, trucks, sedans)
trends in customer demands relating to cost, safety features, vehicle color, etc.
any other data that will help your manager understand important trends in the
automotive market
➢ Using data from your research, write your description of the current market
trends in the automotive industry. Be sure to include information related to
each item listed above.
You’ve completed Part 1 of this project. On this page, you’ll start Part 2 by conducting research
on the new industry you chose in Assignment 1 and providing a description of that industry and
its current trends for your executive summary.
Objective: Use research to describe the new industry and the trends impacting it for your
executive summary.
In PART 1 worksheet, you began work on your executive summary by describing the automotive
industry and the trends impacting it. On this part 2, you will shift your focus to the industry that
you believe provides an opportunity for diversifying your company.
Conduct Research on the New Industry
Gather information about the industry you are targeting to diversify your company.
In assignment 1, you selected a new industry that your company could potentially sell into.
Before you get started on your research, make sure the industry you previously selected is still
the one you want to recommend for diversifying your company. If you want to make changes,
you can do so in the template below.
➢ Select the new industry that you think would be a good fit for your company.
Now use the space below to discuss why your company should consider diversifying into your
selected industry. Your response should be about 3–4 sentences in length.
➢ Be sure to answer the following questions:
Prior to doing your research and analysis, what are your thoughts about how your
company could expand to take on this new industry? What questions do you have
regarding where to get the information and data required for the projects? Do you
think this industry will have adequate data available for your research and data
collection?
Template
Replace the bracketed text with your responses.
Executive Summary
[Date]
Description of Problem
[Insert text.]
Description of the Current U.S. Automotive Industry
[Insert text.]
Current Automotive Market Trends
[Insert text.]
Description of the New Industry
[Insert text.]
Current Market Trends in the New Industry
[Insert text.]
Appendix A
Explanation from Porter’s Five Forces Analysis of the New Industry
[Insert text.]
Appendix B
Summary of Findings from Porter’s Five Forces Analysis Comparing Both Industries
[Insert text.]
Appendix A
[Insert model]
Appendix B
[Insert model]
2
Rivalry among existing
competitors
• [insert text]
Bargaining power of
suppliers
Bargaining power of
suppliers
• [insert text]
Threat of new entrants
Rivalry
among
existing
competitors
Threat of new entrants
• [insert text]
Bargaining power of
buyers
Bargaining power of
buyers
• [insert text]
Threat of substitute
products
• [insert text]
Threat of substitute
products

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