European Car Manufacturing Sector - Literature review Example

Advanced Critical Writing Inserts His/Her Inserts Grade Inserts 14 April Advanced Critical Writing Cars are manufacture to fill a need. The research focuses on the relationship between car prices and the demand for the cars. The research centers on the analysis of an economics article. Many entities produce huge business profits if the company focuses on making cars that fills the need of the company’s current and prospective clients. The article also entices the article readers to buy car brands that are in high demand. For example, the article states that the demand for there is an increase in the demand for BMW cars within the European Union car market segment. In addition, the demand for tried and tested Mercedes –Benz is also increasing. Lastly, more current and prospective clients are eager to buy the Audi cars. The Audi cars are composed of the quality Volkswagen parts. The article further states that the demand for cars in the German car market segment had increased by an estimated 10 percent. In order to increase their car sales, the article excellent shows that the car manufacturing companies had to offer discounts to its current and prospective clients. The economic theory of demand states as the prices of goods and commodities decline (through the offer of discounts), the demand for the car manufacturing company’s products increase. The article shows facts stating the increase in the demands for the have actually increased due to the discounts given to the company’s present and future clients. The article also shows actual financial figures to bring home the story that some of the car manufacturers are losing money and on the brink of joining the long line of bankrupt companies. The article shows that Peugeot – Citroen’s parent company, PSA, generated a huge financial for the prior year. Specifically, the Peugeot - Citroen’s parent company, PSA generated a net loss of €92,000,000 ($121 m). The article correctly warns that General Motors did not reveal its actual global losses. General Motors is the car manufacturer of Opel – Vauxhall). In addition, the article correctly shows an article to confirm the General Motors car, Opel – Vauxhill. The additional car sales loss amounted to $14 billion. The article also indicates that the European Union’s new car sales had declined to only 13,000,000 units. The figure is far lower than the car demand for 2007, alone. The European car sales figures had continued to drop below the poverty level because the client’s car sales had declined for the past four years of painstaking car marketing. Specifically, the school’s academic references persuading the readers to study the statistic car figures as a way to understand the financial statements. Even then the European Car manufactures state that the South Korean brands are better sellers compared to the many European Brands. Next, the article shows excellently includes the primary and secondary references in terms of degree of relevance to the topic being discussed. The inserted graph shows that the top selling car is the Renault. The same article shows that the second top selling car is the Renault Kangoo. The third top selling car is the Fiat Panda. The fourth top selling car is the Opel Corsa. The Fifth top selling car is the Opel Asra. The car brand that is ranked as the lowest selling bran is the Peugeot 207. Likewise the 2nd lowest selling car brand is the Citroen C3. The third lowest selling car brand is the Ford Focus. The article indicates that the secondary source for car brand rankings is the reliable Guter Rat Magazine. The article also shows that the government can step in to prevent the car companies from being dragged into the bankruptcy bandwagon. The article indicates that the United States Government bailed out the American Car Company, General Motors Company, by giving the car manufacturing company financial rescue money. Similarly, the United States government gave a timely financial support to the car American car manufacturing company, Chrysler. On the other hand, the European car manufacturers did not ask for own government’s financial help to bring the company out of its current bumpy path into bankruptcy. The European Car manufacturers reduced costs whenever possible to increase its profit figures. In the same light, the company maximized its resources by streamlining its car manufacturing processes. Streamlining includes improving the quality of the European cars. The article also refers to another secondary resource, Autocar Magazine, where Richard Bremmer mentioned that the European cars had to improve its quality in order to climb up the ranks in the car sales market segment. The car convincingly proves that the data gathered are reliable and relevant. Further, the article clearly shows that the article includes a graph that gives a rank of the car brads according to the car sales performances during the same accounting year. The graph clearly indicates the cars having the highest sales figures. Likewise, the other car brands are ranked as second, third, forth… to indicate its relationship with the other competitors’ car brands. 2 ) In terms of assessing the credibility of the article, the sources materials are excellently discussed in both traditional and digital formats. The article is sold both in the online version and the print version. For the busy customers of the article, they can just purchase the article online by giving their credit card numbers. On the other hand, the customers who have more than enough time to visit the magazine stores can drop by the nearest magazine stands to buy a copy of the Economist magazine containing the article being discussed in this paper. In terms of assessing the currency of the article, and sources materials in both traditional and digital formats are very relevant. The readers of the article will be convinced as to which car brand is the best buy alternative. The graph will show to the current and prospective clients to buy the top selling car, Renault Clio, because it is the most popular car to buy. By buying the car, the current and prospective clients will be proud in their decision to buy the car since most of the car buyers prefer the advantages of the Renault Clio car. The article will also persuade the article reader to avoid buying the Peugeot 207. Being in the last place in the car sales rankings, the current and prospective clients may not be popular among one’s friends and relatives if one’s car is not the most popular car on the road. However, there are other car buyers who do not take into consideration the popularity of the car brand. Instead, some of the car buyers prefer to buy cars that are fit their unique needs and wants. For example, some car buyers prefer to buy cars that run fast; they buy the sports cars. Some car buyers prefer the big cars so their entire family can fit into the car; the Mercedes Benz is a popular big car. Some cars prefer to buy cars that cost too high as a sign of prestige. In terms of assessing the relevance of sources materials of the article in both traditional and digital formats, the article uses both traditional and digital formats. The article is sold online. The article can be read by downloading the article. The article can be read by opening the website name, http://www.economist.com/, and typing the title of the article European carmarkers:Too many car, too few buyers, on the website search blank. In terms of criticizing own writing, the research paper is grounded on using the article as basis for the discussion. Secondary resources are used by affirm or contradict the statements shown in the article. According to Michael Lewis (Lewis, 2001;4), a perfect competition in the supply and demand economic environment dictates that “In economic theory a market is a place where buyers and sellers come together to make exchanges. The boundaries of a market depend on the good in question. For two sellers to be considered part of the same market, they must be close enough so consumers could reasonably view the two as substitutes. For example, the corner supermarket is not a market in the economic sense. The local market for groceries consists of all the grocery transactions in a neighborhood, but it would not include a store across town if consumers believed it was too far away from them to use.” The above quote clearly shows that marketing is part of the economic process. The car manufacturers will have more car revenues if the current and prospective clients have enough money to buy the cars. However, due to the economic crises, many businesses have shut down. With the shutdown, many workers were retrenched. With the retrenchment, many other partner business establishments have also filed for bankruptcy. The car manufacturers must react by innovatively changing its current marketing strategy. For example, the article Government and the Electric CarI states that the government is currently aiding companies that have innovative ideas. The government wants to ensure that the innovative ideas will generate revenues. With the generated revenues, more jobs are created. With more jobs created, more payroll money is used to buy cars. Consequently, the car sales of the different competing companies will increase (www.economist.com). This article clearly shows that government must help the private sector succeed, economically and financially. Further, Christopher Mackie (Mackie, 1998;3) insists “The traditional role for historians of economic thought has been to summarise, critique, and trace the development of existing theory. History of thought literature provides valuable information pertaining to the authors, chronology, and relative importance of influential works. Far less effort has been exerted toward answering questions about why economic theory exists in its current form: Why have economists chosen the theories they have, which now represent the disciplines formal content?”. The above quote clearly shows that the car manufacturing companies must use economic theories in the production of the cars. The car manufacturing companies must produce cars that will meet the demands of the current and prospective clients. The car companies should not produce car that will not fill a demand, especially in a saturated market. The car manufacturers must conduct a survey or research to increase its revenues. In addition, Deborah Stephens emphasized “There are at least five sets of goals which we may call basic needs. These are briefly physiological, safety, love, esteem, and self-actualization. In addition, we are motivated by the desire to achieve or maintain the various conditions upon which these basic satisfactions rest and by certain more intellectual desires. For, these basic goals are related to each other, being arranged in a hierarchy of prepotency. This means that the most prepotent goal will monopolise consciousness and will tend of itself to organize the recruitment of the various capacities of the organism.” People prioritise their needs. First, an individual prefers to work to buy one’s daily feed needs. Next, the individual works in order to buy a home to protect oneself from the hot rays of the scorching sun. the individual can buy the home in order to protect one’s family form the cold winter nights. Next, the individual can buy other needs such clothing needs. The paragraph focuses on supplying the basic needs of the average individual. As the individual accomplishes the three basic needs on a step by step basis, the individual will not crave to aheive the The above quote clearly shows that car manufacturers invest lots of cash and other others to make cars. The manufacturers are hoping that the current and prospective clients will buy their car brand over the other car brands. The citizens of the European Union have different factors when buying a car. For example, most of the poor citizens of the European Union cannot afford to buy the luxurious cars. Consequently, the poor citizens have to contend with riding trains and buses. The citizens of the European Union, with enough funds, can afford to buy the low cost car brands. The citizens having more than enough funds can buy the higher priced cars. For the millionaire citizens of the European Union, they can prefer to buy the most expensive cars listed in the above article. Based on the above discussion, the assessment of the article’s relevance of sources materials of the article in both the historical as well as CD, DVD, or movie formats is of high quality. The article is sold online. The article can be read by downloading the article. The article, which can be read by opening the website name, http://www.economist.com/, is entitled European carmarkers:Too many car, too few buyers, on the website search blank. The article excellently discusses the topic of car brand design. The article vividly discusses the car brands’ positions, in terms of total revenues within the same accounting period. In terms of criticizing own writing, the research paper is realistically based on real car manufacturers car models as a basis for determining which car top sellers and which cars are not selling as well as the other theories grounded on using the article as basis for the discussion. Secondary resources are used by affirm or contradict the statements shown in the article. The same article shows data that is very trustworthy. The author clearly shows a table listing down the top selling cars for the readers to have a better understanding of the article’s topics. In addition, the article clearly shows that a perfect competition in the supply and demand economic environment dictates that as the prices of goods decline, the people will have a higher demand for the car products. The article clearly discusses the current state of the European Car manufacturing sector. Cars are produced to fill a need. The cars must be price to increase demand. The cars must be sold to fill the necessary demand. Indeed, companies will generate higher profits if the company produces cars that will fill the need of the company’s current and prospective clients. REFERENCES: Lewis, M. (2001). Economics for Social Workers: Application of Economic Theory. London: University Press. Mackie, C. (1998). Canonizing Economic Theory. London: M E Sharpe Press. Stephens, D. (2000). The Maslo Business Reader. London: J. Wiley & Sons Press. Too many car manufacturers, retrieved May 1, 2012 from http://www.economist.com/node/21547788 Read More