Managing People, and Marketing sections - Essay Example

Cummins Westport Inc. manufactures in China with Dong Feng Engine Co. They are headquartered in Indiana, Columbus USA and have 500 Distributor locations, they have a presence in 131 countries and have 24200 employees worldwide. Cummins has been providing CNG, Diesel and other engines to Bus manufacturers. Their basic product line is manufacturing of electric generators powered either by diesel or even by LPG. Due to the lucrative margins in the CNG bus manufacturing market, Cummins is evaluating the possibility of launching their own CNG bus.

Their long term vision is to diversify into the production of alternate fuel heavy vehicles. They believe they have the necessary market intelligence, technical experience and knowledge, manufacturing edge and the brand “Cummins” has a repute of quality and reliability in the engine & generator market. However, there are pitfalls in this seemingly lucrative opportunity including the marketing of the new product and its launch and most importantly the human resource aspects including how to motivate employees?

Finding the right leadership? And team friction. As identified by the management of Cummins in their brief to Creative Chaos, they would like to explore the CNG bus market manufacturing potential in which they already operate and are well-known for their high quality and reliable CNG engines that they manufacture. The only difference is that this time they want to manufacture & assemble the complete bus. However, the current market for CNG buses in USA is waning and has reached saturation. This is a statement supported by the following facts: A high number of Alternative Fuel Vehicles made available every year include the E 85 type vehicles (hybrid technology).

CNG vehicles comprise of a very small number(AFDC Alternate Fuel Development council) It has been observed that from the year 2002, when the CNG buses manufactured were as many as 1200,the number of CNG buses