Week+Four+Paper - Milestone Two1 Running Head: BUSINESS...

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Milestone Two        1 Running Head: BUSINESS RECOMMENDATIONS IN ALTERNATIVE ECONOMIES FOR BIG DRIVE AUTO Milestone 2: Business Recommendations in Alternative Economies for Big Drive Auto Learning Team C University of Phoenix February 15, 2010
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Milestone Two        2 Big Drive Auto is currently experiencing an industry “shock” that the auto industry is having difficulties to acclimate. According to (2009), “plummeting vehicle sales and tightening credit are causing the auto industry to cope with job and production cuts in order to trim capacity” (Implications of Global Financial Crisis on the Automotive Industry, para. 1). With the economic future uncertain, Big Drive Auto must prepare for different possible economic outcomes. This academic writing will consider three possible future scenarios that Big Drive Auto should take into consideration for the next decade of its operations. The paper will also explain how company operations will change in each scenario, provide recommendations on how and when to implement these strategies should any of these situations occur, and provide evidence to support these recommendations. First, a strategy will be developed for a situation in which the economy is at the peak of recovery, unemployment significantly drops, and demand for new automobiles increases. Second, the paper will discuss strategies for a situation where the recession continues, unemployment remains the same or increases, and demand for new automobiles drops. The final strategy will take place in where the economy is on a slower, steadier recovery. Peak Economy The ideal economic situation for Big Drive would be when the country is at full employment and consumers are spending money on new vehicles. In the past, gas prices have been a reason for consumers to trade in vehicles with poor fuel economy for vehicles that have better fuel mileage. In a full employment economic situation consumers may wish to keep vehicles with better fuel economy to save money, or to help with the environment. Big Drive needs to know the needs of its customers and be able to serve those needs no matter the state of the economy. Consumers want the best value when making purchases. Depending on the needs
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Milestone Two        3 of the consumer, Big Drive Auto must have the ability to meet the needs of all customers, whether the person is looking for a heavy duty work truck or an energy efficient vehicle that is capable of 30 miles per gallon of gas. Recession and Cost Cutting Strategy
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This note was uploaded on 02/26/2010 for the course GEN/ 300 taught by Professor Richard during the Spring '10 term at Adams State University.

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Week+Four+Paper - Milestone Two1 Running Head: BUSINESS...

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