Lower Division Capstone_Unit1_DB

Lower Division Capstone_Unit1_DB - demand for fuel...

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Lower Division Capstone Unit 1 Discussion Board Kregg M. Soltow October 7, 2010 American Intercontinental University One of this company's ideas is to phase out its large, profitable SUV line of automobiles to focus on smaller, more fuel-efficient cars. Describe the pros and cons of this marketing idea proposed by the company from both the financial and non-financial perspective. The pros from the financial perspective of this idea are that elevated prices can be charged for smaller and more fuel efficient cars as the demands are higher for such automobiles. Also, the non financial reasons are that the stipulate for supplementary fuel efficient cars is on the rise and will inevitably increase in the near future. The reasons are that with dilapidated incomes because of the difficult overall world economy, most of society prefers to buy smaller more fuel efficient automobiles. In addition, as the price of fuel is unpredictable and the prices of gas at the pump are probable to increase the
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Unformatted text preview: demand for fuel efficient cars will undoubtedly increase. In fact, this is a solid decision because it can even be seen now that the sales of SUVs that have high consumption of fuel are being avoided by consumers. The cons of this decision are that the SUV is undeniably a profitable automobile and it would be rational to continue its production till the sales of the SUV actually start steadily falling. The other con of this decision, is that the company is seen publically as an SUV manufacturer and substantial restructuring will be required before consumers can recognize it to be a small, fuel efficient car maker. References www.economist.com/businessfinance/displaystory.cfm?story_id. .. www.autonews.com/ - www.guardian.co.uk/. ../automotive-industry askville.amazon.com/DECLINE-SUV. ..decline. ../AnswerViewer.do?. www.automotivedigest.com/view_art.asp? articlesID=20016 www.reuters.com/article/idUSTRE49J6NW20081020 abcnews.go.com...
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