People, Profit and Price Essay Example | Topics and Well Written Essays - 1500 words

People, Profit and Price - Essay Example Q2: What do you mean by income elasticity? Identify the symbolic form of income elasticity. Income elasticity of demand refers to the reaction of demand to change in consumers' income. In other words, it is the extent of change in demand to a change in consumers' income. Income elasticity of demand is calculated by the ratio of percentage change in demand to income (Anon., 2005, p.22). According to Anon (2005, p.22) it is represented as: Income Elasticity of Demand = In symbolic form, eY=  Where eY =Income elasticity of demand; Y =income of consumer, Q=quantity demand, Y=proportionate change in income Q: 3 what is mean by production function? What is the use of production function in production analysis? The production function refers to a technological relationship between input and output (Anon., 2005, p.50).It indicates the output of a business, industry, or economy for the input. When it comes to the use of production function in production analysis, assume a firm that uses N amount of inputs, such as, machinery, labor, and materials, for producing a single output. Production function (q=f(x)) is used to summarize the technological possibilities of that firm. Here, q represents the output and x=(x1, x2†¦xn)' is an N?1 vector of inputs (Coelli, Prasada, Christopher and George, 2005, p.12). Q: 4 what are the characteristic features of free market economics? How are the central problems of resource allocation solved in such economic? Characteristics of free market economy include: consumers, producers, private owners, and government are primary actors, three actors (consumer, producer, property owners) are driven by self-interest while government is driven by social welfare, all factors of production are the property of private owners, owners have the right to buy and sell through market mechanism, competition exists when there is freedom to allocate resources. Decision making is decentralized since individual economic actors are free to allocate th eir resources. Resource allocation is defined by individual economic agents. Economic actors pursue their interest but resource allocation is in interest of society (Anderton, 2006, p.22). Q: 5 explain the term â€Å"economic costs†? How do these differ from accounting costs? Use examples to illustrate your answer The economic cost (EC) is greater than the accounting cost (AC) because EC includes both explicit accounting cost and implicit cost which is the value of owner's personal resources.EC incorporates implicit costs that could have been gained when same resources are invested somewhere else. If a couple decides to invest $100,000 on building for opening a restaurant. Implicit costs would be 3 percent or $3,000 or the money earned from some other investment. It is because of different rate of return in mutual funds (9 percent) and capital investment (6 percent) on $100,000(Musgrave and Elia, 2001). Task: 2 Explain the causes of market failure. Should market failure alway s invite government intervention? Discuss the different ways in which government intervene in the market. Give example in support of your answer? Introduction "Market failure is a blanket term used by economists to describe situations in which markets might not work and/or markets might

The history of Restorative Justice in the UK Essay

The history of Restorative Justice in the UK - Essay Example Restorative justice practice consists of â€Å"direct and indirect mediation, family group conferences, healing/sentencing circles and community restorative boards† (Walgrave and Bazemore 1991; Crawford and Newburn, 2003; Gavrielides, 2007 cited in Gavrielides, 2011, p.2). The term â€Å"restorative justice† was coined in modern justice literature and practice during the 1970s (Yantzi, 1998).Van Ness and Strong (1997, p.24) assert that Albert Eglash introduced the term in his 1977 article, but later in (Van Ness and Strong, 2010) he referred to the research of Skelton (2005) who argues that 1977 chapter was reprinted from an article that Eglash published during 1958-59(cited in Gavrielides, 2011, p.2). Raymond Michalowski divides human societies into to broad historical categories: ‘acephalous’ (Greek word meaning headless) and ‘State’. Acephalous societies are considered to be earliest human aggregations ever recorded in history of human kind. Main characteristics of these societies were their diffuse structure, blood-related organization, and strong affiliation with group values (Michalowski, 1985). These societies were also the earliest kinds of human community that was there for some 30,000 years. Arthur Hartmann asserts that acephalous societies can be differentiated between nomadic tribes and segmental societies. They were small in size, economically cooperative, and comparatively egalitarian (Hartmann, 1995). Rene Kuppe states major attributes of acephalous societies: â€Å"a close relationship between these societies and their lebensraum, a lack of organization as state and social stratification, and the dealing with conflicts within a society th at is not based on institutional force by the state†(Kuppe,1990,p.10). Michalowski asserts that these societies laid pressure on potential deviants through promoting collective responsibility and group emotions that in turn

Britain's conflict with the Mau Essay Example | Topics and Well Written Essays - 750 words

Britain's conflict with the Mau - Essay Example I blame it on the period of occurrence since it is evident that most of the Mau Mau individuals were illiterate (Bradley, 1999). For this reason, they failed to see the significance of taking records on events happening during the time. According to David Anderson, he gave his figures on the number of casualties that faced judgment in relating to the crimes they committed, such as murder and rebellion against the laws set by the British government (Otero, 2010, p. 151). Many different authors such as Bernard Porter have different figures that contradict with David’s article ‘How Did They Get Away with It?’ (Porter, 2005, p. 2). The crimes committed during that time include murder of thousands of natives, the majority being the Kikuyu, brutal torture and unfair justice. The British Empire’s action towards the Kenyans was against human right (Howe, 2005, p. 138). For example, crimes such as forced labor, law wages and torture were against human rights. The co nsequences for such misguided actions include offering compensation to the family members of the Mau Mau group. In the article ‘Empire: How Britain Made the Modern World’ (2003), Niall Ferguson talks about the trial of Mau Mau suspects that was altered by either bribes or favourism. The United Nations branch in charge of protecting and defending human rights should have taken actions and let the British government face the consequences (Curtis, 2003, p. 127). For example, the consequences include facing the law, doing acts of contrition, providing health services to affected Mau Mau members and creating a memorandum of understanding with the Kenyan government and the Mau Mau (Slocum, 2005, p. 70). Analyze, evaluate and interpret complex abstract ideas and relate them to Britain's conflict with the Mau Mau In analyzing, evaluating and interpreting complex ideas, I come up with the idea that colonization was both beneficial and destructive. In relating it to Britainâ€⠄¢s conflict with Mau Mau, it is true that the British government introduced civilization, education, and large scale farming (Bradley, 1999). They improved infrastructure by constructing roads, buildings and industries that served as a source of employment to the Kikuyu and Mau Mau members. The benefits of the British colonization are innumerable and its effects are still witnessed currently since the country has progressed in international business and infrastructure (Porter, 2005, p. 4). On the contrary, the colonization had its negative impacts such as misery and suffering of the Mau Mau members, e.g., separation of family members since the men had to fight for the community (Berman and Lonsdale, 2002, p. 89). The number of deaths that were as a result of the colonization was astonishingly high since many individuals lost their lives fighting for freedom and their rights. Secondly, another idea I will bring forward is that democracy is essential when dealing with a large number of people. In relating this idea to the British conflict with Mau Mau, I believe that the British could have been welcomed peacefully if they could have used democracy as a tool for ruling (Branch, 2009, p. 54). Democracy allows people to choose policies, leaders, and regulations that would govern them.

Technology and modern enterprise Essay Example for Free

Technology and modern enterprise Essay Today billions in advertising dollars flee old media and are pouring into digital efforts, and this shift is reshaping industries and redefining skills needed to reach today’s consumers. Firms are harnessing social media for new product ideas and for millions in sales. Many of the world’s most successful technology firms—organizations that have had tremendous impact on consumers and businesses across industries—were created by young people. Today, tech knowledge can be a key differentiator for the job seeker. It’s the worker without tech skills that needs to be concerned. The aspiring investment banker who doesn’t understand the role of technology in firms and industries can’t possibly provide an accurate guess at how much a company is worth. Lecture 2 Chapter 2-4 Strategy and technology, case of Zara and Netflix Sustainable competitive advantage: financial performance that consistently outperforms their industry peers. According to Porter, the reason so many firms suffer aggressive, margin-eroding competition is because they’ve defined themselves according to operational effectiveness rather than strategic positioning. Operational effectiveness refers to performing the same tasks better than rivals perform them. Everyone wants to be better, but the danger in operational effectiveness is â€Å"sameness.† The fast follower problem exists when savvy rivals watch a pioneer’s efforts, learn from their successes and missteps, then enter the market quickly with a comparable or superior product at a lower cost. Operational effectiveness is critical. Firms must invest in techniques to improve quality, lower cost, and design efficient customer experiences. But for the most part, these efforts can be matched. Because of this, operational effectiveness is usually not sufficient enough to yield sustainable dominance over the competition. In contrast to operational effectiveness, strategic positioning refers to performing different activities from those of rivals, or the same activities in a different way. Technology itself is often very easy to replicate, and those assuming advantage lies in technology alone may find themselves in a profit-eroding arms race with rivals able to match their moves step by step. But while technology can be copied, technology can also play a critical role in creating and strengthening strategic differences—advantages that rivals will struggle to match. Higher inventory turns mean the firm is selling product faster, so it collects money quicker than its rivals do. Resource based view of competitive advantage can help: if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) non-substitutable. Dense wave division multiplexing (DWDM) enabled existing fiber to carry more transmissions than ever before. The end result—these new assets weren’t rare and each day they seemed to be less valuable. Firms that craft an imitation-resistant value chain have developed a way of doing business that others will struggle to replicate, and in nearly every successful effort of this kind, technology plays a key enabling role. Sources of switching costs: learning costs, information and data, financial commitment, contractual commitments, search costs, loyalty programs. In order to win customers from an established incumbent, a late-entering rival must offer a product or service that not only exceeds the value offered by the incumbent but also exceeds the incumbent’s value and any customer switching costs. Commodities are products or services that are nearly identically offered from multiple vendors. Consumers buying commodities are highly price-focused since they have so many similar choices. In order to break the commodity trap, many firms leverage technology to differentiate their goods and services. Data is not only a switching cost, it also plays a critical role in differentiation. Network effects (sometimes called network externalities or Metcalfe’s Law) exist when a product or service becomes more valuable as more people use it. Switching costs also play a role in determining the strength of network effects. Tech user investments often go far beyond simply the cost of acquiring a technology. Nothing lasts forever, and shifting technologies and market conditions can render once strong assets as obsolete. It doesn’t matter if it’s easy for new firms to enter a market if these newcomers can’t create and leverage the assets needed to challenge incumbents. Beware of those who say, â€Å"IT doesn’t matter† or refer to the â€Å"myth† of the first mover. This thinking is overly simplistic. It’s not a time or technology lead that provides sustainable competitive advantage; it’s what a firm does with its time and technology lead. If a firm can use a time and technology lead to create valuable assets that others cannot match, it may be able to sustain its advantage. But if the work done in this time and technology lead can be easily matched, then no advantage can be achieved, and a firm may be threatened by new entrants. Industry competition and attractiveness can be described by considering the following five forces: (1) the intensity of rivalry among existing competitors, (2) the potential for new entrants to challenge incumbents, (3) the threat posed by substitute products or services, (4) the power of buyers, and (5) the power of suppliers.

The Master Speed by Robert Frost Essay -- Robert Frost Poem Master Sp

'The Master Speed' by Robert Frost Throughout the poem The Master Speed, Frost addresses the idea that marriage is a sacred bond that must be treasured all through our lives. The main reason for the apparent matrimony theme was due to the engagement of Frost's daughter. Because of this great influence over his life, Frost reiterated the advice to his daughter to stay at 'the master speed'; in order to fully enjoy the rest of her life as well as her future commitment. By this Frost suggests that one should not rush through life but instead take in life, nice and slow so that it may be savored. Frost first presents this idea by metaphorically discussing the spectacular abilities his daughter possesses but refuses to use. In the first quatrain, the poet suggests that his da...

Charter of Rights and Freedoms Essay

Former United States Attorney General Ramsey Clark wrote in the New York Times, â€Å"A right is not what someone gives you; but what no one can take away.† It is in this vein that a country drafts legislation to protect the rights of their inhabitants. In the United States there is the Bill of Rights, which consists of a preamble and the first ten amendments to the United States Constitution, 1787 . The Charter of Rights and Freedoms is the first part of the Canadian Constitution Act, 1982 . Both of these documents provide for the rights and freedoms that both countries see as inalienable to their respective populations. This is where the similarity between them ends. These documents are vastly different. They were crafted in different centuries and therefore have different emphases. One key difference between the two documents is how they treat criminal law and the rights attached to an investigation. Another interesting comparison is what both documents do not discuss. In Canada, if a person is detained they are required to be informed of their constitutional right to an attorney in accordance to Section 10(b) of the charter and SCR R vs. Therens 1985. The judgment reads: â€Å"Where a detainee is required to provide evidence which may be incriminating and where refusal to comply is punishable as a criminal offence,†¦ s. 10(b) imposes a duty not to call upon the detainee to provide that evidence without first informing him of his s. 10(b) rights and providing him with a reasonable opportunity and time to retain and instruct counsel.† In the United States, a detainee’s right to council falls under amendment six to the constitution . Chief Justice Warren’s report reads: â€Å"The prosecution may not use statements, whether exculpatory or inculpatory, stemming from custodial interrogation of the defendant unless it demonstrates the use of procedural safeguards effective to secure the privilege against self-incrimination . . . As for the procedural safeguards to be employed . . . the following measures are required. Prior to any questioning, the person must be warned that he has a right to remain silent,  that any statement he does make may be used as evidence against him, and that he has a right to the presence of an attorney, either retained or appointed.† The difference between the details of these two ideas is great. The Charter makes the reading of the rights mandatory prior to anything that might be incriminating. This includes line ups, breathalyzers, etc . In the United States Miranda only has to be read once the person is custody, under interrogation or arrest. Miranda is the slang term given to the rights that the detainer is obliged to recite to the detainee before their detention. It begins with the lines made famous by cop shows, â€Å"You have the right to remain silent. Anything you do or say can and will be used against you in a court of law . . . † In Canada, because we have no Fifth Amendment law the detainee does not need to be warned against self incrimination. Also, in Canada, after the recitation of the rights, the detainee needs to be asked if they understand and if they want to call a lawyer now. These differences occur because of the nature of the two documents. The Bill of Rights was partially a reaction to anti-federalist complaints that the constitution gave to much power to the federal government. It was not written with the same forethought that was put into the Charter. Justice Lamer suggests that the differences emerge from the expansiveness that needs to be incorporated into a document of the charter variety . This is seen in other sections of both documents as well. The fourth amendment states, â€Å"The right of people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.† The Charter states in s. 8, â€Å"Everyone has the right to be secure against unreasonable search or seizure.† This provision of s. 8 is broad and conditional only to the provisions of s. 7 and the principles of fundamental justice. Is the body protected by this right? Does search include both body and place? The 8th amendment states, â€Å"nor cruel and unusual punishments inflicted.† S. 12 uses the word â€Å"subjected†. The difference is that S. 12 can be applied to matters other then criminal punishment, as seen in Rodriguez v. British Colombia [1993] 3. S.C.R. The documents were written at very different times and for very different purposes. Out of this arise many differences. The Bill of Rights has a long history entangled with that of the American Constitution. It was the anti-federalists attack on the American Constitution. Patrick Henry told the Virginia Convention, â€Å"What can avail your specious, imaginary balances, your rope-dancing, chain-rattling, ridiculous ideal checks and contrivances.† They demanded a more concise constitution that clearly laid out the rights of the people and the limitations of the government. James Madison wrote in his diary, â€Å"that such fundamental maxims of free Government would be a good ground for an appeal to the sense of community against potential oppression and would counteract the impulses of interest and passion.† The Bill of Rights that Madison passed was based heavily upon The Virginia Declaration of Rights. The Virginia Declaration was a document that was written during the British occupation. Thomas Jefferson drew heavily upon it for The Declaration of Independence. Because it was written during the time of oppression of the British it very specifically counteracts the then current grievances. Is the issue of quartering a solider in your house at peace time such a pressing on that it is addressed in the Bill of Rights? There is no such provision in the Charter. Many of the rights guaranteed were those that were removed by the British. The British limited freedom of speech, freedom of assembly and freedom of the press. All of these rights are affirmed in the first amendment. To prevent revolution, the British limited the right to bear arms that is now protected in the second amendment. The Charter of Rights and Freedoms was written almost two hundred years after the Bill of Rights. It replaced the relatively ineffective Bill of Rights, 1960 that only affected the laws made after its inception. It was also a bill so it could be altered by an Act of Parliament. The late seventies, early eighties were a time of development and change. The country was still reeling from the FLQ crisis and was troubled by the possibility of Quebec separating from the rest of Canada. When Pierre Treudeau wanted to repatriate the constitution from Britain, he encountered heavy opposition  from the provinces, mainly Quebec. Tredeau then added the notwithstanding clause, or s. 33 of the charter to appease their concerns. What is seen as the Achilles heel, the flaw in the foundation of the charter is a result of the political pressures of the period in which it was written. The time period also had a great effect on the scope and nature of the charter. During the Treudeau years society began a liberalization that is continuing today. The rights of the individual became more and more important over those of the community. This is seen to the rights granted in the Charter that were not in the Bill of Rights. Mobility rights and equality rights were not expressly provided for in the Bill of Rights. The differences in the time periods have created documents with a very different focus. The American Bill of Rights protects the states against the tyranny and oppression of the federal government. The Charter of Rights and Freedoms protects individual rights and those of minority groups against subjugation by the majority. The Bill of Rights and the Charter do not provide for many rights that we see as fundamental. Both documents do not mention the word privacy or provide for definitions of expectations of privacy . They let the courts determine that reflective of society. It took a series of landmark rulings in 1973 for the USSC to define what â€Å"a reasonable expectation of privacy † is. The Canadian Supreme Court did the same with the first Charter challenges, including Hunter v. Southam Inc. and others. The Bill of Rights does not mention God, while the Charter begins with â€Å"Whereas Canada is founded upon the principles that recognize the supremacy of God and the rule of law.† This creates a complete separation of Church and State in the Bill of Rights, while providing for religious schools in the Charter. The Charter does not provide a right to property, economic rights or labour rights. This means that the rights of unions to bargain collectively, the rights to compensation for confiscated property and the right to form unions are not protected except by act of parliament. In the Bill of Rights it says, â€Å"nor shall private property be taken for public use, without just  compensation.† The Charter has Section One, a legal tool by which the Supreme Court can limit the rights of the people. It provides that no right is absolute and is subject to reasonable limits that can be justified in a free and democratic society. The Bill of Rights has no such tool. In fact, the first amendment begins, â€Å"Congress shall make no law respecting . . .† This results in the USSC protecting the rights of Neo-Nazis to parade through a neighborhood of holocaust survivors and allowing for the formation of religious cults. The Charter also has s.33 as mentioned above. The provinces have the right to opt out of federal laws. In Quebec, all laws begin, â€Å"Notwithstanding the Canadian Charter of Rights and Freedoms.† The Bill of Rights has no such section. This is a result of the American Civil War. During the Civil War, the South succeeded from the Union because they chose not to abide by the slavery laws. To prevent this from happening again, no such provision was included in the Bill of Rights. The American Bill of Rights and The Canadian Charter of Rights and Freedoms are two documents that protect the rights and freedoms of the citizens and landed residents of their respective countries. This is where the clear similarities between the documents end. They deal with the ideas of legal and prosecutorial rights very differently. The documents differ greatly in the origins and focus. The documents are also at variance in what they do not include. Both documents play a fundamental role in protecting the ways in which we live our lives. Their differences and variances provide and define the differences between our two societies. Bibliography: *Amar, Akhil Reed. The Bill of Rights: Creation and Reconstruction. New Haven: Yale University Press, 1998. *Beaudoin, Gerald A. The Canadian Charter of Rights and Freedoms. Toronto: Carswell, 1989. *Douglas, Ann. The Complete Idiot’s Guide to Canda in the 80’s. Scarborough: Prentice-Hall Canada Inc., 1999. *Dumbauld, Edward. The Bill of Rights and What It Means Today. Westport, Conn: Greenwood Press, 1979. *Greene, Ian. The Charter of Rights. Toronto: J. Lorimer, 1989. *MacCharles, Tonda. â€Å"Book ‘Em Dano! Canada’s Tough Arrest Rules.† The Toronto Star 15 April 2002. *McKercher, William Russel. The U.S. Bill of Rights and the Canadian Charter of Rights and Freedoms. Toronto: Ontario Economic Council, 1983. *Supreme Court of Canada, http://www.lexum.umontreal.ca/csc-scc/en/index.html University of Montreal. *The Bill of Rights, http://www.nara.gov/exhall/charters/billrights/billmain.html National Archives and Record Administration. *U.S. Supreme Court, Arizona v Miranda, http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=US&vol=384&invol=436 Findlaw.

Audit of Automobile industry Essay

AUTOMOBILE INDUSTRY IN UK United Kingdom has been a colossal manufacturer of automobiles in last 10 years. Producing more that 8 million vehicles and engines and exporting more than 80% of these, UK automobile industry stands as a driving force of its economy. The automobile industry generates a yearly turnover of around 55 Billion Pounds and largest value from exports. Nevertheless, the country that has automobile players like, Alexander Davis, Aston Martin, Bentley, BMW, Ford, Honda, Jaguar, etc., is still said to be under a vast influence of dwindling supply chain and its dependence on foreign market. Let us scrutinize the situation of UK automobile industry by doing an internal and external environmental audit. INTERNAL AUDIT Internal environmental audit is performed to understand the position of industry with respect to its own environment. SWOT is one of the tools used to perform internal audit which is employed for studying the strengths, weaknesses, opportunities and threats of the subject. STRENGTHS The strengths of UK’s automobile industry: 1. Largest Revenue generating sector UK’s auto industry yearly contributes around 12 Billion Pounds to the economy of UK by generating revenue of more than 55 Billion Pounds, annually. 2. Diversity in products Products manufactured by UK automobile industry range from various premium and sports cars to commercial vehicles and engines. Around 80% of this is exported, yearly. 3. Chief employment generator The automobile industry in UK is a major employment generating sector, offering wide range of employment opportunities in manufacturing and R&D. WEAKNESSES 1. Disparity between manufacturers UK’s automobile industry is known for having an austere disparity between its manufacturers, which stands out to be a major weakness of this industry. 2. Depleted Supply Chain Supply chain of UK automobile industry is going through an appalling phase. A potent supply chain and its capacity is an important factor in determining market expansion and foreign investment. Extensive improvement, in the supply chain of UK automobile industry, is essential. 3. Dependence on foreign markets As the UK car industry exports around 80% of its produce to foreign markets, it is under the risk of getting directly dependent on economic crisis of other markets. UK motor industry should focus on reaching as many markets as possible to ease risk. OPPORTUNITIES 1. Providing eco-friendly vehicles UK’s automotive industry has been constantly active in innovating new products to provide a safe and eco-friendly environment, hence opening up string of opportunities. 2. Investments by Global OEMs In the year 2013 many global equipment manufacturers have announced investments in United Kingdom. Through these strategic alliance UK auto industry is believed to benefit significantly. THREATS 1. Soaring cost of Raw Material The cost of raw material has been ever rising; hence, the manufacturers pay more for procuring raw material every year. This eventually raises the price of automobiles. 2. Increasing competition With new companies coming in UK along with foreign direct investment the competition is bound to soar, ultimately increasing threat for existing companies. Bottom-line is that in spite of challenges faced by automobile industry in last decade, it is resurging from its downfall and looking forward to producing more number of vehicles this year. EXTERNAL ENVIRONMENTAL ANALYSIS The automobile industry in UK has been tactically working towards creating new opportunities and enhancing technology. It has extensively slogged to make UK more attractive for foreign investors. Through automotive industry’s external analysis, we shall study influence of external factors on the industry. The two major models discussed here are PESTLE Analysis and Porter’s Five Forces’ Model. PESTEL ANALYSIS Political To ensure there is no monopoly created in the industry, certain policies restricting firms from forming cartels and fixing price have been implemented. They also control the size of automobile companies. Economic With the advent of increasing inflation across the world, it is predicted that the purchase of automobiles shall increase in coming years. Also, globalisation has opened doors for foreign investors in UK. Social Recent researches show that young population in UK is declining and older population is rising. Hence, it is advisable that companies focus on creating more products catering to smaller families and older population. Technology Increased focus on providing eco-friendly vehicles has encouraged industry to continually invest in research and development. With popularity of new designing softwares, Global Positioning Systems for navigation, etc, technology has advanced two folds. Environmental As people are getting more aware and concerned about a healthy environment, it is imperative to create products that are eco-friendly. Hence, it has created a pressure on the industry to focus on environmental issues as well. Legal A few legal policies have been imposed by UK government like compulsory fitment of Electronic Stability Control and Tyre Pressure Monitoring Systems in all the cars produced. PORTER’S FIVE FORCES’ MODEL 1. Threat from new entrants Automobile industry being capital extensive demands a lot of money to venture and uphold. In order to sustain, present automobile companies have augmented their production, enforcing new entrants to enter only on large scale. 2. Bargaining Power of Suppliers Due to increase in globalisation the industry has suppliers not only from UK but also from across the world. Hence, the bargaining power of suppliers is limited. As some manufacturers have joined hands with OEMs from China and India others source materials from UK itself. 3. Bargaining Power of Buyers This model brings forth the fact that purchasers have a power to regulate the market and increase competition. As consumers have access to extensive information and choice of numerous brands across the globe they definitely stand to have a better bargaining power. 4. Competition from Substitutes Substitute products are those that can be consumed in place of any product. For instance, people of UK can as well use public transport instead of private cars. They may also consider the option of using rented cars. 5. Existing Competition As UK is home to around 50 car manufacturers selling 200 models, the internal competition among the companies is inevitable. Apart from the local car manufacturers like GM, Ford, etc, the foreign manufacturers are also giving a lot of competition. The external influences play a major role in casting future of automobile industry in UK. Analysing the internal as well as the external environment of UK’s car industry helps identifying how it has been performing and what is the scope for improvement. United Kingdom offers an array of car models in a highly competitive market. Nonetheless, it is still facing a lot of issues in recovering from the past downfall. Market experts predict that the industry shall still be able to cater to the new more demanding market.