Category: Vehicles

Introduction

• Increased focus on EMs by multinationals due to saturation of developed markets.
• Most MNCs have previously focused on the economic elite within the EMs.
• Examples of EMs are China, Brazil and Russia.
• Ems are characterized by low operating costs and a large population of highly increasing middle income earners.
• Main strategy should focus on innovation aimed at meeting the special needs of the market at affordable rates.

Purpose

• To analyze a major Emerging Economy (EM) and see the potential of investing in such an economy.
• The Chinese economy will be used as a sample an Emerging economy .
• To access the possibility of transferring an existing manufacturing plant from an already saturated economy in the developed world to a merging economy inoder to tap the potential of that economy in the fast developing third world .

Counrty Summary-China

• Existence of an excellent product market infrastructure compared to other EMs.
• China has a good product market infrastructure.
• China is very attractive to FDI.
• Domestic firms are dominantly SOEs.
• China is very open to FDI.
• Government policy is attractive.

SWOT Analysis

Streghts

• Market availability due to large middle income population.
• Access to cheap skilled labor
• An excellent market infrastructure
• Existing Production platform within region
• Good supply source of raw materials

Weaknesses

• There exists a gap in level between Chinese industrial products( mainly middle level) with the international level which are more advanced.
• Rigid management and operations
• There is creative spirit
• Lack of proper technical equipment

Opportunities

• Gradual reduction of tariffs on imports of raw materials
• Decline of import tariffs for some developed economies.
• Quota restrictions have since been completely eliminated

Threats

• Severe constraints in resources.
• Degradation of the environment has highly intensified.
• Increase in counterfeit products by rival companies.
• The market is open to new entrants who may eat into the companys market share.
• Overproduction of industrial products leading to reduction of profit margins.
• Increase of Emerging economies thereby slowly washing our the low labour strategy.

Pestle Analysis

Political

• There exists an open and stable political system in China.
• Gradual reduction of tariffs on imports of raw materials.
• Quota restrictions have since been completely eliminated.
• Investment into the domestic market by government to spur infrastructure development.
• Imperfect laws and regulations in China.

Economic

• Rapidly growing economy, GDP currently sixth in the world.
• Existence of low cost labor and skilled human capital.
• Increased purchasing power of the majority population due to the high economic growth rate in China.

Pest Analysis

Social

• Technology was initially restricted to industries but has since been adapted by even small scale home users.
• Development of internet has made the Chinese people have access to information thereby embracing technology due to high exposure.
• The Chinese people have found it economical to embrace technology compared to use of traditional methods to do their work.

Technological

• Chinese technology is fast evolving leading to innovation of better and cheaper technology.
• Technology has changed the structure of the product distribution channel, making it cheaper and more efficient to distribute goods.

The Business Proposal  Car Manufacturing Plant

Having done both the PEST and SWOT analysis of the china as an emerging economy, it is imperative that we now make a proposal for a specific investment into this economy.

The company will manufacture affordable and cost effective motor vehicle to meet the needs of middle class economy in China and export the surplus to developing economies in Asia and Africa.

Projecteds Cash Flows

Strategy-Implimentation Plan

Development of new skills and management structure to meet the needs of the targeted market.

Provide autonomy in the local market thereby eliminating dependence on external sources.

Provision of unique products at dramatically low prices to meet the special needs of the majority who have lower , yet significant combined purchasing power.

Issues Benefits and Controls

The main emerging issue is reducing cost of production usually encountered in the developed economies which lead to high product costs which are unaffordable to the world markets.

Investment in an Emerging economy enhances company growth and sustenance as it aims at tapping into large virgin markets that have not been reached.

Necessary controls must be put to counter the social economic and political challenges that investment into Emerging economies pose.

References

Alvis, J. M. (2011). Business Strategic Planning. Houston: New American Publishers.

Coleman, G. (2011). Innovation in Emerging Markets. New York: Price Hall Publishers.

Hitt, I (2007). Strategic Management- Concepts And Globalization. Ohio: Thomas Higher Education.

Kachru, U. (2005). Strategic Management- Concepts And Cases. New Delhi: Excel Books.

Introduction

Avis is one of the car rental companies with a strong brand identity all over the world. It has its origin in the United States of America. Avis always promises its customers an extra mile in terms of its service quality. The Avis Singapore operation was initiated in the year 1972 and since then it has grown steadily to the point of launching four other operations in Singapore.

Avis Singapore is the second largest branch internationally and ranks fifth in the Singapore market. Its key strengths are: strong pricing performance, taking of orders and billing and processing of payments. Avis Singapore has exceptional supplementary services hence making it a preferred brand.

Avis car rental is a company with a very good reputation. It has become well-known name in Singapore due to its rigorous marketing campaigns that are synonymous with their marketing catchphrase tried harder than other people. Its marketing campaign has made it one of the biggest names in the car rental industry hence making consumers to be well informed about the services offered by Avis (Auto, 2004, p. 1).

The main competitors of Avis Singapore are: Comfort Delgro, Orix Corporation, Hertz and C & P Rent-A-Car. Car rental market in Singapore is not such booming due to the cheap and good system of public transport; this has contributed to the competitive nature of car rental industry in Singapore.

Overview of the Singapore Car Rental Sector

The Singapore car rental and leasing sector is affected by the following factors: car ownership, infrastructure in public transport, off-peak cars and low entry barriers. Car ownership in Singapore is a costly investment due to high import duty, high costs of maintenance and strict regulatory environment that require an owner to have a certificate of entitlement; rapid depreciation is also a matter of concern among car owners. All these make car use the core service for renting and leasing companies.

Singapore has a well-developed public transport system; the infrastructure is perfect, buses operate on schedule, and they drop commuters to their destinations with strict observance to punctuality. The fares for buses and trains are considerably low; there are also low fares for taxi hence making traveling around Singapore easy. These are among the challenges that are faced by the car rental companies like Avis.

The introduction of the Off-Peak Car scheme in 2009 as a replacement for the Weekend Car Scheme provided a better opportunity for existing and potential car owners to save on-road use and registration. This was considered a perfect opportunity for the Singaporean to own cars hence leading to high volume of sales and providing them with a lot of options when they make decisions as to whether to own, lease or to rent a car.

There is also the Private Car Rental Scheme that is considered the greatest challenge to the car rental and leasing market; this scheme is aimed at minimizing the number of vehicles on the road by ensuring maximum use of the cars that are already existing; the scheme also involves car owners to rent out their cars as along as the relevant paper works are completed. This has increased competition in the car rental and leasing sector (Ho 2010, p. 1).

There is also a low barrier of entry into the car rental and leasing market hence leading to an increased number of players in the sector, especially when it is compared to the large authorized car rental companies that have caused the car rental charges to surge and become more competitive.

The main market segments for car rental business, particularly in the non-airport areas are business travelers. Based on the analysis of above factors, it is imminent that the car rental and leasing market in Singapore is not a profitable one since the high costs of maintenance demands that a firm purchases new cars regularly.

The advanced public transport system poses an indirect competition to car rental and leasing business. Consequently, the Off-Peak Cars Scheme has provided consumers with additional options when making decisions as whether to own or to use lease a car. Low barriers of entry have led to the proliferation of small car rental companies in Singapore that have challenged the larger companies.

All these factors have challenged large companies like Avis to enhance and assert their maintenance on the market. Avis needs therefore to continue increasing their services and to meet the expectations of the customers (Ho 2010, p. 2).

The Targeted Customer Niche of Avis

Avis has three target customer groups that they need to concentrate on, these are: Singapore drivers (both married and single), tourists and expatriates residing in Singapore.

Singapore drivers (married and single): there is a likelihood of a married Singaporean owning a car due to his higher potential of earning and also most married couples have children; these make salon and family cars the most suitable cars for this category. Most married Singaporean do not propose leasing a car, and instead they prefer to own.

According to an Avis research, it was only 25 percent of single Singaporean who own a car, and they use public transport and prefer car renting for short overseas trips that are more popular among married couples. There is a higher likelihood of a Singaporean renting a car while traveling overseas to facilitate their travel.

Tourists: tourists prefer public transport because it is convenient and cheap. Avis stands a better chance to have this category due to its international reputation and hence the perception that they have good quality and better standards. Tourists are always concerned much about the reputation of a rental company. Avis Singapore has an unmatched reputation and wide variety of services that are instrumental in eliminating perceived physical and psychological risks for the kind of customers who value reputation and service quality.

Expatriates: foreigners visiting Singapore are considered to be financially independent and sound and are only in Singapore for a particular specific period of time and to fulfill certain business or study purposes. According to the Avis marketing staff, those expatriates that have families always considered having a car to enhance their convenience particularly if they can afford it. Expatriate often chooses to stick to household names in the industry like Hertz and Avis since they considered small dealers to be risk in a foreign country (Ho 2010, p. 3).

Avis is an international company, and it has been in the business for a very long time has the necessary financial power to execute a robust marketing campaign. Pre-booking mode of rentals is much possible with Avis, and it is safe since it cannot fail overnight. Avis has various types of cars from the common to sub-compact luxury hence one can easily find his or her selection, whether it is a money saving one or a rental to impress a fresh client.

Avis has various deals on different cars and in various locations; this can enable the customer to save his money for future rentals. Avis has ensured that they have a large stock of its vehicles in its locations thus making it easy for its customers to access their favorite cars; customers cannot face the problems of being told that there is no car available. This is necessary especially in situations where the customers have their own selection of the type of vehicle they would wish to rent.

Avis sells its cars that it has previously used for rental and any customer on the market for a used car can find it at the Avis, and they will be reassured that the vehicle will be well maintained just like they were with the Avis Company. Avis has embraced the Smartphone technology as their customer service function; customers can easily rent a car by using their handsets hence guaranteeing advantage for people on the move.

Avis has introduced a lot of changes on its products and services. It has, for example, introduced GPS to minimize the number of its customers who get lost for direction; it has simplified their rental contracts and provided possibilities for its loyal customers to hire their Aston Martins (University of California 2011, p. 83).

Avis spiced its services by introducing Avis InteArctive, which is an internet-based information management system to manage its fleet hence becoming the first car rental company to implement it. It launched the Avis Cares Program in the year 1989 to enhance its customer satisfaction. This was aimed at enhancing the safety of their customers, owners and employees, and it included providing services that would make the Avis customers to enjoy themselves and have a stress-free trip and travel to all their destinations.

The Domestic Airport Car Rental customer satisfaction survey that was carried out by the JD Power and Associates revealed that Avis did perform better than other companies in terms of the critical picking up of passengers as well as the process of reservations. Avis has been involved in various humanitarian initiatives and services through the program of Avis Cares about Community program to enhance its marketing activities.

Avis also, through partnership with the Motorola launched the Avis Assist navigator service that was made to its customers. This has made it very possible for their customers to receive verbal directions on their mobile handsets that had speaker phone and was fitted on the car (Avis n.d, p. 1).

Avis has also developed a perfect consumer insight and excellent communication strategy; this includes the Pay per Click Model of advertisement and location targeting that has attracted locals that search for car rental and leasing overseas. Then customized advertisement utilized by Avis has enabled it to deliver customized messages to its users hence increasing their relevancy between queries and results and users using key words will be exposed or directed to Avis.

Despite its leading market position and excellent customer services, the trend for car renting, incorporation of the internet on its services, big presence on the airport and targeting of green customers are some of the gray areas that Avis needs to target. Avis should capitalize on its strong brand and international presence in Asian market in order to realize its potential in the Singapore market, and they should move away from airports and orient its market towards non-airport operations (Indiana University 2010, p. 67).

Conclusion

Avis is well-known name and a global brand in the car rental industry and it operates in more than 160 countries and operates approximately 5000 rental outlets. Avis has identified their customer segment with much success. The market forces that characterize the Singapore rental market has had a negative impact on the business interests of Avis; it is, therefore, imperative for Avis Singapore to learn how to react to the external market in order for the company to remain competitive in the Singaporean market.

The external market forces that directly affect the car rental market in Singapore have forced Avis to reconsider and evaluate their business interests to effectively deal with the changing threats in the market. Avis through their market slogan we try harder has gained prominence in the 21^st century.

In its marketing campaign launched in 1963, Avis acknowledged and accepted the number two position and that it could not directly compete with Hertz that is the worlds number one car rental company. The slogan forms part of the companys corporate culture and in Singapore, it is still trying harder to amass a large market share and to expand in size.

Avis capitalizes on its legacy and strength to follow and meet the dynamic customer needs. The management of Avis emphasizes on meeting customers demands like safety, price affordability and moving their brand beyond expectations. For future expansion, an analysis of the current market is critical.

References

Auto 2004, Advantages and Disadvantages of using Avis. Web.

Avis n.d., Avis: Still trying harder. Web.

Ho, L 2010, Case Study 1 Avis car rental in Singapore: have they really tried harder?, Minot, Minot State University.

Indiana University 2010, Business two-point-zero, Media Inc, Indiana.

University of California 2011, Singapore business, Volume 4, Issues 7-12, Singapore Press Holdings, California.

Introduction

In the face of growing industrialization and modernization of life styles along with the changing consumer demand trends, one would be interested to observe the automobile market which may give us an idea regarding the changing tastes in luxury goods. Car off course is not a luxury for everyone, for some it is also a necessity. Small cars are usually fuel-efficient and serve the utility purpose well it seems. This paper shall compare three of the largest global automobile companies, Ford Motors, Toyota and general Motors with respect to their products and market apart form the financial results of the last five years. The idea is to find the relative position of Ford with the other two companies.

Ford Motors: brief history

Modern days industrialization owes to a great extent to the Henry Fords assembly line production methods, which were popularized as Fordism during early 1900s. Fordism showed us how to manage industrial workforce and production on a big scale. Ford Motor Company, founded by the father of assembly line production and hence industrialization in 1903 is a multinational corporation headquartered at America. Based on worldwide sales of automobiles, Ford Motor ranks fourth as automobile manufacturer after General Motors, Toyota and Volkswagen and ranks seventh in the Fortune 500 list with a global revenue of $172.5 billion in 2007, over 24500 employees, 6.553 million automobiles and 100 plants scattered around the world. The cars are sold under the brands of Lincoln, Mercury, Volvo, Mazda apart from the core brand Ford. The other two UK brands Jaguar and Land Rover were sold to Tata Motors. Ford has redesigned their car Focus that is still capturing a considerable part of the market. With strong sales figures, lucrative revenues and fuel economic technology the car sales went up by 91 percent in Texas and 46 percent worldwide. According to the vice president in Marketing and Communications of Ford Group, Jim Farley, Focus continues to surprise and delight customers throughout the country, but the bombshell is in Texas, where Focus retail sales have almost doubled. The sales of Ford, Lincoln and Mercury together have grown by 8 percent compared to the previous year. However Ford Escape, Edge and Flex has shown a fall by 8 percent while the utility vehicles like Ford Explorer and Expedition have shown a fall in sales of 54 percent. However this trend is considered to be in tune with that of the industry in the segment of crossover vehicles. Farley comments, We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken. (Ford Focus Continues to Surprise, Outpace Segment).

Financial Overview

Sales and income record

The net income and Sales figures show that the company grew between 2002 to 2004 then it fell from 2005 to 2006 and grew in the year 2007. However the company is making most times except in 2003, 2004 and 2005 losses. From 2002 to 2005 the loss position was declining gradually as the company was keeping a smaller part of the sales as profits. Here it shows that the company is sacrificing more than its sales revenue in the last two years.

The graph shows that the trend sales takes, is followed by the trend of net income. There is growth in both sales and net income up to the year 2005 then it goes down in the year 2006 before an upward surge in the year 2007. This means that the company is performing very poorly in the year 2006. The management needs to investigate what ttok place that led to the decline of profit and sales.

Expenses distribution

Cost of sales 142,587,000

Selling general and administrative 21,169,000

Non recurring 2,400,000

Interest expenses 10,927,000

Income tax 1,294,000

From the distribution of expenses in the chart below, one realizes that the cost of revenue contained over 80% of the total expenses for the company while selling and distribution expenses has over 12% of the total revenue. Other expenses except interest which is not a direct interest to sales are minor.

Asset and capital structure

Fixed assets contain the largest share of expenses the company holds. it holds more than 79% of the total assets meaning that the company has invested heavily on the fixed assets. This may be due to the fact they are manufacturers of heavy and light machinerys whose turnover is not as high as hamburger.

The companies capital structure as shown by the graph above shows that it is heavily indebted as credit facilities in terms of long term debts contains more than 80.6% of the capital used by the company. This kind of policy is very dangerous because this capital structure can ruin the companies future success.

Ratio Analysis

Liquidity

The liquidity position of the company has improved from year 2006 -2007 as it is shown by the current and quick ratios. The two ratios show how the company is able to meet current short term obligations. Always the ability of the firm to meet current obligations to creditors is normally gauged through the cash resources available and how it can generate cash through the operating cycle. Ford motor vehicles current ratio in the year 2006 is below the industrial average. However the current ratio in the year 2007 is greater than the industrial average. Although the difference is so small it shows that the creditors will be comfortable in dealing with other firms as compared to ford motor vehicle. in a nut shell the current ratio of ford motor vehicle is far below the industrial average, therefore it does not have enough liquid to meet obligations as per the industrial average.

Quick ratio of the company is 0.72:1 and 0.91:1. In the year 2006 the ratio is below the industrial average of 0.89:1 and in the year 2007 it is same as the industrial average. The quick ratio recognizes that the conversion of inventory is not quick therefore it is eliminated from the quick assts that is those assets that can be converted to cash quickly. As per the industrial average the company was great in danger of technical default which will lead to unnecessary legal tussles in court which may lead to liquidation of the company.

Asset management ratio

Fixed assets turn over for the company is far below the industrial average and it is 0.58 times and times 0.62 while the industrial average is 0.74 and 0.81 for years 2006 and 2007 respectively. It means that investment in assets is not being used to capacity as per the industrial standards. This ratio measures the overall investment efficiency of the form in both long term and short term assets. It means that the management is not utilizing the assets efficiently. Although the industrial average is also below 1:1 the ford corporation management seems to lack managerial ability to utilize the assets to capacity. They should improve the use of assets.

The average collection period for the firm is 16 days and 19 days for the year 2006 and 2007 respectively while the industrial average is 30days and 29 days for 2006 and 2007 respectively. This measures how effective the credit policy of the firm is. Again it shows how the investment in receivables is being maintained by customers. from the figures it is clear that the firms credit policy is far better than the industrial average, therefore they have a very good credit management industry as compared to other competitors in the industry.

Debt management

From the figures calculated above, it can be noted that in the year 2006 total liabilities were more than total assets. This means that the company was in the verge of collapsing and it was facing bankruptcy. However on the year 2007 the ratio has improved from times 1.01 to 0.98 meaning that some common stock equity was injected to the company or some of long term liabilities was redeemed. However in this case it seems some other stockholders equity which was a large negative was reduced. in such a situation a company is under bankruptcy.

Interests earned ratio shows how the ability of the profit of the company can be made recurring debt expense; unfortunately this ratio is far below the industrial average putting the company in financial crisis. The company cannot be able to meet the interest payments in the year 2006 since they are making lose. At the same time in the year 2007 they improve the situation since they are making some few profits.

Profitability ratio

All the profitability ratios show poor results overtime. In fact most of them show negative values for the years 2006 and 2007. As far as ROE is concerned the situation looks better from in 2006. However this is because of negative income and positive equity in 2007 unlike both the values being negative in 2006. So this is an illusionary impact again but the liquidity position shows remarkable improvement especially in terms of DSO and investment turnover. When compared with the other industrial average. The sales figures show a fluctuation especially the dip in 2006. The reason could be the launch of many new small cars including the hybrid cars of Ford in the market and the prices range offered by competitors which are even targeted for the middle class consumers.

Market values

The company market values are very low meaning it is performing below per in the market.

Conclusion and Recommendation

If we look at the values of these components for the company we shall be able to find the origin of the fall or rise in returns on equity. The fall in the value of ROE is due to the negative profits or the negative profit margin and the fluctuation in 2006 is owing to the sudden negative value of the equity multiplier. The asset turnover has shown some growth except a fall in 2006 followed by a steady recovery. Therefore the use of assets has not been inefficient and we may say that operating efficiency and financial leverage is responsible for this low return. Some components have been showing steady improvement and so are the values of ROE overtime. Therefore the position of the firm with respect to financial leverage, operating efficiency and asset utility has improved overtime.

Therefore the operating efficiency is low and declining and this is influencing the value of ROE. More or less we find that the operating efficiency is responsible for the fluctuations of returns, which shows steady progress. Therefore, improvements and innovations are sought on the technological side for Ford Motors in order to catch up with the competitors and the showing its versatility and ability to reach consumers at all levels. They should try grow its geographical and brands coverage, bring in an environment friendly technology or bringing in Green cars or cars run by alternate energy sources other than oil, research and development oriented towards environmental sustainability would be a profitable area to invest or and thus catch up with the challenges faced by the industry today.

References

Ford focus continues to surprise, outpace segment, (2008)Ford Motor corporation, 2008. Web.

Ford Motor Company F, Morning Star, 2008, Web.

Joel G. Siegel, Jae K. Shim, Accounting Handbook, SC Barrons Educational Series, 2006, pp 45-88.

Lindsay R. (1967) Financial Management, an Analytical Approach; R.D Irwin.

Luecke R (2002) Finance for Managers; Harvard Business School.

Loren A. Nikolai, John D. Bazley, Intermediate Accounting, South-Western College Pub., 1999, pp 4-54.

Scalar, Elliott D. (2000). You Do not Always Get What You Pay For: The Economics of Privatization. Ithaca: Cornell University Press.

Tippett, M. (1990) An Induced Theory of Financial Ratios, Accounting and Business Research, Vol.21, No.81, Winter, pp.77-85.

White G.I., Sondhi A.C. and Fried D., (1997): l Analysis and Use of Finanacial Statements, Wiley, U.S.A.

Value

Launching a new product into the market is always fraught with numerous challenges, the threat of being ousted from it by competitors, and the inability to address the financial risks being the key ones. Therefore, determining the business value of the project is crucial to the overall success of the venture and the management of the relevant obstacles that the project developers may have to deal with in the process. Therefore, identifying the project value is a crucial stage of creating the foundation for business success (Gray & Larson, 2011).

The identification of the value of the current project is especially significant. Given the fact that the automotive industry is already a very competitive area, with corporate monsters such as Toyota, Tesla, GM, and other organizations working on environmentally-friendly options for drivers, the plank has been raised very high. Thus, identifying the possible value of the identified project, with all possible expenses to be taken in the process, as well as the opportunities for managing the corporate assets accordingly, is imperative (Hartung, 2012).

The value of the project charter is going to be quite high. The improved engine specifications, which will allow boosting the performance of the vehicle to the nth degree, can be viewed as a significant competitive advantage that can be used to promote the car efficiently. While the expenses are bound to be rather numerous, it is expected that a cost-efficient strategy based on careful use of the companys resources and an adequate waste management approach will help address the identified issue (Gray & Larson, 2011).

Components

Seeing that the project in question is very large, it is going to have a range of components. Not only the production-related aspects of the project but also the ones associated with marketing, cost management, logistics, etc., will have to be addressed. Therefore, it will be reasonable to split the project into the following components:

• Product design;
• Target market research;
• Financial strategy development;
• Risk management strategy development;
• Exit strategy identification;
• Communication strategy development;
• Promotion campaign;
• Production of the car;
• Product distribution.

Therefore, it will be imperative to consider all possible issues that may occur when entering the target market. The issues associated with the competition will have to be managed first so that the car could have a significant competitive advantage and attract the target audience successfully. By carrying out an efficient promotion campaign, one will be able to attain success. However, an exit strategy in case of failure will also have to be designed.

Stakeholders

The project implies collaboration between a number of experts and different teams. Therefore, there is a range of stakeholders in the project. Particularly, the project developers, managers, customers, shareholders, suppliers, distributors, and investors must be viewed as the key stakeholders of the project. It is essential that the needs of each must be taken into account and met accordingly when implementing the project.

Position Analysis

Project developers determine the success of the product in the target market, and, therefore, their position and attitude can be viewed as rather positive. Managers, in turn, control the crucial processes and help maintain the quality levels positive, which means that their position is neutral rather than negative. Customers will become the focus of the project, thus, setting their position and attitude as positive. The needs of shareholders are not to be underestimated, either; therefore, they take a positive position and attitude as well. Suppliers have a negative position and attitude in the context of the project since they have low bargaining power.

The same cannot be said about distributors, though; the identified stakeholders take the neutral position and attitude in the list of the significant stakeholders. Finally, investors provide the foundation for the development of a successful financial strategy, which means that their position and attitude are also positive (Sheldrake, 2014).

WBS

Cost and Time Estimates

As the WBS structure above shows, it is expected that the project will be completed within a month. It should be noted, though, that possible delays can be expected. To address the identified issue, one will have to consider using the latest time management techniques and communication tools. Thus, possible issues regarding the transportation process and communication with suppliers can be avoided.

It is assumed that the project will cost approximately $2,000,000. Most of the resources ($1,000,000 and $500,000) will be used to design the product and market it to the target population. Therefore, the R&D and Marketing Departments will be provided with the greatest amount of resources. The rest will be allocated in a sustainable manner to the Quality Management Department ($25,000), the risk management processes ($75,000), the rent ($350,000), and miscellaneous issues ($50,000).

Description

Creating the environment in which the project will thrive is crucial. Therefore, one must make sure that the project should be planned with all important elements in mind. Particularly, it will be necessary to adders the issues such as the choice of the leadership strategy, the tools for maintaining good quality standards, the proper use of the available resources (including financial ones), the design of appropriate communication tools for maintaining a connection with customers, suppliers, and other stakeholders, etc.

It is crucial to focus on setting the goals, identifying the resources, and designing an appropriate information management strategy first. Thus, the foundation for consistent improvement of the product and service quality can be created. Furthermore, the emphasis on corporate values and communication is bound to build the foundation for the successful representation of the car to the target customers (Brockmann, 2015).

Conducting extensive market research is the next essential step in building a sustainable approach toward introducing the car to the target environment. Before working on the competitive advantage and how it can be positioned, one should consider the specifics of the market, the customers needs and demands, especially as far as the technical characteristics of cars are concerned, etc. as a result, a range of errors and misunderstandings can be avoided successfully (Fleisher & Bensoussan, 2015).

The research results will pave the way for the identification of the strategies toward the product promotion, the choice of the marketing tools, the communication process between the target population and the company, the risk management approaches, etc. Furthermore, with a detailed overview of the competitors, their strengths and weaknesses, and the factors that affect the companys progress in the target market, one will be able to find the niche that the product in question can fill in the car market (Mohamad, 2015).

Communication Plan

Retail car companies should be viewed as the target audience for the project. To address the stakeholders in question, one will have to consider using both traditional and modern (IT) communication tools, such as social networks. The idea of a car that is environmentally friendlier than other products, cheaper than the available options, and is of high quality, will be delivered to the target audience. Social media, online advertisement, and direct (e-mail) marketing will be used as communication channels. Therefore, it will be necessary to contact potential customers directly.

Project Network

As the project network depicted above shows, there are certain time constraints within the project. Seeing that the stages of the project are interrelated, it will be necessary to make sure that all processes related to the project development should flow and that the information management should be carried out impeccably. As a result, the design of a flawless end product and the further provision of the services of the best quality can be expected. As the chart above shows, there is a need to focus on the development of the appropriate leadership strategy and the information management approach that will serve as the premises on which the rest of the strategies will be built.

Afterward, it will be crucial to focus on market research, which, in turn, will lead to a gradual development of the competitive advantage of the product. The tools for introducing the latter to the target audience, in turn, will be designed as soon as the previous stages are completed. Simultaneously, a coherent and mild promotion strategy, together with the application of the relevant marketing tools, will have to be used. Thus, the project will attract the attention of the target audiences. Furthermore, the absence of obtrusive elements and the use of positive and memorable messages will help cement the brand image in peoples minds, therefore, leading to a rapid increase in sales.

References

Brockmann, C. (2015). Sustainable supply chain management. Case studies in the consumer electronics industry. New York, NY: GRIN Verlag.

Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: Effective application of new and classic methods. New York, NY: FT Press.

Gray, E. W., & Larson, G. (2011). Project management (5th ed.). New York, NY: McGraw-Hill.

Hartung, A. (2012). Why Tesla is beating GM, Ford and Toyota: Electric cars. Forbes. Web.

Mohamad, M. (2015). Advertising and promotion. Marketing communications in advertising and promotion in business. New York, NY: GRIN Verlag.

Sheldrake, J. S. (2014). Technology, business and the market: From R&D to desirable products. London, UK: Ashgate Publishing, Ltd.

The case study in question is part of the online travel industry in India. RedBus is an online bus ticketing company that uses a real time and web-based portal that connects bus operators with potential customers. As a company, RedBus has an organizational structure in place under the leadership of three partners.

Problem statement

The previous manual bus ticketing system inconvenienced customers who considered it tedious. The bus operators also faced transparency issues with ticket dealers who were tasked with selling bus tickets. RedBus has introduced a web-based technology that allows customers to book tickets online and for bus operators to sell their tickets using the RedBus system.

Key issues

The key issues are the need to provide efficient bus ticketing services to bus operators as well as the provision of convenience to customers in need of bus ticketing services.

The decision makers are the partners, Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri.

Solutions

RedBus operates an online web portal that allows bus operators to sell bus tickets directly to potential customers. In addition, customers can buy their bus tickets online, thereby creating convenience to clients.

Alternatives

RedBus can establish a bus company that takes advantage of its software. In addition, the company can also develop online software for use in other industries.

Assumptions

The assumptions are based on socio-economic, political and technological trends. In this case, it is projected that a global bus manufacturing unit will be established in India. In addition, the country will experience a mass migration of skilled labor to cities, as well as register an increase in mobile and technology penetration. As a result, the demand for bus ticketing services is likely, thereby translating to increased business for RedBus.

Strategies/analysis tools

Porters Five Forces analysis is the most applicable model in Redbus case. The model will assess the threat of new entrants as well as the availability of substitute products or services, the bargaining power of suppliers and customers and competitive rivalry in the industry.

Decision makers

RedBus has a partnership form of business ownership. As a result, the partners are the key decision makers in the company.

RedBus success

RedBus is a successful company. The company uses the parameters of customer satisfaction and technology as success indicators. The company has the largest online bus booking portal and the convenience provided to customers has been instrumental in the firms success.

Financial status

RedBus has a stable financial status. The company has three main revenue streams that have contributed to the steady rise of the firms financial growth from INR 0.4 million in 2007 to INR 345 million in 2012. The company also projected a profit of INR 10 milllion in 2012 as well as a cumulative profit in the following years.

RedBus has three main revenue streams: The sale of the Bus Operators Software System (BOSS) to bus operators, the sale of the Seat Seller system to Online Travel Agencies as well as commission sales of bus tickets through the RedBus website.

Competitive landscape

The online travel industry in India has experienced tremendous growth. The industry is segregated into rail travel taking up 20% of online travel bookings and air travel securing 60% of the market share. The remaining 20% is comprised of online bookings in travel, hotels, buses and cabs.

Competitive threats

RedBus competitive threats are the national and multinational entrants in the online travel industry.

RedBus strategy

The company strives to become the best online bus ticketing company in India. Therefore, RedBus should ensure that the technological standards of its online system are at par with developments in the travel industry. This approach will ensure customer needs are addressed; the stakeholders are able to get value for their time and money and the company achieves its goal of being the best online company in the industry. In addition, the company should introduce different service offerings in its portfolio. This diversification will ensure the company stays ahead of the competition, thereby maintaining the lead in the industry, as per Porters Five Forces. RedBus should also ensure efficiency and effectiveness of its online value chain system. The incorporation of user friendly controls will improve comprehension and ease of use of the system by stakeholders.

Business model

RedBus has adopted a partnership form of business. In this case, partners are involved in the companys growth plans and participate in the decision- making process.

RedBus resources

The companys technological resources provide a competitive advantage in the market. In this case, the company has invested in different software that has created convenience for bus operators and customers

Challenges and diversification

RedBus is struggling with the numerous growth challenges presented by the availability of different strategies. The companys impressive performance has advocated for the need for the company to transition from a small firm to a large and recognized company.

Diversification is not a driver for RedBus. The company only considers it as a growth option as it believes the focus on its core business will ensure the companys sustainability in the changing business landscape.

RedBus strengths and weaknesses

The company has a proper data management system. As a result, it is able to advise bus operators on the most profitable routes and hence improve their business relationships. In addition, the firms technological advances have created convenience to both customers and bus operators.

However the firm lacks a proper growth strategy in place. As a result, the firm could lose out on growth opportunities as it lacks a proper company growth structure and process.

RedBus growth options

Vertical integration- In this case, RedBus will invest in its own private buses, thereby taking advantage of the increase in demand for bus services.

Global expansion- Most countries do not have an online bus ticketing system, thereby providing an opportunity for RedBus to venture into such markets.

Portfolio offerings- RedBus will provide services such as online booking of hotels, cabs, air travel and vacation bookings.

Core business- RedBus will focus on online bus ticketing and improve on systems that will enable the company grow in this direction.

The next step for growth should be vertical integration. The company has a lot of data and the software to support its application thereby providing an additional revenue stream.

Recommendation

The firm should hire a management consultancy firm to guide the company in the transition process from a small firm to a large enterprise company.

Future of RedBus

In the next 3 years, the company will proceed with its upward-growth trajectory as a result of an increase in demand for bus ticketing services. In the next 5 years, the entry of multinational companies as a result of market liberalization will not affect the companys operations as it holds a relatively stable position in the market. In the next 7 years, the effects of competition will be felt by the firm if it fails to adopt the growth strategies as discussed in the paper. The next 10 years will see the development of a bus manufacturing unit in India. As a result, the potential for growth is tremendous.

Depending on the objective, two types of path planning and simulation of unmanned underwater device trajectories should be allocated. These are the path from one point to the other and the complete grid coverage of the space (Panda et al., 2020). The initial analysis of both scenarios gives a vivid distinction between them: the declared aim of the vehicle. The path from point to point seems more primitive as the AUV must perform a straight-line motion in the water environment to the finish point. Nevertheless, more complex intelligent mechanisms of the machine allow it to bend an obstacle on the way, which actually makes the trajectory curved, but still one-dimensional. One can assume that the tasks of such design are to determine the distance between the points, safety, or smoothness of a particular route (Xue & Sun, 2018). Even if one admits that a two-point path is unrestricted and free of pre-planning intermediate points, grid designing is a more successful but time-consuming strategy. With this option, AUV should perform real-time space analysis to detect obstacles: this logic is the basis of most radars (Zhu et al., 2019). Accordingly, the overall objective of such design is to create a broad picture of underwater space for use in mapping purposes.

Regardless of the type of design, AUVs have a severe problem associated with increasing the environments pressure closer to the bottom of the reservoir. Sensitive electronics of the device can get out of control at high pressures, which means there is a need to isolate and seal the essential components of the device. On the other hand, the two-point path can be broken by obstacles in the way of AUV, especially if the device cannot overcome the barriers on its own. Currents also play a significant role in performance since the oncoming water flows force the device to use high engine power. For AUV, which analyzes the space on the principle of a grid, the same problems are true, but because of the more significant number of objects of analysis, the device can create a blurred picture. In particular, underwater shadows, gravity distortion, or bottom objects can be perceived as part of the space, which will deteriorate the overall appearance.

References

Panda, M., Das, B., Subudhi, B., & Pati, B. B. (2020). A Comprehensive review of path planning algorithms for autonomous underwater vehicles. International Journal of Automation and Computing, 17(3) 1-32.

Xue, Y., & Sun, J. Q. (2018). Solving the path planning problem in mobile robotics with the multi-objective evolutionary algorithm. Applied Sciences, 8(9), 1425-1446.

Zhu, D., Tian, C., Sun, B., & Luo, C. (2019). Complete coverage path planning of autonomous underwater vehicle based on GBNN algorithm. Journal of Intelligent & Robotic Systems, 94(1), 237-249.

Today, on Monday, at about 6 pm, a terrible incident took place, which claimed 30 young chickens lives. They were headed to a new farm; there were about 300 of them in total. They were supposed to start a new round in Pilgrims Chickens development, but not all of them got there.

The accident happened at the corner of Waco Dr. And Valley Mill Drive. The driver of a truck full of chickens turned left in the wrong place. This set off a chain reaction and resulted in a pile of eleven cars. Fortunately, there were no deaths, except for chickens. However, the truck driver was injured and was taken to the hospital. Doctors report that his condition is stable and that full recovery is possible.

Drivers involved in this accident report that they had to wait for help long enough. They state that several eggs have dropped from the truck. One of the participants in the incident said that it was extremely hot at the site, and, probably, these eggs could become fried eggs for lunch for the drivers. Fortunately, help arrived on time, and no one had time to experience too much discomfort.

Pilgrims Chicken suffered losses due to the incident. The total cost of dead chickens is $200. The purpose of the transport was to provide new areas with the supply of eggs, but now production will slow down. Despite this, the companys damage did not have a significant negative impact on its economy. It will be able to provide customers with fresh eggs and deliver more chickens on the required farm.

Introduction

Processes involving mixing have been associated with chemical-manufacture processes often and have been known to be very instrumental to successes recorded in operating combustion-driven systems. Presently, several computational-fluid-dynamics (CFDs) who are engaged with processing chemicals in industries have to be capable of adopting the usage of simulations for validating insights into the entirety of performances of process-equipments. In any case, several times, there is encounter of challenges especially as linking CFD-data and proficient control and managing of articulately defined processes. Further, several times, there is an instance of delay in producing inclined to a corresponding cost-alternation or product-quality-changes; consequently, the significance of CFD which is peculiar in these aspects is made pronounced.

Whereas CFD is continuously accessed by analysts, managerial and operational complexities have continued to be noticed. This study is therefore relevant through its constructive analysis of flow characteristic involving recirculation/reattachment through the use of meshes structured using GAMBIT of 90-degree bend. Figure 1 illustrates geometry and mesh for a laminar flow case through a 90-Degree bend. Boundary parameters for the flow are produced and FLUENT (through FIELDVIEW: Figure 2) has been adopted for processing the various numerical models.

Heat transfer across the boundary and turbulence of the fluid are assumed to be negligible. Flow-characteristics including reattachment-point-of-the-recirculation are studied analytically. In similar studies conducted By Shariff (23), appreciable results were obtained through. Through the variation of mesh-fineness, mesh-fineness sensitivity for reattaching locations, a highly economical mesh-fineness is realized. Variation of Reynolds number to solidify the Reynolds-number  Reattachment-point relation is consolidated.

Mesh Creation

Relating flow-data as is obtainable with mixing-time-scale for devising performances could be confrontational. Flow-visualization-method which is utilizable with iso-surfaces as well as with cutting-planes could be made use of in realizing the visual path of flow-topologies t rough ad-hoc ways. Equally, studies have reviewed that:

Streamlines and time-dependent streaklines also are effective at elucidating flow patterns. However, these approaches are limited in that they provide very little quantitative information on how flow patterns affect overall performance (Shariff 47).

The poincaré-plane-method was utilized at intelligence-light in the U.S whereby quantitative-time-scale information was generated through CFD-simulations (Zalc 9). Poincaré-planes were located at a number of places in the path of the flow- this displayed the time/location expressing the cross streaklines through a number of planes. According to Zalc:

Time scales obtained from these plots relate directly to how effective a mixing tank is or how efficiently a furnace or incinerator can be run (Zalc 11).

However, the approach is massive and capital intensive, thus for this study, GAMBIT is used to crate a mesh of 90 degree bend due to the based on the following merits:

• The geometry is simple and structured mesh is regular and Cartesian (90⁰);
• Grids can be easily modified; and
• It can be easily programmed (Zalc 12).

The meshing was conducted commencing with an averagely coursed; subsequently this was refined as an improvement aimed at realizing an increased mesh-cell numbers. Figure three illustrates the reframing of the meshes. Results generated from the arrange was then analyzed comparably. The reason for reselecting the meshes was based on the fat that:

• Extremely coarse meshes would generate inaccurate solutions due to high permeability;
• Extremely fine meshes would not generate any solutions due based on fluidal impermeability;

A good mesh is therefore essential in realizing valid solutions for data analysis.

Thus, the mesh was diversified to be fine at essential points of interest and coarse at others where there was no interest. Surfaces that where of high interest and relevant to the study include the following:

• side-wall that is at the bend;
• areas of the wall whereby the flow is continuously varying; and
• Steps at which the separation process commenced.

Notably, coarse mesh is good when used in areas where the flows are constant or full developed as there is no change to observe and it saves computational time (Shariff 15)

Solution

A convergent solution is very vital in this particular instance to resolve the existence of a solution, and this is arrived at through fluent iteration. It should be known that the variation in the variation in the meshes could possibly have an effect on the iterations. A fine mesh results into a prolonged arrival at a solution. Equally, the setup residue in the fluent check contributes intensively to arrival at an accurate solution.

Figures below illustrate the relationship between meshes and flow properties.

Relationship between Reynolds number and reattachment location

Taking the most economical mesh from the previous analysis and running simulations on it when varying Reynolds numbers, the results are obtained as followed:

Data: Inlet velocity = 1 m/s

Density = 1 kg/m^3

Mesh size = 4200

It follows from the use of modified-Eulerian of the analysis of the particles of the fluid that the fluid in a continuum and the interpretation of its behavior is achieved through the application of a dual way couple. To properly express the behavior of the fluid, its transportation-equation is evaluated using the following equation:

The equation is derived through the subtraction of favre-average-momentum of the fluids equation from the time-dependent-momentum-equation as well as from particle-phases; and then generated fluctuating velocity-equation is multiplied the fluctuating-flux with the equation of particle-fluctuation. The turbulent equation is generated through the velocity-gradient of the flowing particles phases as shown below:

The term-of-interaction for the phases of the fluid is defined by the following equation:

In equation 3, m expresses the mass-ratio of the fluid-particle. According to Gggg, the dissipation term resulting from the fluid viscous effect is presented as follow:

K_g, E_g, E_GP, And t_p constitute the fluids turbulent-kinetic energy, fluid-eddy dissipation, combined fluid particle eddy-dissipation as well as relaxation-time appropriately. B_e has an assumptive value of 0.4 and is a constant.

Summary

The summary for the flow is presented as follows:

Table 1. flow summary.

Works Cited

Shariff, Leonard. Dynamical Systems Analysis of Fluid Transport In Time-Periodic Vortex Ring Flows. Ibadan: University Press, 2011. Print.

Zalc, Alvarez. Using CFD to Understand Chaotic Mixing in Laminar Stirred Tanks. Oxford: University Press, 2009. Print.

Introduction

The automobile industry was a significant game-changer in the 20^th century in terms of technology. It is also safe to assume that the changes that are expected to happen in the automobile industry over the next twenty years will exceed the magnitude of the developments that have occurred over the last century. For instance, over the last century cars have had standard features that have included an engine, a steering system, and a driver element. However, recent developments in technology have brought about unimaginable additions to a standard automobile. Some of the technologies that are altering the face of the automobile industry include Global Positioning Technology (GPS), high-resolution imaging, infrared and radar scanning, and single platforms that can incorporate all this technology. When all these technologies are put together, they result in the autonomous car. The autonomous car is the standard name of the technology that brings about self-driving, driverless, and robotic cars. Autonomous vehicles have the capacity of carrying out normal transportation duties without the input of a human being. Like several other futuristic technologies, the autonomous vehicle in its current growth trajectory has threatened to replace human drivers in the next two decades. Several companies have produced prototypes of autonomous vehicle technology including Tesla and Google Inc. This paper explores autonomous vehicle technology and how it is expected to replace human workers within the next two decades.

The Autonomous Vehicle Technology

There are several angles when it comes to autonomous vehicles technology. However, self-driving vehicles are fast becoming a reality in the current technological environment. For instance, recently the tech giant Google announced that it has covered a mileage of over half a million miles using autonomous vehicles. Consequently, some observers have noted that by the year 2020, self-driven cars will be quite common, especially in the developed world. Autonomous vehicle technology has been developed in line with several considerations including safety and prompt service. Experiments to test the viability of autonomous cars date back to the 1920s when this concept was first hypothesized. However, it was not until the 1950s that the dream of autonomous vehicle technology started becoming a reality. The first complete units to feature autonomous vehicle technology were completed in the 1980s through collaborations between car industries and learning/research institutions. As late as 1987, over twenty car makers were in the race for the production of an autonomous vehicle including Mercedes Benz, Nissan, General Motors, Audi, Toyota, and Peugeot. By the late 1990s, the race for producing a fully functional autonomous car had attracted information technology companies that are mostly located in the now-famous Silicon Valley in California. The year 2013 was the year when autonomous car technology came to a full revolution. Several companies debuted prototype technologies that feature fully functional autonomous cars including Tesla, Mercedes, and Bosch.

Furthermore, the legislative policies that govern the automotive industry began accommodating the testing and potential rollouts of self-driven cars. In states such as Florida, California, Nevada, and Michigan, some laws outline the testing and development of self-driving cars in respect to the existing public transportation systems. In other parts of the world, some governments have resolved to develop transport systems that solely serve driverless vehicles. According to expert predictions 2020 is the most often quoted time frame for the availability of the next level of self-driving vehicles, with wider adoption happening between 2040 and 2050 (Silberg 4).

How the Vehicles Work

The concept of autonomous vehicles works in different categories depending on the level of functionality of the final product. Consequently, the term autonomous vehicles can also be used to describe cars that still require some degree of human input in their functionality. In a recent research article on the status of autonomous vehicle technology, the author points out that manufacturers have started offering a clear demarcation in their definitions (Benenson 6). Consequently, proposals have been forwarded to use the term autonomous vehicles to refer to machines that have both human-operated and automatic features. On the other hand, the proposal is to have the term self-driving vehicles as the standard for all vehicles that are fully automatic and ones that do not have pedals or steering wheels. The overall functionality of a self-driven vehicle is determined by the need to eliminate instances of human error thereby improving safety and efficiency. Complete self-driving technology will feature fully automatic safety-critical functions for the entire journey and the driver will not be expected to control the vehicle at any time from start to stop, and the vehicle can even be unoccupied (Lari, Douma, and Onyiah 45). The most common technological approach in a self-driving car is to make sure that the vehicle does not depend on any external technology input during its operations. Consequently, the vehicle will in essence be self-contained when it comes to command centers and power sources. Nevertheless, a self-driving vehicle can gather useful information from other cars although its core functionalities depend on internal installations. A self-driving car is expected to mimic the connectedness and operating system infrastructures of modern technology. Other features that are expected to be found in a self-driving vehicle include a cars ability to set safe speeds and its interaction with traffic lights. Automatic vehicles are also expected to perform better in traffic-congestion environments. The cars ability to avoid collision with others will also depend on the machines information collecting abilities. Debate is rife as to whether self-driving cars will require an overhaul of the current road infrastructure. However, most stakeholders agree with the fact that it is more practical to build an adaptive car that can operate on existing infrastructures. Overall, a self-driving car will feature some of the current vehicle technologies, sensors, and communicative elements.

Benefits of Autonomous Vehicles

The most significant benefit that is associated with autonomous vehicles is safety. The issue of safety in the automotive industry has always been a major concern for governments, individuals, and manufacturers. Self-driving vehicles come with the promise of high safety standards and capabilities and this is often a major selling point for this technology. It is estimated that over ninety percent of all road accidents are caused by human error (National Highway Traffic Safety Administration 4). Autonomous vehicle technology promises to eliminate accidents that are caused by human behaviors such as speeding, disregard of traffic rules, poor judgment, and other forms of incapacitation. Self-driving technology is also expected to curb the over 1.2 million deaths that are associated with global road accidents annually. In economic terms, self-driving cars are expected to reduce the cost of accidents and other road-related mishaps by at least seventeen billion dollars per year. Other economic benefits are associated with automated vehicles such as savings in fuel and decongestion costs. Self-driving cars are also expected to improve mobility and access among human beings. Currently, car usage depends on affordability and driving abilities. However, automated cars will make it possible for the elderly, children and disabled persons to access car transportation. Individuals who acted as drivers will also enjoy more flexibility because they can perform other roles in the course of their commute. Experts have also pointed out that self-driving vehicles will increase overall capacity in several ways. For example, roadway capacity improvements will ensure that there is a maximum number of cars per lane and per hour (Benenson 54).

The capacity for any infrastructure can be easily maximized in situations where vehicles are automated. Autonomous cars are expected to introduce diversity in terms of car designs. For instance, some automated cars may not require bulky features such as steering wheels, airbag systems, and pedals. The new car designs might make vehicles more efficient in terms of space and other consumer needs. A good example of how automated vehicle designs can look can be seen in Masdar City in the United Arab Emirates (Benenson 13). The designs of the driverless cars in Masdar City look like pods as opposed to them resembling the traditional car models. The benefits of autonomous cars are also expected to extend to the cost of ownership. The cost of owning a car normally depends on factors such as fuel, depreciation, interest rates, maintenance, taxes, and insurance. Factors such as insurance and maintenance costs are expected to be lower in the case of automated cars.

Impacts of Autonomous Vehicle Technology

Autonomous vehicle technology is considered an intrusive technology and it is likely to have far-reaching impacts. It is expected that self-driving will develop slowly just like other forms of technology, but it will have significant impacts on the job markets. Some workers are set to be completely replaced by autonomous vehicle technology. Some of these include individuals who drive buses, taxis, trucks, and other forms of public transportation. Furthermore, this technology is also set to make vehicle delivery personnel such as pizza and package delivery people outdated. Traffic controllers and policemen will also be non-existent when the autonomous technology becomes fully operational. Nevertheless, the technology will lead to the creation of new jobs including engineers and traffic monitoring individuals. Governments set policies for the rollout of any technology. In the case of automated vehicles, governments will have to change laws and policies to coincide with the concept of a driverless car. For instance, insurance and liabilities matters in case of accidents are expected to be passed on to car manufacturers and not owners. One observer notes that The driverless car will change the intimate relationship that has developed during the 20th century between the user and their automobile&.it will be an autonomous machine that does the users bidding in its own systematized way (Swan 6). This social impact will also affect the ownership element when it comes to motor vehicles. Cars without drivers might also compromise the privacy of their users but they might also improve the element of public security. When it comes to the environment, self-driving cars are expected to promote the current quest for use of renewable energy in motor vehicles. Manufacturers look forward to a time when the current reliance on oil will be phased out by a more affordable power alternative and the flexibility of autonomous cars might contribute towards the realization of this goal. The economics of land will also be affected by the institution of the self-driving car. For example, when using a self-driving car there is no pressure to reduce daily work commute. Consequently, congestion in cities will ease when individuals can get into a vehicle that drives them to work without any hustles. There have been numerous attempts to decongest urban areas, but autonomous vehicles might provide a lasting solution to this persistent problem. Due to constraints of parking space, most individuals find it difficult to use vehicles on a day-to-day basis. However, cars that can park themselves in far-away or less congested areas can eliminate this constraint.

Future Expectations

Various companies are in the process of finalizing their prototypes when it comes to autonomous vehicles. It is expected that most of the features that will finally be included in driverless vehicles will be first tested in the current car models. The final driverless vehicle is not expected to be complete for at least 15 years to come. The expected future developments in autonomous cars include the plans by carmaker Mercedes to introduce Autobahn Pilot aka Highway Pilot, the system allows hands-free highway driving with autonomous overtaking of other vehicles by 2016 (Payre, Cestac, and Delhomme 255). In addition, Google expects self-driven cars to become available for sale to the public in the year 2017. In the year 2035, it is expected that there will be a significant number of unoccupied self-driving cars on the roads.

References

Benenson, Rodrigo. Towards Urban Driverless Vehicles. International Journal of Vehicle Autonomous Systems 6.1-2 (2008): 4-23. Print.

Lari, Adeel, Frank Douma, and Ify Onyiah. Self-Driving Vehicles: Current Status of Autonomous Vehicle Development and Minnesota Policy Implications, Minnesota: University of Minnesota, 2014. Print.

National Highway Traffic Safety Administration. Preliminary Statement of Policy Concerning Automated Vehicles, Washington, DC: NHTSA, 2013. Print.

Payre, William, Julien Cestac, and Patricia Delhomme. Intention to Use a Fully Automated Car: Attitudes and a Priori Acceptability. Traffic Psychology and Behaviour 27.1 (2014): 252-263. Print.

Silberg, Gary. Self-driving cars: The Next Revolution. Center of Automotive Research 7.1 (2012): 2-26 Print.

Swan, Melanie. Connected Car: Quantified Self becomes Quantified Car. Journal of Sensor and Actuator Networks 4.1 (2015): 2-29. Print.

Wired. Autonomous Cars Wired. Conde Nast, 2015. Web.

The reality of unmanned automobiles is approaching as such corporations as Tesla are testing the possibility of using them. The technology has certain advantages, such as saving time for drivers, preventing DUI incidents, and making roads safe, potentially eliminating the existing limits. All vehicles will be autonomous in the best-case scenario, and traffic-related deaths will become a non-factor, with transit being faster. However, the technology also presents several ethical issues and may have glitches leading to accidents. For instance, it is not entirely clear who will be responsible for an unmanned car hitting a person, those inside or the company. Moreover, whether it will be possible to control a vehicle during emergencies is also a concern. In the worst-case scenario, such cars will have biased AIs that will target people not fitting certain standards or even non-customers (Lester). Realistically, the technology will probably not be widespread in 20 years, confined to the affluent, although they are likely to abuse it and avoid consequences.

Stoicism is originally an Ancient Greek school associated with Zeno, although its idea can be traced to Socrates, and it attempted to explain the universe, humans, and their relationship. It claims that the world is purposeful and benevolent and supposes that humanity plays a role in following the grand plan by controlling selfish desires and living by reason. Thus, logical thought is an important element of stoicism, ensuring overall harmony and happiness is the ultimate goal. However, the framework faces the same issue as Christianity in general: the nature of evil, which is explained either through human wickedness or the inability to perceive the great purpose. Thus, stoicism is based on logic, self-control, and the pursuit of a higher goal, shared by the world and all living beings.

Pragmatism is a subjective framework equalling reality to a process, which determines its absence of adherence to permanence. It claims that absolutes do not exist, links meaning to consequences, and believes in inherent neutrality (Barger 43). Pragmatism attributes the quality of being good to usefulness, which is evident in whether something helps achieve results (Barger 43). However, as nothing is permanent, it will remain in such a state until losing its utility (Barger 43). As far as the arbiter of usefulness is concerned, a collectives judgment is regarded more than an individuals, which is consistent with the pragmatic view on the whole (Barger 43). Transience may be considered a negative due to removing continuity of values and moral orienteers, although it facilitates personal freedom. Altogether, pragmatism emphasizes change, utility, and group opinion on whether something should be considered useful and, consequently, good.

A combination of stoicism and pragmatism may inform a course of action regarding the use of autonomous vehicles, despite the frameworks conflicting natures. First of all, the view that the outcome will be for the best no matter what should be adopted to avoid being disappointed in the technology. Everything should be driven by logic: accidents may provoke a reaction to abolish unmanned cars, and the lack thereof is likely to make society view them too positively; both views are extreme. What matters is whether they will be able to reduce accidents and fatalities while improving transit. If one condition is unmet, then society may deem autonomous vehicles useless. Conversely, suppose the technology helps address the primary issues but causes new ones, such as AI bias. In that case, a re-evaluation is necessary to protect the public and change its status. The companies will be the ones hindering the worlds benevolence while unmanned cars themselves are not inherently harmful, so additional chances to improve them may be given.

Works Cited

Barger, Robert N. Can We Find a Single Ethical Code? Computers, Ethics, and Society, 3rd ed., edited by M. David Ermann and Michele S. Shauf, Oxford University Press, 2002, pp. 42-47.

Lester, Caroline. A Study on Driverless-Car Ethics Offers a Troubling Look into Our Values. The New Yorker, 2019.