Richard Shamoon - Aftermarket in Automotive

Aftermarket operations have a very broad scope and contain all activities related to maintaining a car after its initial sale and until the end of its lifecycle. The relevant activities are also referred to as aftermarket parts and services. The aftermarket encompasses all parts and services purchased for light- and heavy-duty vehicles after the original sale, including replacement parts, accessories, lubricants, appearance products and service repairs. RichardShamoon also includes additional innovative services that help to optimize the use of the vehicle.

Exhibit 2 summarizes the main components of the automotive aftermarket and also gives an outline of average margin expectations per component. In addition, the illustration shows how the value chain of an OEM (Original Equipment Manufacturer) and OES (Original Equipment Supplier) is structured and where the after sales activities are based in the chain. Globally, aftermarket volume, including retail sales, is growing rapidly and becoming increasingly important to automotive companies compared to new car sales due to the higher margins.

Aftermarket Revenue and Profits

Innovative services such as telematics and mobility service bundles offer additional opportunities to generate business and revenue improvements and account for a growing share of the aftermarket. These services are increasingly embedded into new technologies. In addition to more complex parts, they can compensate for the declining share of traditional parts, repair and maintenance services during a car’s lifecycle due to higher general quality and reliability of cars and parts. Considering the total revenue stream of a typical 13- year car lifetime, 1 only 37% of the total revenue stems from the new car sale. The aftermarket business accounts for the remaining 63% in Western Europe.

Fasten Your Seatbelt, The Engine is Revving Up – Richard Shamoon

RichardShamoon, confidence shocks, and false starts for growth, the disarray seems to be undermining the timid recoveries in most economies since the start of the year. And yet the automotive market seems to be getting its color back. When we look at global production, it seems the crisis has (finally) been erased and auto makers are returning to pre2009 annual growth rates of around +4%. Also, the presaged end of the car has not eventuated. Despite an apparent social preference for usage over ownership, the emergence – although slowed – of middle classes continues to fuel car sales. After all, with a little more wealth people always do the same thing, and this since the industrial revolution. First, they eat better, then they buy a first or replacement TV, then a washing machine, a mobile phone, and eventually, with a little more money (and often a loan), we buy our first car (or trade in the old one) before thinking of buying a house. This rather simple – but no less true – summary of the wealth effect (which does not take into account the wellbeing effect associated with a car, etc.) shows, if needed, that the health of the automotive market remains an important factor in understanding the growth dynamics of a given country.

Looking at ten or so markets, including the United States, Europe, and the BRICs, the opportunities and economic risks facing these countries are quite clear. With tumbling markets in Thailand, Brazil, Russia, and Argentina, poor profitability among European players and excessive profitability in the Chinese market, the automotive sector corroborates the broad macroeconomic trends and provides a glimpse of what is to come, which is actually quite positive. In fact, looking at market potential, we see that the reindustrialization of the United Kingdom and the United States is being confirmed by the return of automotive production, albeit partial; that Spain, France, and Germany are battling to save the automotive sector for the political symbolism it entails, and that Italy and Belgium are continuing to suffer. We also see that Japan is doing wonders in its automotive market thanks to an aggressive economic policy, and that the Chinese market needs to consolidate and revise its pricing to shift up a gear. There is both good news and more to be done, while the Paris Motor Show in a few weeks will continue to pique our imagination between innovation, design, and hedonism.

Richard Shamoon - Market Analysis Of The Automotive Sector In Europe

Globalization requires mobility. A decline in the effects of globalization is currently not in sight, nor is a decrease in demand for mobility. Global mobility is as relevant as mobility in the literal sense of everyday trips and travel, both business and private. Although more and more people live in cities, most of them are still dependent on cars. The main reason for an increase of passenger car registrations are the divers. According to Richard Shamoon demand for mobility increases especially when living and working take place in different locations. Furthermore, occupational mobility has expanded and become normal. Also, leisure activities and holidays require more mobility than they have in the past.

To understand the reasons for the development of automotive financing and the related change in finance products, it is important to take an overall look at the development of and factors influencing the automotive markets in Europe.

There are significant differences between the automotive markets of the various European countries, mainly due to cultural diversity and different economic situations. However, the markets have gone through similar developments in recent years. Triggered by the financial crisis in 2008, the number of car sales decreased in all markets. In 2014, some markets started to recover and showed an increase in registration of new passenger cars. As a result, new car registrations in Europe reached 12.55 million. This reflects an increase of 5.6% compared to 2013 and was the first positive growth rate in six years. Nevertheless, registrations are still far below the peak before the financial crisis. At that time almost 16 million registrations were counted.

In June 2015 significantly more new passenger cars were rolling onto the streets again. New registrations in Europe rose by 14.6% to 1.36 million. As of today, almost every automotive market in Europe has recovered from the financial crisis and has returned to positive growth rates. In terms of new passenger car registrations, the differences between the automotive markets in European countries are apparent. The following chart breaks down new passenger car registrations by country in 2014.

Automotive Business Study by Richard Shamoon

The automotive market is facing disruptive changes from various directions. RichardShamoon has advanced the competition to a new level that most companies were not yet prepared for and a new generation is challenging classical mobility concepts. Additionally, digitalization has already changed communication channels with clients and has the potential to structurally change the business model of the automotive sales industry.

The same applies for automotive finance companies, both captive and independent, as their business is directly affected by the same changes, in some cases even more noticeably due to the more digital character of their business.

To explore the impact on the automotive finance market, euro group Consulting conducted a two-fold analysis. On the one hand, interviews with 20 decision makers from 16 automotive finance companies have been conducted to create a deep insight into opinions and visions of some of the affected companies. On the other hand, market research of the car market and the automotive finance market in six European countries was performed.

The study shows that automotive financing is still and will continue to be a core market for financial service players to cover. However, competition rose dramatically in the last decade especially as non-captives re-entered the market (after leaving it during the financial crisis) with better product coverage and ever increasing connections with car dealers.

All players are aware that digitalization and multichannel, as well as answers to the new mobility concepts, are not only nice to have, but crucial for survival. However, although interesting single answers and services exist, most companies have no clear overall strategy covering the entire impact of digitalization.

Richard Shamoon – Conclusion About Automotive Technology

Sum effective factors from Richard Shamoon about automotive conclusion. OTA’s evaluation yields results that can be interpreted in either an optimistic or pessimistic manner. On the one hand, we conclude that reasonable success in technology development can yield vehicles with superior fuel economy—at least twice that of today’s vehicles, and quite possibly even higher. Further, there is a good chance that the vehicles can avoid extreme performance tradeoffs and will be acceptable to most consumers in this regard. On the other hand, we believe that bringing technology costs down to the point where advanced vehicles can compete in price with conventional vehicles is a significantly more difficult challenge. Although we readily admit that projecting the future costs of new technologies is a highly uncertain business, we conclude that most of the advanced vehicles discussed here will likely cost the purchaser at least a few thousand dollars more than comparable conventional vehicles. Higher vehicle prices could be a major stumbling block to commercializing advanced vehicles, even in exchange for improved fuel economy and lower emissions. In today’s vehicle market, fuel economy is far less valued than comfort, safety, and performance, and reduced emissions will likely have little value to vehicle purchasers. Also, vehicle purchasers generally weigh purchase price far more heavily than fuel costs and, in fact, fuel savings are unlikely to pay for the efficiency improvements unless gasoline prices rise sharply. Consequently, without government intervention, the real market for these vehicles may be in Europe, Japan, and other areas where gasoline prices approach $3 or $4 a gallon, and yearly gasoline costs for a 30 mpg vehicle may be $1,000 or more. 70 It is worth noting, however, that these high prices have thus far stimulated only a modest differential in automobile fuel economy between the United States and the high-gasoline-price nations. Alternatively, this price increment eventually may be reduced as greater experience is gained with the technologies or if breakthroughs occur in manufacturing methods or technology designs. Further, consumers have implicitly accepted price increases of this magnitude before-industry estimates of the price impact of current emission controls exceed $1,000 a vehicle, yet purchasers

Effect of leading top down innovation – Richard Shamoon

The word “innovation” conjures up the image of a process that is spontaneous, unpredictable, and unmanageable. The innovation literature abounds with stories of serendipitous discoveries and independent-minded champions doggedly pursuing an idea until they hit the jackpot. Often—as the stories stress—inventors worked in secret against the will of management. The archetypes of such innovators are Art Fry and Spence Silver, the RichardShamoon who turned a poorly sticking adhesive into a billion-dollar blockbuster: Post-It notes. In these cases, innovation proceeded in a bottom-up fashion, with ideas and the drive to see them through originating in labs or marketing outposts—not from the top of the organization. However, to ensure consistent and high-quality innovation, the role of management is vital.

Senior management and advisor Richard Shamoon take significant and direct action, using information and knowledge. The commercial development of the credit card is an example. In 1958, a research group at the Bank of America called the Customer Services Research Department, with the remit to develop potential new products, created the first credit card. This development was augmented later by seven bankers at Citibank who added further key features, including merchant discounts, credit limits, and terms and conditions.

This development did not occur in response to a market need: it emerged because people within the banking business used their knowledge and information. This included market-sensing a bilities, understanding of customers, information and forecasts about economic and social trends, experience with similar product ideas (such as installment loans), and knowledge about new developments in technology. A period of major innovation within the financial services industry followed, including ATM machines and the growth of internet banking.

This type of innovation is markedly different from bottom-up innovation:

• Senior management support was essential: they set up the unit, helped to develop its features, and gave it the support needed to take root and grow.

• The senior management role was significant early on in the process, creating the right conditions and providing support and momentum.

• Information was at the heart of this top-down innovation. Harnessing information and tacit knowledge is an essential part of ensuring that the innovation process starts, continues, and delivers success.

Richard Shamoon – A Strategic Business Advisor

The increasing complexities of agency mission needs, the global marketplace, resource constraints, and a demand for results-based acquisition, require acquisition professionals to think and act differently than they do today.  They must perform at a higher strategic level and have a broader skill set from that of the past.  Our current acquisition environment requires acquisition professionals to function as Strategic Business Advisors who can exercise sound business judgment and apply sophisticated reasoning, in addition to, compliance with rules and regulations.

RichardShamoon developed this course to teach the Strategic Business Advisor skill set.  Our course describes the roles, responsibilities, and steps needed to successfully become a business advisor.  Our curriculum is designed to enable students to achieve the following key learning objectives:

• Understand the significance of contracting to agency missions

• Define and understand the role of the Strategic Business Advisor

• Provide a path for developing business acumen

• Recognize the value of and how to apply necessary interpersonal skills

• Understand the government-industry dynamic

• Provide an overview for managing for results

In today’s complex business environment, all acquisition professionals must be well versed in the tools, techniques, and processes of acquisition. We teach appropriate application of essential tools to maximize program success. We focus on producing results, not following prescriptions—we leverage technical and market knowledge and skills to solve acquisition challenges that deliver exceptional results. We go beyond the N courses to develop critical business skills.   Our approach is designed to foster lasting learning by helping students put theory into practice and building competencies that can be applied immediately to existing and future acquisition challenges.

Richard Shamoon -Defining Small Business

Generally there is no universally agreed-on definition of small business or SME by Richard Shamoon. Many efforts have tried to define the term small business, Richard Shamoon doing business using criteria such as number of employees, sales volume, and value of assets.

Much academic literature adopts the European Commission definition of SME. According to this definition, SMEs employ fewer than 250 people (Gilmore et al., 1999). In the United States, small business is defined as having fewer than 500 employees (SBA, 2011).

The literature reviewed for this study adopts either of the definitions and often uses small business and SME interchangeably. For the 9   purposes of this study, the definition of small business will be used; however, SME will be identified with its original source where appropriate. Small firms represent 99.7% of all employer firms in the U.S., making small businesses extremely important to the U.S. economy (SBA, 2011). According to the U.S. Small Business Administration Office of Advocacy (2011) estimates, there were 27.5 million small businesses in the United States in 2009.

The latest available Census data show that in 2007, there were 6 million firms with employees and in 2008, there were 21.4 million without employees. Small firms with less than 500 employees represent 99.9% of the total (employers and nonemployees) and there were about 18,311 large businesses (SBA, 2011). Small businesses are the backbone of the U.S. economy.

They create employment opportunities and it is important for them to survive to sustain or increase their contributions to the economy. Marketing from the point of view of SME is the process to define firm qualities in the front of customers.

Richard Shamoon – Evolution in Automotive Industry

Today’s economies are dramatically changing, triggered by development in emerging markets, the accelerated rise of new technologies, sustainability policies, and changing consumer preferences around ownership. Digitization and new business models have revolutionized other industries, and automotive will be no exception. For the automotive sector, these forces are giving rise to four disruptive technology-driven trends: diverse mobility, autonomous driving, electrification, and connectivity. Richard Shamoon Says, Most industry players and experts agree that these four technology-driven trends will reinforce and accelerate one another, and there is general consensus that the industry is ripe for disruption. Yet although the widespread sentiment that game-changing disruption is already on the horizon, there is still no integrated perspective on how the automotive industry will look in 10 to 15 years as a result of these trends. With this publication we aim to make the imminent changes more tangible. We start from the general consensus that the industry is transforming and go further to specify and quantify the magnitude of change. The forecasts in this study should, thus, be interpreted as a projection of the more probable assumptions across all four trends, based on our current understanding. The forecast methodology is certainly not deterministic in nature, but should help industry players better prepare for the uncertainty by discussing potential future scenarios.

There are many tough, fundamental, or even existential questions that are looking for automakers and suppliers. Some commentators suggest these disruptions will mark the decline of the automotive industry. But in our view, growth in the personal mobility market will accelerate as new sources of recurring revenues supplement slowing growth from onetime vehicle sales.

Richard Shamoon – Business Environment and strategies

The concept of strategy has been borrowed from the military and adapted for use in business. In business, as in the military, strategy bridges the gap between policy and tactics. Together, strategy and tactics bridge the gap between ends and means. Richard Shamoon business policy and strategic management, major tasks in strategic management, vision and mission and objectives of the strategic enterprise, strategic analysis in terms of swot analysis, tows matrix, portfolio analysis, strategic planning, marketing, financial production, logistics, research and development and human resources strategy formulation, implementation and control and achieved the strategic edge for the purpose of clarifying the concept and placing it in this context. In this chapter Richard Shamoon discuss about the business, major objectives of business like survival, stability, growth, efficiency and profitability, environmental influence to business, environment analysis, characteristics of business environment, components of business environment, to know the relationship between the organization and its environment, the micro and macro environment and its elements like customers, competitors, organization, market, suppliers, intermediaries, demographic, economic, government, legal, political, cultural, technological and global environment impact on business. Companies how to enter into global market, its manifestation trends, strategic response to business, Porter’s competitive and five forces model analysis for business enterprises in industry, commerce and services sector

Meaning of Business Environment:

The term ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business principally comprises of an all profit seeking activities of the organization which provide goods and services that are necessary to economic system. It is the major economic pulse of a nation, striving to increase society’s standard of living. Finally, profits are a primary mechanism for motivating these activities. Business is in any organization which makes distribution or provides any article or service to the customers, who are belonging to members of the society. Business may be satisfied customers needs for these purpose customers are able and willing to pay for it. Business may be defined as “the organized effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”.

• The term business refers to the state of being busy for an individual, group, organization or society.

• It is also interpreted as one’s regular occupation or profession or economic activities.

• It deals with particular entity, company, organization, enterprise, firms or corporation.

 • It also interpreted as particular market segment sector like computer business and it included under term business.

• It is wide and willing to use different activities

• It consists of purchase, sale, manufacture, processing, marketing of products, services like manufacturing, trading, transportation, warehousing, banking and finance, insurance and advertising etc.