Renault Vehicle Industries Essay Example | Topics and Well Written Essays - 4750 words

Renault Vehicle Industries - Essay Example Agility in the organizational process in responding to market demands can only be achieved through organizational structures, which are well-integrated, less bureaucratic and collectively aligned towards achieving the organizational objectives (Thomson & Strickland 2003). Â  The case study analyses the current issues being faced by Renault Vehicles Industries, (RVI) the French Auto manufacturer with regards to organizational structure and culture. The analysis will take into account the current status of the organization and identify the problem areas being encountered at Renault. The insight gained from the analysis will aid in explaining the past background and how the company has developed to its current stage as well as what the future may hold if the organization proceeds without interventions. Lastly, the analysis will also provide suggestions and recommendations for intervention and create change at Renault to succeed in the ever-competitive field of automobile industry. Â  Renault Vehicle Industries, initially established in 1915 as Berlite was nationalized in 1915 and name changed to Renault in 1978. The company mainly focuses on the manufacturing of heavy goods & transport vehicles and buses. The company’s annual turnover levels are in the range of 25,000 million francs and across Europe, the company holds nearly 10% of market share for heavy goods & Transport vehicle segment. Renault busses and coaches hold over 50% of the market share in France. The company is ranked third in the world market for heavy goods and transport vehicle market. The Venissieux site houses two production facilities, which produce buses and coaches. Little over 5,000 people are employed at the Renault factories and 60% of the workforce is shop floor workers.

Macro Economics Essay Example | Topics and Well Written Essays - 500 words - 7

Macro Economics - Essay Example The increase in oil prices has led to the increase in production cost in these industries. Since Sweden is a big importer of oil, this increase will lead to a decrease in output and an increase in the rate of inflation. Since an increase in inflation rate reduces the level of unemployment, this increase in oil prices will also lead to a reduction in unemployment. The increase in oil prices cause capital input to reduce since it has become expensive to operate machinery and hence a decrease in the marginal product if labor. This will cause the short run and long run aggregate supply curves to shift leftwards. Since the increase does not affect the demand side components, the AD curve will not move. The nominal wages and prices will rise from a low point to a high point. The rise in price level will lead to a decrease in the real money supply. It will also lead to a rise in interest rates from a lower rate to a higher rate. This is a reduction in the investment factor aggregate demand. The consumption factor also decreases despite the government expenditure not changing. The shock caused by the supply side is similar to that caused by the demand side, the main difference being that it causes inflation and deflation1. In cases where the country would want to treat the shock caused by the supply side as it treats that caused by the demand side b y trying to stimulate the economy by using monetary or fiscal policies to shift the aggregate demand curve it will not succeed. This is because the nominal wages are only sticky downwards and attempting that would cause the inflation to increase further making the economy to deteriorate. In the short run, the aggregate supply curve will move to the left from short run AS1 to short run AS2. The intersection between the short run AS2 and AD 1 moves upwards towards the left. At to a higher point .At this high point, output decreases, and the price level increases. This forms short run