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It is of concern that several attempts at making Nigeria an automobile producing country have not yielded much success. This paper aims to re-examine the history of automobile manufacturing and the consequences of auto policies of successive governments towards having a viable automotive industry in Nigeria and the lessons therefrom.

Dispersed data were assembled from both primary and secondary sources on the automobile industry activities in Nigeria. The historic data cover Nigeria’s vehicles need, production levels, importations and local content developments. Time series data on Nigeria’s crude oil prices and the devaluation of the local currency were obtained and analyzed to elucidate effects and provide the trajectory. A comparative analysis of the policies of successful countries with initial status with Nigeria was carried out to elucidate the policy pitfalls in Nigeria’s industrial policies.

The automotive policies in Nigeria are not self-sustaining. It has been curiously observed that the automotive policy on import substitution and local content development approach did not include the key components in automobile manufacturing, making it a footloose industry. Nigeria’s crude petroleum mono-economy affects the manufacturing sector negatively. A fall in international crude oil price causes free fall of the country’s currency in the international market, the cost of imported new vehicles and parts become prohibitively high, consequently, individuals, as well as corporate organizations, resorted to imported fairly used vehicles and parts for their transportation needs. Capacity utilization dropped abysmally.

Nigeria’s experience has demonstrated the critical role the government can play in safeguarding the automobile industry in the developing economies. Apart from diversification of the economy, there is a need, therefore, for a more refined and pragmatic approach in the formulation of policies to enable only genuine investors to operate in the automobile industry which hitherto has been an all-comers affair with many taking advantage of unguarded and unguided government incentives.

This chapter explores the opportunities and challenges for Western firms that wish to engage in manufacturing operations in Iran, and particularly in the automotive industry. Although Iran has a long and fruitful history of embracing foreign investment, collaboration with foreign firms suffered in the aftermath of the Islamic Revolution in 1979. The imposition of UN sanctions in 2012, following the disagreements between Iran and leading Western powers over Iran’s nuclear policy, has resulted in a further exodus of foreign manufacturers from Iran, hurting the production quality, adoption of up-to-date technology and alignment to international standards for manufacturing, such as vehicle safety and engine emissions in Iran.

The removal of sanctions, contingent on the success of nuclear negotiations between Iran and leading world powers, could provide Iran with an opportunity to recommence manufacturing collaboration with Western firms. The case of the automotive industry discussed in this chapter indicates some of the challenges that Iran is likely to face if it once again wants to become a player in international markets.

This study aims to propose a new genetic algorithm for solving supply chain scheduling and routing problem in a multi-site manufacturing system. The main research question is: How is the production and transportation scheduled in a multi-site manufacturer? Also the sub-questions are: How is the order assigned to the suppliers? What is the production sequence of the assigned orders to a supplier? How is the order assignment to the vehicles? What are the vehicles routes to convey the orders from the suppliers to the manufacturing centers? The authors’ contributions in this paper are: integration of production scheduling and vehicle routing in multi-site manufacturing supply chain and proposing a new genetic algorithm inspired from the role model concept in sociology.

Considering shared transportation system in production scheduling of a multi-site manufacturer is investigated in this paper. Initially, a mathematical model for the problem is presented. Afterwards, a new genetic algorithm based on the reference group concept in sociology, named Reference Group Genetic Algorithm (RGGA) is introduced for solving the problem. The comparison between RGGA and a developed algorithm of literature closest problem, demonstrates a better performance of RGGA. This comparison is drawn based on many test problems. Moreover, the superiority of RGGA is certificated by comparing it to the optimum solution in the small size problems. Finally, the authors use real data collected from a drug manufacturer in Iran to test the performance of the algorithm. The results show the better performance of RGGA in comparison with obtained outputs from the real case.

The authors presented the mathematical model of the problem and introduced a new genetic algorithm based on the “reference group” concept in sociology. Robert K. Merton is a sociologist who presented the concept of reference groups in society. He believed that some people in each society such as heroes or entertainment artists affect other people. The proposed algorithm uses the reference group concept to the genetic algorithm, namely, RGGA. The comparison of the proposed algorithm with DGA and the optimum solution shows the superiority of RGGA. Finally, the authors implement the algorithm in a real case of drug manufacturing and the results show that the authors’ algorithm gives better outputs than obtained outputs from the real case.

One of the major objectives of supply chains is to create a competitive advantage for the final product. This intension is only achieved when each and every element of the supply chain considers customers’ needs in every function of theirs. This paper studies scheduling in the supply chain of a multi-site manufacturing system. It is assumed that some suppliers produce raw material or initial parts and convey them by a fleet of vehicles to a multi-site manufacturer.

This paper sets out to test the claim made in the lean production literature that the lean production system is universally applicable. The proponents of the lean production model insist that it will supersede both mass production and specialised batch production; but this paper argues that, whilst lean production practices have been adopted and adapted by many producers, batch production has an enduring value from both a work design and a manufacturing process design perspective. The paper reviews the evidence for the persistence of batch production and of craft work methods in both luxury vehicle manufacture and specialty component manufacture and highlights the conditions under which batch production remains viable.

Although the number of blue-collar industrial workers has been declining, manufacturing jobs continue to have considerable importance, even in technologically advanced economies. This study gives a voice to this often-overlooked group of workers, focusing on the Finnish vehicle industry.

The study assessed how manual workers in automotive manufacturing describe their job pride and how their accounts were related to conceptualizations of work orientation. The data included semi-structured interviews and an open-ended survey question on situations in which the respondents had felt proud of their work. The data were analysed using thematic analysis.

According to the results, the respondents had a high level of job pride in general, but the meaning given to this attitude varied considerably, depending on the situation. The study participants' work orientation was a mixture of instrumental and intrinsic traits. However, there were also respondents who did not experience job pride or who had lost it because of the work circumstances.

Relatively little research has assessed the importance of job pride in the context of industrial manufacturing. Recognizing job pride in its variety is crucial information for employers who aim to develop working conditions and employee retention.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

Change in culture brought about by effective leadership is at the core of this case. Therefore, two broad topics can be discussed using this case: organizational culture change and Change Leadership OR Role of leaders in organzational change.

The case was prepared using primary data collected through a series of interviews conducted with participants of the change process. The participants included R. Sivanesan, Senior Vice President (Quality, Sourcing and Supply Chain) of Ashok Leyland, many members of the quality team, production department, HR executives and members of the marketing team. Secondary data in the form of an interview of Mr Vinod Dasari published in a popular magazine Autocar Professionals and organizational documents/presentations used during the change process were also used to build the case.

In 2011, when Vinod Dasari took over as the Managing Director and CEO of Ashok Leyland (AL), he hired R. Sivanesan. The quality standards of the vehicles produced in the AL plants in 2011 was far from satisfactory. He decided to change this. Part A of the case discusses the challenges faced by Sivanesan and Vinod Dasari in bringing about a change in the quality management practices at AL. Part B discusses the steps they actually took and the change that resulted from it.

At the end of the case discussion, the participants will be able to develop an understanding of the various aspects of organizational culture and how it manifests itself; become aware of the underlying causes of resistance to change; critically evaluate and apply various theories of change management; create an action plan for changing the culture of any organization; and appreciate the role of leaders as change agents.

The central theme in this case is managing culture change within organizations through effective leadership. Instructors teaching courses in organizational theory, organization structure/culture and leadership will find this case relevant. It is primarily intended for use in MBA and Executive Education programs in Management.

Current literature presents limited measurement methods of quantifying manufacturers' performance with environmental concerns. The purpose of this paper is to construct a company performance index for benchmarking motor vehicle manufacturers (MVMs) with environmental concerns.

Methods of constructing the index include regression analysis, a modified linear method for normalizing variables and a geometric mean for aggregating variables into a single index I_MVM (index for MVMs). A case study is conducted in 12 MVMs from 2008 to 2017. A sensitivity analysis with the simple additive weighting method is performed to analyze how different aggregation methods affect the final value. The index I_MVM is assessed through a benchmark with three existing indices.

Three realistic considerations are identified from MVMs, based on which proper and transparent methods are chosen to construct the I_MVM. The construction of the index I_MVM has been assessed through a benchmark against the methodologies of three other indices. The results indicate that the new measurement is feasible and effective for MVMs to measure their company performance from an environmental perspective.

The construction of the index I_MVM can support policymakers with accurate statistics for decision-making. As a response to current imperative climate policies, this paper raises awareness of CO₂ emissions in vehicles' production. For statistical organizations and stakeholders in the investment world, this paper provides available and reliable statistics for trend analysis of different MVMs.

A new method is designed for constructing a company performance index for MVMs. Three environmental variables are identified based on literature, their environmental impact as well as their data availability from public documents. A ranking by manufacturer with environmental concerns is generated. This index can contribute with available statistics and useful insights toward decision-making.

As Czech export is widely considered the key to the economic development of Czechia, this chapter explores the relationship between microeconomic profitability among companies in selected TOP10 export industries and the macroeconomic development of the export itself. An investigation was carried out to compare the differences caused by the COVID-19 pandemic. In addition, the comparison is developed according to the size and concentration of ownership among exporting companies. Annual data are obtained from the Bureau van Dijk Orbis database to analyse profitability among 4,283 companies in 10 NACE industries from 2012 to 2021. We have obtained encouraging results, demonstrating that not only those less profitable companies affected export development. However, in general, our results emphasise the importance of those less profitable medium-sized companies for Czech export, within the manufacture of machinery and equipment, and the manufacture of motor vehicles in particular.