The sales department manager for a U.S.-based company

 

Utilize information from industry and scholarly sources to inform problem solving and decision making

 


Scenario
You are the sales department manager for a U.S.-based company that builds engines for the automotive manufacturing industry. Your company is considering diversifying into other business opportunities where your motors can be sold to bolster the company’s portfolio and increase revenue. Based on your knowledge of the national sales landscape, your manager would like you to conduct preliminary research and prepare a presentation with your recommendation for a growth opportunity in a chosen industry that will allow for this diversification through increased sales. You have been asked to present at the next stakeholder meeting, where you will address internal and external stakeholders from across the company, such as customers, investors, and suppliers.

As a preliminary step in developing this presentation, your manager would like to see an executive summary of your research findings and evaluate your decision modeling.

Directions
Complete the Project One Template, linked in the What to Submit section below, and submit it for instructor feedback.

Part 1: Define
You will first conduct research on the U.S.-based automotive manufacturing industry. Then prepare an analysis report that addresses the following criteria:

Define the problem.
Explain the type of qualitative and quantitative data you will be targeting in your research.
Provide a broad description of the U.S. automotive manufacturing industry and its value. Include the following information:
Total value of the industry
Sales by region
Describe the current trends in the automotive market.
The trend toward distinct types of motors for the vehicles being made and sold, such as electric and hybrid
Trends in customer demands such as vehicle color, extra features, and styles
Trends in the body types of vehicles sold (SUVs, trucks, sedans)
Part 2: Research
In Module One, you will select an industry that you think would provide opportunity for your company. Using industry-specific and scholarly resources to inform your decision, prepare an industry analysis report that includes the following information:

Provide a broad description of the chosen industry.
Describe the overall attractiveness of the industry.
Is this an industry that has a lot of growth potential?
What outside factors are affecting its growth?
Identify the factors that have allowed competitors to be successful in this industry so far.
Summarize the overall value of the industry.
How is the industry currently trending?
Are there any barriers to entry? For example, is the new industry more regulated because your engine will be placed in a hospital laboratory.
Summarize the sales. Speculate if sales vary based on the region of the country. For example, there would be very few snowplow sales in the southern United States.
Define expected growth areas.
Describe the current market trends for the chosen industry.
What products or services are trending?
What are some current customer demands?
Perform a Porter’s Five Forces analysis to determine the potential success of moving into this chosen industry.
Explain your rationale.

 

Sample Answer

 

 

 

 

 

 

 

 

 

Executive Summary: Diversification into the Agricultural Equipment Industry

 

This executive summary outlines a strategic recommendation for our company to diversify its engine portfolio by entering the agricultural equipment industry. This analysis is a preliminary step in evaluating a new growth opportunity to bolster our company's revenue and market presence.

 

Part 1: Define

 

 

The Problem

 

The company's reliance on the automotive manufacturing industry presents a significant risk to its long-term stability and growth. The problem is a strategic risk management and growth issue: our core business is tied to a single, highly cyclical industry. To mitigate this risk and unlock new revenue streams, we must diversify our sales portfolio into a new industry that requires high-quality, reliable engines, thereby leveraging our core competencies.

Data Targets

 

To inform this decision, we will target both qualitative and quantitative data:

Quantitative Data: This includes specific, measurable data points such as the total market value of both the automotive and target industries, sales figures by region and vehicle/equipment type, and market share percentages for different motor technologies (e.g., electric, hybrid).

Qualitative Data: This involves non-numerical information such as expert opinions on future industry trends, customer feedback on existing products, and analysis of competitor strategies and market positioning. This data is crucial for understanding market sentiment and non-numeric trends.

 

U.S. Automotive Manufacturing Industry Analysis

 

The U.S. automotive manufacturing industry is a cornerstone of the national economy but is undergoing significant change. In 2024, the industry's total value was approximately $4.8 billion, with a projected growth to $13.8 billion by 2033, representing a strong CAGR of 10.6% during the forecast period.

Sales by Region: While comprehensive regional sales data can be complex, general trends indicate that sales of light trucks and SUVs are dominant across all regions, but are particularly strong in the Midwest and South. Passenger car sales have been consistently declining.