Business Studies coursework Task 8 continued: :: Business and Management Studies

Business Studies coursework Task 8 continued: Latest news shows that the car company, MG Rover will be taken over by a Chinese car manufacturer. This may vastly affect the sales of car production for the MG Rover Company. The company ‘Shanghai Automotive’ will own 70% of the company whilst MG Rover owning 30%, which means that the company may change names and affect customer’s who already own a MG car, meaning they may feel unhappy with the change, as the company production maybe moving to China. This means sales and customer satisfaction may change dramatically for the business. As the company is taking over (Shanghai Automotive) this means that they are going to inject around  £1 billion pounds aiming to make over 100 million cars a year. This means saving over 6000 jobs that would have been depleted if the Chinese car manufacturers had not come up with the money to save the business. This maybe recognised by the public, meaning that they like the new changes as they will be able to carry on with their job. However, the problems that have occurred are that they want to concentrate the main manufacturing of the car over in China, and bringing machines and technology over to Britain, but only are considering making around 200,000 cars. This means that the cars available are lower, and that people who buy the cars may think that they are buying a British car, but are buying a car exported from China, which they may not like. Especially if something goes wrong with the car that they have bought, they do not know if there are local garages and car manufacturers near their homes. This could mean that the customer is unhappy as more expenses are being made just to satisfy there non-British car. They may also be against the fact that there car has not been made in Britain; therefore it can only be fixed if it was sent back to the manufacturers in China. Reports have shown that there are three types of cars that they will introduce under the new manufacturers ‘Shanghai Automotive’. The first will be the mid-sized family car, then the sports car, and finally a smaller car like the Rover 25, and also a sleek executive model. This is good news as we are promoting the MG-TF, which is a sports car, so in the future when we are promoting the MG-TF, we can be sure that sales will happen, because sports cars will still be made. As the production of cars is being extended to China, both ‘Shanghai Automotive’ and ‘MG Rover’ have said they are expanding the business