Powered by ProofFactor - Social Proof Notifications

Amboseli Automobiles: Understanding the Impact of Country Variables on the Automotive Industry

Jun 11, 2023 | 0 comments

blog banner

Jun 11, 2023 | Essays | 0 comments

Part One

Organizational Structure

Functional Organization Structure

Amboseli Automobiles Limited Company has divided its key duties and responsibilities by use of various functions. These include research, marketing, and accounting. The director is in charge of each department in the company. The company adopted the use of functional organization structure so that the staff can specialize in areas of expertise and adopt well-defined career paths. However, the management is alert because the functional organization structure may result into conflicts between functional areas especially during planning and budgeting (Barrow & Brown, pg. 97). Besides, the company has established goals and objectives of each functional area or departments.

The company has grouped the employees together based on their functions and specific jobs within the organization. Amboseli franchise is headed by the president, who is the chief executive officer followed by the vice president. The organization is then divided into five departments namely; sales, engineering, accounting, customer service and administration departments. The department directors’ report directly to the vice president whiles the managers in the department’s report to their respective directors. The other staffs such as the clerks and coordinators report to their departmental managers.


People Also Read


Company Description

Amboseli Automobiles Limited is a business store that supplies manufactures automobile spare parts and auto lubricants in China. It covers close to 91% of the auto spare parts in the continent. The company shipments combine incorporate China made auto parts and lubricants with foreign parts conducting re-packaging and product labeling. The auto parts and auto lubricants sell an overall of 0,000 million in China and the Japan. In these marketplaces, most of the automobile spare part stores were started in 1970s. Coming up with auto spare part stores that focus on current cars and machinery produced for the last 10 years has challenged many industries.

The company established a widespread linkage with their customers in the entire region. Amboseli automobiles limited company stores automobile parts, auto lubricants, and heavy duty truck services. Amboseli operates in 62 different distribution centers with 6,000 stores with approximately 14, 000-auto repair facilities and more than 400, 000-inventory parts daily. The company serves automotive companies in China, japan and Korea.
Furthermore, the company is organized into a limited liability partnership company. Amboseli Automobiles Limited operates under an estimate of 9,000 square foot facilities in China. It is strategically located near China transportation hub that is crucial for the company’s markets. Amboseli automobiles limited control costs and facilitate rapid economic access to the potential markets for the company.

Company Locations and Facilities

Amboseli Automobiles limited is located at Main Street of China. The location enables a good access for the customers willing to seek our products and services. This location is advantageous due to the existence of the taxi firms in the region. The company targets the taxi firms to be out potential customers to its immediate vicinity. By locating within the proximity of China, it intends to enjoy a wide customer base.

Company Products and Services

Amboseli Automobiles limited sells the auto spares and auto lubricants to the potential customers in the region. Services also include automobile maintenance and offering advice to customers on the issues of mechanical automobile problems or concerns. Additionally, it offers educational services to the interested parties in focus of assisting the government reduce unemployment rates in the country. Amboseli Franchise’ products include the following: transmission parts, engine spare parts, electrical spares and other automobile services.

Company Operation

Amboseli Automobiles Limited is located at the city center of China. The business sells auto parts and lubricants to the potential customers in the market. The location contains the auto spares and lubricants warehouse, office space, and a garage for all kinds of automobiles. Amboseli Automobiles Limited also has developed an ample parking for the customers who favor our products and services. Even though Amboseli Limited used an entry level market, the mix of the products efficiently met customer demands (Williams, pg. 201). The company stocks the customers’ product demands superbly and save clients’ money and time. The company operates from 8:00 AM to 6:00 PM from Monday all through to Saturday.

Company Development

The Company leased 3,000 of new square feet of the newly constructed 9, 000 square feet building. With time, as needs may dictate, our facility may be expanded to further 2,500-square feet. Amboseli Limited also shares the facility with another company involved in taxi operations in the region. This raises additional capital for the company. The business of the taxi firms has in the recent past attracted many other local automobile firms. In the light of this, Amboseli Limited meets more customers because of the strategic association with them.

Part Two

Country Variables

Automotive industry is regarded as one of the largest world industries which influence the performances of the nations and the lives of the citizens in environmental, economic and social way. Amboseli Limited assists the countries create job opportunities that increase tax revenue. The industry changes how people travel; however; the automotive industry is also affected by myriad industrial and environmental variables. Businesses depend on their ability to generate profits despite the variables affecting it. While some of the variables may be out of the company’s control, the company still succeeds as long as the potential impacts are adequately planned for to mitigate the effects.

Physical and Demographics Environments

The infrastructural development in the region leads to the growth of the business. With good roads, and communication development, most people buy automobiles that boost the business. Besides, transportation of the products from the company is made easier with advanced infrastructural development. However, in few occasions, traffic jams affect the delivery of some of the products from the industry. This occurs in few areas of the country that is poorly developed. This leads to the high cost of transportation and decreases revenue returns.

Demographic groups constitute people of dissimilar, income, educational levels, shopping habits, marital status, political beliefs, races and ages. A robust understanding of the demographic is crucial for marketing of the automobile company.
The company benefits from the demographics to establish on how many people own cars and the number of people operating taxi business. Changes in demographics constitute the external factors that affect the automobile business. Ideally, the shifts in demographics occur for numerous reasons. Besides, the changes may also become responsible for displacing the base of the clientele. Environmental factors, cost of living and lack of green pasture may result to movement of people. Consequently, a positive shift may be experienced. This may result in the increase of potential customers and clients. Demographics helps the business limit costly mistakes in the marketing plan. Besides, it aids the division of market into various target groups which enhance performance. However, the company demographic segmentation faces a stiff competition that limits the prosperity of the business.


The political factors mention actions by national and local administrators and political parties in connection to the international bodies, including world trade organization and the European unions. The European Unions is primarily responsible for policy implementation on an industrial market, development, research and competition. In addition, the European Union implements Whole Vehicle Type-Approval (WVTA) system which is focused on the harmonization of the technological requirements of the motor vehicles (Jaumotte & Pain, pg. 46). The body promotes fair competition through Industrial Corporation to aid the small scale Motor vehicles dealers.


The economic factors predispose the automotive business to both positive and negative impacts. During the economic boom periods, the citizens have more disposable income hence; they tend to buy more vehicles increasing the sales for the products. Furthermore, globalization greatly impacts the performance of the motor vehicle industry. It assists the industries save money, time and effort. The company has recruited talented international engineers and scientists from different countries to respond to the advanced technology and create a bubbling cauldron of the preexisting ideas applied by the company to develop their products, business innovations and technology. Globalization has also created outsourcing common in the automotive industry. Today, numerous automobile companies in India and China are outsourcing due to the low cost of labour. Available research shows that an engineer earning $4,000/month in United States costs $500 in china (Kotzab, pg. 81).
Furthermore, the increase in competition is also a common economic factor because the market is full of similar products; however, there may be a slight variation in motor and design. Sadly enough, the pressure created by the global financial crisis promotes the increase in competition in the marketplace. However, when the global stock market declines, the consumer buying power also declines. Specifically, in 2008 all the automotive manufacturers in the US registered a decline in sales; Toyota 32%, Honda 23% and GM 16%.


The branding of the company products is crucial for the customers’ decision in choosing the car brand they buy. Also, the global financial crisis greatly affects the behavioral and social aspect of the customers. This is because, many people in the country loses their jobs leading to declining in financial income and other resources. Primarily, this makes them focus on savings and spending on other basic needs. Consequently, the motor vehicle industry has a connection with the health of country residents. Currently, various health organizations encourage people to walk as the perfect form of exercising, thus promoting physical activity among people. Honestly, this s further influenced by improved facilities of public transport in various countries including China (Barrow & Brown, pg. 97).

On the other hand, the China people are becoming increasingly aware of the impacts of motor vehicle energy consumption in the environment, primarily the issue of global warming. Therefore, the residents of China shift their focus into activities that assist in saving the environment which leads the emergence of hybrid cars. The people are turning to hybrid cars which combine electronic and traditional internal combustion engines. This further assists in lessening the in traffic pressures and reduces the pollution levels.


The current research and development in the automotive industry has given emphasis to innovation to maintain competitive advantage. The industry is further affected by the technological maturity applied across the globe in the automotive industry. This is beneficial for the company since technology assists the internal and external company customers in terms of communication through the internet. In addition, it assists the company employees communicate with one another helping the save time and other resources.

However, the advancement in technology has also promoted the hotly debated issue of theft of intellectual property and fraud. Evidenced research by Barrow & Brown (pg. 97) indicates that the procedure of supplier sharing complicates the privacy of companies such as design of the products which constitute the crucial aspect of intellectual property law. Above all, the emergence of robotics in manufacturing and assembling of the motor cars helps in the reduction of costs of labour leading to improved return on revenue.


There are various national, and international laws implemented regarding safety, environmental protection, and health and employment aspects. Since the automotive industry is considered matured, and involved in marketing, global manufacturing, it is affected by the local laws of the country. Thus, the various national, local and international standards of handling safety, human resource and waste management affect the business. The local unions of the employees and non-governmental organizations constitute legal measures of employee protection.

Trade and Investment

With the government establishing policies favorable for business and developing the infrastructure, most people have invested on the taxi industry. Besides, the company is located next to a taxi company that uses its products. This leads to an increase in company sales and growth of revenue. However, the same government policy favors the establishment of other automobile companies. Kotzab, (pg. 192) observes that when companies target similar market segmentation, cut-throat competition is introduced. This has negatively impacted the company since it has to splash additional resources on marketing.

Foreign Exchange and Exchange Rates

A journal of Organization for Economic Co-operation and Development. (pg. 24) highlights that when the Company buys the raw materials from another country with a weaker currency, it works to the advantage of the company since it sells out less money on raw materials. Moreover, the fluctuation of prices in the international market leads to stiff competition. On the other hand, the company exports some of its products to part of North America and Mexico which has a stronger currency than the company motherland. The resultant product is increasing in the profit margin of the company.


Alexandrides, C. G. (1993). International business systems perspectives. Atlanta: School of
Business Administration, Georgia State University.
American Business Law Association. & Academy of Legal Studies in Business (U.S.). (2003).
            American business law journal. Hoboken, NJ [etc.: Wiley-Blackwell [etc..
Barrow, C., Barrow, P., & Brown, R. (2012). The business plan workbook. London: Kogan Page.
aumotte, F., & Pain, N. (January 01, 2005). Innovation in the Business Sector.
Keenan, D. J., & Riches, S. (2007). Business law. Harlow: Pearson Longman.
Kotzab, H., Teller, C., Grant, D. B., Copenhagen Business School. CBS, & Copenhagen
Business School. CBS. (2011). Factors Affecting the Execution of Supply Chain    Management:An International View. Frederiksberg.
Organization for Economic Co-operation and Development. (January 01, 2006). Potential
Impacts of International Sourcing on Different Occupation.
Williams, K. P. (January 01, 1996). British Business Law. The Journal of Business Law, 507-518.

5/5 - (6 votes)