Project Two

CompetencyIn this project, you will demonstrate your mastery of the following competency:
• Analyze quantitative and qualitative data to solve problems and make decisions that
impact organizations and their stakeholders
Scenario
You have been asked to present your data findings and decision-making modeling to the
leadership panel for feedback prior to the stakeholder meeting presentation. The panel wants to
preview the charts and graphs that will be included in your presentation based on the research
you have conducted. They would like to see how you will use the data to inform your
recommendation, and how you will tell the story of that data.
Directions
Part 1: Using the research gathered in Project One, create a visualization for each of the
following, then summarize what the data is showing about:
A. The current state of the U.S. automotive manufacturing industry
a. Sales by fuel type (electric, hybrid, gas)
B. Current automotive industry trends
a. The trend toward different types of motors for the vehicles being made and
sold, such as electric and hybrid
b. Trends in customer demands such as vehicle color, extra features, and styles
c. Trends in the body types of vehicles sold (SUVs, trucks, sedans)
C. Trends in the chosen industry
a. Expected growth areas
b. Sales by type of products or services offered
c. Trends in customer demands
Then, provide a summary of all of the data visualized.
a. Summarize the collective data about both industries as a whole.
b. Determine what the data is not telling you about the chosen industry.
Part 2: Analyze three decision making models and select the one model that is best suited for
making your decision.
A. Analyze and provide an overview of the following three models and select one for
use. Resources are listed in the Supporting Materials section.
a. The Rational Model
b. The Intuitive Model
c. The Recognition-Primed Model
B. Explain your choice of decision-making model.
a. Why does your selection make the most sense for this project?
Supporting Materials
The following resources support your work on the project:
• Reading: Rational Decision Making: The 7-Step Process for Making Logical Decisions
• Reading: Intuitive Decision Making
• Reading: The Recognition-Primed Decision Model
Milestone One Template
Executive Summary
5/27/2024
Description of Problem
The company has been building engines for the automotive industry in the United States.
However, it is considering diversifying into another industry to explore new opportunities and
increase revenue sources. The diversification is to make the company products be utilized in
other industries, which will assist in mitigating risks linked to market fluctuations in the
automotive industry and increase the overall revenue. With this diversification idea, the
challenge is to identify an industry that has a promising future for the company, and that will
match the technological capabilities of the company. The diversification will reduce the
dependency on a single market and assist in capitalizing on emerging trends and technological
advancement in other sectors. An analysis of the current U.S. automotive manufacturing industry
will assist in knowing what exactly to look for while exploring the new industry. The new
industry, in this case, is the U.S. telecommunication industry.
Description of the Current U.S. Automotive Industry
The automotive industry in the United States accounts for 3 % of the U.S. GDP, with a
total value of 1.53 trillion dollars in revenue from road vehicles (Carlier, 2023). It is a major
player in the local and global economy, where it ranks second in the manufacture of motor
vehicles. In the United States, Ford, General Motors, and FCA are the major players in the
automotive industry, where they produce and sell more than half of the total industry output
(Klier & Rubenstein, 2020). The sector manufactures different types of vehicles, from light ones
to heavy trucks. Based on the fuel types, electric vehicles have a sale of 15%, 25% for hybrid
vehicles, and 60 for gasoline (Jung, 2020). Most of the sales are from the southern and Midwest
regions of the major automotive manufacturing hubs.
Current Automotive Market Trends
Trend towards Different Types of Motors
The automotive industry’s profound transformation stems from the shift towards
sustainability and environmental consciousness. There has been a major shift from traditional
gasoline engines to electric and hybrid motors. Stricter environmental regulations and increased
awareness of climate change is making customers to change their vehicle preferences (Klier &
Rubenstein, 2020). Governments from all over the world are implementing policies to reduce
carbon emissions. They are offering incentives for electric vehicle manufacture and purchases.
As such, most automotive manufacturers are heavily investing in research and development to
improve the range and affordability of hybrid and electric vehicles.
Trends in Customer Demands
There is a change in the features customers are looking for when purchasing a car. They
prefer vehicles that have advanced technological features and are aesthetically appealing on the
interior and exterior. Customers are checking for safety features such as automatic emergency
braking, lane-keeping assistance and adaptive cruise control. They are also going for vehicles
that have features such as WI-FI, integrated GPS and advanced driver-assistance systems. They
are also keen on the exteriors and interiors of a vehicle such as the trims, color choices and
finishes to fulfill different tastes.
Trends in Body Types
The purpose of purchasing a vehicle is to make a customer choose a certain body type. Currently,
consumer preferences is more versatile on trucks and SUVs. SUVs are preferred for their
spacious interiors, safety features, and higher seating positions. Individuals who want a vehicle
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for more cargo and family uses highly prefer these vehicles, thus there is a decline in the demand
for the sedan.
Description of the New Industry
U.S. Telecommunication Industry
The telecommunication industry plays an essential role in the modern connectivity for
both personal and business communications. The industry provides services such as internet
access, fixed-line telephony and mobile communication.
It is an attractive industry due to the high growth potential driven by the escalating
demand for faster and more reliable communication. Various business sectors need strong
telecommunication infrastructure because of digital transformation. Technological advancements
such as the innovation of fiber optics, Internet of Things, and 5G network are contributing to the
growth of the telecommunication industry. These advancements are increasing the reliability and
speed of communication networks. The increased Internet penetration in urban and rural areas is
enlarging the customer base, thus increasing the demand for high-speed Internet services.
The Federal Communications Commission valued the United States telecom industry at
133 billion U.S. dollars in 2023, which reflects the extensive infrastructure of the industry
(Taylor, 2023). The industry is expected to grow even further with the ongoing investments and
upgrades in networks. Telecommunication services are available nationwide, but they get a lot of
revenue from the urban areas where a lot of people have settled and have a lot of businesses.
Current Market Trends in the New Industry
The industry’s trending products and services include 5G services, which provide faster
download speeds, and fiber optics, which provide internet services using high-bandwidth
applications such as online games and streaming (Liu, 2022). The customer demands in this are
high-speed internet, reliable mobile services, and integrated digital solutions. These demands are
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from individuals and businesses that are looking for seamless connectivity across different
platforms.
Appendix A
Explanation from Porter’s Five Forces Analysis of the New Industry
Rivalry among Existing Competitors
Intense competition exists in the U.S. telecommunication industry from established
companies such as Comcast, T-Mobile, and AT&T. These companies compete in service quality,
prices, and technological advancements to ensure each gets a significant market share.
Threats of New Entrants
The threat is low due to the high capital investment required for infrastructure, brand
loyalty to already established customers, and strict regulatory requirements.
Bargaining power of Suppliers
The power is moderate as suppliers offer critical infrastructure development components
and advanced technologies. However, the established companies have several suppliers, making
it easy for them to negotiate favorable terms.
Bargaining Power of Buyers
The power is high as there are several choices, and the customers can choose the telecom
providers and thus can easily switch services to where they find better deals.
Threat of Substitute Products
The threat is moderate since even though traditional telecom services experience
competition from internet-based communication services, the need for reliable internet and
mobile services neutralizes this threat.
Appendix B
Summary of Findings from Porter’s Five Forces Analysis Comparing Both Industries
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Rivalry among Existing Competitors
In the two industries, there is high competition from the already established brands such
as Ford and General Motors in the automotive industry and Comcast and Verizon in the
telecommunication industry. These established companies compete for a larger market share,
have heavily invested in innovation and have competing marketing strategies. The
telecommunication industry is in high demand for high-speed and reliable connectivity for both
businesses and individuals.
Threats of New Entrants
In the automotive industry, the threat is moderate, and low in the telecommunication
industry. There are higher barriers to entry in the telecommunication industry than in the
automotive industry. The regulatory compliance, capital investment required, and extensive
infrastructure make it complex for the new players to enter the new market (Skiti, 2020). In
contrast, even though substantial capital is required in the automotive industry, new companies
can join the industry by leveraging technological advancements to enter the market.
Bargaining Power of Suppliers
The two industries are experiencing moderate to high supplier bargaining power, though
in different dynamics. The power in the automotive industry is higher for certain specialized
parts, while in telecommunications, multiple suppliers and negotiable contracts mitigate the
power.
Bargaining Power of Buyers
In the two industries, buyers have bargaining power as there is the availability of choices
and comparison tools. In the automotive industry, the power comes from the different brands and
digital platforms that offer information, while in the telecommunication industry, there is a high
switching ability and multiple service options that give buyers significant leverage.
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Threat of Substitute
The two industries face moderate threat, though the nature of these substitutes differs. In
the automotive industry, the substitute comes from alternative types of vehicles and
transportation methods. In the telecommunication industry, the substitute is from Internet-based
communication services such as Voice over Internet Protocol.
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References
Carlier, C. (2023). Automotive industry in the United States-Statics and Facts. Statista.com.
https://www.statista.com/topics/1721/us-automotive-industry/#topicOverview
Jung, H. (2020). Fuel economy of plug-in hybrid and hybrid electric vehicles: Effects of vehicle
weight, hybridization ratio, and ambient temperature. World Electric Vehicle
Journal, 11(2), 31. https://doi.org/10.3390/wevj11020031
Klier, T., & Rubenstein, J. (2020). Overview of the U.S. Automobile Industry. New Frontiers of
the Automobile Industry: Exploring Geographies, Technology, and Institutional
Challenges, 41-66. https://doi.org/10.1007/978-3-030-18881-8_2.
Liu, X. (2022). Enabling optical network technologies for 5G and beyond. Journal of Lightwave
Technology, 40(2), 358–367. http://dx.doi.org/10.1109/JLT.2021.3099726
Skiti, T. (2020). Institutional entry barriers and spatial technology diffusion: Evidence from the
broadband industry. Strategic Management Journal, 41(7), 1336–1361.
https://doi.org/10.1002/smj.3146
Taylor, P. (2023). Telecom in the United Stated-Statistics and Facts. Statista.Com.
https://www.statista.com/topics/11603/telecoms-in-the-us/#topicOverview
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Appendix A
Figure 1: Explanation from Porter’s Five Forces Analysis of the New Industry
Appendix B
Figure 2: Summary of Findings from Porter’s Fi
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