Magna international

Topics: Automotive industry, Magna Steyr, Ford Motor Company Pages: 6 (1539 words) Published: April 1, 2014


Magna Inc., International Business Assignment
Mohammed Abu Allan
991 331 736
Sheridan College

Introduction
Magna is a Canadian corporation that primarily focuses on designing and engineering automotive parts. It is a multinational firm that has facilities scattered all over the world. Magna produces exceptional and high quality goods and services for its customers. It realises an excellent opportunity in the Chinese automotive business because China’s astonishing sales and manufacturing growth is the reason Asia dominates the world’s automotive industry. Magna concluded that China is a place where this company will become a stronger business. One of the opportunities Magna realises in China is the rapid increase in economic development which will assist the corporation to sustain customer’s needs. The second opportunity is to invest in social corporate responsibility and it could be suggested from the gathered information on Magna’s web site, to try and end child labour and hire over eighteen years old workers who used to work for Magna’s competitors and employ them to work for decent wages, therefor attracting companies that value moral conduct (Magna. (2013). about magna. Global Working Conditions). About Magna

Magna International was founded by Frank Stronach in 1969(Magna. (2013). About Magna. Our Founder (p.1)). It’s headquartered in Aurora, Ontario. It is one of the largest companies in Canada that manufactures car parts on a worldwide scale (Dexter, B. (1997, October 9). More expansion seen for Magna headquarters. Toronto Star) Magna always pursues innovation in technology and continuously searches for new and enhanced solutions for their partners and endeavour for top quality at competitive prices and customer satisfaction (Magna. (n.d.). Vehicle Engineering & Contract Manufacturing (P.3)). Magna has a wide range of services that contains five product groups engineering services, Vehicle Contract Manufacturing, fuel systems, battery systems for renewable energies and roof systems (Magna. (n.d.). Vehicle Engineering & Contract Manufacturing (P.2)). Magna made a profit of 23.3 million dollars at the end of the year 2007, up from 19 million in its previous year (Norris, G. (2007, March 8). Magna International: [ONT Edition]. Toronto Star). Magna is not a car brand, although it makes car parts for various car brands some of them are Infinity, Hummer, Chrysler, Fiat, Bentley, BMW, Bugatti, Buick, Cadillac and Mercedes-Benz (Magna. (n.d.). Our Customers). Judging by this list, Magna is a competitive vehicle parts manufacturer because most of its customers construct high quality vehicles that exceed one million dollars, I can only conclude that Magna is not like any other company in the industry, it manufactures high quality products.

Validity of business in China
Magna has been gradually expanding in Asia since the mid-90s and today has almost 10,600 employees at 40 manufacturing locations and 19 product development, engineering and sales offices. Asia is a diversified region and also a highly populated continent. It is currently experiencing rapid growth and industrialization. It is dominating the world’s automotive industry mostly because of the extraordinary sales and manufacturing growth in China (Magna. (n.d.). Asia.). “Tianjin is the sixth Powertrain location in China since their first site in Changzhou in 2005, and it represents Magna’s twenty sixth manufacturing facility in the country”(Magna. (n.d.). News Release (p.4)).

Opportunity
The Chinese government likes to think it is a socialist economy, countries perceive China as a capitalist economy. This, makes doing business in China less controlled by the government. Since China is experiencing manufacturing growth and labour there is cheap, it would make perfect sense for Magna to seize the opportunity and get in the Chinese automotive industry by opening a factory and compete with other businesses in the...

References: Apple-Foxconn... iSlave? (2012, February 12). YouTube. Retrieved from http://www.youtube.com/watch?v=9jOgRpO5i94
Dexter, B
Young, N. M. (2013, August 27) Magna Powertrain opens manufacturing facility in Tianjin Airport FTZ. - What 's On Tianjin. Retrieved from
http://www.whatsontianjin.com/news-7772-magna-powertrain-opens-manufacturing-facility-in-tianjin-airport-ftz.html
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