Business Law and ethics Assignment Example | Topics and Well Written Essays - 1500 words

Business Law and ethics - Assignment Example Carbon emissions are dangerous and therefore undesirable in the country. Companies that put this factor into consideration set de facto standards and, therefore, have a competitive advantage. The paper will examine how the effects of climate change on automobile  will affect their overall performance in the  industry. This may call for adoption of new technology that is both low cost and will ensure high quality of products. Carbon constraints determine the convectional value drivers within the industry that will significantly create challenges for senior managers. Carbon constraints interact well with established efforts to improve fuel economy that will eventually drive prices up. This implies that climate change will have differential impacts on company’s financial performance by creating a distinction between those companies that will ultimately be exposed to these risks. The traditional business model, which is based on tradition measures of demand and supply that affect tangible measures like sales volume, pricing, margins and profitability, and intangible measures like brand recognition, innovation and quality, will be affected. Management’s concern will be  to conduct business operations with  alignment of strategic missions in a world faced with declining profits, tighter policies and shorter product life spans. Companies will be forced to adopt a carbon-friendly technology to reduce carbon emissions as this will  have the potential to alter long-term competitive balance within the industry. However, the biggest challenge is to determine which technologies will be accepted by the markets standards. An example of technology utilized in the automotive industry is the incremental technology which will offer opportunities for the fuel economy. Companies will also be forced to adopt a merger strategy of partnering will others which an ai m of reducing costs. New entrants into the market will face high overhead costs compared to those already in