chapter four case study worksheet
Economics Update: chapter 4 Worksheet
Case Study: Fueling Automobile Demand
Article title At GM, Lutz’s Bets Starting to Pay Off
Source BusinessWeek, March 2, 2007
Activate Prior Knowledge
Complete the table with the terms below. low margin
Paper manufacture is, generally speaking, a low-margin business.
The company has shifted away from low-margin products. retail to sell (something) to customers for their own use no-haggle pricing
Not arguing over a price import buyers
Buyers who buy imported goods fleet To fade away cross-shop technique which some consumers use to get a better deal from automobile dealers
Category
Example
type of incentive
Solidary incentive types of automobile customers
Mechanics and
Consumers
people who purchase Kias amounts of profit gained from sales
Profit
Comparing cars to look at Toyota Camrys as well as Saturn Auras
Guided Reading Questions
Read these questions before you read the article and take notes as you read.
1. Which cars accounted in the rise in General Motors sales?
Chevrolet Cars
2. How did the automobile sales of U.S. manufacturers compare with those of foreign companies?
The U.S get their cars from other countries
Discussion Questions
Answer these questions on a separate piece of paper.
1. Why is it significant that shoppers who were looking at Hondas, Nissans, Toyotas, and Volkswagens were considering Saturns as well?
Saturn reports double and tripledigit increases in reverse crossshopping figures with the new vehicles it has launched.
2. Why is GM trying to switch focus from fleet sales to retail sales?
They cut fleet sales 15,000 vehicles in Feburary as the company tries to focus on selling higherpriced cars to retail customers.
3. What is GM’s strategy for increasing demand for the Saturn?
They launched a brand called “ A Different Kind of Car Company.”
Case Study: Fueling Automobile Demand
Article title At GM, Lutz’s Bets Starting to Pay Off
Source BusinessWeek, March 2, 2007
Activate Prior Knowledge
Complete the table with the terms below. low margin
Paper manufacture is, generally speaking, a low-margin business.
The company has shifted away from low-margin products. retail to sell (something) to customers for their own use no-haggle pricing
Not arguing over a price import buyers
Buyers who buy imported goods fleet To fade away cross-shop technique which some consumers use to get a better deal from automobile dealers
Category
Example
type of incentive
Solidary incentive types of automobile customers
Mechanics and
Consumers
people who purchase Kias amounts of profit gained from sales
Profit
Comparing cars to look at Toyota Camrys as well as Saturn Auras
Guided Reading Questions
Read these questions before you read the article and take notes as you read.
1. Which cars accounted in the rise in General Motors sales?
Chevrolet Cars
2. How did the automobile sales of U.S. manufacturers compare with those of foreign companies?
The U.S get their cars from other countries
Discussion Questions
Answer these questions on a separate piece of paper.
1. Why is it significant that shoppers who were looking at Hondas, Nissans, Toyotas, and Volkswagens were considering Saturns as well?
Saturn reports double and tripledigit increases in reverse crossshopping figures with the new vehicles it has launched.
2. Why is GM trying to switch focus from fleet sales to retail sales?
They cut fleet sales 15,000 vehicles in Feburary as the company tries to focus on selling higherpriced cars to retail customers.
3. What is GM’s strategy for increasing demand for the Saturn?
They launched a brand called “ A Different Kind of Car Company.”