Magna International Inc. Essay
1.1 BACKGROUND INFORMATION
Magna International Inc. (Magna) is a manufacturer of automobile parts since its inception in 1957 (At the time was called Multimatic Investments Limited). Founded by Frank Stronach, Magna has since become Canada’s largest automobile parts manufacturer. Magna is the primary supplier of automobile parts to many car manufacturers, including General Motors, Chrysler, and Ford Motor Company.
The following discussion will draw upon Magna’s management strategy, its mission statement, where the company is currently, how the corporation is doing, and whether it is consistent with what Magna stated to do. A PEST analysis will take into consideration of the macro-environment that Magna is …show more content…
3.2 Political Factors and Trends One thing to recognize for Magna is that the company was non-unionized since its inception due to Frank Stronach’s beliefs against having one. Stronach has been well-known as an individual who disagrees of the philosophies of union organizations for many years, but in recent times it has changed.
On October 15, 2007, The Toronto Star broke news that Stronach has reached an agreement with the Canadian Auto Workers (CAW) in Toronto to join the union in a no-strike deal, completely reversing the non-union policy. (4) Stronach wanted to ensure stability for Magna in the auto industry as in recent times the auto industry has been taking some bumps which could greatly impact Magna financially.
What I mean by the auto industry taking bumps is due to the indirect pressures of Magna’s buyers including General Motors (GM), and Ford. GM, Ford and Chrysler LLC alone are one of Magna’s few major customers to supplying its auto parts to these companies. (5) GM, Ford and Chrysler alone are known as the Big 3 auto makers and are unionized with the Canadian Auto Workers.
The National Post has brought up an interesting point as to the reasoning behind Stronach’s decision to join the union, stating that Stronach is trying to