Public Policy and the rise of Business Enterprise Essay

Public Policy and the rise of Business Enterprise - Essay Example Due to the severe economic recession and other factors, the automobile industry was working below par. A general perception was created amongst the public so as to hate the automobile industry in such a manner that the general public was made to envy the automobile worker because of the increased wage rate within the automobile industry. This envious public policy led to a severe slump within the automobile industry and many of the automobile manufacturers were forced to almost close out their operations within the area but this attitude later changed and the change was brought upon by the Obama administration. Government Support to Home industry The other main emotional issue that has led to such an uproar in this article is because all these Big three American automobile manufacturers, who at one time, were about to go bankrupt and it was only the Obama administration that helped the automobile industry by offering them the Troubled Asset Relief Program (TARP) to survive the scare and reach such a position as described in this article. Stakeholders Stakeholders of the American automobile industry were also a part of this entire scenario and all the different groups of the stakeholders had their own personal interest in this. The major stakeholders concerned with the American automobile industry would be the owners of the automobile manufacturer, the employees within these automobile manufacturing companies, the government, the customers and the suppliers of these automobile manufacturers with each and every stakeholder having a personal interest. The owners would be worried about their personal investments within the company and with this increase in sales; the owners would get delighted as their returns would increase. The government would be worried about the increased level of unemployment had these automobile manufacturers ceased to operated due to bankruptcy. The improved figures in revenue would have saved the jobs. The employees would have been affecte d had they been redundant, the increased revenue have given them a hope of surviving. The customers would have to buy cars at high prices if the automobile manufacturer would have closed due to bankruptcy. The suppliers would have to find alternate customers if these companies would have closed (Drives, 2011). Policy options and implementation Public policy is usually a government action taken in order to answer any particular issue within a country; these actions are taken with respect to the legal and the administrative traditions prevailing in the country. The main issue within the article is the success story of the American automobile manufacturer namely Chrysler, General Motors and Ford. The success story starts with the initial failure that of these 3 big automaker manufacturers and how the government and the labor staff worked together to help companies like Chrysler and General Motors. The United Auto Workers worked together with General Motors to keep the Work force intact at a time when General Motor was about to go bankrupt. More recently, both General Motors and the United Auto Workers union are making to reach an agreement so that fixed costs can be reduced within General Motors. This shows how the company is working in order