Global Marketing and Sales

Assignment 2
Murat DEVECI – L4489
Abu Saleh Md Tarique Adnan- M3061
Short Overview Of Sauer-Danfoss
• Sauer-Danfoss is a comprehensive subsupplier of mobile hydraulic solutions
• as either components or integrated systems to manufacturers of mobile
equipment
• in agriculture, construction, material handling and road building, as well as
specialty vehicles in forestry and on-highway.
• With more than 7,000 employees and 24 factories in North America, Europe
and East Asia,
• Sauer-Danfoss is among the largest manufacturers and suppliers of mobile
hydraulics in the world today.
• Sauer-Danfoss has its principal business centers in Ames, Iowa (US),
Neumunster (Germany) and Nordborg (Denmark)
Ques 1:
What political and economic factors in the global environment would have
the biggest effect on the future global sales of Sauer-Danfoss
hydraulic components/systems to manufacturers of construction and
mining equipment?

• Political Stability KEY Construction And Mining Equipment Sectors.

• Countries Politically Stable Will Invest In The Infrastructure Sector

• India and China Huge Demand Construction And Mining Equipment

• The Economic Factors Tariffs, Subsidy And Condition Of Local Industry

• Economic Condition Is Not Goods Cannot Invest On The Infrastructure Sector.

Ques 2: Which political and economic factors in the global
environment would have the biggest effect on the future global
sales of Sauer-Danfoss hydraulic components/systems
to manufacturers of agricultural machinery
• Depend On To What Degree The Government Intervenes In The Economy.
• Interference Of The Government Countries Like Venezuela, North Korea, And
Iran Etc.
• Demand Agricultural Machinery Very Low.
• Economical Factor :
 Interest Rates Economic Growth,
 Exchange Rates
 The Inflation Rate.
Ques 2: What are the biggest problems in forecasting future
demand for a sub supplier such as Sauer- Danfoss?

• In Forecasting Future Demand The Technology Is Changing Very Rapidly All

Across The World.
• Need To Change With The Technology.
• The Sales Depend On The Overall Economy Of The World.
• Intensified The Competition.
• Mining Is Considered As Illegal (In Many Countries)
• Natural Resources Are Getting Depleted Very Rapidly And It Will Take
Thousands Of Years To Replace Them Back
(Cont.)
• The government provides
quotas and subsidies to the farmers.
• They get government support within the form of
small finances and micro loans for buying the machinery negligible interest
rates
• Government taxes cost higher difficult for farmers to buy

• Government’s ban of import/export from certain nation from where

unfortunately the parts are getting manufactures can also lead to direct impact
on their business.