(Solution) 5CO01 impact of tariffs and supply chain disruption on Artiron Motors
Solution
Tariffs
Tariffs are identified as the collective taxes which are imposed by the government for the imported goods and services. For example, in Artiron Motors operating in UK, five European countries, the US and Canada, the individual governments have set tariffs for vehicles being procured.
This is with an intention of generating revenues and shielding domestic industries from foreign competition. For example, in the UK case, tarrif rates are capped at approximately 0.10% from December 2024 with the current rates upto 5.04% due to economic depreciation (Bank of England, 2024). The Bank of England (2024) identify today tariffs approximately 3.9% which is anchored on UK strategy to ease their monetary value to support economy growth with concurrent maintenance of inflation at the normal 2% cap. Hence, UK, five European countries, the US and Canada operations by Artiron Motors would increase the vehicles.
Priority– Considering the increasing tariffs, the priority for Artiron Motors needs to entail initiating a sustainable financial goal. This is noted by Rosa (2024) to be being futuristic, adapting to emerging changes and using data to make decision for ensuring leverage on the opportunities in place for their vehicles. As part of people practice professionals’ function, this can include reducing the costs incurred in the management of their operations. This is with financial stability attained and developed.
Supply chain disruption
In CIPD (2023), supply chain disruption entail significant macro-economic shocks which trigger increased global supply chain disruptions leading to issues including economic effects such as inflation, output stagnating and corporate margin decay. In regard to supply chain disruptions internationally, there has been an increase with a recent report in February 2025 identifying it as being 2.8%. This is an increase from the previous 2.5% in October 2022 (ONS, 2025). For Saudi Arabia where Artiron Motors has their subsidiary, their inflation rates are at 2% from February 2025 which is a significantly stable inflation rate hence supply chain disruption.
Priority– For identified supply chain disruption rates in the increase, Artiron Motors organisation is supposed to set their priority to improve efficiencies to invest in organisation partio restructuring. According to Ledro et al. (2022), these monetary policies in place imply attracting young and tech savvy vehicles buyers, high value/profile clients and leveraging on competitive advantage successfully. This means the most qualified HR professionals would be engaged in the organisation operations.
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