Automobile Manufacturing Industry Australiaâ€Myassignmenthelp.Com

Questions: What Are The Key Factors And Trends Which Affected The Automotive Industry Of Australia Which Was One Of The Booming Industry? To Identify The Trends Of Customers Which Drives The Business For Australian Automotive Industry? To Investigate The Reason Behind The Decline Of Such Huge Industry Which Affected The Economy And Unemployment In Australia? Answers: Introduction The automobile industry of Australia is one of the successful and emerging industries after the Second World War. The automotive industry of Australia plays an important role in the economy and it is boosting innovation and investment and is also driving wide scale industrial activity. Australia is the only industrial country which lacks vehicle assembly. The Australian car manufacturing sector is so small that each company had to rely on each other for their survival. The purpose of this research paper is to analyse the reasons for the sudden collapse of the automobile industry of Australia. It will also help to find out the factors which will be necessary for the growth and survival of the automotive industry. This paper will also highlight the specific reasons as to why the automotive manufacturing industries had to rely on foreign products as their inputs (ONeill, Sohal and Teng 2016). Background and significance Australia is the first country who manufactured cars and it has helped them in designing their culture. The financial constructors played an active role in the beginning of aircraft and car development. General Motors manufactured their cars in Australia by importing the spare parts from UK and USA. They also provided support to the Australian military vehicle and thus designed their armoured vehicles, aircraft engines and weaponries. Holden Group also had built more than 10 million cars in Australia and they were trying to produce more cars. Moreover, this industry has also provided employment to many workers and there are many small businesses which have supports this industry. Recently, the two leading car manufacturers in Australia i.e. Mahindra and Toyota have decided to stop their production by the end of 2017. Toyota has stated it might start up is production if they find improvement in the automotive industry. There are several important reasons for the downfall of the Austra lian car manufacturing industry. The automotive industry cannot exploit economies of scale because the Australian market is very small. Moreover, to survive in such markets there were no other options available but to use cheaper foreign production inputs including labour. The domestic market conditions has become weaker due to lower import tariffs and also signing of Free trade agreement. Moreover, better working conditions and higher wages were demanded by the union and it became difficult for the automotive companies to fulfil their demands of the labourers. Although Ford and Holden has announced that it will retain its RD activities in Australia but there is a big doubt that these companies will move their RD activities closer to their manufacturing plants. With the downfall of car manufacturing industries, it is vital to spend more amounts in RD activities so that it does not affect the other sectors of the economy (Ulengin et al. 2014). Research boundaries This research paper will be restricted only on the automotive industry of Australia. It will draw a close comparison of the leading car manufacturers of Australia i.e. Toyota, Holden, Iveco, Paccar Inc. and many more. Report outline This report will start with an introduction and then it will review the relevant existing literature (Section 2). It will also outline the methodology that is used to gather data and address the research objectives (Section 3). Section 4 will highlight the results while the final Section 5 will draw conclusions and makes recommendation to address the management issu Literature Review/Theoretical Framework This section will review literature on the downfall and growth of automotive car manufacturing industry in Australia. Section 2.2 will highlight the implications from the literature impacting on this study. Darux (2014) has stated that financial crisis is the main reason for the downfall of the Australian manufacturing companies. These companies had to outsource a majority of their processes to other companies and thus ensure that there is no effect on the production facilities. Jasinski, Meredith and Kirwan (2015) have highlighted the processes of outsourcing rather than giving more preference to in-sourcing activities. It has been found that the process of in-sourcing in times of lower sales volume has been attracting the employees and the manufacturers for full utilisation of their existing capacity. Stanford (2017) has highlighted that the automobile companies has faced a pessimistic outlook in domestic sales, costs and export opportunities. Stanford has drawn a close comparison between the automotive industry of Australia and Canada. Gnther, Kannegiesser and Autenrieb(2015) has stated that the production of automotive components in Australia is larger than Canada and it has also be en developing in RD activities. The continuous influence of the fiscal incentives in the previous years has made the RD activities of Australia very strong. Moreover, trade liberalization has eliminated the rationale to manufacture vehicles in Australia. The overvaluation of the Australian currency which is combined with political and inconsistent approach has led to the demise of Australian automotive industry. The incentive program has also tried to foster innovation in Australia. According to Hua, Oliphant and Hu (2016), the manufacturing industry is posed with several of recovery and it has created jobs for millions of workers. There has been certain economic indicators that are helping the Australian manufacturing industry to recover its real output which has fallen to a very low level. Yan and Fang (2015) has opined that the profit margins of the Australian manufacturing industry are also falling and the Government is trying to take several steps to protect these industry. According to Chen, Feldmann and Tang (2015), there were some external causes for the decline of the manufacturing industry and this industry is trying to adopt the western style. Ong (2016) has opined that tax evasion by the tax payers is one of the main reasons for the death of the manufacturing industry of Australia. Galliers and Leidner (2014) has highlighted that the role of planning, operations assessment and budgeting is linked directly with the strategic plan of an organisation. According to Gamble and Thompson (2014), it is important to assess and evaluate the effectiveness of a strategic map and the development of balance scorecard as an important management tool. Wheelen and Hunger (2017) has stated that strategic management has helped in the long term development of the organisation. Peppard and Ward (2016)has opined that strategic management will help in the revitalization and also to bring changes for the improvement of business plan. There are certain gaps in the above mentioned literature. Darux has focused only on the financial condition of Australia as the main reason for the downfall of the automotive industry. He has not given more importance on in-sourcing and its advantages which is a crucial factor in this era of globalisation. There are certain other factors which needs due consideration in this case. The downfall of the automotive industry has also affected the other industries on a large scale. The research work of Stanford also highlighted a close comparison of the automotive industry of Australia and Canada but it has not specifically pointed out the reasons of downfall of the companies in Australia. The methodology of a research will discuss the underlying methods and process which will be followed in meeting the research objectives. This section describes the design adopted by this study to achieve the aims and process objectives stated in Section 1.3. Section 3.2 discusses the methodology (or sources of data) to be used in the study. Sources of data and justification In this research, quantitative data will be used to identify the growth and downfall of the car manufacturing companies of Australia. The choice if quantitative data will help to find how the downfall of the various car manufacturing companies will affect the other leading sectors of the economy. Data will be collected from the annual reports of Ford, Holden and Toyota. Moreover, some data will also be collected from the annual reports of the companies which provide different kinds of inputs to these leading companies (Wright and Lansbury 2014). Data will be collected from the primary sources also. Surveys will be carried out for the customers of these leading companies. The customers of the leading automobile companies will be asked to provide feedbacks and thus the evaluations will be carried out on this basis. Data will also be collected from people of both the genders who are in the age group of 25-40 years. This data will be collected through random sampling and thus it will hel p to keep the sample group as homogenised as possible. It will also help to prevent biasness of the research output. Non probability sampling method will be used to reduce the biasness in the project. Moreover, descriptive research design will be used to get rigid and flexible results. Activities 1st Week 2nd-6th Week 7th- 11th Week 12th -18th Week 19th-22nd Week 23rd -27th Week 28th-31st Week Selection of the topic Literature review and study of existing theories Data collection- primary Data Analysis Preparing Draft report Final Submission Details of specific techniques Data will be analysed from the annual reports by using SPSS and other statistical techniques so that it helps the researcher to monitor the downfall of the car manufacturing company. The reports of the leading companies will be analysed and studied and descriptive methods will also be used for the analysis. Random sampling method will be followed when data needs to be collected from the customers so as to avoid biasness. The customers will not be chosen based on the volume of sales or profitability of the companies. These will help the researcher to conduct the research successfully and there will be transparency in research work. The correlation conducted through Pearson correlation and regression will also help in meeting the research objectives (Bryman and Bell 2015.). Analysis of Results It is important to identify the customer base who will respond and provide accurate data in this research work. It has been found that the customers will prefer to buy cars from other countries because the local companies in Australia are charging huge amount of taxes and costs from the customers and thus they prefer to buy cars from other countries. The companies are also incurring losses because due to import tariffs and free trade agreements with other countries (Agana, Reeve and Orbell 2013). Several data were also collected from the annual reports of Holden, Ford and other leading companies who have decided to shut down their manufacturing plants in Australia. The reports of these companies have helped to make a comparison between these companies and also analyse the losses in the previous years (Marks 2013). The statistical report of the Australia will also give an idea of the number of unemployed people who have lost their jobs due to the downfall in this sector. Surveys and i nterviews will also be carried for the unemployed people who have lost their job. The business strategies which will be followed by these manufacturing companies will also be analysed and highlighted in this paper (Bell et al. 2014) Conclusions Thus, it can be said that the downfall of the Australian car manufacturing industry will incur a huge loss for economy as a whole. It will affect the RD activities of the other sectors and also affect the automotive industry. Australia is one of the most competitive economy and it has tried to keep the prices low despite all other factors. But due to avoidance of a large sum of taxes, Government of Australia has imposed a huge sum of penalty and these companies have decided to shut down their plants. Moreover, the foreign cars became cheaper and this attracted the people to purchase them and thus it has led to the downfall of the Australian car manufacturing companies. Due to cheaper imports, it has become easier for the Australian car buyers to purchase these cars. Moreover, the economy of Australia is surrounded by various countries where labour is cheap and the costs of materials are also very low. It can be suggested that the import tariffs in Australia must be raised so that the local car manufacturing companies can run their business successfully. The import tariffs on these manufacturing companies which were resumed due to certain reasons must again start its operation. Moreover, better working conditions and higher wages were demanded by the union and it became difficult for the automotive companies to fulfil their demands of the labourers. The collapse of this automotive industry also affected research and development. Thus, it is important to for the Government to find out certain steps so that it can protect these companies. References Agana, B.A., Reeve, D. and Orbell, J.D., 2013. An approach to industrial water conservationa case study involving two large manufacturing companies based in Australia.Journal of environmental management,114, pp.445-460. Bell, J.M., Frater, B., Butterfield, L., Cunningham, S.D., Dodgson, M., Fox, K., Spurling, T. and Webster, E., 2014. Securing Australia's future: The role of science, research and technology in lifting Australian productivity. Bryman, A. and Bell, E., 2015. Business research methods. New York: Oxford University Press. Chen, L., Feldmann, A. and Tang, O., 2015. 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