MGT726 Managerial Project

1.Define and relevance for a managerial decision/issue explained. Practicality of the RO(s).
2. Literature review clearly identifies relevant theories that are explained and correctly referenced. A minimum of 5 academic sources and 3 from industry.
3. Research design (RD) and method identified (qualitative, quantitative or mixed) and explained.
4. Process for the analysis of data defined.
5. Communication and professional presentation (check Module 6: Final Submission for Style Guide checklist/and-or PowerPoint Presentation guide)

Australia’s automobile industry has turned out to be one of the emerging and successful industries. This happened after the World War II. Australia’s automotive industry has been playing a crucial role in the economy. Moreover, it has been boosting the investment and innovation. It has been driving the broad scale activities in the industrial sector. The nation is the only industrial land lacking the assembly of vehicles. The manufacturing sector of the Australian car has been too small. Hence all the organizations have been needed to depend on each other regarding the survival.

The aim of this research has been assessing the causes for the all of a sudden decline of the automobile sector in the nation. This has also determined the factors needed for the survival and the development of the automotive, industry.

The study throws light on the particular causes why the manufacturing industries are needed to depend on the foreign products as the form of inputs.

All the doors for the car manufacturing industries of Australia have been shutting forever. Holden, The outpost of the general Aussies got highlighted on the month of October. This happened when the production line of Commodore felt SILENT. This has been just a couple of weeks after the shutting of the Toyota Camry factory. Australia has been regarded as the first nation to manufacture the cars. Moreover, it has helped the country to design the culture. An active role has been played by the Australian constructors to start the car and aircraft development. The General Motors has been manufacturing the cars in Australia through the import of spare parts from the United Kingdom to the United States. They have been also giving support to the military vehicle of Australia. In this way, the aircraft engines, weaponry, and armored b=vehicles are designed. More than about ten million cars are built in Australia. They have been trying to create more cars. Further, the industry has shown their caliber in employing numerous workers. Moreover, various small businesses have been supporting the industry. Currently, two of the leading car manufacturers in the Nation have taken decision to halt their production by the end of the current year. They are Toyota and Mahindra.

 The former one has revealed that this should begin the production has they identify any development in the industry. There have been, various vital causes for the decline of the manufacturing industry of Australian car. The industry never exploits the scale economies. The reason is that the Market of Australia has been very small. Further, in order to serve in this kind of market, there have no other scopes that are available apart from using the cost-effective the foreign production inputs. This also includes the labor. On the other hand, the conditions of domestic market have been turning weaker. This is because of the lesser import traffics. This also includes the agreement of Free trade. Apart from this, the situations of better working and the higher wages are been demanded from the side of the union. Thus it turned out complicated for the companies of the automobile to meet their demands regarding the labors. However, Holden and Ford announced that this must retain the R&D activities in the nation. However, there has been a huge confusion that those organizations would go for the R&D activities. This has been nearer to the plats of manufacturing.

Thus with the decline of the industries of car manufacturing, this has been important to spend higher quantity in the activities of R&D. This is such that it never affects the additional other sectors of the Australian economy. With the diverse, fast-changing and rich changing choice of the vehicles, the various fickle-minded purchasers have been shouting “Buy Australian”. This happened while driving the foreign cars. However, it has been no wonder the car industry has been unable to stand the chance. The people of Australia have been figuring out what have lost till now ultimately. The executive director of manufacturing of Holden has insisted that the Adelaide workers of the company have maintained the standards high right till the ending. During the final years of production, Holden has built the best quality cars categorically. This is to ever roll out of the plant. Their last car has been their best.

Research question and objectives:

1. To determine the customer trends that have been driving the business for the industry for the Australian Automotive.
2. To determine the causes behind the downfall of this kind of big industry affected by the unemployment and economy in the nation?
3. In identifying and exploring the strategy of business for the industry of manufacturing in the nation leading to the sustainability of the economy.
4. To develop and recognize the strategies of business with the help of the journals giving success in Australia’s manufacturing Automotive Industry.

Research boundaries:

The main restriction of the study is only in Australia’s automotive industry. This has been drawing the near comparison to the leading and popular car manufacturers in the nation. The instances of this include the Holden, Toyota, Paccar Inc and so on.

Report outline:

The report has begun with introducing and reviewing the current literature that is relevant to the theme. This has also outlined the methodology used to collect information and addressed the objectives of the research.  The following sections would throw light on the outcomes and reveal the conclusion with proper recommendations addressing the management issues.

Here the various literatures is reviewed on the growth and decline of the manufacturing of automotive car industry in the nation of Australia. This would highlight the various implications from the literature that has been affecting the study.

Identification of the Financial Crisis:

According to Daruz (2014), the crisis in the economy has been the primary cause beyond the decline of the companies dealing with manufacturing. The organizations have been needed to outsource most of the processes to the other companies. In this way, it has ensured that there has been no impact on the facilities of production. As mentioned in the article by, Jasinski, Meredith, and Kirwan (2015) the various processes of outsourcing are focussed instead on providing more preferences to the various in-sourcing activities. Moreover, it is also seen that the process of in-sourcing regarding the volumes of lower scales is attractive to various manufacturers and employees. This is to utilize the current capacity completely. On the other hand, Stanford (2017), discussed that the companies have been meeting pessimistic outlook regarding export scopes, costs, and domestic sales. Further, he has displayed a close comparison lying between the industries of Canada and Australia. The production of the automotive components in the nation of Australia has been higher than that of Canada. It has been also developing the activities in R&D according to Günther, Kannegiesser, and Autenrieb (2015).

Thus the continuous effect of the fiscal incentives in the past years has been making the activities of R&D in the country very strong. Further, the trade liberalization has removed the rationale of Australia’s manufacture vehicles. Further, the overvaluations of the currency of Australians have been assimilated with the inconsistent and political approach. This has led to the downfall of the automotive industry of Australia. Moreover, the incentive program has been also trying to foster the country’s innovation.

The economic issues:

Hua, Oliphant, and Hu (2016) and Chen, Feldmann and Tang (2015) stated that the industry has been posing with various recovery. The services could be denoted as the business rescue. All the aspects of the current and situations of the company are needed to be considered. An effective business recovery plan is needed to be implemented turning out the challenges all around. Further is has provided job opportunities for millions of employees. Further, Hua, Oliphant, and Hu (2016) and Chen, Feldmann and Tang (2015) agrees with the fact that there has been a particular economic indicator helping the manufacturing industry of Australia for recovering actual output that has fall onto a very lower level.

On this fact, Yan and Fang (2015) opine that the margins of profit of the manufacturing industry of Australia have also been declining. Further, the Australian Government has been taking various steps in protecting those industries. As mentioned in the article by Chen, Feldmann and Tang (2015) and Ong (2016), some external reasons have been present regarding the downfall of the industry. Thus the industry has been adopting the western style. Further, Ong (2016) along with Yan and Fang (2015) analyzed that the tax evasion done by the payers of tax has been one of the primary causes for the expiry of Australia’s manufacturing industry.

The economic issues: 

The factories require the scale economies their best periods. The local content of the cars made in Australia has been already facing the downfall. Only a thirty percent of the parts for making the Holden Cruze have been sourced locally. The Commodore has been just fifty percent of the Australian at the end as per the figures provided by the car makers of Australia.  

It has been highlighted by Galliers and Leidner (2014) and Peppard and Ward (2016) that the responsibilities of budgeting, operation assessment, and role of planning have been connected to the organizations strategic plan directly.     In their article Gamble and Thompson (2014), mentions that it has been crucial to analyse and then evaluate the efficiency of the strategic map. Moreover, it has been developing the balanced scorecard. It has been helpful in the organization’s long-term development. Further, both the articles by Peppard and Ward (2016) and Gamble and Thompson (2014) stated that the strategic management has been helping in the revitalization. It has been also bringing the changes regarding the development of the business plan.

Implications:

Various gaps have been present in the literature mentioned above. It is seen that the Daruz (2014) has concentrated on the financial situations of the nation. It has been the primary cause for the decline of the industry of automobiles. Moreover, he has never given significance to the in-sourcing and the various benefits that have been the important factor in this current generation of globalization. Next, there have been particular factors like job opportunities, charges on taxes. The financial crisis is needed to be the due considerations for this topic. The decline of the automotive sectors has also impacted the additional industries like transport, IT, tourism and so on, very highly. The research at Stanford has also demonstrated the near comparison over the automotive industries in the nations like Canada and Australia. However, this has not been particularly determining the causes of the decline of the organizations in the country of Australia.

The research methodology has been meant to discuss the underpinning process and methods followed in the facing the objectives of the research. It also analyses the design that has been adopted by the research for achieving the processes and aims. Moreover, it discusses the sources of data or methodology that has been needed to be used in the research.

Sources of data and justification:

Here the quantitative data has been used to recognize the growth and the decline of the numerous manufacturing companies of the car in Australia. The going of quantitative data has been used to seek the way in which the companies would impact the various other popular areas of the economy. The data is gathered from the various annual reports of Holden, Toyota, and Ford. Additionally, few data have been also gathered from the organization’s annual reports providing various types of inputs to those popular companies (Wright and Lansbury 2014).

The data is to be gathered also from the primary sources. Some surveys are to be done for the clients of these popular organizations. The clients of the leading automobile companies have been asked to deliver feedbacks. Hence the assessments are carried out on the basis of this. The data is also to be gathered from the individuals of both the genders who have been at the age of twenty-five to forty years. The data would be gathered by random sampling and thus it must be helping to keep the sample group as much homogenized as has been possible. This has also helped to safeguard the biasness of the output of the research. The non-probability method of sampling is helpful to decrease the project’s biases (Marks 2013). Further, the descriptive design of research has been used to retrieve the flexible and rigid outcomes.

Details of specific techniques:

The data has been assessed from the various annual reports. This is done through using the SPSS and the other techniques of statistics. Thus it has been helping the researcher to control the decline of the companies of car manufacturing. Those reports retrieved from the popular companies have been also studied and analysed. Further, the descriptive methods are also utilized for those assessments. As random sampling technique is needed to be followed as the data requires being gathered from the customers for avoiding the biases. Moreover, it is also decided that the customers would not be selected on the basis of the amount of profitability or sales. Thus it would be helpful for the researchers to undertake the research in a successful manner. Hence there would be the transparency in the research work. Additionally, the correlation that has been done via Pearson correlation and regression has been also helping to meet the objectives of the research (Bryman and Bell 2015).

Analysis of Results:

The identifying of the customer base has been important who must react and deliver the exact data in the study. Moreover, it has been seen that customers have preferred to buy the cars from the other nations. The reason is that the Australian local companies have been charging high costs and taxes from the clients. Thus they have preferred to buy the cars from the other nations.

  Further, the organizations have been incurring various losses because of the import tariffs and the agreements of free trades with the other nations (Agana, Reeve and Orbell 2013). Various data has been also gathered from the annual reports of the Ford, Holden and the other popular organizations. They have taken the decision to shut down their plants of manufacturing. Further, the reports of the organizations have been helping to create a comparison between the organizations. This also helps in analysing the losses every year (Marks 2013).

Australia’s statistical research has been also providing the concept of the amount of the unemployed people. These people have lost their jobs also. This is because of the decline in this area. The interviews and surveys have been also carried for those unemployed individuals who are found to lose their jobs. The strategies of business followed by those companies of manufacturing have been also highlighted and analysed in this study (Bell et al. 2014).

Conclusions

The project has compared the growth and fall of manufacturing of car manufacturing companies of Australia. The research is useful to find out the customer base that should react and deliver the exact data in the study. The reason is that of the high loses that has been taking place. The import tariffs are withdrawn making the various foreign imports cheaper and easier. Further the customer of those organizations has preferred to make use of those foreign cars. For the research questions the report has developed some queries. One of them is to explore and identify the strategy of business for the industry of manufacturing in the nation leading to the sustainability of the economy. The other instance has been the developing and identifying the strategies of business with the help of the journals giving success in Australia’s manufacturing Automotive Industry. 

It could be also said that the decline of the Australian manufacturing industry of cars has been incurring a huge loss for the overall economy. It has been affecting the activities of R&D of the various other areas. It has been affecting the automotive industry also. The country has been possessing one of the most economies in terms of competitiveness. It has also tried to place the process lower. It has been despite various other factors. However, because of the avoiding of the huge sum of taxes, the Australian of Government has been imposing large quantity of penalty. Thus the companies have taken the decision to close all their plants. Further, the foreign cars have turned out to be cheaper. It has attracted the people to buy them. In this way, it has lead to the decline of the manufacturing companies of Australian cars. In this report the primary method data collection is used as the research methodology. The analysis of the results has shown that customers have preferred to buy the cars from the other nations. The cause behind this is that the Australian local companies have been charging high costs and taxes from the clients. This is the reason why they have preferred to buy the cars from the other nations.

Because of the cheaper imports, it has turned out to be easier for the Australian car buyers for purchasing those cars. Further, the Australian economy has been surrounded by numerous countries. The labour charge has been chap there. The expense of the materials has also been low. This has been also suggesting that the import tariffs should be raised such that the manufacturing companies of the local cars running the business successfully. The import tariffs on those manufacturing organizations have been running the business a successful manner. The import tariffs on the manufacturing companies have been resumed because of the particular causes that must begin the operations again. Further, the better working situations and the larger wages are been demanded from the side of the union. This is to fulfil the labour’s demands.  Then the shutting down of the automotive industry has also affected the research and the development. In this way, it has been crucial for the Australian Government to seek the particular steps such that it could safeguard those companies.

References:

Agana, B.A., Reeve, D. and Orbell, J.D., 2013. An approach to industrial water conservation–a 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. The relationship between disclosures of corporate social performance and financial performance: Evidences from GRI reports in manufacturing industry. International Journal of Production Economics, 170, pp.445-456.

Drauz, R., 2014. Re-insourcing as a manufacturing-strategic option during a crisis—Cases from the automobile industry. Journal of Business Research, 67(3), pp.346-353.

Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.

Gamble, J.E. and Thompson Jr, A.A., 2014. Essentials of strategic management. Irwin Mcgraw-Hill.

Günther, H.O., Kannegiesser, M. and Autenrieb, N., 2015. The role of electric vehicles for supply chain sustainability in the automotive industry. Journal of Cleaner Production, 90, pp.220-233.

Hua, Y., Oliphant, M. and Hu, E.J., 2016. Development of renewable energy in Australia and China: A comparison of policies and status. Renewable Energy, 85, pp.1044-1051.

Jasinski, D., Meredith, J. and Kirwan, K., 2015. A comprehensive review of full cost accounting methods and their applicability to the automotive industry. Journal of cleaner production, 108, pp.1123-1139.

Marks, A., 2013. The globalization of the Australian textile, clothing, footwear and motor vehicle industries: results in line with other western market economies. Global Economy Journal, 13(1), pp.129-150.

O’Neill, P., Sohal, A. and Teng, C.W., 2016. Quality management approaches and their impact on firms? financial performance–An Australian study. International Journal of Production Economics, 171, pp.381-393.

Ong, S.H., 2016. Measuring the quality and identifying influencing factors of sustainability reporting: Evidence from the resources industry in Australia.

Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.

Stanford, J., 2017. When an Auto Industry Disappears: Australia's Experience and Lessons for Canada. Canadian Public Policy, 43(S1), pp.S57-S74.

Ülengin, F., Önsel, ?., Aktas, E., Kabak, Ö. and Özayd?n, Ö., 2014. A decision support methodology to enhance the competitiveness of the Turkish automotive industry. European Journal of Operational Research, 234(3), pp.789-801.

Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.

Wright, C.F. and Lansbury, R.D., 2014. Trade unions and economic reform in Australia, 1983–2013. The Singapore Economic Review, 59(04), p.1450033.

Yan, X. and Fang, Y.P., 2015. CO 2 emissions and mitigation potential of the Chinese manufacturing industry. Journal of Cleaner Production, 103, pp.759-773.