Strategic Management Research paper
Strategic Management
Research paper
Synopsis of the automobile manufacturing industry in Australia
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Looking at the most central and integral areas of manufacturing in Australia, Victoria is the hub of automobile manufacturing in Australia. Within this sector the stakeholders have developed strategic plans with the Victoria government to foresee a secure and steady growth of the sector. Automotive manufacturing industry strategic plan 2001-2011 Strategic plan.
Automobile manufacturing comprehensively work together to meet demand and technological demands within the market objectively. Besides policies within the sector espouse and cohesively seek to develop new strategies, technologies, productivity and innovation to meet the current standards and competitive trends of automobile industry globally. This sector employs over 35,000 people and contributes to the national economy to a tune of $9 billion per annually. Within this context the industry seeks to continue to cohesively work together to meet challenges, technological change and the move towards knowledge based manufacturing and to create long term investment and jobs and growth conditions. Within the same perspective, it distinctively seeks to identify and meet globalisations challenges while collectively driving workplace innovation, productivity and many other factors that will consolidate the strengths of the Victorian automobile industry capacity. Victorian Automotive manufacturing industry strategic plan 2001-2011 Strategic plan.
Industry dominant economic features
Within this competitive industry the dominant economic features are the strengths that emanate from the goodwill and the development of the industry. Seen from this angle, employment features predominantly as on of the key achievements and a dominant economic feature with a positive implication on both national welfare and socio economic growth projections. These are all offshoots of plan and strategic management policies which correlate with models discussed within strategic management principles. The classic planning model is procedurally straightforward. Through the scope of C Rooney neoclassical models which after considering evidence regarding internal capabilities (viz., resources' strengths and weaknesses) and the external environment (viz., opportunities and threats in the economy, industry, and markets), managers make selections from alternative goals (success standards) and strategy (the approach to pursuing goals' attainment and a rationale for its selection). Strategy then is broken into activities instrumental in achieving intermediate performance objectives, perpetual progress review and evaluation procedures are implemented; and re-planning steps are taken as needed.
Employment and also exports are key gains from the industry.
Diffusion of key technological approaches to manufacturing and manufacturing technology and processes make the industry a very competitive capacity builder in terms of technological advancement. It makes developing and innovation become stake holders key to successful consistency in the industry growth. If we analyse the planning and legislation in this perspective, strategic management policies apply and inversely propagate the development of technology and support of technology advancement and discovery of new technology as pivotal to sustain growth and competition’s so as to consolidate the market share value.
Incorporation and integration of other related technologies and activities within the objectives of the same, project the diversity and poignancy of the industry capacity. Expertise in low volume flexible and accessible manufacturing features a gain and a rather dynamic and apt technological perspective in context. The industry has adopted this as a solution to manufacturing of recommendations and specific orders. The industry enjoys the dominance of the capacity for innovation as a feature of its economic strengths and contributions. The existence of this feature as an economic structure as well as gain is pivotal.
Products, functions and markets
By using the generalised approach on the Australian market and industry the most important normative question about Australian industrial organization is the degree to which its efficiency and productivity are constrained by serving small and isolated markets and the degree to which public policy has worsened this problem or could relieve it. Small market size and isolation do constrain the overall productivity and the scale efficiency of Australian manufacturing industries.
This problem will be mitigated by long-run economic growth. It may be exacerbated by the general equilibrium adjustment of an expanding resources sector, insofar as it makes suboptimal scale of operation more attractive in some industries. High levels of tariff protection impose an economic cost that consists mainly of making suboptimal scale production feasible. In so doing, Australian protection acts like amplified international transportation costs. Lawrence B. Krause, Rudiger Dornbusch, Stanley Fischer, John F. Helliwell, Daniel J. B. Mitchell, Andrew S. Carron, Edward M. Gramlich, Lawrence B. Krause, Richard E. Caves, and Henry J. Aaron: The Australian Economy: A view from the North, The Brookings Institution.
Within this context, we seek to identify and establish, not comparatively and within specifics of subjects but in the contexts own parametrical approach to products within the global perspective on the same in principal. As such the products that come from the industry are based on three aspects. Their technological background aspects, fiscal base and foundations aspect in both their development and collective pricing and strategic place in the internal and international market place and thirdly the capacity and knowledge foundation of these products.
Knowledge back ground of the brains behind the world class products and machinery in the Australian automobile manufacturing industry bring the sector’s prominence. We look into this on the angle which eschews the brains behind consistent growth and development of the industry as the key products. The technological power and capacity in the industry is a major product which is a significant contribution, stake and investment in the global scene.
Technology as a product puts Australia’s automobile in good stead since it is the base of its bargaining chip for a place in the global automobile technology front. As such we view technology within the industry as an asset and a major product. Exporting the Australian automobile technology and also through selling patents and rights to assemble and manufacture make this product a very pivotal brand within the Australian technology and automobile industry. As such, in preference we cognitively address this as an intellectual achievement which gives the Australian automobile industry international recognition.
The context of financial foundation as the basis of successful sales and diverse expansion globally is profound. It is the industry biggest and most successful product. The price of units is what the industry boasts of as a dynamic and saleable product. This is based on the fact that the products sold are of high quality and very competitive while they fit and compete at international levels as quality and very affordable.
Major changes occurring in the industry environment
Environmental implications on consistency of technological policies and methodologies of manufacturing within the industry impacts on structures that purport growth and development of the industry making the industry to resonate to change and at the same time experiencing changes in the industry environment and the industry structure. This principal as such brings us to the holistic approach to demographical concepts where in we seek to establish the changes in the environment and in the industry structure.
The global environment has changed with competition levels becoming high while technology also has become very competitive. This has made the industry to seek to consolidate and move with the industry while seeking to examine and resolve commonality and technology advancements. Change in regional balance in the industry and over capacity has become nascent issues. Within the Australian environment sales have been affected by Forex exchange rates while convectional world pressure on the industry is diverse. Fuel prices have forced the industry to seek better technology and fuel quality. Oil prices have depleted the sales and technology maxims and are a major concern. Market accessibility and people’s perception and ideologies on the industry are dynamic. These changes have moved the industry to a more assertive position. Using the perspective centralizing macroeconomics within this context and them, as the drivers the establishment of diverse measures to make the industry move along the changes efficiently is important.
The future of the industry based on the environmental context then reckons that the environmental future and its transition is aptly influenced by the industry commitment to maintain viability and industry size as the capacity builder and economic driver. Consolidating the industry and its technology in Australia will reduce elasticity of competition and technological constraints.
Major trends
This encompass international trends implications and, borrowing from Druckers ethics of making an industry a backbone of the other industries, the Australian automobile industry is a drive within the region. The automobile industry stands for modern industry all over the globe. It is to the twentieth century what the Lancashire cotton mills were to the early nineteenth century.
The need to address technological tends, people affiliation to automobiles, design and components related to manufacturing of automobiles becomes highly important values. We address trends in this context as the ethos and visuals which seem to develop and correlate with the industry’s growth and development.
Manufacturer have to keep in touch and at per with rapidly escalating demand for technology and quality products. This, when achieved is the parameter of their ability to retain domestic demand while addressing the international demand. Trends here then oscillate to the automobiles and the industry. Cost effective, affordable and durable machines are what the market seeks to have within the concept of technology. Need for investment to stay level with the emerging markets and a global competitor is a requirement in the Australian industry.
Changes in models and design of motor vehicles is a trend currently taking tool on the less static industries in Europe, however the Australian market is responding and being the case relating and coming in to remain competitive n terms of offering appealing design and better, more advanced models is what the industry seeks to escalate in achieving. Here we are tackling technological design and model design in terms of engine, fuel and mileage efficacy in the machines. It covers the diverse aerodynamics, fuel injection, mecha-tronic system among other automobile efficiency technologies.
Changing from convectional and traditional concepts of corporate management and growth has pressured the industry and the trend that has offshoot is joint ventures and partnerships which aptly address and reduce risk of collapse of the industry.
Driving forces of industry structure
Seeking automotive excellence in the industry at the main levels that is industry, company and individual levels is a major driving force. A perpetual seeking of quality, good corporate growth and technological growth simulate the industry passion to excel.
Achieving international distinctions is sought after so as to create more opportunities for the industry to diversify. Consumer satisfaction and becoming oriented with the consumer affiliation and insight on the technological perspective so as to be at per with what is that the customer or the market is in search for is simulative.
The progress made is impressive making the industry to be objective to perform better. In this context continued partnership approaches are on setting successful economic and socio progress. These all inclusive principals are driving the industry towards a better future and a successful and more productive and competitive edge.
Causes of industry competitive structure and business environment change
These are the offshoots of the growth and competitive nature as well as the profile of the industry. They are as follows.
Investment
The strategic position of Australia within the Asia Pacific front and the strategic location of Victoria as a centre for design and automotive manufacturing have created room for expansive development and investments. This makes the industry to be vibrant and lucrative.
Economic and industry growth
Increased performance and rate of production and sales has promoted the socio-economic structures of the Australian community as such promoting the industry due to more capacitated individuals buying from the industry locally. This has built confidence around the industry and the world in general over the qualitative aspects of the industry and the values and ethics it employs as well as the quality.www.springerlink.com/index within this context the issues of gains and product versatility and the aspects of knowledge ownership makes the appeal of the industry more consistent. Taking into consideration that major sectors have developed plans to strategically address their growth and expansion programs so as to make sure the emerging global trends do not sneak up and catch them unprepared.
Extent of forward or backward integration within the industry
Over the years the policies of corporate growth have been centred on growth based on corporate strength. However this has changed and more companies are espousing partnerships and joint ventures to avert loss and collapse of the industry. Companies that have developed implement able technology bout cannot meet the cost of manufacture are now joining hands with those with the capacity to manufacture through a strategic joint venture. Howarth C, GILLAN M & Bailey J 1995: Strategic alliances.
This is based on the fact that manufacturing is rapidly changing and redefining itself. This is through its people and being the cutting edge of new technology and as a provider of relevant services around the manufactured products.
A market analysis on competitors, buyers, suppliers
Competition based on Kotler and Porters theories we discover that the industry has been exposed to internationalisation as a rapid initiative. We check on the Australian industry comprehensively and the global front. The Australian automotive industry consists of four motor vehicle producers as well as competitors- Ford, Holden, Mitsubishi and Toyota - which produce large passenger motor vehicles (PMV) and variants, light commercial vehicles and sports utility vehicles. There are also over 200 motor vehicle component manufacturers. The four motor vehicle producers are based in Victoria and South Australia. Automotive Research and Trade Section, Australian Government Department of Industry, Tourism and Resources (September 2004).
The buyers are Republic of South Korea who buys engines, Japan and North America, who by mirrors, worldwide for anti-theft systems, USA- propeller shafts, air conditioning, heating and ventilation products to China and America.
Nature of competition and how strong is each of the competitive force
Competition within this industry is based on corporate governance perspectives and administration perspectives where in the old version of corporate structures were consolidated as the main strategic positions, however joint ventures and partnerships have become apparent and competition has edged closer to a battle.
Much of this is based on model theories of corporate strategy. The aspect of principles in corporate strategy is integral in propelling rapid growth, especially when there is projections and forecast Johnson G, Scholes K & Whittington R 2005 exploring Corporate strategy pp 47- 67
Technology and trends feature as the aspect of competitions and the nature of the same objectively.
Companies diversifying their technology and model as well as design are termed as strong emerging forces while those struggling to maintain their old versions and small market share are he weaker in context.
Technology in fuel consumption, oil quality and affordability, design of the automobile, engine and interior motor vehicle structure improvement and re-designing feature as competitive strategies which are placing them in good stead. Dale B, Truett, Lila J: Australian Government policies and the balance of trade performance of the transportation equipment industry.
- The diversification of interests, joint ventures to share cost and technology is a shrewd move and strategy being adopted and highly recommended.
- Analysis of information to determine the bases of competitive advantage
- Due to the pressure on the industry to remain competitive globally, the industry seeks and identifies strategies within the contexts of:
- Reassessing and adjusting to the market and global industry trends
- Focussing on the market
- Improving on leadership needs
- Labour and training incentives to improve efficiency and consistency
- Innovation and investment creation for the industry
- Extent to which the competitive advantages of the major player are sustainable
This is within the concepts of internal cultural and leadership skills which the industry itself must identify and confront. Using strategic policies and plans and administering policies of industrial integration to regulate the corporate structures of the industry
Within the scope of corporate management and as seen in the model theories of Freeman R E 1984 Strategic management, A stakeholder approach pp 78-81, corporate growth and strategy are insulation that guarantees sustained growth. This is what the industry has sought after and has achieved making it competitive and an investment. Thomas Wheelen: Strategic Management and Business Policy 2006 pp 117-157
To what extent the industry is attractive and what are the prospects for above average profitability
The Australian logistical position and strategic position in the region makes it an investment hum. Socio economic growth and vast corporate growth has a substantial investment base making it attractive and equitable. This context on a generalized basis depicts dynamism and gives us the right to analyse the perspective as within the concept of David C. Rich. Australian manufacturing developed primarily to supply domestic customers. It played an important role in the country's post-war economic growth, employment increase and rising living standards. Many branches of manufacturing remain vulnerable to further rapid rationalisation and future prospects are uncertain. Australian manufacturing, 1968–1988: Recession, reorganisation and renewal.
The strategic position of Australia within the Asia Pacific front and the strategic location of Victoria as a centre for design and automotive manufacturing have created room for expansive development and investments. An assessment of the extent of regulation that exists in the industry
Critical success factors
This is addressed by both the federal government and the industry stake holders so as to address the sustenance of growth and the consistency of industry capacity in general. The critical success factors within this scope are that the industry should identify and resolve the negative aspects and attitudes about increasing competition and technology.
Besides such a rapid initiative, the stake holders have looked into various aspects on both international strategic management and it is seen within Jason Abbot’s thesis on development. He asserts that ambiguous development can be defined as a process of development that has been uneven, leaving some sectors of the economy more developed while others are less so (p. xvi). Cardoso and Faletto suggested in their study of dependency in Latin America that while economic development had taken place in these peripheral economies, this development was uneven and concentrated in specific sectors of industry. Jason P. Abbott; Developmentalism and Dependency in Southeast Asia: The Case of the Automotive Industry. Routledge. Knowledge management,
- Skills and education training
- Investment and diversification
- Analyse strategic options for the future
We seek to identify the product and industry portfolio within the context of outlook and diversity. The development of successful new products has always been a key to success. As today’s consumers become more sophisticated, have access to more information, and demand the latest technology as quickly as possible, meeting these heightened customer expectations is growing more difficult. With rapidly evolving advanced technology applications being integrated into vehicles and shrinking product lifecycles, the ability to quickly and effectively bring new products to market is a major differentiator.
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Strategic Management Research paper. (2018, Aug 15). Retrieved from https://phdessay.com/strategic-management-research-paper/
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