Executive Summary: The purpose of this report is to figure out the impacts and effects of GFC over the Australian Motor Industries which is said to be owned by TOYOTA, and this company has its own reputation for their products among the several other Automotive Industries in the present era. However even this industry has undergone a severe impact in accordance with the Global Financial Crisis which is said to be briefly discussed in this report. And entirely this report is done only in accordance with the Strategic management which has the various stages of analysis that evaluates about the industry in all the perspectives possible, further which some recommendations are been suggested to handle this Financial Crisis which ends the report with a positive note and even it creates a positive impact towards the Australian MOTORS (AMI). 1.Introduction: Than saying the Australian car industry was killed it could be said that it was a victim of what IMF chief Christine Lagarde calls the orge of deflation. Till the previous year according to ABS the car prices are said to fall around 2.8 percent even though the dollar was depreciated 15 percent, so it wasn’t the dollar which was the reason for the deflation in the industry. Inflation is said to be kick started during the month of December, which made a fall even in the field of computers, TVs, fuel as well, during which there was a hike in price of the other products and regarding with the wages it rose till 3 percent and 10 percent in the field of real estate. The initial stages of deflation was due to the presence of new technology and Automation devices which reduced the usage of workers inside the factorie... ... middle of paper ... ...ng with protecting the environment these industries must take an initiative to produce electric or solar cars which also reduces traffic, congestion, and pollution, as well as the cost spent on petrol will be less since the OIL cost is high. 4. Conclusion: The above discussed are the impacts of Australian Motor Industry during GFC and the SWOT analysis that is to be implied during any deflation or financial crisis. As mentioned above those are some of the recommendations which can be implied in the industry as well for a better future, and finally the Australian government should directly come forward to help the industry as well as the workers. 5. References: (Kohler, 2014) http://www.abc.net.au/news/2014-02-13/kohler-the-ogre-of-deflation/5256662 (Adhanhoa, 2006) http://www.studymode.com/essays/Toyota-Swot-Analysis-77330.html
Since fuel is regarded as a necessity, the increase of fuel prices would have a certain impact on the Australian economy. This will have an effect on a variety of economic aspects which include; demand and supply, elasticity, market equilibrium and disposable income. The goal of this analysis is to discuss the effect that the rise in petrol, holding all things constant (Ceteris Paribus), will have on the Australian economy.
Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. .
The financial health of GM has been rocky over the last decade, one remarkable moment being the filing of bankruptcy and the subsequent government bailout. There have been many ups and downs for the corporation but for the last few years (Figure 4) profits again have risen to be the standard. Since the company’s recovery from bankruptcy their status has stabilized financially and in performance. Something is to be said that they have been in business for over 100 years and are still going strong earning them once again the title of top automobile manufacturer of the world.
Henry Ford and his engineers designed several automobiles, each one designated by a letter of the alphabet: these included the small, four cylinder Model N (which sold for $500), and the more luxurious six-cylinder Model K (which sold poorly for $2500). In October 1908, ...
This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:
The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.
Today's automotive industry in very competitive. Ford has had to find ways to keep ahead of the following major companies: BANC ONE, Bank America, BMW, Budget Group, Chrysler, Daimler-Benz, Enterprise Rent-a-Car, General Motors, Honda, Hyundai, Isuzu, Mack Trucks, Mitsubishi, Nissan, Peugeot, Saab, Suzuki, Toyota, Volkswagen and many others. Ford has developed a number...
Achieving world class business performance is a major challenge in today’s society. Manufacturing companies continue to face increased competition and globalization from its competitors. (1, p. 148). The automotive industry is one of the most volatile manufacturing industries that we have, which was evident in the 2008 – 2010 automotive industry crisis. (2) This global financial downturn served notice to the American automotive manufactures to raise the bar, in order to achieve word class business performance. General Motors, one of the country’s largest automotive manufactures, had to receive a government bailout to survive. During this time many with the corporation asked themselves, if we were a world class business, would we be facing this pending crisis. The answer was a resounding “NO”. General Motors has come out of bankruptcy and is focused on being a world-class business organization.
...horough looks at the 3 perspectives of Toyota, The Australian government or The Australian manufacturing workers union, it cannot be said that the closure of the manufacturing plant in Australia was the sole responsibility of any of the groups. Each played their unique role in providing setbacks and reinforcement. Unfortunately the collapse of Toyota and Australian car manufacturing was a result of factors that are out of the control of these three parties. The responsibility falls on the dramatic surge of the Australian dollar making exports less profitable as the demand decreases. Similarly the competition from regions of low labor cost and high demand growth were difficult to match. With recent years Globalisation and the fragmented and in turn competitive domestic market has led to the downturn and eventual collapse of the Australian car manufacturing Industry.
While GM will have nothing to do with the increased levels of the economic inequality, it will definitely be affected by the turn of events. The amount of disposable income possessed by the consumers will be far less than it was 5 years ago. The increased cost of living, lower wages as well as high levels of unemployment will occasion this. Therefore, owning a car will be one of the least priorities among the consumers. There will also be dynamics in the buying patterns of the future generation. Unlike the previous generations where owning a car was considered a priority by many, research indicates that the situation will be different in future. The constant call for the adoption of alternative modes of transport will obviously affect the automobile industry in terms of
The American auto industry is in a crisis, their vehicles are not in demand and they need government bailouts to keep their businesses afloat. American vehicles are not on demand because people want fuel-efficient, the car companies that are not at the point of bankruptcy, longer lasting vehicles, and hybrid cars. The American car companies are at a point of bankruptcy and people don’t want to buy cars from a company that may not be there in a couple of months. The foreign car companies are doing well and they much more dependable now that we are in an economic crisis. American cars are not fuel-efficient, not as long lasting, and don’t make many hybrids, so this affects their business negatively. I got some ideas that will make American car companies be on top of the industry again.
General Motors Company is one of the largest automobile makers in the world, with its headquarters based in the United States. After a few years of financial troubles, on November 18, 2010, General motors company (GM) announced the start of a new chapter in its history; a chapter that envisioned the emergence of a solid financial foundation within the company. The solid financial future according to then GM home page would enable the company to produce great vehicles for their customers and build a bright future for employees, partners and shareholders (“General Motors,” n.d.).
Many economic factors exist that impact the development of Ford Motor Company's strategic plan and it’s no small task to project how some of these factors might change as the strategy is being realized. Consider the prospect of expansion into a new market like China or Mexico. Economic changes like currency devaluation will make Ford’s product more expensive to their target market potentially reducing overall sales revenue. Oil prices as we’ve seen in the U.S. economy can also play a big factor as large vehicles become less desirable and more fuel efficient compact cars gain market share.
The adverse macro-environment including the fiercer competition in local market due to Australia’s low-tariff barriers, the demanded vehicles of emerging markets in developing countries was counter to the types of Toyota manufactured, the small scale of operations limited by Australian market and population, the unbalanced free trade agreements and the adverse currency development. This would have significant effect on Toyota Australia’s decision of whether leave Australia or not.
WOODSIDE PETROLEUM being the leader in the aviation industry in the Australia was met with GFC in its market. Despite of making the profits the company sustained the affect of GFC on its business by axing the Employees. While in the crisis and effected by the financial crisis at a stage it cut off the most number services which are not of profitable through which the values can be changed at least with a small difference in the company's share.