However, considering the professional roles of the Australian government and workers union, they are also responsible for the decision. This essay evaluates the positive and negative consequences in regard to the decision made by Toyota to end their Australian car-making and also examines the shareholder and stakeholders theories to identify the role of social responsibility that is borne by these three sections; Toyota, Australian Government and Australian manufacturing workers union. The story begins with the media statement from Toyota earlier this year to stop its vehicles manufacturing, as well as the production of its cylinder engines, in Australia by the end of 2017, and operate in the country only as a national sales and distribution company (T... ... middle of paper ... ...Australian government and Australian manufacturing workers union are easily identified. These three sections are obviously responsible for the decision relying on both their professional and ethical perspectives. From the discussion, Toyota and Australian government has behaved socially responsible in assisting the employees and suppliers with the job opportunities throughout the ongoing support services.
Furthermore, changing any aspect of this vehicle would affect output capacity and pricing. For this reason, any suggestions of alterations to the Ford Pinto were declined. Ultimately, Ford rejected any change to the Pinto and based its decision on a cost-benefit analysis. In order for this analysis to work, Ford had to compare the cost of adding the baffle to every vehicle manufactured against the estimated cost of a fatality and corresponding law suit. According to Dowie (1977), the auto industry pressured the National Highway Traffic Safety Administration, or NHTSA, to come up with a dollar amount of what a human life was worth.
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.
According to Shleifer and Vishny (1997) in developed countries corporate governance mechanism is exit with small differences. In less developed countries corporate governance mechanisms do not exit. Corporate governance is a mechanism through which outside investor protects themselves from insiders (La Portal et al, 2000). Conflict arises in companies when Shareholders (owner) and manager (agent) or different shareholders have divergent goal. Secondly conflict also arises due to asymmetric information about participant’s action and preferences.
INTRODUCTION The relationship between the owners of a company and those who run the company is classified as an agent/principal relationship. In most cases this kind of relationship gives rise to a potential problem called the agency problem. This agency problem usually will occur where there is a conflict of interest between the desires of the principal and that of the agent. This is not a rare occurrence. It has been predominantly found to occur in companies where the directors are the agent and the shareholders who are the owners of the company is the principal.
Lately, Toyota established to reduce a plan on their environment-friendly tracks in the upcoming years with some targets to achieve by 2050 (Conner, 2015). 1.3.2 Organizing Organizing is where the management commands the whole framework of an organisation with the employee (Calia, 2015). Such in Ford, involves employees to determine what are the costs required, who work in the projects, how much of workforce is needed and what kind of equipments is needed to establish a products (Ukessay,
FA14: Selected Topics: eBusiness Case Study 3 Nissan.com 10/25/2014 By: David Christopher 1. U. S. courts sometimes appoint advisors ( often called Special Masters) to help them decide cases that involve complex business or technical issues. Assume you are a business advisor to a court that is hearing an appeal of the Nissan Motor Co. v. Nissan Computer Corp. case. In about 200 words, explain why Nissan Motor Co. is so concerned about the use of these two domain names and how a monetary damages judgment of $ 10 million could be justified ( if you do not believe that the monetary damages are justified, explain why). The concern that Nissan Motor Co. has in terms of the two domain names is the basic representation
In contrast Freedman’s Stakeholder view suggests that the business has responsibilities to all of its stakeholder groups and not just shareholders. These two theories will be used to look at the actions of Toyota, The Australian Government and The Australian Manufacturing Workers Union. Toyota Australia’s car market is extremely fragmented in the sense that there is an abundance of badges and models available for purchase. Stephen Long has said the market is “so fragmented that a local plant could produce four of the top selling models and still n... ... middle of paper ... ...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.
Holden’s Chief Executive, Mike Devereux announced Holden’s plans to cease manufacturing in Australia with this statement in a press conference; ‘Today we’re announcing that Holden will cease manufacturing in Australia by the end of 2017. This will mean the eventual closure of our Elizabeth plant, as well as our Victorian engine plant, our engineering centre, and our proving grounds down at Lang Lang.’(Herald Sun 2013) Many Australians believe that subsidising the car industry is a huge waste of taxpayers’ money, as, if the industry were required by society; it would be able to sustain itself. With the Government intervening, they are only further promoting dependency on the tax payers to fund bad decisions of the industry’s executives. This is in line with the theory of Classical Liberalism, especially the ideas of Hayek. Hayek argued the role of the Government in sustaining business, and the effects of intervention to a society.
In the corporate form of business organization, an agency relationship problem exists. In agency theory, the agency relationship problem results from a separation of ownership and control. Self-interest on the part of managers acting as agents, and shareholders who are acting as principals exists within the corporate business organization. Agency theory allows us to understand the behaviors and conflicts that exist for corporation stakeholders and the managers of the company, and can allow for designing of effective incentive structures and other monitoring mechanisms to resolve the agency problem. Institutional ownership also plays a part in monitoring, and controlling agency costs within the corporate form of organization.