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 Australia only as a national sales and distribution co... ... middle of paper ... ...ve the company profits, and under a legal framework established by the federal government to control the acceptable business behavior that somewhat affects the society. On the other hand, the second model, suggested by Edward Freeman, is the stakeholder theory or the wide view that generates the opposite idea of socially responsible behavior of a corporation. The theory argues that the shareholders-centered idea is incomplete, since there are stakeholders, who are affected by a business decision and also can affect a corporation involved (Fassin, 2012).
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.
In this perspective, if Toyota quit manufacturing industry, there is no doubt that a large number of people in this industry will be influenced, not only the labors and employees, but also the component manufacturers. The redundancy and resettlement cost will be a problem. Regardless of these stakeholders, the reputation and future development may be affected. If choosing to stay in Australia, Toyota can carry out its social responsibility and ensure a stable employment to make contribution for the
Introduction and Summary of case study Toyota Australia, the leader in Australia automotive industry, immediately expressed its fear that facing unpredictable pressure and they would continue with their transformation plan after General Motors Holden announced to exit car manufacturing in Australia. It is true that Toyota is considering whether leave Australia automotive market but it is not decided. However, David Smith, secretary from the Australian Manufacturing Workers Union, said it was almost be true that Toyota would leave Australia. Toyota Australia, the best-selling and most trusted brand in Australia, has a splendid history of more than 50 years in Australia. In 1986, Toyota started exporting and in 1991 Toyota emerged as the industry
Toyota issues in automotive industry resulted from a lack of moral and ethical obligations to loyal customers. In fact, people encounter ethics at one time or another. A business expectation is to act in manner upholding society values. According to authors Trevino and Nelson, (2004) states, “a set of moral principals or values, or the principals, norm, and standards of conduct governing a group or individual.” On the other hand, three ethical criteria determined in this discussion like obligation, moral ideas, and consequences which this article highlights an ethical dilemma with automobiles makers. According to Steve Gorman of Thomson Reuters, the world’s largest international multimedia news agency, 40 consumers, and businesses filed legal claims against Toyota.
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
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.
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.
Ethics are “the standards of moral and conduct governing decisions in the work environment.”(Prezi slide5) Toyota approach of this issue which is the recall of deficient cars is purely about profits. For Toyota, as long as it respects the law nothing else matter not even people’s safety and life. Toyota business approach is based on Friedman’s argument. According to Friedman, “organizations ha... ... middle of paper ... ...e made more profits or that we save money? As a company, Toyota has obligations toward its customers and employees.