Bonanza Offer FLAT 20% off & $20 sign up bonus Order Now
There are companies that have definitely made an impact over the Australian automotive market by analysing the business structure and the external factors. Ford was the first automotive company that has an existence in the Australian market. Holden had designed cars that are most liked by Australians because of the style and the latest technologies that are used to manufacture attractive products in the market. In the year 2005, the market had already reached to around 4 million cars manufacturing in Australia. The design and the production of cars has given more and more emphasizes on the sales volume (Baum et al. 2018). But, then as time passed, there was an immense need of something new with the latest technologies that are accepted by other countries, so the sales volume consequently dropped down to a reduction of 175, 000. The cars then were brought from other Asian countries that had the perfect design.
Holden
Holden’s decision has impacted when employment opportunities were even disturbed in the Australian market. It was considered to the most powerful rival for other competitors, but this was when the market has a slow steady growth (Gosling and Mintzberg, 2004). Toyota has now made its wings in the market while considering all the external environmental factors that need to be analysed accordingly. These are companies who have made a success criteria in the Australian market, whereas there is a slow, steady growth that was examined and the market needs were not taken into consideration (Long and Hichens, 2014).
There are external environmental factors that affect the Automative industry in Australia and these should have been a examined by Holden in the competitive market to achieve its market share in Australia. As such the Australian market love cars and have been designing and producing its own cars for decades, so there are huge manufacturers who are finding there place in the Australian automotive market. There are some external factors that need to be considered by Holden when it has a pace to continue its business with its business strategies and corporate strategies to hold on the market (www.industry.gov.au , 2016).
External environmental scanning would have helpful to Holden when the external factors would be examined with effect to the automotive industry. There are national and international factors and regulatory factors that have an importance in the current global market. Holden would have considered the design, productivity, profitability, exports, rules and regulations, skills and the long term sustainability in the Australian market. Australians need attractive designs and low maintenance car that can be replaced in a short time. The investment locations and the demand and supply criteria play a significant role while analysing the external factors. This type of external scanning helps to achieve the sustainability in the Australian market (www.liveinvictoria.vic.gov.au, 2016). Development and success are the secondary elements that are considered in the international market, whereas sustaining in the market is the most important element that needs some special features to exist in the market with innovation and creativity.
Consumer preferences, demand of new products, innovation, latest technologies and political pressure is far more important to be analysed by Holden. The taste that consumer prefer has to be researched and surveyed for the international affairs while even cultural differences should be met accordingly. The budgetary issues and quantifying trends are again barriers of growth when a company tries to look for better opportunities (Baum et al. 2008).
Critical reflection is a process of synthesis of the challenges and issues the companies face in the real time scenario (Dibb et al. 2010). This technique also emphasizes on analysis of the issue or problems which are faced and learning from the paste experiences and develops new strategies to overcome those challenges and recover in a quicker manner (Ciravegna et al, 2013). If the case of Australian car manufacturer Holden is considered, it has been witnessed that the ratio of car manufacturers has been increased in Australia since 6 decades and Holden has been a very vital part of this development process. Being one of the huge manufacturers in the car industry the company has been serving the Australian customers with amazingly designed and developed cars. Since decades the company has a strong hold over the market. But due to the new coalition government’s decision for not providing enough monetary support to the car industry, the company is on the edge of declining and exiting Australia (Davey, 2011).
These decisions were made due to the increase in national debts and the imbalance created in various industries and income levels in Australia. As critical reflection emphasizes on the synthesis of the issues faced, Holden must consider the detailed analysis of the issues it is facing which is the decreased support from the government. The company must also analyze the root causes of such a situation and identify the possible solutions which can hinder the issues to affect the company (Doh et al, 2015). Holden has a huge significance in Australia and has been serving the customers since long and is well aware regarding such issues that occurred in the past.
Thus the company must analyze the causes and effects of such past events and must come up with more stronger and sustainable solutions. The company can get support from various literatures, theories and real life scenarios t deal with the situation and develop efficient solutions. The critical reflection provides a broad vision through which the company will able to envision the situation in a more productive manner rather than a problem (aada.asn.au, 2016). The critical reflection also provides a methodology for motivation and self assessment through which Holden would be able to develop and come up as a stronger and competitive brand. There have numerous reasons for not quitting the Australian market but maintaining its position and value.
Holden has been a significant manufacturing company which was one of the largest car developers in Australia. Due to the change in the government policies and priorities, the company decided to quit the Australian market. Instead of taking this step, the company could have developed some innovative strategies and entrepreneurial approach for solving the problems. Entrepreneurs are quite robust and dedicated regarding their businesses and try all the possible measures to save and develop their businesses. The same entrepreneurial approach could have forced the company to constantly keep trying for effective solutions to redevelop and reconstruct the company (www.pitcher.com.au, 2016). The entrepreneurs fail many times, but learn from their past experiences and develop such ideas which can avoid adverse conditions and situations to occur. They come up with a stronger base and even more effective solutions.
Various companies sustain in the market majorly due to their abilities to develop innovate strategies. Innovativeness in the development and distribution of the services or products brings huge success to the companies and make the company capable to compete over the market and maintain its reputation and market value. Innovativeness in the companies would not only benefit the company by generating more revenues and success, but also will satisfy the customers with new and completely unique services (Daley, 2012). This way innovative thinking can bring along two way benefits. Innovative thinking provides numerous ways and effective solutions. Not only innovative thinking provides solutions, but it also leads to development of amazing ways to deal with the problematic situations. It provides a pool of effective solutions and the way to deal with the problems. The solutions can be more specific, different and sustainable though which the company could have been able to deal with these circumstances and could have managed to refrain it from getting affected by the situations (Dadush, 2015).
By considering the main aspects of Holden, the company was a name in the year 2004, then steadily it had some hindrances and diffilculties. This was the reason why Holden had planned to move from Australia and target a new market for its customers. Innovation has been the main element, with design and product development that could make changes. Thus, innovative thinking and entrepreneurial approach would have helped Holden in dealing the situation more efficiently. Since Australian market has its own functions in the car manufacturing, it doesn’t allow the other companies to take over the market. Best possible ways could have been made to sustain in the market, therefore there are aspects and elements that would engage itself to produce a higher market share. By the producing market share the organisation could be managed it’s profitability. This way Holden could have taken a serious and constant approach to solve the issues and problems it did face due to the changes in the governmental laws. General Motors was a subsidiary that was named with the Holden and currently the name exists in the market. Toyota has its brands and there are variants that are considered seemingly in the market. So, it can be concluded that Holden has so many loopholes, but all of them need to be taken care to grow the business and sustain the business in the competitive market. There are severe implications that would be faced in the country when Toyota and Holden would shut down its plant in Australia.
Australian Automotive Dealer (2016) Australian automotive dealer association. Available at: http://aada.asn.au/automotive-dealer-news-online/ (Accessed: 19 August 2016).
Baum, J. R., Locke, E. A., and Smith, K. G. (2008). “A multi-dimensional model of venture growth”. Academy of Management Journal, 44, pp. 292–303.
Pitcher Partners (2015) Pitcher partners institute of entrepreneurship and innovation. Available at: http://www.pitcher.com.au/about/pitcher-partners-institute-entrepreneurship-and-innovation-0 (Accessed: 19 August 2016)
Baker, M. and Hyvonen, M. (2011), “The Emergence of the Chinese Automobile Sector,” Reserve Bank of Australia Bulletin, March.
Dibb, S., Stern, P., and Wensley, R. (2010). “Marketing Knowledge and the Value of Segmentation”. Marketing Intelligence & Planning. 20(2). pp. 113-119.
Ciravegna, L., Romano, P. and Pilkington, A. (2013), ‘Outsourcing practices in automotive supply networks: an exploratory study of full service vehicle suppliers’, International Journal of Production Research, vol. 51, no. 8, pp. 2478–490.
Doh, J., McGuire, S., and Ozaki. T. (2015). The Journal of World Business Special Issue: Global governance and international nonmarket strategies: Introduction to the special issue. Journal of World Business, 50(2): 256-261.
Daley, J. (2012), Critiquing Government Regional Development Policies, March, Grattan Institute, Melbourne.
Davey, A. (2011), Budgetary Assistance to the Australian Automotive Sector, Sapere Research Group.
Gosling, J., Mintzberg, H. (2004), 'Reflect Yourself', HR Magazine, Sept., pp151-156.
Industry (2013) Automotive. Available at: http://www.industry.gov.au/industry/industrysectors/automotive/Pages/default.aspx (Accessed: 19 August 2016)
Jobs (2016) Automotive industry in Victoria - profiles, contacts & employment. Available at: http://www.liveinvictoria.vic.gov.au/working-and-employment/victorian-industries/automotive#.V7b0x1t97IU (Accessed: 19 August 2016)
Long, S. and Hichens, C. (2014) End of the road. Available at: http://www.abc.net.au/4corners/stories/2014/04/14/3982809.htm (Accessed: 19 August 2016)
Upload your Assignment and improve Your Grade
Boost Grades