Effective Strategies To Improve The Australian Automobile Industry

Factors Responsible for the Decline of the Australian Automobile Industry

The study describes declination of automobile industry in Australia. The study has analysed different factors and reasons that are responsible for closing and declination of the automobile industry. The study has provided the recommended strategies that can help in the improvement of automobile industry in Australia. The project determines different factors and challenges that are faced by automobile industry in Australia. The major reason is lack of technology innovation and skilled labour in automobile industry. Old technology is still used and demand of costumer has increased. The demand of costumer has increased that is related to luxury and technology. This has caused decreased sale of automobile in Australia. Government is also responsible for declining automobile industry because other industries are opened in the place of automobile industry.

To recommend effective strategies to combat challenges in order to develop the Australian Automobile industry

The project has been done for determining the factors that are responsible for decline of Australian Automobile Industry. In addition to this, it also proposes how changing the strategies would help to escalates Australian Automobile Industry growth.

The Australian Automobile industry is a comparatively new industrial phase which has just started its operation from the 20^th century with the introduction of a number of industries by the global companies. Ford is the first company that established their factory and since then the production has increased becoming the 10^th highest car producing country in the world. However, in the recent years the manufacture of the automobiles in Australia has decreased to a considerable amount making it a cause of worry for the people who are involved in the automobile sector(Albrech, Graham & McManus, 2012). The reasons for the decline in the automobile sector along with the required recommendations are discussed in the below paragraphs.

The study describes the factors that are responsible for the decline of automobile industry in Australia. Domestic market in Australia has closed that has created a negative impact on supply chain. The wholesale of vehicle has increased the demand for vehicle. According to Castillod, (2016), component manufacturers and contractors need to have great relation while retailer has medium barrier in the automobile industry of Australia. Many automobiles have been closed for the last few decades because of a lack of suppliers. Industries are closed because of refusal of government that has come for rescuing country and automobile maker. This has increased the cost of production and value of money is also high in Australia. Technology challenges and lack of skilled labor are the major problem for automobile industry in Australia. According to Mitchell, W. F. (2015), technology has grown but old technology is used in vehicle by the manufacturers. Demand of customer has also increased with demand for new technology. The vehicle has become more complex and also provides an operational instruction. Lack of skilled labor can result in incomplete task. Robots have replaced human can use various techniques for manufacturing.

Theories for the Developement of the Industry

There are a number of theories that can be associated with the development of the automobile industry in Australian and which can help the automobile industry to develop and also to make sure that it is in the profitable zone. The theories which can help in the growth of the business of the automobile sector are as follows –

The Linear Growth Theories is one of the major theories that can be stated for the development of the automobile industry in Australia. According to the opinions of Solomon, Akrami & Koivisto, (2014), the theory was proposed by Walt Rostow in the 1960s advocated the use of capitalism in the theory and also gave step by step recommendation for the improvement for a sector. Each sector has to go through a number of developmental changes to make sure that the industry has sufficient growth rate. The declining aspect of the Australian automobile industry can use the theory for the better outcome in future which will result in greater profitability and more business.

Another theory that is the New Classical Theory which was established in the year 1980 emphasized on the freedom of market for the betterment of industrial growth in the specified amount of time. According to the views stated by Meade, (2013), New Classical Theory, the Australian automobile industry should make space for the free market and should also incorporate a market-friendly manner for attracting the customers. The interest of the customers for the products in the market will make sure that the automobile industry is developing with more business and greater amount of profit which is the necessity.

 Australian automobile industry needs to improve the base of its problems and needs to implement a number of measures for making sure that the Australian automobile industry improves in a majority of the ways. The recommendations for the development of the Australian automobile industry are as follows –

Opening the market for the entry of new industries – One of the principle recommendations for the betterment of the automobile industries of Australia is the opening of the market to the new and better industries and companies which can prove to be substantial in the case. According to Drauz, R. (2014), Australia has always been a closed market for the entry of new firms into the sector which has demotivated the firms and the other industries from expanding their business in the world. The opening of new industries into the market and also making the open market for the new firms is one of the principle recommendations for the automobile industries.

Recommendations for the Automobile Industry in Australia

Eliminating the barrier in the sector – There are a number of barriers in the automobile industries which needs to be overcome like the barriers of third party interference, the barrier of third party interference as well as the barrier of trading and policy making. These barriers if eliminated can make sure that the automobile industry can succeed and can also make sure that the there is enough profit.

Increasing the suppliers of automobile industry– The increase in suppliers of the automobile industry is one of the primary recommendations that is there in the automobile industry of Australia. The increase in suppliers will lower the cost as there will be competitive advantage between the prices which will thereby increase the profit of the automobile industry of the global sphere (Diabat, Khodaverdi & Olfat, 2013).  

Facility from the government – The facility of the government is one of the basic recommendation that should be provided to make sure that the automobile industry of Australia is updated. The facility from the government is one of the prime importance that needs to be taken to make sure that the automobile industry is taken (Kushwaha & Sharma, 2015). The facility from the government includes the trade policy, subsidy as well as other impacts in the form of facility.

Improvement in technical aspects – The technical aspects of the Australian automobile industry is one of the principle recommendation which is to be analysed to make sure that the automobile sector is improving at a major pace. The improvement of the technical aspects will make sure that the automobile industry is technically advanced.

Increase in demand – The demands for the Australian made automobiles should be increased which will make sure that there is ample scope for the demand for the automobile sector in the place. The increase in demand is to make sure that each of the requirements of the automobile sector is increased. The recommendation for the increase in demand is there for the betterment of the automobile sector.

Creating better scope for the industry expansion – The creation of better scope for the expansion of the industry like the allotment of land and financial services can be a good recommendation for the increase in the automobile industry amount (Bennett, Kottasz & Shaw, 2016). The creation of the better scope for the industry expansion is one of the prime factors in the case which can help to improve the industry.

Research Design and Methods Employed in the Study

Employment of better facilities – The employment of better facilities in the automobile section of Australia is one of the better recommendations for the better results and processes. The facilities like labour, land and financial support should be provided to make sure that the automobile industry is updated.

The research questions for the concerned research are as follows –

• What is the background of the current automobile industry in Australia?
• What are the potential problems of Automobile industry in Australia?
• The primary question of the research is – How to improve Australian Automobile industry with the help of effective strategies?

Research Design is defined as the array of conditions that is there for the analysis of a particular subject. There are four types of research design processes that are applied in the course of time namely – descriptive, correlational, quassi-experimental and experimental. Among the four types of descriptive design employed in the said analysis, the one that is taken is the Descriptive methods of the design.

The Descriptive research design is defined as the scientific design process in the field of research that is observed and described in a particular behavioural process. In the particular research method, the problems of the automobile industry of Australia is being described and certain recommendations are also given to the stated problem to make sure that the problems can be solved in the span of time (Mehta, Mehta & Mehta, 2012). The problems are depicted in an accurate way and their measures are found using both observational and practical approach.

There are a number of research methods which can be applied to the research process like quantitative, qualitative as well as mixed research methods. In the stated research proposal, the secondary qualitative methods of research has been chosen which is defined as the primary research method involving the understanding of the opinions of the research and then understanding the case and effect without any calculation. The problem of the Australian automobile industry along with its recommendations are the ones which needs to be addressed in a qualitative way with the cause and effect of the section. The research method thereby is qualitative which is descriptive in nature.

Like every process of research, the qualitative method of research has certain steps and processed that they need to follow to make sure that each of the steps are adequate to the given topic. At first, the research question is to be selected which has been done for this analysis. Then the literature review is to be written which is also done in the case. According to Levy & Lemeshow 2013), the sample size is collected and the proper qualitative research method is evaluated among the available which is Action Research in this case. Action Research is defined as the way to solve a particular problem with some of the evidences available (Mackey & Gass, 2015). Then the collection and analysing of the data is being done and the research is prepared with the required sources.

The process will involve analysis of the subject in response to the secondary qualitative analysis about the matters and the people who are selling the cars and also to the authorities of the companies who are manufacturing automobile in the Australian zone. The analysis will be done according to the respondents’ behaviours with a few initial subjects being summarized for every respondents (Maxwell, 2012). The qualitative data will make sure that the analysis is done in a proper way with the random selection probability sampling method which means that people from the industry will be interviewed but in a random manner.

There are number of ethical considerations that are to be considered to make sure that the research is done in a proper way. The privacy of the respondents will be maintained and no force will be exerted to the respondents for their answers. Moreover, all the analysis should be kept a secret and the professional method for the research should be adopted. In addition, the ethical consideration like the implementing the level of honesty and sources for the maintenance of the methods is to be done so that there is no discrepancy of the method in the prolonged span of time.

There are a number of limitations in the research of the research proposal. The research has implemented the qualitative method of research which has a number of flaws like the lack of accuracy in the facts as well as the slow processing of the facts. The research if would have implemented the quantitative methods of research, the whole method of the process of the research as well as the evidence of the method could have resulted more effectively and more accurately (Toro et al. 2013). The interview which is one of the principals aspects of the qualitative methods of research has also a number of limitations as in the qualitative methods as most of the people respond in a biased manner and also have less amount of respond rate. These limitations if can be maintained by the people of the authorities, can have a number of proper plan in the sense making the sense worthwhile.

Main activities	Week 1	Week 3	Week 5	Week 7	Week 8	Week 10	Week 12
Topic selection
Components of literature review
Research methodology
Primary data collection (Survey)
Analysis and interpretation
Findings
Conclusion and Recommendation
submission of project

Figure – Gnatt Chart stating the time schedule of the research plan

(Source – As created by the author)

Conclusion

At the end of the research proposal, it can be concluded that the automobile industry of Australia being one of the comparatively new industry has a number of problems which has been discussed in the above paragraphs. The recommendation for the improvement of the automobile sector of Australian origin is also given along with the detailed methodology and a Gnatt chart is also given to make sure that the research is done according to the planned time span. The research is done based on the problems of the automobile industry which is again one of the major sectors of the plan. In conclusion, it can be said that the automobile industry is in a bad phase which needs serious recommendation and plan for the betterment in the concerned span of time. At the end of the research, the automobile industry is to be improved to make sure that the Australian sector of automobile is fairly improved.

Reference list

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Castillod, J. J. (2016). Teamwork in the Automobile Industry: Radical Change or Passing Fashion?. Springer.

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Drauz, R. (2014). Re-insourcing as a manufacturing-strategic option during a crisis—Cases from the automobile industry. Journal of Business Research, 67(3), 346-353.

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Levy, P. S., & Lemeshow, S. (2013). Sampling of populations: methods and applications. John Wiley & Sons.

Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design. Routledge.

Maxwell, J. A. (2012). Qualitative research design: An interactive approach (Vol. 41). Sage publications.

Meade, J. E. (2013). A Neo-Classical Theory of Economic Growth (Routledge Revivals). Routledge.

Mehta, R. K., Mehta, D., & Mehta, N. K. (2012). An exploratory study on implementation of lean manufacturing practices (with special reference to automobile sector industry). Yönetim ve Ekonomi, 19(2), 289-299.

Mitchell, W. F. (2015). 11. Industrial policy: the Australian experience. Development and Modern Industrial Policy in Practice, 279. Retrieved on: 11 August 2018

Solomon, A. R., Akrami, Y., & Koivisto, T. S. (2014). Linear growth of structure in massive bigravity. Journal of Cosmology and Astroparticle Physics, 2014(10), 066.

Toro, J., Requena, I., Duarte, O., & Zamorano, M. (2013). A qualitative method proposal to improve environmental impact assessment. Environmental Impact Assessment Review, 43, 9-20.