Question:
Write a business research report of the company GM Holden in Australia.
Business research topic
The present research will evaluate the operations of the company, GM Holden in Australia. GM Holden has been performing well in the Australian market and the project will evaluate the factors that have helped the organization to increase its profitability in the market. The main research question that will be taken into consideration will be able to name the factors and other aspects that have helped the organization to grow its profitability in the market.
In a ceremony, GM Holden has chosen 32 best dealers for the organization. The dealers were given the award of Grand Master (media.gm.com 2016). The tie-up of GM Holden with its dealers gives an idea that the organization is faring well in the competitive market and is able to generate good business that is helping the organization to grow.
The following research questions will help the researcher to carry out the research work:
As the research questions suggest that it will talk about the factor that helps in the growth of profitability of GM Holden hence, both the secondary data and the primary data will be required for the research. The profit made by GM Holden and the competitor analysis will act as the secondary data. The feedback of the managers and the employees will act as the primary data.
The researcher needs to look into the data, facts and the figures of the company and the amount of sales that had happened in the organization; hence, the researcher had to take into account the primary as well as the secondary data to know the functions of the company. The feedback of the employees and the feedback of the managers will act as the primary data and the information that is being retrieved from online sources will act as the secondary data (Pickard 2012). The qualitative data collection will be done through the literature review and the feedback of the managers. The quantitative data collection will be done by collecting the feedback of the employees. The researcher will take into consideration non-probability sampling. As the researcher has a proper idea about the type of participants and the number of participants required for the research, hence, non-probability sampling will be best-suited for the researcher (Åkerlind 2012).
The researcher will fist collect the secondary data and know about the company and its current dealings. Then the primary data will be collected. The secondary data will be compared with the primary data. Once the data analysis is done, the researcher will draw the conclusions, discuss about the gaps in the research and talk about the future scope of the research.
The researcher will first introduce the research topic to the readers. The research questions, the background, the types of methodologies used for the research and the way of data collections will be covered in the first parts. The literature review section will give detailed idea about the topic. Chapter 3 will talk about the way research will be conducted and the way the data will be analyzed. Finally, the result will be discussed with a proper conclusion and the scope for future work for other researchers.
Introduction
GM Holden Limited is one of the Australian automaker operating in Australia and New Zealand. This company is headquartered at Port Melbourne in Victoria. This company is founded in the year 1856 as saddlery manufacturer in and around South Australia (Takahashi, Muromachi and Nakaoka 2012). In the year 1908, it moves towards automotive field in becoming the subsidiary company under General Motors. After subsidiary, name becomes General Motors Holden Limited as current adopted in the year 2005 (Whittington and Delaney 2011). General Motors devotes as leader in providing transportation of products as well as services in receiving superior values with employees and business partners for sharing success. This helps shareholders in receiving sustained return on its investment for future analysis purpose (Northington 2011).
GM Holden Limited is one of the largest American automaker despite of Ford dominance. GM Holden Limited proves for becoming great strength in case of automotive markets (Weygandt, Kimmel and Kieso 2012). This particular company becomes as Corporation as multiple brands in automotive industry. It starts from Luxury car brands like Cardillac to heavy-duty truck brands like Jiefang. GM Holden Limited deals as one of the aggressive acquisitions for powerful brands for most reputed companies in auto industry (Krebsz 2011). In the year 1920, Australian auto demand witness shifting from basic vehicles to luxury-owned performance vehicles. GM Holden Limited launched better-looking vehicles in comparison with Ford Model. This helps GM Holden Limited in expanding customer base as well as expansion in Australian market share with 12%. In the year 1930 and 1940, company supplies trucks as well as weapons in Australian military in the World War II. It was generally followed by substantial increase in GM Holden Limited in case of Australian market share with more than 54% by end of 1954 (Clark and Baker 2011).
GM Holden Limited bankruptcy
General Motors is considered as the biggest of three known as Ford Chrysler as well as GM Motors as American automakers. It is traditionally dominated in North American market. GM bankruptcy renders greater inputs in case of downsizing as well as calling for closer 14 factories and 2400 dealerships in eliminates 29000 jobs (Weygandt, Kimmel and Kieso 2013). GM survival assures cost cuts as well as capital infusion in the near future. GM Holden Limited hopes for new hit products in raising profits as well as focusing on cross utility vehicles and sedans in the most appropriate way. According to product reviews, it is positive and challenging in capturing attention in automotive industries in using same strategy in introduction of new lineups (Shim, Siegel and Shim 2012).
Automation Production
In the year 1980, Japanese foreign competitor explodes into Australian automobile marketplace offering dependable as well as competitively price cars From Japanese come within reach of, it emphasizes mainly on the unusual practices like Just in inventory as well as quality management and extensive employee training at the same time (Weetman 2012). Addition to that, it leads to close operation with suppliers, generating productivity cars as well as painstaking attention towards production process. It requires dealing with growth global assault as well as reestablishing domestic leadership in an effective way. GM Holden Limited unleashes radical business plan for automated as well as modernization of factories in well-established car models. It is considered as subtle strategy for acting as a substitute of high-tech robotics in case of inefficient labor as well as relying upon huge financial resources (Scott 2011).
GM Holden Limited expenditure for nobody
Self-assurance remained soaring as well as output paybacks in GM factory mechanization expenditure in starting costs at a disturbing rate as per market shares. In use, profits starts declining as combination of triggering warning bells in business organization (Seal, Garrison and Noreen 2012). Internal GM reports indicate Japanese price advantage in distorted for four years in case of concentrated spending on mechanization. This particular company founded cost savings principles as well as efficiency in case of auto industry high cost producer at the same time (Needles and Powers 2012).
Automating GM Holden Limited considered as false assumption
This particular strategy enables in automation of General Motors in the year 1980. Roger Smith predicted false assumptions for replacing people in machines in turning back to Japanese attack in bringing back dominance in global industry (Phillips, Libby and Libby 2013). It adopts lean manufacturing techniques for defining Toyota production system in virtual obsession for future analysis purpose (Libby, Libby and Short 2012).
Market Conditions
Australian car market shrinks rapid development in the recent years in case of vehicle sales rate as declining in market (Libby, Libby and Short 2011). Car manufacturing industry provides drastic change in discarding customers in favor of foreign made vehicles for importing it to country. Production rates of the companies taken as manufacturing of vehicles that are declining as well as reduces unit level as produced each year (Leung 2011). High cost of labor as well as lack of truly skilled labor possesses problems in case of materials as well as imported parts at the same time. Most of the companies like Holden states imported cars in other brands in parent company as based upon market conditions for future analysis purpose (Peterson 2012). Operations of company based upon manufacturing part in business as well as dependency on brand selling foreign vehicles especially in retail stores in and around Australia.
Competitors
The Australian market ensures other companies in competing with Holden in market supremacy in profit generation. This particular company adapts competitive strategy in competing other companies as per price as well as quality in automobile sector (Lock 2012). Holden Company imports company in gaining market for production of quality cars in current market condition. This company has diversified business for importing vehicles in other company for selling in showrooms. Company based upon manufacturing as well as understanding the importance of diminished demand in local made vehicles especially in Australia (Kapil 2011). Company requires in competing with foreign importers in local manufacturers. Company holds steady position in restructuring base for future analysis purpose. Major competitors of General Motors are some of the domestic companies like Ford Motor and Damiler Chrysler. In case of foreign companies like Toyota Motors as well as Honda Motors (John 2012).
|
Car Market Share |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Ford |
5.8% |
4.6% |
5.0% |
5.5% |
5.9% |
|
General Motors |
9.8% |
9.6% |
9.9% |
9.0% |
7.5% |
|
Chrysler |
4.1% |
4.2% |
3.6% |
2.5% |
2.6% |
|
Toyota |
8.6% |
9.2% |
10.0% |
10.0% |
8.2% |
|
Nissan |
4.9% |
3.8% |
4.4% |
4.8% |
5.0% |
|
Hyundai-Kia |
2.8% |
3.0% |
3.5% |
4.8% |
5.1% |
|
Other |
8.0% |
8.5% |
9.3% |
9.4% |
9.3% |
GM Holden Limited has various types of vehicles ranging from small cars to large trucks at the same time. Majority of portfolio targets towards masses towards attainment of future goals as well as objectives. It encourages people in purchase of vehicles and providing automotive financing services in case of General Motors Financial Company (Horngren, Harrison and Oliver 2012). GM Holden Limited mainly offers retail lending in both loans as well as lease to potential targeted customers. This company provides new as well as sued automobile record financing list cover and operational capital. Addition to that, it deals with assets improvement loan, storage space center finance services to potential dealer known as commercial lending (Eun and Resnick 2012).
GM Holden Limited avoids currency fluctuations and related risks in case of international markets. General Motors Financial funds its major operations especially from local sources (Deegan and Unerman 2011). It sources various ways in asset-backed securities markets as well as other secured and unsecured debt markets. In the year 2015, revenues of GM Holden Limited stand at more than $6.4 billion in comparison with 4.2% total revenues. This particular company expects its revenues from the financial arm length in case for expanding in the upcoming years. It mainly aims at driving incremental sales for vehicles (Callahan, Stetz and Brooks 2011). GM Holden Limited Financials plays major role in boosting sales as well as ensuring easy availability of financing options from the point of view of potential customers and dealers. On comparison with other major automakers, Ford Motor Company, Toyota Motor and Volkswagen, it helps in providing financing facilities for customers as well as initiating financial service arms (Horngren and Horngren 2012). It is important to understand the fact that GM Holden Limited global market share fall in the recent years. GM Holden Limited uses its financial services arm for boosting sales in near key markets at the same time. It requires in looking at the global market share of business organization in and against competitors. Comparison reflects upon the ability of company for maintaining position especially in global auto market.
In the year 2015, GM Holden Limited manages for remaining in the topmost position in auto market in largest market share of more than 16.8%. In case of market share, company secures as closest competition in Ford Motor Company repeated for specified time (Harrison, Horngren and Thomas 2013). GM Holden Limited global market share falls at 11.2% in against two years ago. It is registered because of recent changes in business model in business organization in Russia as well as fleet sales in United States. In the year 2013, GM Holden Limited announces withdrawal of Chevrolet brand especially from European market in focusing ways on popular brands in region like Opel and Vauxhall. It takes into account toll in global market share in the most appropriate way (Hampton 2011).
It is necessary in analyzing GM Holden Limited falling global market share in close attributes in form of increased profitability in cost of market shares. It cuts fleet sales as well as withdrawal Chevrolet brands in Europe for future analysis purpose (Fields 2011).
GM Holden Limited takes some initial steps that negatively affects by its global market share. It aims at expansion of profit margins as far as possible (Berry 2011).
Figure: Gross Profit and Net Profit Margin of GM Holden Limited
(Source: Epstein and Lee 2012)
Higher margin results from consistent efforts in making GM Holden Limited management in protecting margins at cost of losing market share (Atkinson 2012). It notes down efforts in cutting fleet sales in withdrawing Chevrolet. Japanese automaker Toyota is one of the industry-leading margins in much higher sales in comparison with 8.5% (Drury 2013). Toyota has strong presence especially in premium vehicle segment as well as yields higher margins in comparison with mass-marketed vehicles at the same time.
Unfavorable currency movement
In the year 2015 sales volume, GM Holden Limited is the largest automaker as well as third largest on global basis. It has business operations markets for global exposure in case of currency fluctuation risks in the most appropriate way (Drury 2012). In case of constant currency rates, GM Holden Limited 2015 revenues fluctuates currency in case of profitability as far as possible.
Currency fleet sales
Fleet sales as well as wholesale sales make at discount for vehicles in normal quoted prices. These sales mainly help companies in adding revenues as proportionate terms in case of profits allocation in an effective way (Burritt 2011). GM Holden Limited cuts down fleet sales for protecting profit margin in the near future. GM Holden Limited runs their undergrowth at full ability. In this particular situation, it requires unkind down navy sales in improving company profit margins for future analysis. GM Holden Limited utilizes plant capacity for building bigger vehicles for profitability especially for retail customers (Bonham 2013). Automotive fleet sales in case of including wholesale supply of vehicles for taxi-company for car rental companies as well as community departments. Limits from task force sales remain lower for vend sales of vehicle in the most appropriate way. GM Holden Limited continues in cutting fleet sales in upcoming years for expansion of margins (Wild 2011).
Conclusion
From the above analysis, it is easy to evaluate company named as GM Holden Limited. The above literature review section indicates various point of discussion as automobile industry in Australia on specified company in case of market analysis. It requires efforts of the company in outlining aspects of market in causing steps for future analysis purpose. Company handles operational change in disaster in analyzing suggestions for better success of business organization.
References:
Aamer, M. (2013). Microsoft Dynamics AX 2012 Financial Management. Packt Publishing.
Åkerlind, G.S., 2012. Variation and commonality in phenomenographic research methods. Higher Education Research & Development, 31(1), pp.115-127.
Atkinson, A. (2012). Management accounting. Upper Saddle River, N.J.: Prentice Hall.
Berry, L. (2011). Financial accounting demystified. New York, NY: McGraw-Hill.
Bonham, M. (2013). International GAAP 2013. Chichester, West Sussex, England: Wiley.
Burritt, R. (2011). Environmental management accounting and supply chain management. Dordrecht: Springer.
Callahan, K., Stetz, G. and Brooks, L. (2011). Project management accounting. Hoboken, N.J.: Wiley.
Clark, R. and Baker, D. (2011). Finance. Oxford: Oxford University Press.
Cohen, L., Manion, L. and Morrison, K., 2013. Research methods in education. Routledge.
Corbin, J. and Strauss, A., 2014. Basics of qualitative research: Techniques and procedures for developing grounded theory. Sage publications.
Creswell, J.W., 2013. Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Deegan, C. and Unerman, J. (2011). Financial accounting theory. Maidenhead, Berkshire: McGraw Hill Education.
Drury, C. (2012). Management and cost accounting. Andover: Cengage Learning.
Drury, C. (2013). Management accounting for business. Andover: Cengage Learning.
Epstein, M. and Lee, J. (2012). Advances in management accounting.
Eun, C. and Resnick, B. (2012). International financial management. New York, NY: McGraw-Hill.
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