Supply Chain Business - Australia - Assignment Example

Student’s Name: Instructor’s Name: Class Name: Date Assignment is due: Supply chain business report Abstract The continent of Australia, sandwiched together with the landmass of state of Tasmania, as estimated to be just as the coverage of the US, with the exclusion of Alaska and Hawaii. Many investors uniquely regard the attractiveness of Australia for investors. Many international companies have had unstoppable desire to invest in Australia. Quality, sought by most customers, as always reflected in the quest for warranties and guarantees by most shoppers, is essential for any business to strive in a highly competitive market. Process quality, is essential to any product market penetration because of production of a flawless products and services. The market’s competitiveness is engineered by the advanced technological advanced and a strong quest from outside forces for investment, ground-breaking designs, highly flexible production processes, and leading advantage in capital equipment that facilitates a highly efficient manufacturing. The exports for Advanced Manufacturing are most of the time based on the ability bestowed in a country to develop at the manufacturing level as opposed to the industry. Consequently, Australia’s competitive edge routs its skills and the development of technologies, most probably in direct association to the niche products rather than to the tariff of remuneration or other economic conditions not factored in the assessment. This paper takes significant effort to assess and evaluate Australia as an attractive market for investors in the supply chain management and recognizes the competencies that the management needs to be strategic planners in the investing industry. Introduction The continent of Australia sandwiched together with the landmass of state of Tasmania, estimates to coverage the US, with the exclusion of Alaska and Hawaii. The island does not lack touristic mountainous features; Mount Kosciusko heightened to 7,300 feet equivalent to 2250 meters are among them. Now, I feel forced to put it that Australia is an all-round country with the Great Barrier Reef, extending for almost 2,000 km, lying along the northeast coast. In the western, fifty per cent of the continent covers by a desert plateau that rises into the rolling hills close coast of the western part (Austrade 2). Many investors uniquely regard the attractiveness of Australia for investors. Many international companies have had unstoppable desire to invest in Australia. This might be beaus of the global business community’s high regard for the commercial industry (Business Council of Australia 23). One will have to hit back in the 1990s when Australia institute microeconomic reforms, which open the, opportunities for commerce and development of international competitiveness. Further, the Australian Government’s move on establishing national competition principles and enabling a wide range of reforms towards enhancing a fair taxation system for investors, complement state government reforms. Through this, they facilitate a framework for a, worldwide international, competitive, and sustainable managed manufacturing, warehousing, transportation, and procurement industries and sectors (Department of Finance and Administration 34). This notwithstanding, Austrade (3) suggests that the manufacturing sector has proceeded between A$550-A$600 million yearly from the exports accruing from this sector, of which over 20 per cent of it is accounted for as the country’s total revenues. Products exported to countries as if United States of America, japan, and the United Kingdome have been of significance in driving the economy of Australia. This paper takes significant effort to assess and evaluate Australia as an attractive market for investors in the supply chain management and recognizes the competencies that the management needs to be strategic planners in the investing industry. Competitive dimension Today the value of employees in any organization is of increasing concern in the world, Australia is not an exception. In fact, Australia has faced a large number of workforces exiting their companies and searching for greener pastures in an effort to meet their job satisfaction and benefits (Brainbench 2003). However, Australia has all along recruited the best in the market in terms of competency abilities and proficiency. Further, the increasing need to employ the best in the market should be backed up by a strategic effort to attract and retain the workforce, which calls for building human resource systems, developing human resources and rewarding human resources consistently over there tenure in the company. Costs of production were rated as 20% more of the price as indicated in the prices of the respective products manufactured. Thus, as indicated in the prices, the Australian industry offers its goods that are relatively consistent in price over a long period. This puts the market at a highly competitive, as well as, being well high in terms of meeting customer needs on prices and supply of the same products. Beer and Portland Cement prices, showed signs of large fluctuations in prices but was brought down due to the changes in the economic condition and the government policy, today the prices of the two products are about 57 and 250 respectively (Australian Bureau of Statistics 7). i) Most Australian companies have opted to produce their commodities in the lowest costs possible and subsequently, establish a higher price for the product in the market. Goods and services offered on the cost of production, rather than quality imply of a perfectly competitive market where most consumers cannot differentiate between the same commodities, rather, in their mind only (Productivity Commission 45). This market industry is mostly very large, and most business is enticed by the potential of substantial income that is accrued form large-scale production of commodities. i) Quality The manufacturing industry contribution in the GDP is substantial as compared to the other economic sectors; however, the trend is on a downward trend as reflected in the last four years for about 2.3 per cent. Despite the deteriorating trend, the sector is consistent as in being one of the critical backbones in the country’s economy in terms of offering employment opportunities and encouraging foreign exchange (Business Council of Australia 28). Most companies do not seek to compete based on price through cost minimization but rather based on quality. In order to produce a good or service that is outstanding and highly effective in the Australian Market then one ought to consider accompanying the product with relevant incredible features that will see it improve in its sales to by deliver a great service to the consumers (Productivity Commission 62). As illustrated in table 3, According to Austrade, International Data Comparison (1) Australia showed a leading trend in Population (million, 2008F) EIU, Resilience of The Economy World Ranking (55 economies, 2008) IMD, Index of Economic Freedom World Ranking (183 economies, 2009) Heritage, IMD World Competitiveness World Ranking (55 economies, 2008) IMD, WEF Global Competitiveness Index World Ranking (134 economies, 2008-09) WEF, and GDP (US$bn, @ exchange rates, 2008F) EIU GDP Per Head (US$, @ exchange rates, 2008F) EIU. This indicates that Australian market quality sought by most customers is always reflected in the quest for warranties and guarantees by most shoppers, is essential for any business to strive in a highly competitive market. The level of performance, accompanying product features, reliability and appearance have always been attached to quality demand. Moreover, process quality, is essential to any product market penetration because of production of a flawless products and services. This is because it calls for reliability of the commodity or product from the producers. Subsequently, the customers get commodities, machinery, and other services offered in varying tolerances and service error degrees (Productivity Commission 43). The adherence to these designs and process in quality is essential to guarantee the business of the reliability of its service to customers for their intended utilisation of the product. This dimensional competitive advantage on reliability is regarded by most companies to be endowed with the capacity to supply their services or products before the due date of the intended supply. Further delivering a product at the time promised or offering a service at a time when exactly need is a competitive advantage for any company that focuses towards consistently meeting this condition. As such, the Advanced Manufacturing Industry (AMI), on the other hand, the AMI fits within the broader market segment of Industry machinery and Tooling. The industry, therefore, generates about A$12.5 billion, with a wage expense A$2.4 billion and a market adds up to the GDP of over A$ 3.8 billion in the recent period (Business Council of Australia 33). ii) Coping with Changes in Demand The fluctuations in the Volume of products demanded by customers are usual as indicated by the changing seasons and different business cycles. Not to mention of the sudden plunges of recessions within a country and global economic recession as recently experienced calls for a firm that is flexible enough to shift its production as per the market trend and demand (Productivity Commission 40). It is an increasing notion that increasing demand might do little wrong. However, when the demand goes up, the costs attached for increased production, unless one is able to get the economies of scale and has enough technological resources to minimize the costs. On the other hand, approaching from the demand decrease it may be quite impossible to make a decision on retrenching employees and the subsequent reduction in production. The ability to effectively change in a dynamic industry benefits the company essentially on their flexible operational strategies (Thomson 3). The labor market in Australia is recognized to make strides in an effort to attract and retain valued workers in a highly competitive market (Legge 2004). However the Australian companies have been able to effectively conduct the first step; recruiting employees but have found it difficult to further attract or retain workers. Yet, the workforce has been a strong motivating factor for guaranteed company development and awareness with respect to implementation of management strategies through managing the human resource environment. iii) Flexibility and new-Product introduction Speed: ‘Chang it’ The effectiveness and efficiency in the capacity to easily change from one production method to another in the light of high costs and production of new products at a high speed is crucial for the success of any company in a highly competitive industry. The country’s tooling industry is an extensive establishment of the supplier to in cooperation of the local and international drivers’ manufacturers (Organisation of Economic Cooperation and Development 143). The country’s industry has developed a strong standing of the complexity, excellent quality tooling at comparatively reduced costs in comparison to the United States and the European competitors. The market’s competitiveness is engineered by the advanced technological advanced and a strong quest from outside forces for investment, ground-breaking designs, highly flexible production processes, and leading advantage in capital equipment that facilitates a highly efficient manufacturing (see table 4) As depicted in the chart 1, 2 and 3 in the appendix the manufacturing tend of the manufacturing industry have shown an escalating trend in the recent past with beer averaging to 557 ML of production for the six years, with a peak amount of 576. This accrued due to the change in the policy and outsourcing which played a major part in increasing the sale of the country in terms of beer production. On the other hand, chart two shows of the production of Portland cement, which has also scored highly in the six years with some indication of fluctuation in production due to the global recession that immensely affected the country. However the manufacturing tends of the manufacturing industry has shown an escalating trend in the recent past with Portland cement averaging to 2400 tonnes of production for the six years, with a peak amount of 2567. This accrued due to the change in the policy and outsourcing, which played a major part in increasing the sale of the country in terms of beer production. Further, the Aerospace in the Australian Tooling market is presently a significant supplier of Advanced Aerospace Tooling Systems to the international market. The market has magnificently enhanced specialisation position capabilities in Composite Cure and Aero-structure Assembly tooling by means of an extensive history associating a number of military and commercial aircraft systems put in place. The incorporation of the country’s Tooling industry players into a global supply chains has resulted in significant levels of players I the commercial and military packages, among them being, Boeing 797, Airbus A320 and the Joint Strike Fighter (JSF). An essential element of this capacity to offer varying products is the duration required by a business to come up with a new product and to change its process to effectively offer the market the product. Conclusion The exports for Advanced Manufacturing are most of the time based on the ability bestowed in a country to develop at the manufacturing level as opposed to the industry or the National level. Consequently, Australia’s competitive edge is routed on the skills and the development of technologies, most probably in direct association to the niche products rather than to the tariff of remuneration or other economic conditions not factored in the assessment. Australia features in prominence worldwide because of the high standards of innovation (Organisation of Economic Cooperation and Development 123). The nation’s infrastructure, human resource, and manufacturing expertise are reputable accruing from the high levels of innovation associated with the country. Australia is the land that harbours the diversity of this world in various sectors, from tourism, biotechnology companies, and efficient infrastructure. Australian companies have been successful in terms of recruitment of workforce and low levels in the management development. Majority of Australian workforce is highly skilled; the workforce market is therefore a mature market disadvantaged by the present far above the ground increasing opportunities across the globe with better human resource management. In contrast, to the better human capital management by the US companies, Australian companies have a voluntary turnover at the senior and middle management levels routed from the effortless unresponsive initiative to the requirements of their employees. This is well confirmed by HRM guide (2011) data retrieved from the Australian Bureau of Statistics, Recommendation The most significant international growth in the sector is the niche manufacturers in the main Advanced Manufacturing sectors of precision engineering and computerized equipment for manufacture which were figured in as; Automotive parts manufacturing industry and Aerospace Australia is a great country to invest in having considered all the aspects with regard to Supply chain and subsequent service deliver. With an objective to effectively offer the product in a fair price, cost saving was a major endeavour originally core for a guaranteed continuation an all-inclusive business solution which will result in revolutionaries in the indirect product and services procurement spent in Australia. Further the increasing concentration on delivering vis-à-vis local demands, whilst consecutively engineering efficient supply chain solutions, across the business. Works Cited Austrade. Australian Government Advanced Manufacturing overview. 2 april. 2011. Australian Bureau of Statistics. Yearly Manufacturing production commodities. 21.4.2011. 1.1.2011. < http://www.abs.gov.au/ausstats/abs@.nsf/mf/8301.0.55.001> Business Council of Australia. Infrastructure Action Plan for Future Prosperity.Australia: Melbourne: 2005. Print Department of Finance and Administration. Commonwealth Policy Principles for the Use of Private Financing, Commonwealth of Australia, Canberra. 2002.Print Organisation of Economic Cooperation and Development. Economic Survey of Australia, Paris. 2006. Productivity Commission. Review of National Competition Policy Reforms, Canberra. 2005. Print Thomson, Reuters. Bae Systems Australia Extends Contract With Xchanging. Press Release. [London] 8 April. 2011: 3 Legge, K. Human Resource Management: Rhetorics and Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan. 2004. APPENDIX Chart 1 Table 1 production of goods since 2004 Year Beer ML Portland Cement Clay Bricks Premixed Concrete Gas Electricity 2004 41 211 413 625 190 5330 2005 43 211 423 343 234 5000 2006 42 311 439 632 254 5721 2007 44 350 418 972 268 5623 2008 46 235 458 432 354 5756 2009 45 253 439 988 365 5769 2010 57 250 497 468 362 5757 Chart 2 Chart 3 Table 3, International Data Comparisons Source Australia China Japan USA Population (million, 2008F) EIU 20.6 1,32 8.5 127.3 Resilience of The Economy World Ranking (55 economies, 2008) IMD 1 24 32 21 Index of Economic Freedom World Ranking (183 economies, 2009) Heritage 3 132 19 6 IMD World Competitiveness World Ranking (55 economies, 2008) IMD 7 17 22 1 WEF Global Competitiveness Index World Ranking (134 economies, 2008-09) WEF 18 30 9 1 GDP (US$bn, @ exchange rates, 2008F) EIU 970 40196 50720 14459 GDP Per Head (US$, @ exchange rates, 2008F) EIU 47,030 39,844 47,586 40,010 Figure 4: Yearly Manufacturing Production of products in Australia (Australian Bureau of Statistics) Year Beer ML Portland Cement Clay Bricks Premixed Concrete Gas Electricity 2004 415 2110 413 5 625 190 55330 2005 423 2115 423 5343 234 56000 2006 412 2311 439 5632 254 56721 2007 445 2350 418 5972 268 56923 2008 465 2385 458 5432 354 57576 2009 456 2453 439 5988 365 57769 2010 576 2450 497 5468 362 57777 Read More