Strategic Analysis of Holden Auto Manufacturing - Research Proposal Example

The Proposal for the Strategic Analysis of Holden Auto Manufacturing Name Tutor Institution Course Date Table of Contents 1.Introduction 3 2.Justification 4 3.Research Questions 5 4.Hypotheses 5 4.1Hypothesis 1: 6 4.2Hypothesis 2: 6 5.Background of the Study 6 6.The Proposed Design Methodology 7 6.1Research Design 8 7.Conclusion 9 References 12 The Proposal for the Strategic Analysis of Holden Auto Manufacturing 1. Introduction Holden is a prominent auto manufacturer based in Australia. With its headquarters in Port Melbourne, the company is strategically placed to exploit the Australasia market. Since its founding in 1856, the company has lived through challenges and market turbulence up to the present day. Back then, Holden was a manufacture of saddlery. It began venturing in the field of automotive in 1908. Its initial success managed to attract serious international investors and, indeed, it became a subsidiary of General Motors group in 1931 (Burton & Reed, 2010). At the present, Holden is tasked with the responsibility of facilitating all GM operations in the Australasia. In addition to the Australasian market, Holden handles the operations of South Korean Daewoo on behalf of GM. Its association with GM Motors has enabled the company to offer a wide range of vehicles. The manufacture of these vehicles is supplemented by the American GM models. The company does also have sharing arrangements with such other manufactures as Nissan, Isuzu, Toyota, Opel, Vauxhall Motors, and Suzuki. Holden has also made distribution arrangements with such European brands as Opel (Jain & Spoehr, 2012). Australian Holden brands are manufactured in the city of Elizabeth. Nevertheless, the production of engines is based in Port Melbourne. The production and assembly plants had initially been operating in every mainland state. Some have since been consolidated at Port Melbourne and at the city of Elizabeth (Pulignano, 2008). Even though the organization’s exports have been fluctuating significantly since the mid 1950s, increased competition has prompted the company to focus on the international market. This is hoped to enable it increase profitability. Having proved to be an influential organization in Australasian, this paper proposes the undertaking of the strategic analysis of Holden Auto Manufacturing. The proposal is to evaluate the strengths, weaknesses, opportunities, and threats facing Holden as an organization (Vlasic & Stertz, 2009; Bayari, 2011). 2. Justification As it has been pointed out in the introduction section, there are a number of factors which influence operations at Holden. These factors can be categorized into two: internal and external. While the internal factors happen to be within the control of the stakeholders, the stakeholders do not have the capacity to influence the external factors. External factors can only be assessed and their future predicted. It is upon those predictions that the organization defines its external environment. Even though experienced analysts may define the external environment with precision, such exercises could be error prone (Norbury, 2006). With regard to the internal factors, the management is able to appraise and recommend maneuvers which would make business operations profitable. In spite of the difficulties associated with the assessment of the organization’s position in the industry, it is of utmost important to undertake appraisals so as to strengthen operational and financial transactions. In this regard, the analysis of Holden with respect to strengths, weaknesses, opportunities, and threats is justifiable (Unoki, 2012). 3. Research Questions The research questions emphasize on the factors which relate to the strategic analysis of Holden Auto Manufacturing. The questions are precise, and this is meant to avoid ambiguity. The issues in the proposed study have been condensed and, therefore, it has two research questions. The questions do, however, have subdivisions. The subdivisions are meant to narrow down the study to the subjects pertinent to the analysis. The questions are as follows: 1. How effective is the Holden’s strategic policy? How does the strategic policy relate to the strengths, weaknesses, opportunities, and threats? What is the organization’s competitive advantage? 2. Does the available human, capital, and financial resources avail strategic capabilities to the organization? How does the culture and values held dear by the stakeholders influence the achievement of strategic objectives? 4. Hypotheses Basically, the hypotheses are formulated based on the research questions. The hypotheses will form the foundation of analysis. Just like the questions, there are two hypotheses, and the hypotheses are based on the questions mentioned above. Each of the hypotheses has a null and an alternative hypothesis. They are proposed as follows: 4.1 Hypothesis 1: Ho = Holden has an effective strategic policy. H1 = Holden strategic policy cannot produce the intended objectives. 4.2 Hypothesis 2: Ho = the resources of Holden Auto Manufacturing avail unique strategic capabilities to the organization. H1 = Holden’s resources do not offer significant strategic capabilities and, therefore, most of them go to waste. 5. Background of the Study The Auto industry has witnessed significant competition over the last few decades. The Australian market has not been an exception. Even though an increasing number of citizens and residents of Australia have managed to own cars, manufactures do face stiff competition as a result of importation of a wide variety of brands. Moreover, in addition to Holden, there are two other prominent auto manufactures in Australia. The other two are the Australian Motor Industries and Elfin Cars. Of the two, Australia Motor Industries proves to be the biggest domestic competitor to Holden (Lutz, 2011; Blanpain, 2008). Competition and rivalry are among the external factors which the stakeholders of Holden cannot control. Others include new entrants, especially when the entrants happen to possess the financial muscle. The study will evaluate the best practices which would enable Holden to extenuate the threats, and continue exploiting opportunities in spite of the challenges. The study will also assess the impact of managerial decisions, as well as how the stakeholders can co-operate while undertaking their duties within the organization (Dixon, 2012). The study being proposed will be structured in a manner that does facilitate the re-assessment of the stakeholder’s original objectives. This will facilitate the evaluation of how much has been achieved, and what can be achieved through the streamlining of the strategic policy. The study will, therefore, be formative as well as summative. It will aid in the establishment of foundation for the improvement of organization and strategies. In order to achieve that, the researcher will draw lessons based on the current situation within the organization and the industry as a whole (Elger, 2010). 6. The Proposed Design Methodology Essentially, the research will involve the test of hypotheses. The goal of testing the hypotheses is to analyze the situation scientifically before the conclusions are drawn. The methodology section will be accomplished carefully so as to avoid mistakes which would then lead to erroneous conclusion. The chosen methodology has significant impact on the manner in which the factors are evaluated. As such, the preferred methodology will be that which the researcher has adequate proficiency in. The process of selecting that will involve careful weighing of constraints including feasibility, available finances, time, as well as ethical considerations. 6.1 Research Design The study is aimed at analyzing the strategic policy of Holden Auto Manufacturing. It will commence with data collection before progressing into analysis. There are two categories of data. These include primary and secondary data. It is important to indicate that for the purpose of completing this study, data will be corrected from secondary sources. These sources include books, journals, and satisfied websites. The data of interest will include both qualitative and quantitative categories. Combining both qualitative and quantitative categories enable the research avoid intrinsic biases which would arise in case a single set of data is utilized. The collection of data will focus on those pieces which establish inter-relationships amongst the variables. Taking such a measure will save time since irrelevancies will have been avoided. Upon the gathering of reliable data, sampling and analysis will be undertaken. This will then facilitate the drawing of conclusion. The research will broaden the issues under investigation. This is hoped to avail flexibility, and also tackle the matters which may arise as the study progresses. This is especially so because the contemporary market is dynamic and dynamism means that changes will happen all the time. Successful organizations emphasize on availing the best quality and services to the clients. Such companies as Holden endeavor to achieve this goal without violating their traditions and values. Nonetheless, availing the best means that organizations cannot avoid adjustments. These adjustments are meant to enable the firm adapt to the present situation. Since some changes may occur after the study has commenced, the methodology will have to be flexible enough to accommodate them (Gorodji, 2008; Baker, 2007). The analysis of strengths, weaknesses, opportunities, and threats helps in the development as well as the implementation of effective strategic policies which enable stakeholders to realize the corporate needs. In this regard, the methodology will enable the researcher evaluate and analyze important corporate issues. It will also facilitate the assessment of the organizational strengths, as well as how these strengths can make significant impact on the strategic development. The strength and weakness of Holden will be obtained through thorough analysis of capabilities and the associated resources. As this is being accomplished, threats and opportunities will be highlighted, especially with respect to the external environment. As it has been indicated earlier, the methodology will be accomplished in a manner that overcomes intrinsic biases. While qualitative data facilitates flexibility as research progresses, quantitative data is reliable. This is especially when the sources are authentic and updated. Such a careful analysis will help in understanding the strategic intent of the stakeholders. 7. Conclusion The proposed study is about the strategic analysis of Holden Auto Manufacturing. The goal of the study is to evaluate the strengths, weaknesses, opportunities, and threats facing this Australian company. Holden has been selected since it is among the most successful companies I Australia. It is expected that even with its successful history, the company has had to overcome a host of challenges. These challenges emanate from both internal and external environment. In any organization, the stakeholders have the control of the internal environment. They can alter policies, restructure their organizations, and also influence the use of funds in an endeavor to address the most urgent matters. If this is accomplished in an appropriate manner, an organization may avert threats and losses. With regard to the external environment, the stakeholders can only evaluate the logical and causal connections between factors. The conclusions made after such an evaluation should then form the basis of defining the relationship between the organization and its external environment (Holstein, 2010). This proposal commences with the introduction. This is where the history of the organization and its standing in the industry are explicated. As it is indicated in the introduction, the company has established unique relationships with several foreign players. The study will, therefore, evaluate the strategic importance of such relationships. In essence, the study will be designed in a manner that assesses the major components of Holden’s strategic policy. The study will have two research questions and two sets of hypotheses which are designed in a manner that avoids ambiguity. The proposed methodology is designed in a manner that avoids intrinsic biases. This is why the researcher proposes the collection of both qualitative and quantitative sets of data. Qualitative data facilitates flexibility, while quantitative facts avail precision. The proposed study will then come up with the conclusion of an appropriate strategic policy which can assist the organization in achieving is long-term goals (Graham, 2010). References Baker, K.J. (2007). Economic Tsunami: China's Car Industry Will Sweep Away Western Car Makers. New York: Rosenberg publishing headquarters Bayari, C. (2011). Japanese Hybrid Factories in Australia: The Japanese System Transferred. Zurich: LIT Verlag Münster Blanpain, R. (2008). Globalization and Employment Relations in the Auto Assembly Industry: a Study of Seven Countries. Alphen aan den Rijn, Netherlands: Kluwer Law International Burton, M. & Reed, H. (2010). Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table. Hoboken, NJ, United States of America: John Wiley & Sons Dixon, D. (2012). Securing Your Superannuation Future How to Start and Run a Self Managed Super Fund.. Hoboken: John Wiley & Sons. Elger, T. (2010). Global Japanization? the Transnational Transformation of the Labour Process.. Sydney: Haworth Press. Gorodji, A. (2008). Nissan GT-R: Legendary Performance, Engineering Marvel. Melbourne: MotorBooks International Graham, I. (2010). The global economic crisis: sectoral coverage : automotive industry : trends and reflections. Geneva: ILO. Holstein, W. (2010). Why GM Matters: Inside the Race to Transform an American Icon. London, UK: Bloomsbury Publishing USA Jain, P. & Spoehr, J. (2012). The Engaging State: South Australia's Engagement with the Asia-Pacific Region. Kent Town, South Australia: Wakefield Press Lutz, B. (2011). Car Guys vs. Bean Counters: The Battle for the Soul of American Business. Westminster, England: Penguin Group Norbury, K. (2006). On the road again: Australians and their cars. Prahran, Vic.: Hardie Grant Books. Pulignano, V. (2008). Flexibility at work: critical developments in the international automobile industry. Basingstoke England: Palgrave Macmillan. Unoki, K. (2012). Mergers, Acquisitions and Global Empires:Tolerance, Diversity and the Success of M&A. London: Routledge Vlasic, B. & Stertz, B.A. (2009).Taken for a Ride: Cars, Crisis, And A Company Once Called. Hammersmith, London: HarperCollins Read More