The purpose of this report is to figure out the impacts and effects of GFC over the Australian Motor Industries which is said to be owned by TOYOTA, and this company has its own reputation for their products among the several other Automotive Industries in the present era. However even this industry has undergone a severe impact in accordance with the Global Financial Crisis which is said to be briefly discussed in this report. And entirely this report is done only in accordance with the Strategic management which has the various stages of analysis that evaluates about the industry in all the perspectives possible, further which some recommendations are been suggested to handle this Financial Crisis which ends the report with a positive note and even it creates a positive impact towards the Australian MOTORS (AMI).
Than saying the Australian car industry was killed it could be said that it was a victim of what IMF chief Christine Lagarde calls the orge of deflation. Till the previous year according to ABS the car prices are said to fall around 2.8 percent even though the dollar was depreciated 15 percent, so it wasn’t the dollar which was the reason for the deflation in the industry. Inflation is said to be kick started during the month of December, which made a fall even in the field of computers, TVs, fuel as well, during which there was a hike in price of the other products and regarding with the wages it rose till 3 percent and 10 percent in the field of real estate.
The initial stages of deflation was due to the presence of new technology and Automation devices which reduced the usage of workers inside the factories which led to the unemployment too , the new technologies and automation cannot also be fully blamed as a reason for deflation.
The reason which further took this industry to deflation was due to the internationalisation of China’s currency, the Reminibi , is funding other developing countries like Bangladesh and Cambodia to provide more cheap products.
The only solution is more debt. While the central bankers were trying to reduce the price of credit to zero which in-turn encourages people to take it off their hands. Whereas in countries like America and Japan they are trying to materialise money so that it can be further lent, but then most of the printed money are said to be stacked down in the bank reserves, and this was said to be continuing for years around the world while Australia escaped this due to the presence of fruits and vegies which saved the country from any kindof deflation like the rest.
2. Strategic Management over Australian Motor Industries:
The starting point of the strategic management is said to be the DESIGN SCHOOL with an emphasis on process. However this system is entirely based on the SWOT analysis which is an...