The Effect Of Corporate Social Responsibility

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Strategic management

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Table of Contents
Introduction......................................................................................................................................3
History of world automotive industry..............................................................................................3
External environment analysis of Automobile industry..................................................................4
Five forces model........................................................................................................................4
Pestle analysis..............................................................................................................................5
Reason for import in industry than manufacturing in Australia......................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
In this assignment, the analysis of the automotive industry will be carried out. It will be covering
the history and background of the industry. In order to analyze the external environment of the
industry there will be pestle analysis which will be taken into consideration. In Australia most of
the manufacturers prefer to import and not to manufacture. The reasons for the same will be
identified in the assignment below.
History of the world automotive industry
The automotive industry developed in the 1860’s and ‘70s with the making of gasoline engine in
Germany and France. With the time there were various other countries which added to this
industry including America, Italy, and Britain. The mass production technique has been
introduced by henry ford and it gained the importance very early in the three companies’ namely
General Motors, Ford and Chrysler. After World War II there was great demand and it was
fulfilled by Japan and Europe (Miller, 2019). The first modern car was Mercedes which has been
presented in 1901 by Wilhelm Maybach. The engine of this car was of thirty-five horsepower
and it was for fourteen pounds per horsepower. In 1909 Daimler came as the most integrated
automobile factory in Europe and it employed around seventeen hundred workers so that they
can increase the production to thousand cars a year. There were new firms and they were
operating to provide consumer goods which are expensive. Automotive transportation was more
required by the United States in comparison to Europe. There was high per capita income and it
ensured more demand in the market by which the income distribution will be more equitable
(History, 2018). There was mass production which started by the Ford and was also adopted by
various American automobile manufacturers. The manufacturers count started dropping and
from 253 in 1908 it declined to 44 in 1929. Out of the complete output around 80% was provided
by the Chrysler, ford and general motors. With the development of time there was innovation
which was coming and it became difficult to meet with the requirements. The emphasis has been
made on the styling by general motors and under this models were changed on annual basis. The
market survey is carried to identify the demand for the new product and with time the industry
has attained high growth.