Holden Automobiles' Expansion into Hungary: A Business Environment Analysis

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REPORT BUSINESS

Table of Contents
INTRODUCTION............................................................................................................................. 2
INFORMATION ON HOLDEN AUTOMOBILES..................................................................................3
BUSINESS ENVIRONMENT FOR HOLDEN AUTOMOBILES IN HUNGARY.........................................5
PESTEL ANALYSIS FOR HOLDEN AUTOMOBILES IN HUNGARY (MACRO ENVIRONMENT ANALYSIS)
....................................................................................................................................................... 9
PORTER’S FIVE FORCES ANALYSIS (COMPETITIVE ANALYSIS).......................................................11
CONCLUSION............................................................................................................................... 13
REFERENCES.................................................................................................................................14
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INTRODUCTION
This assignment is based on the business organization and environment with regards to global
context. To establish the functioning of any company on other nation apart of which it
originally belongs to there are various types of challenges that occur during the entire
processing. This assignment is based on all those challenges the company has to face and the
other aspects of the business associated with the same. Any company working in the
marketplace and is planning to expand its business in other countries must initially conduct an
appropriate market research that helps to know about the current and future marketing
business environment. This assignment is based on the one of the Australian automobile
company “Holden Automobiles” whose expansion is being planned in Hungary.
This report initially discusses the entire overview of the chosen business organization that is
Holden Automobiles along with the allocated business environment. Also, the use of proper
analytic approach such as PESTEL will be carried out to understand external marketing
environment along with Porter's Five Forces Analysis to understand the competitive analysis of
the company using required data as well as examples. So, this assignment has all the significant
information that supports the report to feature all the relevant information regarding business
environment and organization in a global context.
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INFORMATION ON HOLDEN AUTOMOBILES
The Holden Automobile officially is called as General Motors Holden which is an Australian
company that deals in importing automobiles and also the company previously was an
automobile manufacturer. The Holden Automobiles is headquartered in Port Melbourne,
Victorian, Australia. The company was founded by James Alexander Holden and hence named
in his name; it is a private sector automobile company. Holden Automobiles was founded in
Adelaide, South Australia in the year 1856 that is long back from now (Thoms and Holden,
2016.). The product that the company offers to its customers is mainly automotive engines.
From the survey in the year 2017, it was analyzed that the total number of employees working
for the company is around 4000 in number. The company in 1908 became the subsidiary of
General Motors that is US based company and after it was named as General Motors-Holden
Ltd. in 2005 the company again was renamed as only General Motors Holden. The company
operates majorly in Australia but also in other countries such as Korea, Thailand, India, and
United States etc. (Rahman and Areni, 2014.). Holden Automobiles also distributed the
European Opel brand in Australia till the year 2012. The vehicles that were being built in
Australia till 2017 were manufactured in the Elizabeth that is located in South Australia.
The engines were manufactured in different part that is in Fishermans Bend plant in
Melbourne. But in the old times, the manufacturing and the assembly plants for the engines
and vehicles situated in almost all the main parts of Australia. Also since 1969 the company
Holden Automobiles has started the services of motorsports in Australia and doing a great job
in this sector as well (Fourie, 2016). The biggest achievement of the company was when it was
provided with $270 million lifelines by the Gillard Federal Government and the ministries of
Baillieu and Weatherill the company in return decided to introduce about $1 billion into
vehicles producing in Australia. Also, Holden Automobiles decided to sell its residual stock that
is locally manufactured of the variety of Commodore vehicles and models of GM that the
company has imported. Holden Automobiles also presented the badge engineered models in
the sharing partnership with Nissan, Suzuki, Chevrolet, Toyota etc.( White, 2015). The clients of
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