Report on Strategic Management 2022

Strategic
Management

Strategic Management 1
Contents
Introduction................................................................................................................................2
Background................................................................................................................................2
Five forces model.......................................................................................................................2
Why car manufacturers prefer to import rather than manufacture in Australia.........................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

Strategic Management 2
Introduction
The strategic management is all about the constant planning, monitoring, analyzing and
assessing which is required for a company to meet its aims and objectives. It analyses the
internal and external strengths and weaknesses along with formulating and executing action
plans. This report has described the worldwide motor vehicle industry. The background has
been discussed in the report with the external environmental analysis of the industry
comprising five forces model. Further a discussion has also made on why motor vehicle
manufacturers are likely to import than manufacturing in Australia. There are several factors
which led to import vehicles in Australia.
Background
The motor vehicle industry includes an extensive range of companies elaborated in design,
development, marketing, and selling of the motor vehicles. The motor vehicle industry is
deliberated to be one of the globe’s largest economic sectors by revenue. The motor vehicle
industry does not include the organizations dedicated to the maintenance of the automobiles
following delivery to the final users like repair shops and fuel filling stations (Bloomfield,
2017).
The motor vehicles were originated in Europe in the late nineteenth century. The U.S
completely dominated the motor vehicle industry in the early twentieth century by innovating
mass production techniques. It has been considered that the motor vehicle industry right now
contributes to more than 7% of the globe’s GDP (Cantor, Corsi, Grimm, and Singh, 2016).
Currently, the motor vehicle industry worldwide is going under the major changes in retort to
customer demand and economic pressures. The producers are responding to the customers by
transmuting the vehicle assembly procedure (Trigeorgis, and Reuer, 2017). The top
manufacturers in the motor vehicle industry work collaboratively in order to offer solutions
which deliver profitability and sustainable growth.
Five forces model
Five Forces model enlightening the international new car motor vehicle industry has been
mentioned below.