Inflation Rate Impact on Mazda Cars Financial Performance in Australia

This project explores the impact of inflation rates on the financial performance of Mazda cars in Australia. It highlights how rising inflation affects lending activities, stock market development, and the overall cost of living and doing business. The research aims to determine the link between inflation and financial performance, utilizing secondary sources such as Mazda's annual reports and financial data from the Reserve Bank of Australia. Key variables considered include the inflation rate, Mazda's financial performance, and stock market trends. The central research question investigates how increasing inflation influences Mazda's financial standing in the Australian automobile industry. The literature review suggests that inflation has both positive and negative effects, potentially allowing Mazda to adjust prices and improve financial performance. This project provides insights into the economic factors influencing the automotive sector and is relevant to students studying management and economics. Desklib provides access to this project and other valuable resources.

Running head: PROFESSIONAL PROJECT
Professional Project
Name of student
Name of University
Author note

1PROFESSIONAL PROJECT
Impact of inflation rate on the financial performance of Mazda cars in Australia
Field of research
This is an evident fact that the rate of inflation has created an impact on the financial
performance of Mazda cars in Australia. The rise in inflation has created influence on the
lending activities from banks, which even hindered the growth and development of the stock
market. The increase in prices, also known as the rate of inflation, has often resulted in
influencing the living costs as well as the cost of mortgages and performing business, which
are responsible for contributing the growth and development of economy for Mazda cars in
Australia (Mazda.com.au, 2019). The research objective has been aimed at determining the
link between inflation rate and financial performance. Considering the fact that my course is
based on the masters of management for engineers, the performance of Mazda cars is suitable
for the topic selection, which can allow me to present facts about the rate of inflation and
other related aspects responsible for improvement of business performance.
Secondary sources to be used
For accomplishing the research, the secondary sources will be assessed including
annual reports of Mazda cars and other financial data present in relevant sources of data. The
links of the data sources that can be used are provided below.
https://www.mazda.com/globalassets/en/assets/investors/library/annual/files/
mazdaar18_e.pdf

2PROFESSIONAL PROJECT
https://www.rba.gov.au/statistics/tables/xls/g03hist.xls
Research variables
The most important variables that will be considered here are the rate of inflation in
Australia, financial performance of Mazda cars, stock market development, etc.
Research question
How can the rise in inflation rate influence the financial performance of the Mazda cars in the
Australian automobile industry?
Search terms
Few of the major terms that are searched here for accomplishing the research are rate
of inflation, financial performance of Mazda cars in Australia, development of stock market,
etc (Kar & Swain, 2014).
Literature review
According to Kar & Swain (2014), the rate of inflation has some positive as well as
negative influences on the financial performance of the automobile sector in Australia.
Karpen et al. (2015) also stated that with the rise in inflation rate, the cost of living as well as
managing business have increased as well, which creates scopes for the automobile industry
in Australia to set prices according to that, furthermore, improve the financial performance
and regain the good condition of stock market too.

3PROFESSIONAL PROJECT
References
Kar, A. K., & Swain, R. B. (2014). Interest rates and financial performance of microfinance
institutions: Recent global evidence. The European Journal of Development
Research, 26(1), 87-106.
Karpen, I. O., Bove, L. L., Lukas, B. A., & Zyphur, M. J. (2015). Service-dominant
orientation: measurement and impact on performance outcomes. Journal of
Retailing, 91(1), 89-108.
Klein, N. (2013). Non-performing loans in CESEE: Determinants and impact on
macroeconomic performance(No. 13-72). International Monetary Fund.
Mazda.com.au | New Cars, Offers, Dealerships - Zoom-Zoom. (2019). Retrieved from
https://www.mazda.com.au