The paper "Challenges in Operations Management" is a wonderful example of a case study on management. Manufacturing of automobiles is an important aspect of the Australian economy. The Australian automotive industry has been a major business venture that has provided employment to many citizens in the past years. The industry was very lucrative until just recently when various market players recently faced challenges in doing businesses within the sector. These challenges are similar to those faced by automotive industries worldwide and thus creating changes within the sector on a constant basis (PWC 2013.
The automotive industry in Australia has faced challenges including raw materials, which have grown to be volatile, increased costs for raw materials, high fuel prices, increased competition, and tighter regulations. Stakeholders within the industry in Australia are being forced to comply with the growing concerns for the environment and at the same time satisfy their customer’ s demands for greener and cleaner (PWC 2013). The Australian automotive industry challenges in Australia have recently affected automobile industries like GM Holden, which is a General Motors subsidiary. In early April this year, the industry axed more than 500 workers from its plants within Australia (Industry Week 2013).
The rising strength of their local dollar is the likely cause of the squeezing sale of automobiles. Four hundred job reductions are expected in Adelaide whereby the production of cars has greatly reduced whereas a hundred more jobs will accommodate the expenses for developing their products for the company to cope with the challenging situations. The company faces challenges due to the primary reduction in the local demand for the small Cruze car and a strong Australian dollar that makes it expensive to purchase local vehicles.
These factors combined with a competitive and open worldwide car market favoring importers and a shift in the Australian market structure create more challenges (Industry Week 2013). As much as Australia avoided getting into the financial crisis in the global scene, domestic confidence in returning to the pre-crisis levels has failed hence hitting a low incur sales.
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