Essays on Challenges in Operations Management Case Study

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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.

References

GM Holden 2010,Holden Business Report, Salmon Street, Melbourne.

World Environment Center 2008, GM Holden To 'Green' Its Supply Chain, Viewed May 25 2013

WardsAuto 2012, GM Holden Setting Up for Volt Charging, Viewed May 25 2013

News.com 2012, Holden rescue deal 'likely soon' to secure future of GM Holden in Australia, Viewed May 25 2013

Adelide Now 2013, Holden pleads for help as Ford closes shop in Australia, Viewed May 25 2013

Australian Government Treasury 2004, Australia’s Demographic Challenges, Viewed May 25 2013 < http://demographics.treasury.gov.au/content/discussion.asp>

Industry Week 2013, GM Holden Cuts 500 Jobs in Australia, Viewed May 25 2013

PricewaterhouseCoopers 2013, Australia’s Automotive Industry, Viewed May 25 2013

Biesebroeck, G 2009, ‘Globalisation of the automotiveindustry: main features and trends’, Int. J. Technological Learning, Innovation and Development, Vol. 2, pp. 7-24.

Social Science Research Network 2009, Government Policy and the Liberalization of Australia’s Car Industry: A Historical Analysis, Viewed May 25 2013

The Financial Times, 2013.Globalisation, Viewed May 25 2013

Serguei, N & Christopher, S 2009.Consumer-Driven Demand and Operations Management Models: A Systematic Study of Information-Technology-Enabled Sales Mechanisms, Springer: New York.

Chartered Institute Quality, 2013. ‘What is Quality Management?’ Viewed May 25 2013

Institute of Operations Management, 2007. ‘What is Operations Management?’ Viewed May 25 2013

Aria Networks, 2013, ‘What is Capacity Management?’ Viewed May 25 2013

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