Management Assignment 2 Research Paper Example | Topics and Well Written Essays - 500 words

Management Assignment 2 - Research Paper Example A car manufacturing plant can produce roughly around 10% of the automobile demand of the whole industry. But with this level of output, a company also needs high level of sales promotion and dealership. In order to fully sale the produced output, the Dassan Limited will need to start the advertising campaign on a very large scale. This strategy will decrease the cost per unit of automobile. Generally the buyers prefer to deal with large and reputable manufacturers and dealers. Such a big network of credible dealers requires a large amount of investment in the automobile industry. Dealers also want to deal with big names and companies have to make a considerable effort at the time of establishing a company. There are currently three big players in the Australian Automobile industry. Ford Australia, GM Holding Ltd and Toyota Motors Corporation Australia are the only three large scale automobile manufacturers in Australia. Ford Australia is one of the subsidiaries of the Ford Motor Company and established in Victoria in 1925. The company also operates Ford Performance Vehicles which is an in-house tuning division. In 1856, the GM holding was formed as a saddlery business but became a subsidiary of GM Motors later in 1931. Holden has offered many locally manufactured vehicles like Holden Commodore to the domestic market. Holden also operates an in-house tuning division known as Holden Special Vehicles. Toyota Motor Corporation Australia is a subsidiary of Japan based Toyota Motors Corporation. Toyota Australia promotes and manages their products in Australian market specially motorsport. The automobile manufacturing company needs high capital and labor to start up. As the Dassan Ltd is trying to establish itself in another country, it needs foreign exchange. Although geographically Australia is located near Korea but it is inaccessible through land so Dassan Ltd either can not utilize its previous expertise and resources or has to endure high