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Managing Research : Manufacturing And Globalization

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Question:

Describe about the Managing Research for Manufacturing and Globalization.

 

Answer:

Introduction

Manufacturing industry has been one of the most significant contributors in the developing countries Due to the globalisation; the industry has even undergone several changes. The advancements of the technologies have brought innovative opportunities to the policy makers and the business leaders. It is notified that the global manufacturing sector has faced several recognisable changes. Cummings and Worley (2014) explained that the manufacturing industry faced the several form of recession when the developing economies leaped into this sector. As a result, employment rate in the manufacturing industry fell down in a significant way. However, the manufacturing industry is still one of the most important economic developer sectors in this advanced world. Butlin (2013) pointed out that eventually the manufacturing industry has become the major source of innovation. It has even strengthened the competitive scenario in the business market. However, it is even noted that in keeping pace with the significant changes, the investments of the capital resources are also increasing. Therefore, the companies face several challenges as well.

The study will be describing the effects of such significant changes in the manufacturing industry. It will present the special reference of Toyota Motors in Australia. The recognition of the research background and underlying problem statement will be helpful to conduct the area of research. The theoretical analysis will also be provided in the literature review part. The applied research designs and methods are necessary to structure a complete research paper. The underlying problem identification is necessary to set the examples and elaborate the conceptual analysis more specifically. Depending on such secondary information and methodological application, the future research will be conducted.

Background of the Company and Industry

In today’s world, Toyota has captured one of the most significant places in the business market. It has become one of the largest manufacturing automotive companies with numerous factories all over the world. It can be stated that the company has become the most successful and profitable policy maker in this competitive business world. Over 50 years, Australia has been playing the significant role in manufacturing cars and developing the economies. The vision of the company is to establish the strengthened organisational reputation. The mission of the company is to offer the high quality automotive products and services to the customers. The company places the customers at the top position in the priority list.

It was reported that Toyota has formulated several mega-factories and teamed up with National Geographic Channel. Camry Hybrid, Camry, and Aurion are the three types of models that are manufactured by Toyota in Australia. The integrated version of the Altona manufacturing plant is used to manufacture the local vehicle in Australia. Such types of locally made cars are higher in quality. It is to be informed that in the year of 2013, the company manufactured almost 140, 000 vehicles. However, the changes associated with the technological advancements have created impact on the invested capitals of the company. The cost of the new technologies and the capital resources invested on the manufacturers are also the major area of concerns. The study will thus evaluate the significant issues found due to such changes in this industry.

 

Background of the Research

It is noted that many of the developed countries have undergone the effects of globalisation. Due to such effects, the countries have experienced the tremendous amount of growth, which contributes to the global economy. The future environment of manufacturing industry has been presenting the clarified portraits of economic development. () mentioned that when the nation grows, the manufacturing industry helps in generating the remarkable amount for the economic growth. Moreover, the manufacturing process promotes productivity, innovations, and growth in the employment rate. In spite of being diverse in nature, the manufacturing industry deals with several divers of success. It is also noted that in this current era, this specific industry has entered into a dynamic new phase. Due to enormous opportunities, the global manufacturers are even receiving the extensive chances to develop their financial structure.

The continuous growth in the economy, there are approximately 14% of employment rate and 14% of GDP rates have accounted. However, the major issue lies since it deals with the developmental stages. If the development takes place frequently, the financial stability will be possible. The economic industrialisation and manufacturing employment are needed to grow simultaneously. The Australian government supports the automotive manufacturing industry by providing the latest Automotive Transformation Scheme. This is a commendable initiative to provide assistance and supports for the capital investments. Some of the manufacturers withdrew their capitals from the local production in Australia. Therefore, the instability in the tax policies has been affecting the exchange rate, industry, and the viability. However, if several manufacturing companies are ceasing the production before the end of 2017, it will decrease the employment rate. It simply means that advanced technologies and latest changes are too costly to afford by the companies. Hence, there are probabilities of increasing the unemployment rate since almost 40,000 people may lose their jobs.

Problem Statement

The study highlights the impact of the changes foreseen in the manufacturing industry in this current world. The manufacturing industry in the developed countries is associated with several changes due to the current era of globalisation. These changes have brought changes in the production costs, technologies, and the associated workforces. The latest and advanced technologies are used for introducing several innovative products or services. Moreover, due to the regulatory factors and competitive scenario, the companies are forced to adopt such changes. Eventually, it has been affecting production of these manufacturing companies. Concentrating on such issues, there are several manufacturing companies in Australia including Toyota planned to cease the production. Once the production will be ceased, there will be the high chances for recession and increasing number of the unemployment rate. It is predicted that more than 40,000 people may lose their jobs during such time. It is important to note that Australia is a nation with small scale of production. The vehicles manufactured here are much costly. Moreover, the workers also demand for high salaries. Hence, it becomes difficult to afford such expenses and response to the changing scenario (McLachlan 2013). Concentrating on such hazards, Toyota and many other automotive manufacturing planned to cease the production in order to reduce the costs. Many of the workers are associated with these companies will thus become insecure about their job stability. At any point of time, they may lose their job and the unemployment rate will increase.

Literature Review

The manufacturing companies are one of the major contributors to the global economies. The output level and the huge employment rates in Australia are associated with the manufacturing industries (Butlin 2013). However, there are several debates on the different interpretation regarding the roles of manufacturing in Australia. The literature will present the idea about the major changes, which have been taking place in the manufacturing industry in Australia. The literature will also discuss the idea about the effects of such changes in the production of the manufacturing company. It will present the barriers, which have been forcing the manufacturing companies to increase the production rate. Concentrating on such factors, the further literature review will be presented.

 

Labour market of the manufacturing industry

The effects of globalisation are foreseen in different industries. It is noted that the manufacturing industry comes up with majority of the innovations. Moreover, the technological innovation sin the manufacturing industry is much commendable. Chen, Sohal and Prajogo (2013) pointed out that from the last few decades; the manufacturing industry has been following the unique trends of labour market. In Australian sector, it is noted that the full time employees ought to work for more hours. On the other hand, the part time employees have to work for more hours if there is any importance. Hence, it is mainly based on the priority parameter. In compare to such labour invested by the workers, the wages are needed to be increased accordingly. In fact, the wages have risen at the similar rate, which is seen in other sectors. This changing occupational mix of jobs seeks the educational and technical training of the existing workers (Toner and Stilwell 2014). Therefore, the manufacturing industry requires concentrating on improving the training and development process. In spite of identified instability, it is noted that the average amount of the tenure duration has increased in a significant way.

Valadkhani and Smyth (2016) argued that the manufacturing industry generally signifies the lower level of education if it is compared to other sectors. The associated workers or labours usually do not have any post-school qualification. However, it is even argued that the manufacturing industry is associated with certain innovative facilities. There’re, the proper training is also necessary. Moreover, the industry has been growing and facing several changes. Due to such changes, the technologies and service demands have also been changing. Therefore, it becomes necessary to train the labours accordingly. Biddle (2013) explained that the manufacturing industry is much complex and requires more attention from the production house. Therefore, the investment is one of the major aspects for the production house. The Australian manufacturing industry thus felt the necessity of more capital resources. The increasing wages and production costs are sometimes too high to bear.

Car Industry in Australia

In Australia, the owners of the car component are proven to be late. The car making companies have been operating from Melbourne and Sydney in a significant manner. These companies are providing the high quality vehicle products and services to the customers. Moreover, the industry initially started employing a huge amount of the employees with proper wages (Cassin 2013). When the work gets more complicated, the pay even rises eventually. Therefore, it becomes important to invest more capital by the car industry. Due to such reason, several car manufacturing companies like Holden, Toyota, and Ford decided to stop investing in the manufacturing industry. It is one of the major decisions undertaken by the car manufacturing companies in Australia. In fact, it is also decided that by the end of 2017, the companies have decided to cease the production, which may create the impact on the employment rate (Potter 2015). Many of the workers thus will be eliminated from their job and the unemployment rate will increase more significantly.

Role of Government

The Australian Government has been playing one of the most significant roles during such changes that have taken place in the manufacturing industry. It is noted that the government started a new scheme related to the investment purposes and the tax amount. The major motif of the government is to increase the economy structure of the country (Howes 2013). The manufacturing industry is proven to be the major contributor to the global economy. Hence, the supports from the government would have been quite favourable if the companies would invest more amounts on the production. However, when the companies came to the decision of ceasing the production, it becomes the major concern for the government as well. The unemployment in the country would thus consider a huge impact on the economic structure (Anaf et al. 2013). Hence, the research is conducted to ensure what will be beneficial steps that the manufacturing industry may undertake to contribute the economic efficiency.

Research Methodology

Research methodology is signified as the structured procedure that has been used for conducting any particular research study in a sequential way (Creswell 2013). The study has been focusing on the increasing rate of unemployment due to the ceased production in manufacturing business. The study is associated with the mixed method research, which signifies the information is collected from both the primary and secondary sources. Therefore, it is necessary to use the suitable designs for the research that can provide the authentic and justified information related to the subject matter. The methodology part will provide the ideas about the justified methodology that has been used to conduct the research.

 

Research Design

The research design signifies the overall strategy, which determines the diversified components. According to Lewis (2015.), research design helps in addressing the research problem. More specifically, it identifies the blueprint of the measurement, collection, and analysis of the gathered data. Research design is classified into three different types, such as exploratory, explanatory, and descriptive. Maxwell (2012) defined that the exploratory design specifies the hypotheses associated with the subject matter and it helps in examining the data collected from different sources. This particular design provides the insights about the connection between the major variables underpinning the research study. On the other hand, explanatory research is linking the ideas and concepts with the meaning that is required to assimilate with the subject. Finally, the descriptive design is the form of presenting the gathered data in an accurate way. This particular research designs concentrates on the proper data and free from the human interpretation (Mitchell and Jolley 2012). This research design is selected to complete this study.

The descriptive design is much observational (Pickard 2012). It is associated with the accuracy and fruitful insights related to the subject matter. In this research study, it is required collecting the accurate data regarding the current scenario in the manufacturing industry. Moreover, the study requires providing the ideas about the potentiality of maintaining the production by the Australian manufacturing company. The descriptive design analyses the data with proper accuracy and it derives the fruitful insights regarding the subject matter. Hence, the selection of descriptive design is appropriate for this study.

Mixed Method Research

The study is the assimilation of both the primary and the secondary research. The secondary research is signifying the collection of the secondary sources like websites, journals, books, and articles. On the other hand, the primary data collection process is associated with two divisions, such as quantitative data collection and qualitative data collection (Mackey and Gass 2015). In the qualitative data collection process, the information will be collected from the people who have been experiencing the situation in their personal life. The survey conducted among them will thus be fruitful to ensure the responses. In this process, the probability, simple random technique will be adopted to set the sampling strategy. The survey will be conducted among 50 employees from Toyota. The questionnaire will be distributed to them via e-mail sources. The questionnaire will be including multiple choice questions among which the participants require choosing their suitable answers. On the other hand, the qualitative data collection process will be conducted among 3 managers from Toyota. The interview session will be attended by them by following the non-probability, convenience sampling. Following such structure method, the relevant data will be collected from the focus group. The responses received from the respondents would thus be analysed through using several software tools.

Ethical Consideration

While conducting the research study, it is necessary to maintain several ethical concerns. It is to be ensured that any of the participants would not be persuaded for answering any questions. The names of the respondents would be anonymous. The data gathered for this particular research would not be disclosed to any other researchers. Even though the study will be used for the future purposes, the data will not be accurately described. Therefore, it is one of the major concerns that are needed to be concerned during conducting any particular research. Moreover, the participants can withdraw their responses at any moment and they will not be persuaded against their wishes. Maintaining such ethical concerns, the entire study will be conducted.

Research Limitation

It is noted that in spite of gathering the relevant data, the study is still somewhat limited. The major limitation of the study is the time constraints. If the time would not have been limited, the study would have incorporated many fruitful ideas about the subject matter. Due to the lack of time, the more information could not be included. Moreover, it was quite difficult to generate the secondary sources that are currently updated. The lack of the updated sources is also one of the major concerns. In fact, these sources are not even properly verified. There is no way to verify the authenticity of the used resources. In addition to this, the biased responses of the participants have also made the study limited.

 

Time Schedule

Activities of the Research

1-4

4-8

8-12

12-16

16-20

20-24

24-28

Research Topic

Ø   

 

 

 

 

 

 

Secondary Sources

 

 

 

 

 

 

 

Investigation layout

 

 

 

 

 

 

 

Theories and Literature

 

 

 

 

 

 

 

Planning of Research and Operations

 

 

ü   

 

 

 

 

Applied Research Techniques

 

 

 

 

 

 

 

Analysis of Secondary Data

 

 

ü   

 

 

 

 

Data interpretation and analysis

 

 

 

 

 

 

 

Findings  and Analysis

 

 

 

 

 

 

 

Conclusion and Summary

 

 

 

 

 

 

 

Draft Formulation

 

 

 

 

 

 

 

Final Submission

 

 

 

 

 

 

 

Table 1: Time Schedule

(Source: Created by Author)

Expected Outcome

The study is identifying the major reasons for ceasing the production of the Australian manufacturing industry. It is noted that the increased costs associated with the significant changes are the major reason due to which the manufacturing companies have decided to cease the production. Moreover, it is also noted that due to such decisions, the unemployment rate will also increase. In order to overcome such crisis, the supports from the government can be expected. If the government can provide the support to train the existing manufacturer labours, it will decrease the costs of the production. The companies will be able to establish their strengthened position in the competitive market. Hence, the government requires taking the active participation in this regards.

 

References

Anaf, J., Newman, L., Baum, F., Ziersch, A. and Jolley, G., 2013. Policy environments and job loss: lived experience of retrenched Australian automotive workers. Critical Social Policy, 33(2), pp.325-347.

Biddle, I., 2013. Blue collar blues the demise of Australian manufacturing.Busidate, 21(4), p.5.

Butlin, N.G., 2013. Investment in Australian economic development, 1861-1900. Cambridge University Press.

Butlin, N.G., 2013. Investment in Australian economic development, 1861-1900. Cambridge University Press.

Cassin, R., 2013. Who killed the car industry?. Eureka Street, 23(24), p.34.

Chen, J., Sohal, A.S. and Prajogo, D.I., 2013. Supply chain operational risk mitigation: a collaborative approach. International Journal of Production Research, 51(7), pp.2186-2199.

Creswell, J.W., 2013. Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.

Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.

Howes, M., 2013. Politics and the Environment: Risk and the Role of Government and Industry. Routledge.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, .

Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.

Maxwell, J.A., 2012. Qualitative research design: An interactive approach: An interactive approach. Sage.

McLachlan, R., 2013. Deep and Persistent Disadvantage in Australia-Productivity Commission Staff Working Paper.

Mitchell, M.L. and Jolley, J.M., 2012. Research design explained. Cengage Learning.

Pickard, A., 2012. Research methods in information. Facet publishing.

Potter, B., 2015. Firms want action on manufacturing.

Toner, P. and Stilwell, F., 2014. Why does Australia need manufacturing industry?. Australian Options, (75), p.21.

Toyota.com.au, 2016. Toyota Operations Manufacturing. [online] Toyota Australia. Available at: <https://www.toyota.com.au/toyota/company/operations/manufacturing> [Accessed 15 Oct. 2016].

Valadkhani, A. and Smyth, R., 2016. The effects of the motor vehicle industry on employment and research innovation in Australia. International Journal of Manpower, 37(4).

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