By: Mercy (Mengxing Gu) - 119020425
Lecturer: Derek Harwood
Unit: SIM 336
Due Date: 11 May 2012
Word Count: 3795
During the past decade, we have witnessed an increasingly rapid tendency toward globalization in the world economy. It has been the principal contributor to expand market share and increase the profit of organization in the world.
Geely Automobile Holdings Limited is China’s largest private automobile manufacturer; the company has over 30 models of complete vehicle products in eight series. Because of the latest Global Financial Crisis, many entities including automobile firms suffered financial difficulties and organizational problems. However, Geely took this chance as its expanding opportunity to the international markets. The acquisition of Australia’s DSI in 2009 is Geely’s first attempt to make a 100% overseas purchase. Dealing with cultural differences between China and Australia would become a primary consideration in this point. Therefore, at first stage, the Strategic Management of report will provide a Porter’s Five Forces Model, Competitive advantage, PEST and a SWOT analysis to suggest the company expanding into Australian market. Business in Australia is conducted in a transparent, well regulated and politically stable environment. The judiciary is open, independent and accessible. The climate is superb and living standards are high.
The aim of this report is to evaluate investment opportunities and risks management for Geely. This report will mainly focus on the analysis of cross-culture between China and Australia.
The leadership will be discussed in this report as well. In China, leaders face organizational and environmental challenges quite different from the ones found in Western cultures. State paternalism as well as Confucianism and Communism have influenced and shaped business’ cultures and leadership practices within Chinese companies.
Moreover, the social responsibilities will be discussed as well. Social responsibility is a really important issue that Geely Automobile has to consider in the attempt to enter Western market like Australia. Moreover, staff policy will be described in the next section. Finally, the report will provide recommendations for the company and concludes with a brief assessment of the outlook for Geely Automobile.
Table of Contents
1.0 Introduction 4
2.0 Geely and its Globalization 4 2.1 Strategies of Globalization 4 2.2 Impacts of Globalization 4
3.0 PESTLE Analysis of Australian Market 5 3.1 Political Section 5 3.2 Economic Section 6 3.3 Social Section 7 3.4 Technological Section 7 3.5 Legal Section 7 3.6 Environmental Section 8
4.0 SWOT Analysis of Geely Automobile 8 4.1 Strengths 8 4.2 Weaknesses 8 4.3 Opportunities 8 4.4 Threats 8
5.0 Porter’s Five Forces 9 5.1The threat of the entry of new competitors 9 5.2 The threat of substitute products or services 10 5.3 The bargaining power of customers (buyers) 10 5.4 The intensity of competitive rivalry 11 5.5 The bargaining power of suppliers 12
6.0 Competitive advantage 12
7.0 Leadership 14
8.0 Cultural Dimensions 15
9.0 Recommendations 16
10.0 Reference 18
List of Tables & Figures
Table 1: Corruption Perceptions Index 2009 6
Table 2: start up a business 7
Table 3: 2011 sales volume of auto industry top ten 11
Table 4: 2008 sales volume of auto industry top ten 11
Table 5: Competitive advantage 13
Figure 1: Porter’s Five Forces 9
Figure 2: Cultural Dimensions 15
Figure 3: Cultural Dimensions 16
Geely Automobile Holdings Limited is China’s largest private