STrategic plan Assignment Example | Topics and Well Written Essays - 3000 words

STrategic plan - Assignment Example It has background in events sponsorship through the MINI Challenge. However, so far, MINI Australia has not yet had exposure to the gym and fitness industry. This report explores the possibility for the creation of the MINI chain of gyms throughout Australia, and analyses the potential success of this project for the purpose of securing the participation of other investors in this long-term undertaking. Analysis of external environment Prior to considering the company’s internal capabilities, it is necessary to look at the Australian automotive industry as a whole. The automotive industry is comprised of two sectors, namely the automotive manufacturing sector and the automotive retail, services and repair sector. The automotive manufacturing sector is dominated by three large vehicle manufacturers (i.e. General Motors, Ford and Toyota), as well as three large truck manufacturers (i.e., IVECO, Kenworth, and Volvo Commercial Vehicles). The automotive manufacturing sector produce s for both the domestic market as well as for the export market; in 2008, production totalled 324,684, or which just slightly over 50% (162,728) vehicles were sold locally, and the remaining 161,956 were exported. In that year, automotive industry exports rose by 14%, with the largest target export market being the Middle East, accounting for 38.1% of export sales. (MSA, 2009). PESTLE Analysis Political Australia is a mature democracy supported by a stable economy. While it has a stable party system, the ruling parties have not historically enjoyed clear majorities in the Senate (Parliament’s upper house). This disadvantage may cause some barriers or introduce delays in having important bills passed. Furthermore, in the recent 2010 election yielded inconclusive results that ushered in once more a coalition government, casting widespread doubts on the ability of this administration to remain in power for the full extent of its three year term (BMI, 2011) Economic Australia enj oys a modern and stable economy backed by a sound financial system and a workforce with a high level of education. There is continuity in policy making, which reduces investors’ risks as well as the vulnerability of the economy to regime change in the government. A measure of economic weakness is introduced, however, by the relatively high current account deficit. This increases the economy’s vulnerability to capital flows and tends to induce greater fluctuations in the currency exchange rate. This in turn causes fluctuations in the prices of commodities and increased apprehensions among the buying public. (BMI, 2011). There are likewise opportunities presented by the country’s economy, as a result of the rapid, region-wide expansion of Asian economies. The region has proven itself resilient to the recent economic recession triggered by the U.S. subprime crisis, and its strong position has created new impetus for diversification of trading ties from the core EU markets. Furthermore, Australia has a relatively lower level of government debt than most developing and developed countries, allowing it greater flexibility in the determination of fiscal policy, in order to provide support for local consumers and business until the global economy recovers from the recent downturn