Reasons Why Holden Is An Australian Vehicle Importer

1a) Holden is an Australian vehicle importer and a previous car manufacturer with its headquarters in Port Melbourne, Victoria. Holden officially known as General Motors Holden and the company was established in 1856 as a manufacturer in South Australia. It moved into the automotive field in 1908, becoming an auxiliary of the America-primarily based General Motors (GM) in 1931, whilst the company was renamed General Motors-Holden's Ltd. It was renamed Holden Ltd in 1998, and General Motors Holden in 2005.

The reason why I choose Holden for expansion is because Holden endeavour to persistently lessen its effect on nature. By doing it this way, Holden maintain itself to high ecological principles, frequently surpass legitimate

essential to accomplish company policy goals. Holden has a satisfied history of answerable to disposal and recycle the wastes, discovering approaches to diminish its vitality and water utilization, and returning back to local districts by planting more trees in local areas.

As China is the quickest developing business segment and casually the largest economy on the globe, Holden ought to consider expanding their business to China.

Despite the fact that it provides enormous outlook for an expanding business, the chances of success without sufficient knowledge and skills is viewed as thin. China contain a hypothetical market of 1.5 billion people and a culture which has grasped the ethics of western business, so that doesn't make China any less engaging.

Another reason Holden should consider expanding into China’s market is because China is a particularly good dilation target for businesses in the automotive industry. In the course of recent years, China has become the world’s largest customer and producer of autos. According to a report display, China’s car segment developed at a compound normal rate of 24 percent a year in the vicinity of 2005 and 2011 and, in 2010, surpass the America as the largest single-nation, new automobile

marketplace.

b) Holden need to consider the trade and regulations between its own country and the country they consider to expand. Different nation will have distinctive laws and regulations covering such things as traditions, trade barriers, product safety and advertising. A business should comprehend any trade agreements that apply. Alternative districts of law of government that require investigation are business relations and external possession. For instance, in excess of 98 percent of Australians merchandise traded to China enter either tax-free or at a special rate because of CHAFTA.

Other than that, Holden should consider the religion and custom of China. The language and images used in marketing has to be conscious by Holden when doing their business because it may be displeased for the particular country. There will be religious holiday, occasions and observance that may affect on business efficiency. For example, the use of colour in business is exceptionally vital. Holden should not take green as their business colour when expanding their business in China although green is the Australian national colour. In China, green colours more often than not conveys a negative significance. The Chinese believe that someone who does not feel good has a green face while “having a green face” too implies irritated.

Apart from that, Holden should also consider the time differences between Australia and China. The different time zones affect on business performances. The work day of Australia may concur with night time with other nations. However, the choices, plans and conveyances are temporized due to time differences. For instance, the post office in Australia might close few hours earlier than China because Australia is 2 hours ahead of China. Therefore, the arrival of parcel to China will be delayed due to the time differences between Australia and China.

Furthermore, Holden should also consider the language barriers before expanding into China’s market. Difficulties will exist when businessmen or businesswomen communicate with government officers, suppliers, partners and clients in different nations. Decisions or choices will also take longer as a result of time needed to make an interpretation documents and correspondences to and from English. English is the major language used by the majority of the Australian while Mandarin Chinese is the official national spoken language for China. For instance, Holden should overcome the language barriers which is learning Chinese as China is a Chinese speaking country. Through this, the misunderstanding and the misinterpretation between people will be minimise and the business of Holden will flow smoothly.

c) When China is confronting an economic downturn, Holden will be producing less and therefore will need fewer workers and may cause workers to lose their jobs. When the unemployment rate increase, people tend to save money and reduce consumption because their income is decreasing. In fact, the consumer purchasing power will decrease due to an economic downturn in China.

On the other hand, the interest rate tend to fall when China is facing an economic downturn. It is because inflation is lower and National Banks wish to attempt and stimulate the economy. Lower interest rates lead to low debt repayment and unlimited borrowing by consumer to consume. Therefore, the demand for products will increase and so the sales of Holden will increase.

Holden can consider to take internal source of fund, which is retained profit. Retained profit is the profits kept in the company instead of paying out to investors as a dividend. The profit earned by a company should be given to shareholders as dividend or to reinvest the profit in the business without paying the shareholders. It is cheaper because there is no interest to be paid and the only cost is dividend. It is a long term source of finance for a company. At the same time, it is also flexible because the company could withdraw the cash any time they want to utilize for their global expansion process.

Holden can also consider to take external source of fund which is debenture. A debenture is a medium to long term debt format that is used by huge firms to obtain cash. Debenture is repayable on a fixed date with a concurred interest. Like shares, debentures can be sold on the open market but the debenture holders are not proprietor of the firm and they do not have voting rights. There are two kinds of debentures which is convertible and non-convertible debentures. Convertible debentures can be changed over into value of the shares issued by the company after a foreordained time frame. It is more alluring to investors since the bonds have the capability to convert. Non-convertible debentures are general debentures which cannot be changed over into equity share of the liable company. Since it’s not able to convert, they generally carry higher interest rates than convertible debentures.

d) There are a great deal of social media platform exist in this modern era. Among all these social media platform, Holden will choose to expand its business on the Facebook platform. Facebook is an American online web-based social networking and was released on February 4, 2004, by Mark Zuckerberg. In January 2018, Facebook has in excess of 2.2 billion monthly active users. Its popularity has led to protruding media scope for the company, including critical examination over privacy and the psychological impact it has on users. A Facebook page has numerous latent advantages for business. While some of these advantages are about the same to having a website, a number are extraordinary to Facebook.

Holden plan to share essential info about its business on Facebook.

Facebook page is a site where Holden will be able to advertise their commerce name, address and contact points of interest, and briefly portray their goods and services. Holden can also talk about their employees, origin, or some other department of their business that is roughly going to fascinate other Facebook users and make enthusiasm in what they do.

Holden also plan to raise brand awareness through Facebook to assist in their expansion. Holden can expand their business's profile on Facebook by encouraging current and latent clients to click the 'Like' button on their Facebook page. Clients will receive Holden’s updates on their wall where their friends will also see them once they like the page. This help to create awareness of Holden’s business and to relate their friends with this trademark.

Besides that, Holden plan for targeted advertising to assist in their business expansion. All of the information of the million users of Facebook will be analysed once they entered Holden’s Facebook profile. Holden can pay to use this information to convey targeted advertising to a particular group as they are the proprietor of the business page. For example, an outdoor shop could make use of Facebook to compute how many men over a certain age in a specific city have listed 'car' as an interest. At that point they could build up an ad for upcoming automobile brand and pay for it to appear only

on the pages of those people.

e) Holden’s product and technology can be protected through patents in the new market. Patents is a government authority or license conferring rights especially sold right to prohibit others from making, using, or selling an invention or innovation for a period of time. For a standard patent, the creation must have imaginative advance while for an innovative patent, the patent must have innovative advance. Holden can obtain this protection by application to the Patent Office along with documentation depicting and characterizing the development. The maximum duration of protection for a standard patent is 20 years.

Besides patents, Holden’s product and technology can be also protected through registered trade mark. Registered trade mark is the brand name or symbol used to determine goods and services created by a specific producer or allocated by a specific tradesman and to differentiate them from goods and services related with contending manufacturer or dealer. This protection can be acquire by application to the Trade Mark Office. Once a mark has been enrolled it can be renewed in perpetuity. The underlying period for enrolment is 10 years from the filling date with renewal every 10 years. A trade mark can be eliminated if not utilized.
f) It is a threatening step for Holden to take the initial step into the China market, with a comparatively endless arrangement of latent entanglements to be arranged. In the way of achieving success in China, there are frequently a lot of hindrances but the rewards of this difficult course to success are also tremendous. Fortunately, the rewards progressively surpass the difficulties of doing business in China as China’s economy keep on developing and turn out to be more open to public companies from different countries.
China is a nation that is always showing sign of changes and its markets are progressing more rapidly than any place on earth. As such, foreign companies should not adopt a one-size-fits-all to approach into the China market. Each company’s China strategy is likely to be informed by any number of various factors from industry sector, product type, company size and culture, through to long-term business aims and global corporate vision.