skoda auto

SKODA AUTO

GROUP MEMBER:

MUNIRAH BT MAHADI CEA060106RUSHELA BT BUYONG CEA060167HAMIZAH BT MOHAMMAD CEA060224 SITI ZULAIHA BT HUSAIN CEA060243CHIA KIN HOW CEA070031

CBEB 3103STRATEGIC MANAGEMENT

INTRODUCTIONSWOT ANALYSIS

- IFE & EFEEXISTING STRATEGIES AND OBJECTIVESFINANCIAL CONDITIONCOMPETITORS & THEIR STRATEGIESRECOMMENDATION;

- OBJECTIVES & STRATEGIES- IMPLEMENTATION &

PROBLEMS

OUTLINE…….

INTRODUCTION

BOD

Reinhard JungChairman of the Board of

Directors

HISTORY…In 1895 Skoda Automobile Company was founded, when Vaclav Laurin and Vaclav Klement began manufacturing Slavia-brand bicycles.

In 1899, the Laurin & Klement Co. began producing motorcycles, which were soon successful and gained several racing victories.

Skoda Auto Group is one of the largest corporate groups in the Czech Republic.

It is one of the oldest automotive brands in the world. Skoda brand vehicles are sold in 101 markets over the world.

The principal businesses are the development, manufacture and sale of Skoda - brand automobiles, components, genuine parts and accessories and the provision of related repair and maintenance services

Vision To have the biggest market share in Europe by looking for extraordinary solutions those satisfy extraordinarily

demanding customers

MissionIs to provide quality sales, service and transportation needs

for our customers. This is and will be accomplished through a dedicated team of employees whose number one

goal is customer satisfaction along with a management team whose responsibility is to ensure employee

satisfaction, and customer enthusiasm.

STRENGTHS AND

WEAKNESSES

STRENGTHS 1. Skoda is the largest employer in the Czech

Republic

2. Skoda won numerous awards for producing a quality automobile.

3. Total assets are gradually increasing.

4. Skoda achieves highest growth in 2008 sales in Eastern Europe, number one carmaker in Central Europe, and grew its Western Europe market share to 2.3

5. Strong Financial performance

WEAKNESSES

1.Total Skoda market share is 1.7%

2. Perceptions of the brand

3. Change of direction

INTERNAL FACTOR EVALUATION (IFE) MATRIX

Key Internal Factors Weight Rating Weighted Score

STRENGTHS

1.Skoda is the largest employer in the Czech Republic

0.11 3 0.33

2. Skoda won numerous awards for producing a quality automobile.

0.15 3 0.45

3. Total assets are gradually increasing. 0.10 3 0.30

4. Skoda achieves highest growth in 2008 sales in Eastern Europe, number one carmaker in Central Europe, and grew its Western Europe market share to 2.3

0.204

0.80

5. Strong Financial performance 0.14 3 0.42

Key Internal Factors Weight Rating WeightedScore

WEAKNESSES

1. Total Skoda market share is 1.7% 0.07 2 0.14

2. Perceptions of the brand 0.16 1 0.16

3. Change of direction 0.07 1 0.07

TOTAL 1.00 2.67

EXTERNAL OPPORTUNITIE

SAND

THREAT

EXTERNAL OPPORTUNITIES 1. The forecast for the market for new passenger cars in Russia is +11%

2. Differentiate its product range.

3. Growing automobile industry in Middle East by 9%, Southeast Asia by 14%, and Africa by 8%.

4. By 2010, electronics are expected to account for nearly 40 percent of an average vehicle’s

value(PG51)REPORT

5. Gaps in the market for new products or services.

THREATS1. Highly crowded and competitive

environment

2. Environmental constraints

3. Continuous increasing in oil prices may affect automobiles sales around the world.

4. Franchised dealerships are free to set vehicle prices, and they may or may not offer customers the discounts that automakers provide.

External Factor Evaluation (EFE) Matrix

KEY EXTERNAL FACTORSEXTERNAL OPPORTUNITIES

WEIGHT RATINGWEIGHTED

SCORE

1. The forecast for the market for new passenger cars in Russia is +11%2. Differentiate its product range.3. Growing automobile industry in Middle

East by 9%,Southeast Asia by 14%, and

Africa by 8%.4. By 2010, electronics are expected to account for nearly 40 percent of an

average vehicle’s value(PG51)REPORT5. Gaps in the market for new products or

services

0.18

0.15

0.11

0.15

3

3

2

2

0.54

0.45

0.22

0.30

KEY EXTERNAL FACTORSTHREATS

WEIGHT RATINGWEIGHTED SCORE

1. Highly crowded and competitive environment

2. Environmental constraints

3. Continuous increasing in oil prices may affect automobiles sales around the world.

4. Franchised dealerships are free to set vehicle prices, and they may or may

not offer customers the discounts that automakers provide.

TOTAL

0.18

0.10

0.07

0.06

1.00

3

2

2

2

0.54

0.20

0.14

0.12

2.51

EXISTING STRATEGIES

&OBJECTIVES

FINANCIAL ANALYSIS

2008 2007 2006 20050

2

4

6

8

10

12

14

16

18

14.3

16.4

13.812.6

6.8

8.97.2

5.85.47.2

5.44.2

gross operating net

%SKODA AUTO

PROFIT MARGIN

2008 2007 2006 20050

5

10

15

20

25

8.8

13.8

10.58.8

15.1

23.8

1916.9

ROA ROE

%SKODA AUTO

net profit ROA ROE

Skoda 5.4 8.8 15.1

Peugeot -0.92 -0.81 -0.38

Renault 1.59 0.94 3.09

-1

1

3

5

7

9

11

13

15

Perc

enta

ge (%

)

SKODA VS COMPETITORS (‘08)

2008 2007 2006 20050

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8 1.68 1.7

1.47

1.141.27 1.31

1.12

0.730000000000001

current ratio quick ratio

SKODA AUTO

SHORT TERM LIQUIDITY RATIO

2008 2007 2006 20050

10

20

30

40

50

60

70

80

90

38.2

81.7 79.4 78.1

operating cash flow ratio

%SKODA AUTO

current ratio quick ratio0

0.20.40.60.8

11.21.41.61.8 1.68

1.271.030.83

0.890.71

skoda auto Peugeot Renault Operating cash flow ratio-5

05

10152025303540

38.2

0.16 -0.670000000

000001

%

SKODA VS COMPETITORS (‘08)

2008 2007 2006 200538

40

42

44

46

48

50

41.5242.1

44.57

47.91

debt ratio

%SKODA AUTO

DEBT RATIO

Debt Ratio0

10

20

30

40

50

60

70

80

41.52

78.4969.58

Renault Peugeot Renault2

%

SKODA VS COMPETITORS (‘08)

12%

88%

2008 13%

87%

2007

28%

72%

2006 13%

87%

2005

domesticexport

SKODA AUTO

ANALYSIS OF SALES

Skoda Peugeot RenaultCritical Success

FactorsWeight Rating Weighted

ScoreRating Weighted

ScoreRating Weighted

Score

Price 0.16 3 0.48 2 0.32 3 0.48

Financial Position

0.15 4 0.60 2 0.30 3 0.45

Advertising 0.11 2 0.22 3 0.33 3 0.33

Innovation 0.18 3 0.54 3 0.54 2 0.36

Market Share 0. 20 3 0.60 4 0.80 2 0.40

Management 0.08 3 0.24 3 0.24 3 0.24

Global Expansion

0.12 3 0.36 4 0.48 3 0.36

Total 1.00 3.04 3.01 2.62

CPM

COMPETITORS

OVERVIEW

Major French car brand, part of PSA Peugeot Citroen, the 2nd largest car marker based in Europe, no 1 manufacturer of light commercial vehicle in Europe.

Current Peugeot company was founded in 1810.

On 1858, applied for the lion trademark and 1891 start produced the 1st automobile.

Involved in produced in motorsports in early 1894 for the motor sporting competition, international rallying in the World Rally Championship, touring car racing, sport car racing in World Sportcar Championship and Formula One.

Also produced, vehicles and others product.

STRATEGY

Enhance in global scope, achieve operational excellence and offer vehicle by customer expectations.

International expansion that offer specific models outside Western Europe and renewed line-up into new segments such as crossover vehicles.

Maintain leadership in environmentally friendly vehicles and focus safety performance and respecting its commitments to employees.

PEUGEOT

Overview

French automaker producing cars, vans, buses, tractors, trucks, autotrail vehicles.The world’s 4th largest automaker.

Producing car since 1897, but founded in 1899 by Loius Renault and his brothers Marceland Fernand.

Produced electric vehicles and target sell 20,000-40,000 in 2011 and also produced motorsport and variable vehicles.

Strategy

Launched in new vehicles.

Focus on control working capital requirement, policy of cutting fixed cost and capital expenditure and research & development.

Target to aim positive free cash flow.

RENAULT

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