The Saab Case

Group 3: Nele Rogenbaum, Robert-Jan van de Waal, Amit Rawat, Philip AvornyoApril 11,2012

Presentation content

• Sweden, Culture and business

• The Bidders (Cultural Dimensions and Business styles)

• Prospective Changes

• The Saab Dilemma

• Dilemma Reconciliation

- Organization Culture- Marketing Strategy

- Image

Sweden Culture and BusinessSweden= believe in equality

Flat management structure

Decentralized decision making

Meeting and arguments are debate based.

Silence is considered to be virtue

Emphasis on written documentation and communication

Parallelism for women and men

Independence in task execution

Sustainable business practices

Marketing strategy SAAB: Independent, unconventional, futuristic

Brand perception SAAB: quirky, innovative, safe, high value for money

The Bidders

The BiddersChina= (Confucianism) emphasis on love for humanity, learning, peace, justice, devotion

to family- Focus on relationships and obligations- Long tradition of functional bureaucracy - Formal, maintain social distance, senior person leads discussions- Indirect communication specially concerning opinion, criticism, conflict etc- High context communication; who when where carries the message - Lack of access to information and feeble empowerment- Women at the top are respected

Turkey= relationships- Spend time in establishing relationships- Maintaining high level of formality as hierarchy is important - Communications tend to be indirect- Most senior business person takes a parent role- Deadlines and high pressure techniques are not used in business negotiations- Personal relationships are extremely importantMale dominant society

India= hierarchy based- Concern for relationships are demands of the situation. Knowing people is the key - Individuals are responsible for themselves within the group- Strong respects for responsibilities, hierarchy age and social status, educational achievements require respect.- Multi ethnic, multi cultural; women on top are respected - Recent economic achievements and willingness to work hard- Extensive exchange of information to make sure right person takes the decision- Team leaders take responsibilities for failures and successes

China Youngman Automobile Group Co. Inc.Organizational Culture

Flat management structure vs. hierarchical

Decentralized vs. Centralized

Written vs. verbal communication

God working environment for women employees

Independence in task execution vs. team dynamics

Marketing StrategyFocus on well laid showrooms with easily identified trends and values.

Focus towards the high selling products.

Focus on promotions to create catalytic effect on consumer buying behavior.

Focus towards reliability, functionality and technical performance.

Focus on relationships promotions through Internet advertisements .

Brand ImageThe brand will be perceived as a European luxury brand and high value for money.

Brand will be perceived as reliable, functional and instead of quirky and innovative.

The technical excellence and safety as a core base of brand perception shall remain .

Turkish Brightwell Holdings

Organizational CultureWorking environment for existing women in the company will change.

Moving from decentralized to centralized operations

Lack of deadlines and low-pressure environment may add up to the creativity of Saab team.

The execution through managing and focusing on building long-term relationships will help in enhancing business.

Mahindra and MahindraOrganizational Culture

The multicultural environment will pose a challenge.

The hierarchical framework shall delay decision-making and curb innovation within the company.

The mix of individuals taking higher responsibilities within the group.

Centralized versus decentralized.

Women in the organization may find it easy to adhere to the changes in leadership.

Marketing StrategyThe intention of Mahindras is to employ the technological edge of Saab in their company,

to improve their existing product quality.The acquisition will heavily marketed and advertised.

Infusing Brand Image of Saab to Mahindras.

Mahindras will try pushing their products through the European networks of Saab

Brand ImageBrand image of Saab will uplift Mahindras to eventually introduce them in the European market.

Technological and competitive edge over the competitors.

The Saab as brand will eventually be associated as being a part of Mahindra’s.

Positives:Increase sales in ChinaWin other customers with taste for luxury cars

What Saab is (Status)

Description of Dilemma:On the one hand: What Saab does(Functionality)On the other hand: What Saab is (Status) Dilemma Holder: YOUNGMAN’s CMO

The behavior supports:Creativity in using the less costly raw materialAbility to be innovative and focus on functionality and safety.

Identification of dilemma: How will Youngman satisfy

customers with demand for highly luxurious cars to create status and not dissatisfy customers with prime focus on only technical performance with functionality as well as good product and service cars.

BELOW ARE ON THE DIAGRAM: Chart of the dilemma: Link to relevant dimension: Stretch of the dilemma: Epithets: Reconciling the dilemma: Action points:

Positives:ReliabilityMeasurable results

Negatives:Loss of reliable customers Less product and service associations

Negatives: Lack of status as a luxury brandLoss of Rich Chinese customers

Action Plan:Provide highly technical with luxury cars at a premium price.

Dimension: Achievement

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Positives:Creates personal relationship with the companyHigh profit marginReliable for social activities organized by the companyIn-depth knowledge of modelsBuilds trust

High Context (Create loyalty to a model)

Description of Dilemma:On the one hand: Low Context (No loyalty to a model)On the other hand: High Context (Create loyalty to a model) Dilemma Holder: BRIGHTWELL HOLDINGS ‘ CMO

The behavior supports:Be customer savvyDesign innovation

Identification of dilemma: How will Turkish Brightwell

Holdings create the balance between loyal-to-a-model customers and no-loyal-to-a-model customers in order to maintain the company’s heritage?

BELOW ARE ON THE DIAGRAM: Chart of the dilemma: Link to relevant dimension: Stretch of the dilemma: Epithets: Reconciling the dilemma: Action points:

Positives: Promotions driven clientalIncrease sales

Negatives:It takes time to build a relationship. Low salesVery slow

Negatives: Are not generally reliable Less participation in Company’s social activities.Monotonous information

Action Plan:High customer orientationParticipation in social activitiesEnticing customers

Dimension: Communitarian

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Positives:Not difficult to deal withIncrease salesEmpowerment of brand

Flexibility (Try new things/brands)

Description of Dilemma:On the one hand: Consistency (easy and same trends)On the other hand: Flexibility (Try new things/brands) Dilemma Holder: MAHINDRA AND MAHINDRA’s CMO

The behavior supports:Ability to learn new ways of salesAbility to synchronize existing and new practices

Identification of dilemma: How will Indian Mahindra &

Mahindra create the balance between customers who are very consistent as well as reliable to Saab products and customers who can easily switch to the new model such as SUVs?

BELOW ARE ON THE DIAGRAM: Chart of the dilemma: Link to relevant dimension: Stretch of the dilemma: Epithets: Reconciling the dilemma: Action points:

Positives:ReliabilityCustomer loyalty

Negatives:Low brand loyalty

Negatives: Task the company to be clear with everythingMay not patronize new brandsHigh degree of standardization

Action Plan:Highly trained sales personnelStandardize show rooms.

Dimension: Particular

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Thank you

• Discussion?