skoda auto ratio analysis case study

7/24/2019 Skoda Auto Ratio Analysis Case Study

http://slidepdf.com/reader/full/skoda-auto-ratio-analysis-case-study 1/18

“Skoda Auto”

Case Study

Table of Contents

PageTopics

3History

4Vision and Mission

5

Porter’s Five Forces Frae!or" #P$%T$& Frae!or"

'$(ternal )*dit

+CPM,Copetitive Profile Matri(

-$(ternal Factor $val*ation .$F$/ Matri(

01Financial 2atio )nalysis

01nternal )*dit

00nternal Factor $val*ation .F$/ Matri(

0%6T Matri(

04%P)C$ Matri(

057rand %trategy Matri(

0#T8e 9oston Cons*lting 7ro*p .9C7/ Matri(

0#T8e nternal,$(ternal .$/ Matri(

0'T8e :*antitative %trategic Planning Matri( .:%PM/

0-2ecoendations

0-2eferences



History;

In 1895 Skoda Automobile Company was founded, when Vaclav au!in andVaclav "lement be#an manufactu!in# Slavia$b!and bicycles% &ust fou! yea!s late!,au!in ' "lement be#an manufactu!in# moto!cycles%

0-15

(he fi!st ca!, called the )Voitu!ette A*, leaves the facto!y #ates and thanks to its+uality and att!active appea!ance soon #ains a stable position in the eme!#in#inte!national automobile ma!kets%

0-1'

au!in ' "lement set up a oint$stock company that #oes on to e-po!t ca!s toma!kets the wo!ld ove!

0-5

(he au!in ' "lement automobile facto!y me!#es with the Skoda machine!ymanufactu!in# company in .l/e0%

0-31

ASA. )Akciova Spole2nost p!o Automobilov .!3mysl* 4 the Automotive

Indust!y &oint$stock Company is founded and be#ins usin# assembly$line p!oduction methods, which a!e !evolutiona!y fo! thei! time%

0-3-<0-45

6u!in# the wa! yea!s, the facto!y focuses on p!oducin# mate!ials fo! the milita!y%&ust a few days befo!e the wa! ends, the facto!y is bombed and sustainsconside!able dama#e% (he ente!p!ise is nationali/ed in the autumn of 1975%

0-4#

(he ente!p!ises !econst!uction takes place unde! a new name, A:.)Automobilov; /avody, na!odni podnik* 4 Automotive .lants, :ational<nte!p!ise%

0-#4

(he ente!p!ise, now with p!oduction a!ea of 8==,=== s+ua!e mete!s and ove!1>,=== people on the pay!oll, be#ins p!oducin# the popula! ca! ? 1=== @%

2



0-+'

Bnveilin# of the lon#$awaited Skoda avo!ite, a ca! with a mode!n desi#n that

late! helps to t!ansfo!m Skoda Auto0--0

Ap!il 1D ma!ks the be#innin# of a new chapte! in the Companys histo!y, when itis ac+ui!ed by the st!ate#ic pa!tne! Volkswa#en% Skoda becomes the Volkswa#enE!oups fou!th b!and%

0--#

.!oduction commences of anothe! milestone ca! model fo! the Company 4 the

Skoda Fctavia%

Vision

(o have the bi##est ma!ket sha!e in <u!ope by lookin# fo! e-t!ao!dina!ysolutions those satisfy e-t!ao!dina!ily demandin# custome!s

Mission

Is to p!ovide +uality sales, se!vice and t!anspo!tation needs fo! ou! custome!s%(his is and will be accomplished th!ou#h a dedicated team of employees whosenumbe! one #oal is custome! satisfaction alon# with a mana#ement team whose!esponsibility is to ensu!e employee satisfaction, and custome! enthusiasm%

(h!ee basic values of Skoda b!and a!eG

ntelligenceG He continuously seek innovative technical solutions and new waysin which to ca!e fo! and app!oach the custome!s that a!e most impo!tant fo! us%Fu! conduct towa!d the custome!s is aboveboa!d, and we !espect thei! desi!es

and needs%)ttractivenessG He develop automobiles that a!e aesthetically and technically ofhi#h standa!d and always continuous an att!active offe! fo! ou! custome!s notonly in te!ms of desi#n o! technical pa!amete!s but also the wide !an#e of offe!edse!vices%

3



=edicationG He a!e followin# the steps of founde!s ou! company @ess!s% au!inand "lement% He a!e enthusiastically wo!kin# on the fu!the! development of ou!vehicles we identify ou!selves with ou! p!oducts%

Porter’s Five Forces Frae!or";

T8e T8reat of $ntrants;

<aste!n <u!ope count!ies that we!e in fo!me! Soviet Bnion att!act manycompetito!s who find in these count!ies new ma!ket, new custome!s, and cheaplabo!s to !educe costs so the th!eat of ent!ants is ve!y hi#h%

9argaining Po!er of 9*yers;

(he powe! of buye!s is hi#h because consume!s 4 especially afte! #lobali/ationhave many choices f!om which to select when they pu!chase a ca!

9argaining po!er of s*ppliers;

@any automobile companies move towa!d &ust$In$(ime invento!y system andthat pushes many supplie!s to make thei! plants nea! these automobile companies,and some of these automobile companies made thei! own pa!ts, so the powe! ofsupplie! is ve!y weak%

T8reat of %*bstit*tes

(he th!eat of substitute will be public t!anspo!tation in bi#, c!owded, and heavy populated count!ies, this substitute may be faste! and cheape! than d!ivin# a ca!the!e, because people need to find a pa!kin# fo! thei! ca!s and usually it will bewith fees%

Copetitive 2ivalry;

(he automobile ma!ket is one of the most competitive ma!kets in the wo!ld, inaddition, the!e a!e many companies t!y to !educe thei! costs by movin# to lowcost count!ies such as <aste!n <u!ope and Asia count!ies, and t!y to find newma!ket, so the competitive !ival!y is hi#h in the lon# !un%

4



P$%T$& Frae!or";

.olitical:

- Jeavy ta-es and ta!iffs in some count!ies make Skoda inc!ease itsautomobiles p!ice%

- .olitical sanctions, violence and te!!o!ism make some limitation to e-pand#lobally in Asia ma!ket%

<conomic:

- uel .!ices fluctuations affect the costs and that !eflect on the p!ice ofautomobiles, so that may chan#e the custome! behavio! towa!d somefeatu!es of automobiles%

- Skoda could #et benefits f!om economic unions such as Cent!al <u!opean!ee$(!ade A!ea C<(A which includesG .oland, Jun#a!y, Slovakia,C/ech, Slovenia, Komania, and e-pand heavily the!e%

Social:

- :e#ative custome!sL pe!ception towa!d Skoda b!and because of bad ima#esabout automobiles indust!y in <aste!n <u!ope count!ies%

- Inc!ease in population in some count!ies make thei! #ove!nments to!edesi#n thei! t!affic and make public t!anspo!tation mo!e useful will affectautomobiles sales in these count!ies%

(echnolo#ical

- Should e-ploit evolution in technolo#y to int!oduce new featu!es andoptions to !eposition Skoda b!and and to #et competitive advanta#e%

<nvi!onmental:

- ecause of pollution p!oblem and its effect on F/one, Skoda shoulddevelop and concent!ate on manufactu!in# #!een envi!onmental ca!s%

e#al:

- E!een ma!ketin# laws and laws on envi!onmental issues such as indust!ial pollution%

- Cu!!ency e-chan#e- e#al !e#ist!ation

$(ternal )*dit

5



Opportunities Threats

1% E!owin# automobile

indust!y in @iddle <ast by

9M, Southeast Asia by

17M, and Af!ica by 8M%

N% y N=1=, elect!onics a!e

e-pected to account fo!

nea!ly 7= pe!cent of an

ave!a#e vehicles value%

>% (he fo!ecast fo! the

ma!ket fo! new passen#e!ca!s in Kussia is O11M%7% B%S% small$ca! demand

outpacin# :o!th Ame!icancapacity

1% Ji#hly c!owded and

competitive envi!onment%

N% !anchised deale!ships a!e

f!ee to set vehicle p!ices,

and they may o! may not

offe! custome!s the

discounts that automake!s

p!ovide%

>% Continuous inc!easin# in

oil p!ices may affectautomobiles sales a!ound

the wo!ld%

CPM,Copetitive Profile Matri(

Skoda Peugeot Renault Opel

Critical

Success

Factors

Weig

ht

Ratin

g

Weight

ed

Score

Ratin

g

Weight

ed

Score

Ratin

g

Weight

ed

Score

Ratin

g

Weight

ed

Score

6

http://www.hoovers.com/company-information/--ID__41827--/free-co-factsheet.xhtml






Price 0.12 4 .48 2 .24 3 .36 2 .24

Financial

Position

0.15 3 .45 4 .60 3 .45 4 .60

Advertisi

ng

0.09 2 .18 3 .27 2 .18 4 .36

Innovatio

n

0.22 2 .44 3 .66 2 .44 4 .88

Market

Share

0. 22 2 .44 4 .88 2 .44 4 .88

Managem

ent

0.10 3 .30 3 .30 3 .30 3 .30

Global

Expansio

n

0.10 3 .30 4 .40 3 .30 4 .40

Total 1.00 2.59 3.35 2.47 3.66

$(ternal Factor $val*ation .$F$/ Matri(

"ey <-te!nal acto!s Hei#ht Katin# Hei#htedSco!e

Opportunities

7



1% E!owin# automobile indust!y in@iddle <ast by 9M, SoutheastAsia by 17M, and Af!ica by 8M%

0.15 3 0..45

N% y N=1=, elect!onics a!ee-pected to account fo! nea!ly 7=

pe!cent of an ave!a#e vehiclesvalue

0.15 2 0.30

>% (he fo!ecast fo! the ma!ket fo!new passen#e! ca!s in Kussia isO11M

0.20 3 0.60

7% B%S% small$ca! demand outpacin# :o!th Ame!ican capacity

0.15 2 0.30

Threats

1% Ji#hly c!owded and competitiveenvi!onment

0.15 3 0.45

N% !anchised deale!ships a!e f!ee toset vehicle p!ices, and they mayo! may not offe! custome!s thediscounts that automake!s p!ovide%

0.10 2 0.20

3. Continuous inc!easin# in oil p!ices may affect automobiles

sales a!ound the wo!ld%

0.10 2 0.20

Total 1.00 2.50

Financial 2atio )nalysis 0>11#

7ro!t8 2ates ? %"oda nd*strySales Pt! vs yea! a#o +t! 1%1N 9%7=

:et Income Q(6 vs Q(6 1%78 11%8=&i@*idity 2atios

Cu!!ent Katio 1%78 N%1=Puick Katio 1%1> =%9=$fficiency 2atio

8



Assets to sales =%5N 11%=Profitability 2atios

Ketu!ns to sales =%=55 >%NKetu!ns to Assets =%11 D%7=ebt 2atio

(otal liabilities to 1%8= NRR%N

nternal )*dit

Strength Weakness

1% Skoda won nume!ous awa!dsfo! p!oducin# a +ualityautomobile%

N% Skoda implements low$cost

count!y sou!cin# st!ate#y%>% Skoda is the la!#est employe!

in the C/ech Kepublic%7% (otal assets a!e #!adually

inc!easin#%5% Skoda achieves hi#hest #!owth

in N==D sales in <aste!n<u!ope, numbe! one ca!make!in Cent!al <u!ope, and #!ewits Heste!n <u!ope ma!ket

sha!e to N%1

1% .oo! b!and name due to Skoda!elates to <aste!n <u!opeo!i#ins that in the past the ca!shad an ima#e of poo! vehicle+uality, and desi#n%

N% (otal Skoda ma!ket sha!e is1%RM%

>% Skoda has p!oblems with thei!assembly plants outside of theC/ech Kepublic%

nternal Factor $val*ation .F$/ Matri(

Key Internal Factors Weight Rating Weighted Score

Strengths

1% Skoda won nume!ous awa!ds fo!

p!oducin# a +uality automobile%

0.15 3 0.45

2. Skoda implements low$cost count!y sou!cin# st!ate#y%

0.15 3 0.45

>% Skoda is the la!#est employe! in

the C/ech Kepublic%

0.08 3 0.24

9



4. (otal assets a!e #!adually

inc!easin#%

0.10 3 0.30

5% Skoda achieves hi#hest #!owth inN==D sales in <aste!n <u!ope,numbe! one ca!make! in Cent!al

<u!ope, and #!ew its Heste!n<u!ope ma!ket sha!e to N%1

0.18 4 0.72

Weaknesses

1. Heak b!and name due to Skoda!elates to <aste!n <u!ope o!i#insthat in the past the ca!s had anima#e of poo! vehicle +uality, anddesi#n%

0.18 1 0.18

N% (otal Skoda ma!ket sha!e is 1%RM% 0.08 2 0.16

>% Skoda has p!oblems with thei!assembly plants outside of theC/ech Kepublic

0.08 1 0.08

Total 0A11 A5+

%6T Matri(

Strengths Weaknesses

10



1% Skoda won nume!ous awa!dsfo! p!oducin# a +ualityautomobile%

N% Skoda implements low$cost count!y sou!cin# st!ate#y%

>% Skoda is the la!#est employe!in the C/ech Kepublic%

7% (otal assets a!e #!aduallyinc!easin#%5% Skoda achieves hi#hest #!owth

in N==D sales in <aste!n<u!ope, numbe! one ca!make!in Cent!al <u!ope, and #!ewits Heste!n <u!ope ma!ketsha!e to N%1.

1% .oo! b!and name due toSkoda !elates to <aste!n<u!ope o!i#ins that in the

past the ca!s had an ima#eof poo! vehicle +uality,and desi#n%

N% (otal Skoda ma!ket sha!e

is 1%RM%>% Skoda has p!oblems with

thei! assembly plantsoutside of the C/echKepublic%

Opportunities S-O Strategies -O Strategies

1. E!owin# automobile

indust!y in @iddle <ast by

9M, Southeast Asia by 17M,

and Af!ica by 8M%

2. y N=1=, elect!onics a!e

e-pected to account fo!

nea!ly 7= pe!cent of an

ave!a#e vehicles value%

3. (he fo!ecast fo! the ma!ket

fo! new passen#e! ca!s in

Kussia is O11M%

4. B%S% small$ca! demand

outpacin# :o!th Ame!ican

capacity

1% Bsin# p!ice as a competitiveadvanta#e to concent!ate on Kussia@a!ket SN,F>

N% Fpen assembly plant in @e-ico tofeedin# :o!th Ame!ica ma!ketS1,SN,S5,F1,F7

1% Inc!ease ma!ket sha!e byente!in# new #!owth ma!ket in@iddle east, Southeast Asia,and Af!icaHN,F1

N% Imp!ovin# automobiles +uality

by int!oducin# innovative,elect!onic featu!es, and desi#nH1,FN)

T!reats S-T Strategies -T Strategies

1% Ji#hly c!owded and

competitive

envi!onment%

1% Inc!ease ma!ketin# effo!ts tomake new !epositionin#S7,S5, (1, (>

N% ocus on p!oducin# middle

1. Fffe! 5 yea!sN====="ilomete! wa!!anty on allvehicles H1, (1

11



N% !anchised deale!ships

a!e f!ee to set vehicle

p!ices, and they may o!

may not offe!

custome!s the discounts

that automake!s p!ovide%

>% Continuous inc!easin#

in oil p!ices may affect

automobiles sales

a!ound the wo!ld%

and small en#ineca!sS1,SN,(>

%P)C$ Matri(

Financial Strength ating Environmental

Stabilit!

ating

Return on assets 2 Rate of ination !3

"e#erage 1 $echno%ogica% changes !4

12



&et 'nco(e 2 rice *%asticit+ of

de(and

!6

R,* 2 -o(etiti#e ressure !6

/arriers to entr+ ne

(arets

!6

#erage 1.75 #erage !5

!ais -3.25

"o#petiti$e

%d$antage

Rating &ndustr' Strengt! Rating

aret share !1 roth otentia% 2

roduct ua%it+ !2 inancia% stai%it+ 2

-usto(er "o+a%t+ !1 *ase of entr+ ne(arets

3

-ontro% o#er other

arties

!1 Resources uti%iation 2

$echno%ogica% no!ho !1 ro;t otentia% 3

#erage 1.20 #erage 2.40

<!ais 1.20

=irectional vector point is ;. 0A1B ,3A5/

13



7rand %trategy Matri(

14

-onser#ati#

e

ggressi#e

-o(etiti#

e

=efensi#e

S

'S-

*S

uadrant '' uadrant '

uadrant '>uadrant '''

Raid aret roth

Strong

-o(etiti#

e

osition

Wea

-o(etiti#

e

osition

S%o aret roth



T8e 9oston Cons*lting 7ro*p .9C7/ Matri(

T8e nternal,$(ternal .$/ Matri(

St!on# >%= to >%99 @edium N%= to N%99 ow 1%= to 1%99

?igh

3.0 to 3.99

ediu(

2.0 to

2.99

"o

1.0 to 1.99

T8e :*antitative %trategic Planning Matri( .:%PM/15

'> > >'

>'' >''' '<

Skoda!e ()(

Total

eig!ted

S*ore

T!e &)( Total eig!ted S*ore

' '' '''

:*estion Mar"s

=ogsCas8 Ca!

%"oda

nd*stry%ales 7ro!t8

2ate

Mar"et s8are position

%tars



Strategy 1

Open new

assembling plant

for Skoda cars in

e!ico and make

it as a base to enter

"merican arket

Strategy #

Reposition of brand

name strategy by

increasing marketing

efforts

+e' &nternal )a*tors eig!t %S T%S %S T%S

%trengt8s

Skoda won nume!ous awa!ds fo! p!oducin# a +uality automobile

0.15 2 0.20 2 0.20

Skoda implements low$cost count!y

sou!cin# st!ate#y

0.15 - - - -

Skoda is the la!#est employe! in theC/ech Kepublic

0.0, - - - -

(otal assets a!e #!adually inc!easin# 0.10 4 0.40 2 0.20

Skoda achieves hi#hest #!owth in N==Dsales in <aste!n <u!ope, numbe! oneca!make! in Cent!al <u!ope, and #!ewits Heste!n <u!ope ma!ket sha!e to N%1

0.1, 1 0.1, 2 0.36

ea"nesses

Heak b!and name due to Skoda !elatesto <aste!n <u!ope o!i#ins that in the past the ca!s had an ima#e of poo!vehicle +uality, and desi#n

0.1, 2 0.36 4 0.72

(otal Skoda ma!ket sha!e is 1%RM 0.0, 4 0.32 2 0.16

Skoda has p!oblems with thei!assembly plants outside of the C/echKepublic

0.0, - - - -

S"#$%$A& '()) '(*+ '(+*

16



Strategy 1

Open new

assembling plant

for Skoda cars in

e!ico and makeit as a base to enter

"merican arket

Strategy #

Reposition of brand

name strategy by

increasing marketing

efforts

+e' &nternal )a*tors eig!t %S T%S %S T%S

%pportunities

E!owin# automobile indust!y in @iddle<ast by 9M, Southeast Asia by 17M,and Af!ica by 8M%

0.15 1 0.15 3 0.60

y N=1=, elect!onics a!e e-pected toaccount fo! nea!ly 7= pe!cent of anave!a#e vehicles value

0.15 - - - -

(he fo!ecast fo! the ma!ket fo! new passen#e! ca!s in Kussia is O11M

0.20 - - - -

B%S% small$ca! demand outpacin# :o!thAme!ican capacity

0.15 4 0.60 2 0.30

$hreats

Ji#hly c!owded and competitive

envi!onment

0.15 4 0.60 3 0.45

!anchised deale!ships a!e f!ee to setvehicle p!ices, and they may o! may notoffe! custome!s the discounts thatautomake!s p!ovide

0.10 - - - -

Continuous inc!easin# in oil p!ices mayaffect automobiles sales a!ound thewo!ld

0.10 - - - -

S"#$%$A& '()) '(,- '(,-

S TOT%/ %TTR%"T&((SSS"OR(

.(/' .(//

2eferences

17



1. . skoda !auto.co(

2. . skoda.co.u

3. . euro#onitor.co(

4. .(aretresearch.co(

18

http://www.skoda-auto.com/




http://www.skoda.co.uk/




http://www.euromonitor.com/



http://www.marketresearch.com/




http://www.marketresearch.com/

skoda auto ratio analysis case study

Documents