Skoda Auto

CBEB 3103
STRATEGIC MANAGEMENT
SKODA AUTO
GROUP MEMBER:
MUNIRAH BT MAHADI CEA060106

RUSHELA BT BUYONG CEA060167
HAMIZAH BT MOHAMMAD CEA060224
SITI ZULAIHA BT HUSAIN CEA060243
CHIA KIN HOW CEA070031
OUTLINE …….
INTRODUCTION
SWOT ANALYSIS
- IFE & EFE
EXISTING STRATEGIES AND OBJECTIVES
FINANCIAL CONDITION
COMPETITORS & THEIR STRATEGIES
RECOMMENDATION;
- OBJECTIVES & STRATEGIES
- IMPLEMENTATION & PROBLEMS
INTRODUCTION
BOD
Reinhard Jung
Chairman of the Board of Directors
HISTORY…
qIn 1895 Skoda Automobile Company was
founded, when Vaclav Laurin and Vaclav
Klement began manufacturing Slavia-
brand bicycles.
q
qIn 1899, the Laurin & Klement Co. began
producing motorcycles, which were soon
successful and gained several racing
victories.
Vision
To have the biggest market share in Europe by looking for
extraordinary solutions those satisfy extraordinarily
demanding customers
Mission
Is 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 0.11 3 0.33

Republic
2. Skoda won numerous awards for producing a 0.15 3 0.45

quality automobile.
3. Total assets are gradually increasing. 0.10 3 0.30
4. Skoda achieves highest growth in 2008 sales 0.20 0.80

in Eastern Europe, number one carmaker in 4
Central Europe, and grew its Western Europe
market share to 2.3
5. Strong Financial performance 0.14 3 0.42
Key Internal Factors Weight Rating Weighted
Score
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
OPPORTUNITIES
AND
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.

THREATS
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.
3.
External Factor Evaluation ( EFE )
Matrix
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
EXTERNAL OPPORTUNITIES SCORE
1. The forecast for the market for 0.18 3 0.54
new
passenger cars in Russia is 0.15 3 0.45
+11%
2. Differentiate its product range.
Growing automobile industry in Middle 0.11 2 0.22
East by 9%,Southeast Asia by

14%, and Africa by 8%. 0.15 2 0.30
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
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
THREATS SCORE
 Highly crowded and competitive 0.18 3 0.54
environment
0.10 2 0.20
2. Environmental constraints
0.07 2 0.14
3. Continuous increasing in oil
prices may affect automobiles sales
around the world. 0.06 2 0.12
Franchised dealerships are free to


set vehicle prices, and they

may or may not offer customers the 1 . 00 2 . 51
discounts that automakers provide.
TOTAL
EXISTING
STRATEGIES
&
OBJECTIVES
FINANCIAL
ANALYSIS
PROFIT MARGIN
SKODA AUTO
%
SKODA AUTO
%
SKODA VS COMPETITORS (‘08)
SHORT TERM LIQUIDITY RATIO
SKODA AUTO
SKODA AUTO
%
%
DEBT RATIO
%
SKODA AUTO
%
ANALYSIS OF SALES
SKODA AUTO
CPM
Skoda Peugeot Renault
Critical Success Weight Rating Weighted Rating Weighted Rating Weighted
Factors Score Score Score
Price 0.16 3 0.48 2 0.32 3 0.48
Financial 0.15 4 0.60 2 0.30 3 0.45

Position
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 0.12 3 0.36 4 0.48 3 0.36

Expansion
Total 1.00 3.04 3.01 2.62
COMPETITORS
PEUGEOT
OVERVIEW
Major French car brand, part of PSA STRATEGY

Peugeot Citroen, the 2nd largest car
marker based in Europe, no 1 manufacturer Enhance in global scope,
of light commercial vehicle in Europe. achieve operational
excellence and offer vehicle
Current Peugeot company was founded in by customer expectations.
1810.
International expansion that
On 1858, applied for the lion trademark offer specific models outside
and 1891 start produced the 1st Western Europe and renewed
automobile. line-up into new segments such
as crossover vehicles.
Involved in produced in motorsports in
early 1894 for the motor sporting Maintain leadership in
competition, international rallying in the environmentally friendly
World Rally Championship, touring car vehicles and focus safety
racing, sport car racing in World Sportcar performance and respecting
Championship and Formula One. its commitments to employees.
Also produced, vehicles and others

product.
RENAULT
Overview Strategy
French automaker producing cars, Launched in new vehicles.

vans, buses, tractors, trucks,
autotrail vehicles. Focus on control working capital
The world’s 4th largest automaker. requirement, policy of cutting
fixed cost and capital expenditure
Producing car since 1897, but and research & development.
founded in 1899 by Loius Renault
and his brothers Marceland Fernand. Target to aim positive free cash
flow.
Produced electric vehicles and
target sell 20,000-40,000 in 2011
and also produced motorsport and
variable vehicles.
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CBEB 3103

MUNIRAH BT MAHADI CEA060106

2. Skoda won numerous awards for producing a

3. Total assets are gradually increasing.

4. Skoda achieves highest growth in 2008 sales in

5. Strong Financial performance

2. Perceptions of the brand

Key Internal Factors Weight Rating Weighted

1.Skoda is the largest employer in the Czech 0.11 3 0.33

2. Skoda won numerous awards for producing a 0.15 3 0.45

3. Total assets are gradually increasing. 0.10 3 0.30

4. Skoda achieves highest growth in 2008 sales 0.20 0.80

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

2. Differentiate its product range.

3. Growing automobile industry in Middle East by 9%,

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

3. Continuous increasing in oil prices may affect

4. Franchised dealerships are free to set vehicle

East by 9%,Southeast Asia by

account for nearly 40 percent

Franchised dealerships are free to

set vehicle prices, and they

Financial 0.15 4 0.60 2 0.30 3 0.45

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 0.12 3 0.36 4 0.48 3 0.36

Major French car brand, part of PSA STRATEGY

Also produced, vehicles and others

French automaker producing cars, Launched in new vehicles.

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