USMAN SHEHZAD 2175 AHSAN UL HAQ 2127 RAO FAIZAN ELAHI 0188 ABDUL NASIR 0028 QAISER AYOUB 2158
PAK SUZUKI MOTORS COMPANY LIMITED
ACKNOWLEDGEMENT
In the name of Allah, Most Gracious, Most Merciful Most Gracious, Most Merciful; Master of the Day of Judgment.
INTRODUCTION Pak Suzuki Motors Company Ltd. is a company assembling and distributing Suzuki Japan's cars in Pakistan. Currently they are one of the most successful motor companies in Pakistan. The firm was founded in 1983 as a joint venture between PAK and Suzuki,
formalizing the arrangement by which AWAMI Auto Ltd. had produced the Suzuki SS80 from 1982.
INTRODUCTION (CONT) Suzuki originally owned 25% of the stock, and has gradually increased their holding; they now own 73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year. (2008 production was 100,000 VISION
To be Excellent All Around
MISSION
To provide automobile of international quality at competitive price
STRATEGY FORMULATION FRAMEWORK Matching stage
Decision stage Input stage INPUT STAGE Internal Factor evaluation (IFE) External factor evaluation (EFE) Competitive profile matrix (CPM) EXTERNAL FACTOR EVALUATION MATRIX OPPORTUNITIES Weight Ratings Weighted Score 1. Increasing Demand for Cars 0.15 4 0.60 2. Efficient EFI Engines 0.10 3 0.30 3. Large Market to operate 0.10 3 0.30 4. Global spare parts market 0.05 2 0.10 5. Small size CNG Cylinders 0.12 3 0.36 THREATS 1. Tough Competitors like Toyota and Honda 0.14 2 0.28 2. Inflation Rate 0.08 3 0.24 3. Heavy Taxes 0.08 3 0.24 4. Cheaper Imported Cars 0.10 4 0.40 5. Increase in Fuel Prices 0.08 2 0.16 Total Weighted Score 1.0 2.98 INTERNAL FACTOR EVALUATION STRENGTHS Weight Ratings Weighted Score 1. Highest Market Share 0.20 4 0.80 2. Low Price Vehicles 0.10 4 0.40 3. Large Distribution Channels 0.12 4 0.48 4. Easy availability of spare parts 0.08 4 0.32 5. Highly Innovative and deep product line 0.12 4 0.48 WEAKNESSES 1. Scarcity of raw material 0.08 2 0.16 2. Lack of coordination and linkage with Govt. bodies 0.05 2 0.10 3. Less focus on Looks and design 0.10 1 0.10 4. Less Technical Training Institutes 0.05 1 0.05 5. Less distribution channels in sub urban areas 0.10 1 0.10 Total Weighted Score 1.0 2.99 COMPETITIVE PROFILE MATRIX Critical Success Factors Weight Suzuki Toyota Rating Score Total Rating Score Total 1 Innovation 0.30 4 1.20 3 0.90 2 Market Share 0.10 1 0.10 3 0.30 3 Competitive Pricing 0.15 2 0.30 3 0.45 4 Brand Image 0.10 4 0.40 2 0.20 5 Customer Satisfaction 0.20 3 0.60 3 0.60 6 Advertising 0.15 4 0.60 3 0.45 Total 1.00 3.20 2.90 MATCHING STAGE SWOT SPACE BCG MATRIX IE MATRIX GSM SWOT ANALYSIS SWOT Matrix STRENGHTS WEAKNESSES 1. Highest Market Share 1.Scarcity of Raw Materials 2. Low Price Vehicles 2. Lack of coordination with Govt. Bodies 3. Large Distribution Channel 3. Less focus on Looks and design 4. Highly Innovative & Deep product line 4. Less Technical Training Institutes 5. Easy availability of spare parts 5. Less distribution channels in sub-urban areas OPPORTUNITIES S-O Strategies W-O Strategies 1. Increasing Demand for cars 1. Maximize market share by producing more cars per year (S1,S2,O1,O4) 2. Develop more efficient and innovative Engine which gives comparative advantage (S4,O2) 3. Use efficient CNG systems (S4,S5,O4) 4. Focus on Looks and Design to compete with Honda and Toyota (W3,O1,O3) 5. Fund and establish technical institutes to gain more skilled workforce (W4,O3,O1) 2. Efficient EFI engines 3. Large Market to Operate 4. Small size CNG Cylinder 5. Global Spare parts market THREATS S-T Strategies W-T Strategies 1. Tough Competitors
6. Maintain quality in affordable price will help to compete with competitors and imported cars (S2,S4,T1,T4) 7. Develop fuel efficient engines to gain edge and eliminate threat of fuel prices increase (S4,S5,T5,T2) 8. Enhance distribution to avoid threat from second hand imported cars (W5,T4) 2. Inflation Rate 3. Heavy Taxes 4. Cheaper Imported Cars 5. Increase in Fuel prices BCG MATRIX Dogs Question Mark Star Cash Cows High Low
Low
High Market Growth Market Share MEHRAN
ALTO
CULTUS
RAVI
LIANA APV
JIMNY
BOLAN
SWIFT
BCG MATRIX (CONT) SPACE MATRIX Financial Strength (FS) Return on Investment +4 Working Capital +3 Short Term Assets +4 TOTAL: +11 Industry Strength (IS) Large Market to operate +5 Increasing per Capita Income +3 Consumption Oriented Culture +4 TOTAL: +12 Competitive Advantages (CA) High Quality Products -3 Sleek and Stylish Designs -4 Famous Brand Names -3 TOTAL: -10 Environmental Stability (ES) Tough Competition -2 Change in Govt. rules and regulations -3 Imported Refurbished Cars -4 Law and Order Situation -2 TOTAL: -11 SPACE MATRIX FS = 11/3 = 3.67 IS = 12/3 = 4 CA = -10/3 = -3.33 ES = -11/4 = -2.75 X-axis = IS+CA = 4-3.33 = 0.67 Y-axis = FS+ES = 3.67-2.75 = 0.92
SPACE MATRIX CONSERVATIVE DEFENSIVE COMPETITIVE Aggressive Strategies IE MATRIX
EFE Matrix Scores
IE Matrix Scores
Strong Average Weak
4
3 2 1 Strong 4 i ii iii 3 Average iv v vi
2 vii viii ix Weak 1 GRAND STRATEGY MATRIX(GSM) Rapid Market Growth Q1 Q2 Q3 Q4 Slow Market Growth Weak Competitive Position Strong Competitive Position Market Development Product Development Decision stage Quantity strategic planning matrix QSPM MATRIX Market Development Product Development External Factors Weight Attractiveness Score Total attractiveness score Attractiveness Score Total attractiveness score Increasing Demand for Cars 0.10 4 0.40 4 0.40 Efficient EFI engines 0.06 3 0.18 4 0.24 Large Market to operate 0.08 4 0.32 4 0.32 Global Spare parts market 0.04 3 0.12 2 0.08 Tough competitors 0.08 4 0.32 2 0.16 Inflation 0.06 1 0.06 1 0.06 Cheaper Imported cars 0.08 4 0.32 4 0.32 Increase in fuel prices 0.10 4 0.40 4 0.40 Internal Factors Highest Market share 0.08 3 0.24 4 0.32 Low price vehicles 0.10 1 0.10 4 0.40 Large distribution channel 0.06 2 0.12 3 0.18 Easy availability of spare parts 0.02 3 0.06 3 0.06 Innovative and deep product line 0.06 4 0.24 3 0.18 Less focus on style and design 0.04 4 0.16 4 0.16 Scarcity of human resource 0.04 3 0.12 4 0.16 Totals 1.0 3.16 3.44 THE FOLLOWING ARE THE FINDINGS OF THE STUDY OF PAK SUZUKI MOTOR COMPANY LIMITED.
EXTERNAL FACTOR EVALUATION MATRIX SCORE: 2.98
INTERNAL FACTOR EVALUATION MATRIX SCORE: 2.99
BCG MATRIX:
STAR: JIMNY, BOLNA QUESTION MARK: SWIFT CASH COWS: MEHRAN, CULTUS, ALTO, RAVI DOGS: APV, LIANA
conclusion CONCLUSION (CONT) Internal External Matrix: Growth and Built Strategy Space Matrix: Quadrant 1, Aggressive Strategies Grand Matrix: Quadrant 1, Aggressive Strategies Market Development, Product Development QSPM Matrix: Market Development: 3.16 Product Development: 3.44