INTRODUCTIONPerusahaan Otomobil Nasional Berhad (PROTON) wasincorporated in May 7, 1983 to manufacture, assembleand sell motor vehicles and related products, includingaccessories, spare parts and other components.PROTON produced Malaysias first car, the ProtonSaga, commercially launched on July 9, 1985 by formerMalaysian Prime Minister, Tun Dr. MahathirMohamed, who had originally conceived the idea of aMalaysian cars.Toyota Motor Corporation is the market leader inautomotive industry and the worlds largest motorvehicle manufacturing groups. It sell about 7,234,439unit of all type of vehicles in 2009.
BENCHMARKPROTON benchmark is based on Toyota Motor Corporation . ToyotaMotor, the worlds largest automotive manufacturer (overtaking GM in2008), designs and manufactures a diverse product line-up that rangesfrom subcompacts to luxury and sports vehicles toSUVs, trucks, minivans, and buses. Its vehicles are produced either withcombustion or hybrid engines, as with the Prius. Toyotas subsidiaries alsomanufacture vehicles: Daihatsu Motor produces mini-vehicles, while HinoMotors produces trucks and buses. Additionally, Toyota makes automotiveparts for its own use and for sale to others. Popular models include theCamry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundratruck. In Asia, they generates almost 40% of sales.
VISION• They strive to become a successful Malaysian Automotive Manufacturer globally by being customer oriented and producing competitively priced and innovative quality products.
MISSIONOur Company history is one of the remarkable achievements ofwhich we are proud(1) of. In our pride lies the vital energy thatdrives us forward and forces us to take on new challenges. Notonly our customers but also our business associates andshareholders need to trust our ability and rely(2) on us todeliver on our promise of quality. We continually strive toexpand our knowledge(3), skills and expertise in order to findbetter solutions and produce better results. As a nationalproject, Proton is also committed to lead in the acquisition ofintellectual capability in design and technology(4), which willpropel the nation to achieve the status of an industrialisednation. With people as our primary focus, we are committed tobuilding a friendly organisation, sensitivity to customers needswith clear communications leading to mutual understandingand care(5).
CHARACTERISTIC OF MISSION 1. Philosophy • Proud 2. Self – 5. Customers concept • Caring • Reliable Mission element 4. Employees 3. Technology • Knowledgeable • New technology
OPPORTUNITIES• Replacement model make an increasing sales about 40.7%.• Joint venture with other company.• The development of concept car(Nissan)• Rising oversea demand about 20.7%
THREATS• Global financial crisis effect the vehicle sales are tipped to fall 12.4 per cent in 2009.• New product from other companies with better technology.• Gas price up almost 30%.• Local competitor, Perodua or Perusahaan Otomobil Kedua has surpassed Proton in sales.
The External Factor Evaluation (EFE) Matrix WEIGHTED OPPORTUNITIES WEIGHT RATING SCOREReplacement model make anincreasing sales about 40.7% 0.08 1 0.08Joint venture with other company 0.2 2 0.4The development of conceptcar(Nissan) 0.09 3 0.27Rising oversea demand about 20.7% 0.12 4 0.48
WEIGHTED THREAT WEIGHT RATING SCORELocal competitor, Perodua orPerusahaan Otomobil Kedua hassurpassed Proton in sales. 0.23 3 0.69Gas price up almost 30%. 0.08 2 0.08Global financial crisis effect the vehiclesales are tipped to fall 12.4 per cent in2009. 0.08 4 0.32New product from other companieswith better technology. 0.12 3 0.36 Total 1.0 2.68
STRENGTH• Strong R&D (R3)• Revenue per employee.• Government Linked Company (GLC)• Employee morale is excellence.• The market share of 56.9% in the industry.
WEAKNESSES• Quality of product is still lower compare to competitor product.• Employee is lacked of technical skill.• Had suffered a net loss of RM60.1mil for its third quarter ended Dec 31 because of restructuring expenses incurred by its sports car division, Lotus Group International Ltd.
• From this graph, it shows that the Proton Bhd. market share was about 25% and industry sales growth rate is -5%. From the result, we consider of three types of strategies which is divestiture, product development and market penetration.
DIVESTITURE• By using this strategy, the company should focus more on their core business only because of it is in DOGS requirement. Divestiture often is used to raise capital for further strategy acquisition or investment. For example proton must reduce the production of Proton Juara and Tiara because the car demand is low and difficult to find spare part and make up the car. The reason is longer proton produce the car the inventory turnover will be higher.
PRODUCT DEVELOPMENT• In this strategy, our company needs to gain endeavor to incorporate select technologies and manufacturing expertise such as from Nissan Motor Co. that could lead to potential cost savings in capital expenditure and research and development (R&D) for the national carmaker.
MARKET PENETRATION• In this stage, Proton must consider getting a third party to use its plant for a long-term planning for better utilization of plant capacity.• Proton can go and get technology from a small company as many big companies in South Korea, Japan and Europe were using them to design their cars.
BALANCE SCORECARD FRAMEWORKStrategies Priorities Goal Target StrategyFinancial Increasing sales of New Focus on developing proton product demographical country. areasCustomer Attract more people to Young and the Made sporty car model buy proton car middle age people that can attract customersManager / Increase Working Potential worker Send them oversea toEmployee performance strengthen skill and expertise