strategic management

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Help u in the strategic mgt matrix..

Help u in the strategic mgt matrix..

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  • 1. Presenters• MOHIB UR REHMAN KAYANI• SYED BAKHTYAR ALI SHAH• SAHIBXADA ZEESHAN AMIN• SULMAN SHER• MEHREEN SHAH
  • 2. • 1895 Laurin & Klement• July 1945 produced trucks for world war 2• Hitler order to Skoda• After world warHistory of Skoda
  • 3. Achievements• Introduced new model• Awards And Honors• Car Of The Year• Auto Trophy• Family Car Of The Year• Red Dot• Skoda Auto School
  • 4. INTERNAL FACTOR EVALUATION MATRIX OF SKODA AUTOMOBILEStrengths W R W/S1. Operates in about 90 countries 0.09 4 0.362. First car ever produced in Europe 0.06 3 0.183. Produced 556347 vehicles in 2006 0.06 3 0.184. Innovative design such as Skoda Roomsters, and Skoda Fabio 0.09 4 0.365. Large number of full time employees 0.06 3 0.186. Net income 203billions and revenue is 11 billion Czech crown 0.06 3 0.187. Increased in equity reserved 0.04 3 0.128. Total asset increased 0.04 3 0.129. Skoda auto school 0.07 3 0.2110. Skoda healthy company program 0.08 3 0.32Weaknesses1. Problem with assembly plant 0.08 2 0.162. Skoda in Czech language mean “a shame” 0.09 1 0.093. Parent Volkswagen have financial problems 0.05 1 0.094. Total current liabilities increased 0.04 1 0.045. Only passengers’ car manufacturer 0.09 2 0.18
  • 5. Interpretation• Skoda automobile total weighted score For IFE is 2.73.Which shows that Skoda automobile captured well itsstrengths and getting decent advantage of its strengthsby dealing with its weaknesses facing internally by thefirm.
  • 6. EXTERNAL FACTOR EVALUATION MATRIX OF SKODA AUTOMOBILEOpportunities W R W/Si. Gained monopoly status as only Czech car manufacturer 0.06 2 0.12i. Oldest car manufacturer in Central Europe fell greatly in both quality and prestige 0.07 3 0.21i. Czech Republic encourage the privatization an entrepreneurial act 0.07 3 0.21i. New models began to take market share 0.06 3 0.18i. Parent Volkswagen operates plant in Africa, America, Asia/pacific, and Europe region 0.04 2 0.08i. Rapid expansion of overall market for light commercial vehicles 0.06 2 0.12i. Focus on new energy forms 0.09 4 0.36i. Ford sells Rang rover and jaguar division which shows lack of profitability 0.08 3 0.24i. Over 10% growth were recorded in the Western Europe countries 0.05 2 0.10Threatsi. Bad reputation throughout 20th century 0.09 4 0.36i. Chinese firm expand globally 0.08 3 0.24i. Intense competition 0.07 3 0.21i. Petroleum prices goes up 0.07 3 0.21i. Domestic producers were forced to cut their prices 0.05 3 0.15i. Mergers of automobile companies 0.06 3 0.18Total 1 2.97
  • 7. • Interpretation• As the EFE result of Skoda automobile is 2.97.This shows that company is doing well andgetting the advantage of its externalopportunities and also dealing with thethreats facing by the firm.
  • 8. COMPETITIVE PROFILE MATRIX OF SKODASkoda Nissan General MotorCritical success factor Weight Ratings W/S Ratings W/S Ratings W/SProduct innovativeness 0.09 3 0.27 2 0.18 3 0.18Bad reputation 0.1 1 0.1 3 0.3 4 0.4Global expansion 0.1 4 0.4 4 0.4 4 0.4Management 0.1 3 0.3 4 0.4 4 0.4Marketing communication 0.08 3 0.24 3 0.24 2 0.16Supplier control 0.04 3 0.12 2 0.08 4 0.16Trained employees 0.06 3 0.18 3 0.18 4 0.24Market share 0.2 1 0.2 2 0.4 4 0.8Production capacity 0.04 3 0.12 3 0.12 4 0.16Price competitiveness 0.1 2 0.1 4 0.4 2 0.2Financial position 0.09 3 0.27 3 0.09 4 0.36Total 2.30 2.79 3.46
  • 9. Interpretation• The CPM matrix shows the result of the three companies suchas Skoda, Nissan and General motors. According to the resultof CPM Skoda weighted score is 2.30, Nissan get the weightedscore of 2397 and the General motors get the weighted scoreof 3.46. Which shows Skoda goes weaker as compared to itscompetitors. The General Motors is the market leader bycapturing the 24.6% of Us car market share (2007). And theNissan motors grabbed the 6.2% US market share.
  • 10. SPACE MATRIX OF SKODA AUTOMOBILEFinancial strengths• Net income increased 5• Cash reserves 6• Asset increased 5• Increased in revenues 4Total 20• Industry Strengths• Profit potential 4• Financial stability 4• Ease of entry 5• Strongest growth in automobile sector 6Total 24• Environmental strengths• Intense competition -5• Technological change -3• Petroleum price goes up -4• Price war -4• Globalization -5Total -21
  • 11. • Market share in Czech republic -1• Product quality -6• Innovation -6• Control over suppliers -5Total -18Competitive advantageConclusionES Average is =(-21/5=-4.2) IS Average is = (24/5=4.8)CA Average is =(-18/4=-4.5) FS Average is = (20/4=5)Directional vectors coordinate:X-axis: 4.8+(-4.5)=0.3Y-axis: 5+(-4.2)=0.8The Skoda pursue Aggressive strategies
  • 12. SPACE MATRIX GRAPHICAL PLOT15-6-4-5-3-2-16234-1-2-3-4-5-6 1 2 3 4 5 6AGGRESSIVECONSERVATIVEDEFENSIVE COMPETITIVEInterpretationAfinancially strong firm that achieved major competitive advantage in a growing industry.Which has also have intense competition
  • 13. I-E MATRIX FOR SKODA AUTOMOBILEIFE SCOREHIGH3.0 to 4.0MEDIUM2.0 to 2.99LOW1.0 to 1.99HIGH3.0 to 4.0MEDIUM2.0 to 2.99LOW1.0 to 1.99EFESCOREHold andMaintain
  • 14. InterpretationAs the Skoda automobile IFE total weighted score is 2.73 and theEFE total weighted score is 2.97. So the plotting the values ofEFE and IFE total weighted score in I-E matrix. So the result ofboth IFE and EFE lies in plot v. Plot v is Average and mediumplot. This mean Skoda automobile strategic position is hold andmaintain.