Help u in the strategic mgt matrix..

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 war
History 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 AUTOMOBILE
Strengths W R W/S
1. Operates in about 90 countries 0.09 4 0.36
2. First car ever produced in Europe 0.06 3 0.18
3. Produced 556347 vehicles in 2006 0.06 3 0.18
4. Innovative design such as Skoda Roomsters, and Skoda Fabio 0.09 4 0.36
5. Large number of full time employees 0.06 3 0.18
6. Net income 203billions and revenue is 11 billion Czech crown 0.06 3 0.18
7. Increased in equity reserved 0.04 3 0.12
8. Total asset increased 0.04 3 0.12
9. Skoda auto school 0.07 3 0.21
10. Skoda healthy company program 0.08 3 0.32
Weaknesses
1. Problem with assembly plant 0.08 2 0.16
2. Skoda in Czech language mean “a shame” 0.09 1 0.09
3. Parent Volkswagen have financial problems 0.05 1 0.09
4. Total current liabilities increased 0.04 1 0.04
5. 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 its
strengths and getting decent advantage of its strengths
by dealing with its weaknesses facing internally by the
firm.

6. EXTERNAL FACTOR EVALUATION MATRIX OF SKODA AUTOMOBILE
Opportunities W R W/S
i. Gained monopoly status as only Czech car manufacturer 0.06 2 0.12
i. Oldest car manufacturer in Central Europe fell greatly in both quality and prestige 0.07 3 0.21
i. Czech Republic encourage the privatization an entrepreneurial act 0.07 3 0.21
i. New models began to take market share 0.06 3 0.18
i. Parent Volkswagen operates plant in Africa, America, Asia/pacific, and Europe region 0.04 2 0.08
i. Rapid expansion of overall market for light commercial vehicles 0.06 2 0.12
i. Focus on new energy forms 0.09 4 0.36
i. Ford sells Rang rover and jaguar division which shows lack of profitability 0.08 3 0.24
i. Over 10% growth were recorded in the Western Europe countries 0.05 2 0.10
Threats
i. Bad reputation throughout 20th century 0.09 4 0.36
i. Chinese firm expand globally 0.08 3 0.24
i. Intense competition 0.07 3 0.21
i. Petroleum prices goes up 0.07 3 0.21
i. Domestic producers were forced to cut their prices 0.05 3 0.15
i. Mergers of automobile companies 0.06 3 0.18
Total 1 2.97

7. • Interpretation
• As the EFE result of Skoda automobile is 2.97.
This shows that company is doing well and
getting the advantage of its external
opportunities and also dealing with the
threats facing by the firm.

8. COMPETITIVE PROFILE MATRIX OF SKODA
Skoda Nissan General Motor
Critical success factor Weight Ratings W/S Ratings W/S Ratings W/S
Product innovativeness 0.09 3 0.27 2 0.18 3 0.18
Bad reputation 0.1 1 0.1 3 0.3 4 0.4
Global expansion 0.1 4 0.4 4 0.4 4 0.4
Management 0.1 3 0.3 4 0.4 4 0.4
Marketing communication 0.08 3 0.24 3 0.24 2 0.16
Supplier control 0.04 3 0.12 2 0.08 4 0.16
Trained employees 0.06 3 0.18 3 0.18 4 0.24
Market share 0.2 1 0.2 2 0.4 4 0.8
Production capacity 0.04 3 0.12 3 0.12 4 0.16
Price competitiveness 0.1 2 0.1 4 0.4 2 0.2
Financial position 0.09 3 0.27 3 0.09 4 0.36
Total 2.30 2.79 3.46

9. Interpretation
• The CPM matrix shows the result of the three companies such
as Skoda, Nissan and General motors. According to the result
of CPM Skoda weighted score is 2.30, Nissan get the weighted
score of 2397 and the General motors get the weighted score
of 3.46. Which shows Skoda goes weaker as compared to its
competitors. The General Motors is the market leader by
capturing the 24.6% of Us car market share (2007). And the
Nissan motors grabbed the 6.2% US market share.

10. SPACE MATRIX OF SKODA AUTOMOBILE
Financial strengths
• Net income increased 5
• Cash reserves 6
• Asset increased 5
• Increased in revenues 4
Total 20
• Industry Strengths
• Profit potential 4
• Financial stability 4
• Ease of entry 5
• Strongest growth in automobile sector 6
Total 24
• Environmental strengths
• Intense competition -5
• Technological change -3
• Petroleum price goes up -4
• Price war -4
• Globalization -5
Total -21

11. • Market share in Czech republic -1
• Product quality -6
• Innovation -6
• Control over suppliers -5
Total -18
Competitive advantage
Conclusion
ES 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)=0.3
Y-axis: 5+(-4.2)=0.8
The Skoda pursue Aggressive strategies

12. SPACE MATRIX GRAPHICAL PLOT
1
5
-6
-4
-5
-3
-2
-1
6
2
3
4
-1-2-3-4-5-6 1 2 3 4 5 6
AGGRESSIVECONSERVATIVE
DEFENSIVE COMPETITIVE
Interpretation
Afinancially strong firm that achieved major competitive advantage in a growing industry.
Which has also have intense competition

13. I-E MATRIX FOR SKODA AUTOMOBILE
IFE SCORE
HIGH
3.0 to 4.0
MEDIUM
2.0 to 2.99
LOW
1.0 to 1.99
HIGH
3.0 to 4.0
MEDIUM
2.0 to 2.99
LOW
1.0 to 1.99
EFESCORE
Hold and
Maintain

14. Interpretation
As the Skoda automobile IFE total weighted score is 2.73 and the
EFE total weighted score is 2.97. So the plotting the values of
EFE and IFE total weighted score in I-E matrix. So the result of
both IFE and EFE lies in plot v. Plot v is Average and medium
plot. This mean Skoda automobile strategic position is hold and
maintain.