The Saab CaseGroup 3: Nele Rogenbaum, Robert-Jan van de Waal, Amit Rawat, PhilipAvornyoApril 11,2012
Presentation content• Sweden, Culture and business• The Bidders (Cultural Dimensions and Business styles)• Prospective Changes - Marketing Strategy - Organization Culture - Image• The Saab Dilemma• Dilemma Reconciliation
Sweden Culture and Business Sweden= believe in equalityFlat management structureDecentralized decision makingMeeting and arguments are debate based.Silence is considered to be virtueEmphasis on written documentation and communicationParallelism for women and menIndependence in task executionSustainable business practices Marketing strategy SAAB: Independent, unconventional, futuristic Brand perception SAAB: quirky, innovative, safe, high value for money
The Bidders China= (Confucianism) emphasis on love for humanity, learning, peace, justice, devotion to India= hierarchy based family - Concern for relationships are demands of the- Focus on relationships and obligations situation. Knowing people is the key- Long tradition of functional bureaucracy - Individuals are responsible for themselves- Formal, maintain social distance, senior person within the groupleads discussions - Strong respects for responsibilities, hierarchy- Indirect communication specially concerning age and social status, educationalopinion, criticism, conflict etc achievements require respect.- High context communication; who when where - Multi ethnic, multi cultural; women on top arecarries the message respected- Lack of access to information and feeble - Recent economic achievements andempowerment willingness to work hard- Women at the top are respected - Extensive exchange of information to make sure right person takes the decision Turkey= relationships - Team leaders take responsibilities for failures - Spend time in establishing and successes relationships - Maintaining high level of formality as hierarchy is important - Communications tend to be indirect - Most senior business person takes a parent role - Deadlines and high pressure techniques are not used in business negotiations - Personal relationships are extremely important Male dominant society
China Youngman Automobile Group Co. Inc. Organizational Culture Flat management structure vs. hierarchical Decentralized vs. Centralized Written vs. verbal communication God working environment for women employees Independence in task execution vs. team dynamics Marketing Strategy Focus on well laid showrooms with easily identified trends and values. Focus towards the high selling products. Focus on promotions to create catalytic effect on consumer buying behavior. Focus towards reliability, functionality and technical performance. Focus on relationships promotions through Internet advertisements . Brand Image The brand will be perceived as a European luxury brand and high value for money. Brand will be perceived as reliable, functional and instead of quirky and innovative. The technical excellence and safety as a core base of brand perception shall remain .
Turkish Brightwell Holdings Organizational Culture Working environment for existing women in the company will change. Moving from decentralized to centralized operations Lack of deadlines and low-pressure environment may add up to the creativity of Saab team.The execution through managing and focusing on building long-term relationships will help in enhancing business.
Mahindra and Mahindra Organizational Culture The multicultural environment will pose a challenge. The hierarchical framework shall delay decision-making and curb innovation within the company. The mix of individuals taking higher responsibilities within the group. Centralized versus decentralized. Women in the organization may find it easy to adhere to the changes in leadership. Marketing StrategyThe intention of Mahindras is to employ the technological edge of Saab in their company, to improve their existing product quality. The acquisition will heavily marketed and advertised. Infusing Brand Image of Saab to Mahindras. Mahindras will try pushing their products through the European networks of Saab Brand Image Brand image of Saab will uplift Mahindras to eventually introduce them in the European market. Technological and competitive edge over the competitors. The Saab as brand will eventually be associated as being a part of Mahindra’s.
Description of Dilemma: Identification of dilemma:On the one hand: What Saab does(Functionality) How will Youngman satisfyOn the other hand: What Saab is (Status) customers with demandDilemma Holder: YOUNGMAN’s CMO for highly luxurious cars to create status and not 10 1,10 10,10 dissatisfy customers with prime focus on onlyPositives: technical performance withReliability functionality as well as good product and serviceMeasurable cars.results BELOW ARE ON THE DIAGRAM: Chart of the dilemma: Link to relevant dimension: 5,5 Stretch of the dilemma: Epithets: Reconciling the dilemma: Action points:Negatives:Lack of status asa luxury brandLoss of RichChinesecustomers 10,1 What Saab is (Status) Dimension: Achievement 0,0 10Positives: Negatives: Action Plan: The behavior supports:Increase sales in China Loss of reliable Provide highly technical Creativity in using the lessWin other customers with customers Less product and with luxury cars at a costly raw materialtaste for luxury cars service associations premium price. Ability to be innovative and focus on functionality and safety.
Description of Dilemma: Identification of dilemma:On the one hand: Low Context (No loyalty to a model) How will Turkish BrightwellOn the other hand: High Context (Create loyalty to a model) Holdings create the balanceDilemma Holder: BRIGHTWELL HOLDINGS ‘ CMO between loyal-to-a-model customers and no-loyal-to- 10 1,10 10,10 a-model customers in order to maintain the company’sPositives: heritage? Promotions BELOW ARE ON THE DIAGRAM: Chart of the dilemma:driven cliental Link to relevant dimension:Increase sales Stretch of the dilemma: Epithets: Reconciling the dilemma: 5,5 Action points:Negatives:Are not generallyreliableLess participation inCompany’s socialactivities.Monotonousinformation 10,1 High Context (Create loyalty to a model) Dimension: Communitarian 0,0 10Positives:Creates personal relationship with the Negatives: Action Plan: The behavior supports:company It takes time to build a High customer orientation Be customer savvyHigh profit marginReliable for social activities organized by the relationship. Participation in social Design innovationcompany Low salesIn-depth knowledge of modelsBuilds trust Very slow activities Enticing customers
Description of Dilemma: Identification of dilemma:On the one hand: Consistency (easy and same trends) How will Indian Mahindra &On the other hand: Flexibility (Try new things/brands) Mahindra create theDilemma Holder: MAHINDRA AND MAHINDRA’s CMO balance between customers who are very 10 1,10 10,10 consistent as well as reliable to Saab productsPositives: and customers who canReliability easily switch to the new model such as SUVs?Customer loyalty BELOW ARE ON THE DIAGRAM: Chart of the dilemma: Link to relevant dimension: 5,5 Stretch of the dilemma: Epithets: Reconciling the dilemma: Action points:Negatives:Task the companyto be clear witheverythingMay not patronizenew brandsHigh degree ofstandardization 10,1 Flexibility (Try new things/brands) Dimension: Particular 0,0 10Positives: Negatives: Action Plan: The behavior supports:Not difficult to deal with Low brand loyalty Highly trained sales Ability to learn new waysIncrease sales personnel of salesEmpowerment of brand Standardize show rooms. Ability to synchronize existing and new practices