Proton was established in 1983 to manufacture cars in Malaysia and produced its first car, the Proton Saga, in 1985; it benchmarks Toyota and aims to be a globally successful Malaysian automaker through customer-oriented and innovative products, while facing threats from competitors and economic conditions.

2. INTRODUCTION
Perusahaan Otomobil Nasional Berhad (PROTON) was
incorporated in May 7, 1983 to manufacture, assemble
and sell motor vehicles and related products, including
accessories, spare parts and other components.
PROTON produced Malaysia's first car, the Proton
Saga, commercially launched on July 9, 1985 by former
Malaysian Prime Minister, Tun Dr. Mahathir
Mohamed, who had originally conceived the idea of a
Malaysian cars.
Toyota Motor Corporation is the market leader in
automotive industry and the world's largest motor
vehicle manufacturing groups. It sell about 7,234,439
unit of all type of vehicles in 2009.

3. BENCHMARK
PROTON benchmark is based on Toyota Motor Corporation . Toyota
Motor, the world's largest automotive manufacturer (overtaking GM in
2008), designs and manufactures a diverse product line-up that ranges
from subcompacts to luxury and sports vehicles to
SUVs, trucks, minivans, and buses. Its vehicles are produced either with
combustion or hybrid engines, as with the Prius. Toyota's subsidiaries also
manufacture vehicles: Daihatsu Motor produces mini-vehicles, while Hino
Motors produces trucks and buses. Additionally, Toyota makes automotive
parts for its own use and for sale to others. Popular models include the
Camry, Corolla, Land Cruiser, and luxury Lexus line, as well as the Tundra
truck. In Asia, they generates almost 40% of sales.

4. VISION
• They strive to become a successful Malaysian
Automotive Manufacturer globally by being
customer oriented and producing competitively
priced and innovative quality products.

5. MISSION
Our Company history is one of the remarkable achievements of
which we are proud(1) of. In our pride lies the vital energy that
drives us forward and forces us to take on new challenges. Not
only our customers but also our business associates and
shareholders need to trust our ability and rely(2) on us to
deliver on our promise of quality. We continually strive to
expand our knowledge(3), skills and expertise in order to find
better solutions and produce better results. As a national
project, Proton is also committed to lead in the acquisition of
intellectual capability in design and technology(4), which will
propel the nation to achieve the status of an industrialised
nation. With people as our primary focus, we are committed to
building a friendly organisation, sensitivity to customers' needs
with clear communications leading to mutual understanding
and care(5).

6. CHARACTERISTIC OF MISSION
1. Philosophy
• Proud
2. Self –
5. Customers
concept
• Caring
• Reliable
Mission
element
4. Employees 3. Technology
• Knowledgeable • New technology

7. 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%

8. 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.

9. The External Factor Evaluation
(EFE) Matrix
WEIGHTED
OPPORTUNITIES WEIGHT RATING SCORE
Replacement model make an
increasing sales about 40.7%
0.08 1 0.08
Joint venture with other company 0.2 2 0.4
The development of concept
car(Nissan) 0.09 3 0.27
Rising oversea demand about 20.7% 0.12 4 0.48

10. WEIGHTED
THREAT WEIGHT RATING SCORE
Local competitor, Perodua or
Perusahaan Otomobil Kedua has
surpassed Proton in sales. 0.23 3 0.69
Gas price up almost 30%. 0.08 2 0.08
Global financial crisis effect the vehicle
sales are tipped to fall 12.4 per cent in
2009. 0.08 4 0.32
New product from other companies
with better technology. 0.12 3 0.36
Total 1.0 2.68

11. 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.

12. 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.

13. SWOT MATRIX
Click this

14. BCG MATRIX FOR PROTON BHD

15. • 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.

16. DOGS STRATEGY
1. Divestiture.
2. Product Development.
3. Market Penetration.

17. 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.

18. 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.

19. 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.

20. BALANCE SCORECARD
FRAMEWORK
Strategies Priorities Goal Target Strategy
Financial Increasing sales of New Focus on developing
proton product demographical country.
areas
Customer Attract more people to Young and the Made sporty car model
buy proton car middle age people that can attract
customers
Manager / Increase Working Potential worker Send them oversea to
Employee performance strengthen skill and
expertise