Louis Renault created the Renault company in 1898. Over the next century, Renault grew to become one of the largest automakers in the world, producing over 800,000 vehicles in 2008 across 118 countries. Renault aims to be one of the top 3 car and commercial vehicle brands in Western Europe through maintaining a high level of profitability. However, Renault faced financial difficulties in 2008 with a 7% drop in revenue and 2.1 billion euro drop in net income compared to 2007.

1. NAME: VIVEK SHARMA M100700065

2. History 1898 Louis Renault created company 1904 120 Dealers and 948 cars 1907 Plane engines 1913 10,000 cars 1944 Louis Renault dies 1959 Worlds 6 th largest 1976 Renault Sport 1996 Privatised 2008 Partner with VAZ

3. Mission Statement “ TO MAKE & SUSTAIN RENAULT AS THE MOST PROFITABLE AND COMPETITIVE EUROPEAN VOLUME CAR COMPANY”

4. Change in Renault Logos

5. The first Renault logo, drawn in 1900 featured the three initials of the Renault brothers: Louis, Ferdinand and Marcel. In 1906, the logo changed to a front end of a car enclosed in a gear whee Louis Renault was 21 when he made his first car in the backyard of his parent’s home. He soon got orders for cars, so in 1898, along with his brothers and friends, Louis opened the company Société Renault Frères in Boulogne-Billancourt, France

6. Review of 2008 Net income £599m +3.63% Market share Laguna top 3 800,000: 2005-2008 £4.2bn credit agreements Production vs Sales 9 new product launches

7. Global Corporate Strategy 1 of the top 3 car commercial vehicle brands in Western Europe Present in 118 countries Aims to maintain a high level of profitability to contribute positively to growth in the entire market Market share grew 0.15% at the end of 2008

8. Vehicle Volumes By Region (000’s) RCI BANQUE February 2009 2007 279 283 2008 Europe 2008 2007 497 447 2007 Americas 46 2008 47 43 2007 EuroMed 2008 41 Asia Africa France 2007 2008 32 40 World 2008 2007 898 858

9. Differentiated Premium Price Stategy Unit Cost & Unit Price (€) Low High Volume Margin for Quality Player Industry Cost Curve Premium Price Prevailing Price (Source: www.strategycompass.com, McNamee, 2004)

10. Product Market Portfolio MARKET PRODUCTS Sales Value (£millions) Number 1 Competitor Number 1 Competitor Sales RMS Market Growth Rate % Twingo 3,622 Astra 4,138 0.87 +2.2 Clio 3,137 Corsa 3,106 1.01 +2.6 Megane 2,872 Scirocco 2,578 1.11 +2.0 Laguna 1,587 Passat 2,384 0.67 +1.1 Espace 4,686 Picasso 3,869 1.20 +2.4 Koleos 1,247 Hilux 2,013 0.62 +3.3

11. Ansoff Matrix PRODUCTS New Existing Existing New MARKETS Build/protect Megane Coupe Clio Product Development Megane Renaultsport Clio Scenic Market Development Asian Market Diversification Formula 1 Buses & HGV Electric Cars

12. Porters 5 Forces

13. STRENGTHS THREATS OPPORTUNITIES WEAKNESSES SWOT Analysis Strategic Alliance Global Operations Strong Focus on R&D Innovators Renault Brand Weak Operational Performance Weak performance in key markets Reliance on Western Europe Economic Climate Competitors Fuel Fluctuations Growing Asian Automobile Industry New Model launches Increasing demand for hybrid electric vehicles

14. PESTEL Analysis ECONOMICAL POLITICAL LEGAL ENVIRONMENTAL TECHNOLOGICAL SOCIAL

15. PESTEL Analysis POLITICAL EU Emissions Standards Product development ECONOMICAL Credit Crunch Rising Fuel Prices SOCIAL Commitment to Renault Good Code of Conduct Relations with stake-holders TECHNOLOGICAL Development & Implementation of technologies Drive these technologies ahead ENVIRONMENTAL ECO 2 Symbol Demand for HEV vehicles LEGAL Safety of vehicles Investing in R & D

16. Defining the Business Customers PRODUCTS First-time buyers Teens Professionals Family Fleet Twingo Clio Megane Laguna Espace Koleos

17. Boston Matrix Market Growth Rate 0% 2.0 2% 4% 1.0 0.01 Relative Market Share Megane Clio Laguna Koleos Espace Twingo Stars Problem Children Cash Cows Dogs

18. Competitor Analysis Theory Competitor Leader/ follower Growth rate Competition Goals Strengths Weaknesses Follower Low Severe Dominance Quality Negative perceptions of brand Leader High Severe Remain Dominant Tailored Products Bad publicity with certain product lines Follower Low Severe Growth Targets price-driven customers Identified poor after-sales service Leader High Severe Remain Dominant Partnered with BMW Safety Issues

19. Financial Performance (million euros) 2008 FINANCIAL RESULTS FEBRUARY 2007 2008 Change Revenues 40,682 37,791 -7.0% Operating margin 1,354 212 - 1,142 in % of revenues 3.3% 0.6% - 2.7% Other operating income & expenses - 116 - 329 - 213 Net financial income & expenses 76 441 + 365 Associated companies 1,675 437 - 1,238 Current & deferred taxes - 255 - 162 + 93 Net income 2,734 599 - 2,135 (Moulonguet, T. (2009) “Renault 2008 Financial Results”)

20. Future performance projections Maximisation of Revenue Sources Cost Reduction Free Cash Flow Management

21. Review

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