Transcript Slide 1

An Inside Look at the Automotive
Industry
(Prestige Auto Co.)
By:
Cicilia Anggara
Amanda Aprilia
Peter Labib
Jin Yong Park
Loide Siahaan
Andry Soenario
Agenda
•
Introduction
•
GM analysis
•
Toyota analysis
•
New recommendations
•
Conclusion
GM Strengths
•
Robust revenue growth in Asia
•
Strong brand portfolio
•
Improvement in reliability
•
Advanced technology
GM Weaknesses
•
Poor performance in North America
•
Weak profitability
•
Vehicles seen as plain and unattractive
•
Negative Company Culture
GM Opportunities
•
Increase market share in Asia
•
Introduction of new attractive vehicles
Example: Saturn Aura, Cadillac Escalade
•
Roll out fully electronic and hydrogen cars
GM Threats
•
Rise in the price of raw materials
•
Supplier in Delphi is bankrupt
•
Low capital spending
•
Japanese roll out hydrogen and electric cars
Toyota Strengths
•
High Commitment
•
Powerful communication skill
•
Trust from top management to low management
•
Value diversity
•
Fulfill customers’ demand
Toyota Strengths
•
Customers’ satisfaction is #1
•
Target different segments of customers
•
TPS (Toyota Production System)
• Just in time strategy
Toyota Weakness
• Global Business
• Barrier to entry European Market
Toyota Opportunities
•
Brand name for ‘reliability’ for 40 years
•
Introduce new innovation
•
High-technological automobile
•
Word-of-Mouth fame
Toyota Threats
• Compete with Honda
• Compete with China
• Monetary competition
• Rebate, non-APR finances, discounts
Recommendations for automotive
industry
Standard Company Cultures
•
Having a good relationship with suppliers
•
Establishing effective communication cultures
•
Developing program management cultures
Specific Guidelines
Personal
Equal treatment opportunities &
Health and safety issues
Workplace
Purchase decisions based on supplier’s
price, quality and service
Global
Export and import sanctions against
specific Countries
Environmental
More regulation
Competitive Advantages
•
Important to develop competitive advantages
•
Our aim: be the “Starbucks of the industry.”
•
Provide a superior experience:
• before
• during
• after buying a car.
More on Competitive Advantages
•
Aggressively market with incentive deals
•
Train employees on how to sell cars
•
We must have a superior service experience
Supply Chain Relationships
•
Communication is key
•
Weed out ineffective supply chain members
•
Maintain and reward supportive supply chain
members
How to Select Members of the
Supply Chain
•
Takes time to develop a good supply chain
•
Each employee needs to:
• Understand
• Agree to the processes of the organization
•
In order to do that:
• Relationships must emphasize trust, commitment,
and respect
Pull Strategy
•
Consumers demand the products
Example: Toyota Production System (TPS)
•
Avoids overproduction
•
Increase profit
Empowering Supply Chain
•
Create an atmosphere of inclusion
•
Everyone has a voice
•
Their voices must be listened
•
Receptive to input from different areas
Target Different Segments to Keep
Customers
•
Fulfill what customers want
•
Varieties in models, price, and engine
•
Build loyal customers
Motivation
Motivation for employees
• Reward
• Freedom for any ideas
• Excellent workplace
Motivation for dealerships
• Reward
• The Prestige Company motivates dealerships
and employees
Leadership
•
Trait Theory
1. Desire to lead
2. Self confidence
3. Be smart
4. A good selling strategy
To be a good leader
•
Proper training and education
•
Ability to deal with the all components
•
Solve problems in real-life situations
•
Work as group
Work Places
•
Team Work
•
Diversity
•
Employees Compensation
401 K, health care insurance, and retirement fund
Conclusion
1.
2.
Positive culture
Trust, commitment, and respect

3.
4.
5.
6.
(Long-lasting relationship in supply chain)
Diversity
Motivation through relationships & reward
Imperfectly imitable competitive advantage
Theory of constraints