Introduction This paper describes the various aspects of the Proton holdings. The objective is to evaluate the depth analysis of the Proton car in Malaysia.
Hire Writer Question 2 What characteristics should a foreign partner have that will enable maximum synergies? Synergy by definition means the interaction or cooperation of two or more organizations, substances, or Casestudy on proton agents to produce a combined effect greater than the sum of their separate effects.
The public usually complaint about the overall poor quality vehicles by PROTON over the years which indirectly affecting the financial result of the company, when its sales dwindled tremendously and continuously losing market share and which subsequently eroded the profit margin of the company.
Therefore, a foreign partner that is known for its excellent quality of products would be a leap to induce a positive perception of Proton among the consumers which can help boost its revenues.
Case Study: Proton Could Look Into Reconnecting Its Purpose In Its Rebranding Exercise November 1st, Business, Case Studies, Syndicated Share this article. PROTON From SAGA to IRIS MAF INTEGRATED CASE STUDY EXECUTIVE SUMMARY A multinational motor industry giant (assume MAZDA) had sensed opportunity in Proton and approached a consultant, Chartered Accountant Saiful Alawi, to review Proton and recommend whether an investment or collaboration should be considered. Proton Case Writing About Proton Perusahan Otomobil Nasional Berhad (Proton) was established in May with the idea of creating Malaysia’s national car (Proton, ).
Next, a foreign partnership with expertise and economies of scale is necessary which can encourage the sustainability of Proton. Also, a foreign partner well known for its good reputation would be critical in order to elevate the already weak reputation of Proton among consumers.
Hence, the foreign partner should have the technological advances which Proton lacks. Question 3 What broad consideration should determine the part of proton that are worth keeping and developing and matter of operation needs to be relocated or closed down?
Proton needs to reconstruct its business structure by forgoing some part of business which are not worth keeping and expand those activities which generates ample profit. After analyzing Protons overall condition, firstly, the partnership with Lotus has helped Proton in strengthening the engineering, providing Proton an edge in Europe.
Since Lotus is a British company that builds sports car, they have very well developed motor engineering technology which might be a gold opportunity for Proton to move forward and create more elegant and high-performance car models.
In, Lotus even appeared in the Paris Auto Show with five slick looking sport cars.
In order to draw sales, you have to know how to attract customers. Proton should concentrate its energy on overall product improvements most importantly the engine.
The idea is that they should try creating a car with a different engine as the perception build about Proton is that it has bad engine system to begin with. Possible solutions to mitigate the problems identified are by introducing additional value improvised features which focuses on fuel efficiency, convenience and safety.
Next, Proton should also focus on providing excellent after sales service at its service centre Proton Edar. It is best to expand Proton by gaining their trust and loyalty. Lastly, the management of Proton need to undergo total reconstruction.
If proton is not going to fully utilize its plant, it is better and more cost efficient for them to lease out the space to other car manufacturers so that it can generate profit from the unutilized space rather than living it unproductive.
There are areas found that will enable possible collaboration with Proton in the event of short merger or takeover based on reviewing the National Automotive Policy NAP.
The main objective of NAP is to ensure the development as well as long term competitiveness and capability of Proton. NAP also intends to create a conducive environment to attract possible new investment to enhance the sustainability of Proton.
Firstly, the government offered tax incentive for high value-added part components. This particular policy gives an opportunity to the company to make an investment in Malaysia and set up an alliance with Proton. Furthermore, it can benefit both parties because the investors can enjoy an incentive while Proton can improve the quality of their products with cost reduction due to the tax incentive thereby eliminating their reputation on low quality products.
The trend of hybrid car is potentially expanding rapidly in Malaysia and research on the hybrid technology could produce higher return of investment and collaboration with Proton will give a cost saving to the companies and support Proton to pursue on producing hybrid cars.
Besides, it can be cost-competitive for them if strategic alliance is set up with Proton since its plant in Tanjung Malim can be used for assembly hub for both the collaborating companies. The full liberalization on assemble of luxury car also can give an opportunity to Proton to continue operating in low cost vehicle without any stiff competition and acquire more proportion of the market.
So, strategic alliance with Proton in low cost vehicle segment will give strong position in the market which will help to boost the profits of the company.
Question 5 What other information not included in the case could help consultant Saiful Alawi make a more meaningful recommendation? Apart from those, there are few other things that might also take into consideration for the recommendation in which one of them could be financial leverage for the company.
Financial leverage refers to the degree to which an investor or business is utilizing borrowed money.PROTON is determined to become a relevant global motor vehicles player and play a big role in the future to increase the Malaysian market growth. PROTON’s vision is to become a successful Malaysian Automobile Manufacturer that is globally recognized and this is in line with the idea to.
This case focuses on the challenges faced by a Malaysian state-owned automobile manufacturer, Proton. In so doing, it exemplifies the political context in which businesses, both domestic and. Its finances recovered a little in /, hanks to the government’s “cash for clunkers” incentive programmer, a MEMORY million (SUDSY million)2 R grant .
Casestudy on Proton. Topics: Automotive industry, The case study focuses on the Malaysian automotive industry and the possible disadvantages and advantages that may be caused by the introduction of the Asian Free Trade Area (AFTA). The disadvantages can include loses incurred by the alleviation of protectionist measures, reduction in the.
PROTON From SAGA to IRIS MAF INTEGRATED CASE STUDY EXECUTIVE SUMMARY A multinational motor industry giant (assume MAZDA) had sensed opportunity in Proton and approached a consultant, Chartered Accountant Saiful Alawi, to review Proton and recommend whether an investment or collaboration should be considered.
Proton Case Writing About Proton Perusahan Otomobil Nasional Berhad (Proton) was established in May with the idea of creating Malaysia’s national car (Proton, ).