Siegfried Enterprise Management Automobile Industry Business Cases

Renault Morocco, Tesla, Hyundai, TATA Motors, Daimler Mobility, Toyota
1. Auflage 2021
ISBN: 978-3-7534-6979-9
Verlag: BoD - Books on Demand
Format: EPUB
Kopierschutz: 6 - ePub Watermark

E-Book, Englisch, 164 Seiten

Enterprise Management Cases in Automobile Companies especially for lectures in Management

Patrick Siegfried is Professor for International Management at the International School of Management in Frankfurt/Germany. He also holds a Guest Professorship for Entrepreneurship at the Szent István University in Gödöllö/Hungary. He has professional experience as a CEO of various international companies. His research focuses were on Strategic Management and Innovation Management in Startups.

Autoren/Hrsg.

Siegfried, Patrick

Leseproben

1 Introduction
Through the creation of employment in other economic sectors, the automotive industry has an enormous and critical role in the economies of many countries—the implementation and enhancement of the car industry. However, have adverse environmental and social effects. The automobile industry recently started paying particular attention to its operations' ecological and social impacts because of the rising strain. The country is classified as Africa's 2nd largest automaker, behind South Africa, and the 1st manufacturer of passenger cars. In the same year, Morocco's automotive industry created more than 148,000 direct jobs (over the 2014-2019 period), comprised more than 250 companies, and produced more than 400,000 vehicles with a local integration rate of 60 %. Today, Morocco has four main industry clusters, Tangier, Kenitra, Rabat, and Casablanca, and four institutes of specialist education. The European industry accounts for 80% of the automobiles assembled geographically, primarily for France (31%), Spain (11%), Germany (9%), and Italy (9 percent). Turkey (8%) and Arab countries are also destinations (5 percent). This article will examine the various facets of Renault's strategic management of the PESTEL, PORTER, and SWOT analyses. How are these techniques to strengthen Renault's competitive strategic vision? 2 Company presentation
In 2012 Renault was founded in Tangier, Morocco. This manufacturing site has changed the automobile industry landscape radically by being the fruit of a relationship between the Kingdom of Morocco, Renault, and Veolia Climate, both zero carbon and zero industrial fluid emissions. In light of growth, which it knew over recent years, the Moroccan automotive sector has expanded its strategic emphasis on national industrial policy. For the next decade, it still provides more possibilities. Morocco was also one of Africa's countries that followed their independence with the formation of the Casablanca SOMACA assembly line in 1959 and introduced an industrial strategy for the automotive industry. Figure 1: Renault Morocco Growth Furthermore, the government is considered the Moroccan automotive sector as a threefold strategic sector in terms of job creation, wealth generation, and foreign exchange generation. Therefore, the Moroccan government does not hesitate to get involved in its development. It shows the willingness to carry the sector, structure it, and create the perfect conditions for its development. The Moroccan government offers investors some packages providing infrastructures, quality services, incentive framework, and human resources training solutions. The National Pact for Industrial Emergence (NPIE) designated the automotive industry as one of its key sectors. In September 2007, Renault revealed a plan dedicated to establishing a new assembly plant for private cars in tangier with an annual capacity of 340,000 vehicles, and whose construction cost was estimated at 1 billion euro. In February 2012, Renault finished its initial building process and began running its first assembly line, which has 170,000 units annually of capacity. It is also announced that a second production line, with 170,000 units of annual capacity or 340,000 vehicles of total yearly capacity, was built in October 2013. In 2014 Sandero's right hand is being produced for the UK market, Lodgy Taxi, and Lodgy & Dokker Step. Renault-Nissan Tangier sponsored the Chennai plant to begin Lodgy in India directly in 2015 as a mother plant. This was the 500,000th car's manufacturing time. Following on the same route, Renault Group Morocco welcomes its suppliers in Tangier in 2016 and signs agreements to improve the ecosystem with the state. After that, the Renault plant in Tangier will celebrate the launch of 1,000,000 vehicles in 2017. The 318,600 cars on Renault Tangier lines also marked a major annual high in 2018. 3 External Diagnostic
PESTEL Analysis It is one of the technical instruments of importance in strategic management and marketing. It is essential for a situational study before some form of strategy or tactical approach can be introduced. The PESTEL is also part of this and should be replicated periodically to recognize macro-environmental changes. Organizations that track and respond effectively to changes in the macro-environment may separate themselves from competitive advantages. In the example below, we will show the Renault Company macroenvironment with the tool PESTEL. Six Forces Model (Porter) This Porter six-power model is a strategic method for industries to determine profitability and competition. It also offers a view or viewpoint by analyzing six main market areas and competitive strengths that form any sector. Figure 2: PESTEL Analysis of the Renault Morocco This model aims to define the structure and capabilities of the market to establish a business strategy better. New entrants The threat is low. There are high entry barriers, investments are heavy and very expensive, and it is necessary to master a complex production process. The distribution network has to be created from scratch, even if it is challenging to gain notoriety. Complementary product It is necessary for long distances competition from trains and aircraft. Public transport can be hazardous at short distances, particularly in large urban areas where the infrastructure is built. There is no actual competition from the automobile in the countryside, though. There is a growing awareness of the environmental factor. Second-hand vehicles will also compete well. Indeed, customers would turn to a cheaper commodity with a recent decrease in buying power. Substitutes The authority of the state and all the regulatory agencies, in general, is high, as they enforce stringent legislation on road safety and environmental protection. But for such businesses, it may have economic interests, as of Renault, in which it is a stockholder. There will be a disagreement in this situation, and some actions made by the state may be affected by the corporations. Suppliers Agreements between producers and suppliers are becoming more and more common. Indeed, the latter are often integrated into the production chain through partnerships. Their negotiating power is therefore diminished End users and buyers The decrease in revenue ensures the trading force rises. Consequently, consumers are best able to negotiate price advantages individually, especially for businesses purchasing several cars. This makes sales and other discounts more appealing. But for actual consumers, this bargaining ability is lower than for businesses. Competition There is an incredibly diverse vehicle industry offer. Overall, the range itself is extensive. Many automakers, therefore, sell passenger cars, family cars, and utility vehicles. Consequently, rivalry on all SARs is intense. The entrance of Japanese suppliers in 2000 and Volkswagen's growth in Europe, which takes the market share of its rivals, make rivalry high. Though, the sector's issues have impacted the whole market with falling revenue for many years. 4 The Renault Group's SBAs and Critical Success Factors
Strategic business area The automobile-sector It contains the Samsung and Dacia brands in addition to Renault. The automobile industry is designing and selling light commercial vehicles and passenger cars. In 2005, 95.5% of the total revenues were generated. Sales financing branch It supports the commercial activity of the Renault group. The finance branch brings together RCI Bank and its subsidiaries, i.e., some sixty companies that support the group's international development. 1.9 billion in 2005, representing 4.5% of total revenues. Key success factors Cost control Having the right partners and suppliers allows you to remain competitive, knowing that a considerable part of purchasing costs. Quality department A reliable and safe product image is a very important plus in the consumer's eyes and gives credibility to the brand. Technical incidents very often have an echo in the media, which can have a devastating effect. Investment in clean technologies In these technologies is to prepare for the future and changes in the sector while improving the brand image by becoming an eco-responsible company. 5 SWOT Analysis
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.1 Figure 1: SWOT Diagram Strengths The group with very little debt Implementation of hybrid vehicles Group very close to Brazil and Russia Joint production and research development with other manufacturers such as Nissan Daimler and Volvo. Weaknesses Product marketing is always centralized around the so-called entry-level vehicles. Conflict of interest: espionage and false invoices Threats Increasingly important competition...