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ZAFAR UD DIN 2134

UMER FAROOQ 0177


USMAN SHEHZAD 2175
AHSAN UL HAQ 2127
RAO FAIZAN ELAHI 0188
ABDUL NASIR 0028
QAISER AYOUB 2158




PAK SUZUKI MOTORS COMPANY LIMITED

















ACKNOWLEDGEMENT

In the name of Allah, Most Gracious, Most
Merciful
Most Gracious, Most Merciful;
Master of the Day of Judgment.

INTRODUCTION
Pak Suzuki Motors Company Ltd. is a
company assembling and distributing Suzuki
Japan's cars in Pakistan. Currently they are one
of the most successful motor companies in
Pakistan.
The firm was founded in 1983 as a joint venture
between PAK and Suzuki,

formalizing the arrangement by which AWAMI
Auto Ltd. had produced the Suzuki SS80 from
1982.


INTRODUCTION (CONT)
Suzuki originally owned 25% of the stock,
and has gradually increased their holding;
they now own 73.09%.
The company now assembles a wide range
of Suzuki vehicles and aims to produce
150,000 vehicles per year. (2008 production
was 100,000
VISION


To be Excellent All Around


MISSION


To provide automobile of international quality
at competitive price

STRATEGY FORMULATION FRAMEWORK
Matching
stage

Decision
stage
Input
stage
INPUT STAGE
Internal
Factor
evaluation
(IFE)
External
factor
evaluation
(EFE)
Competitive
profile matrix
(CPM)
EXTERNAL FACTOR EVALUATION MATRIX
OPPORTUNITIES Weight Ratings Weighted Score
1. Increasing Demand for Cars 0.15 4 0.60
2. Efficient EFI Engines 0.10 3 0.30
3. Large Market to operate 0.10 3 0.30
4. Global spare parts market 0.05 2 0.10
5. Small size CNG Cylinders 0.12 3 0.36
THREATS
1. Tough Competitors like Toyota and Honda 0.14 2 0.28
2. Inflation Rate 0.08 3 0.24
3. Heavy Taxes 0.08 3 0.24
4. Cheaper Imported Cars 0.10 4 0.40
5. Increase in Fuel Prices 0.08 2 0.16
Total Weighted Score 1.0 2.98
INTERNAL FACTOR EVALUATION
STRENGTHS Weight Ratings Weighted Score
1. Highest Market Share 0.20 4 0.80
2. Low Price Vehicles 0.10 4 0.40
3. Large Distribution Channels 0.12 4 0.48
4. Easy availability of spare parts 0.08 4 0.32
5. Highly Innovative and deep product line 0.12 4 0.48
WEAKNESSES
1. Scarcity of raw material 0.08 2 0.16
2. Lack of coordination and linkage with Govt. bodies 0.05 2 0.10
3. Less focus on Looks and design 0.10 1 0.10
4. Less Technical Training Institutes 0.05 1 0.05
5. Less distribution channels in sub urban areas 0.10 1 0.10
Total Weighted Score 1.0 2.99
COMPETITIVE PROFILE MATRIX
Critical Success
Factors
Weight
Suzuki
Toyota
Rating
Score
Total Rating
Score
Total
1 Innovation 0.30 4 1.20 3 0.90
2 Market Share 0.10 1 0.10 3 0.30
3 Competitive Pricing 0.15 2 0.30 3 0.45
4 Brand Image 0.10 4 0.40 2 0.20
5 Customer Satisfaction 0.20 3 0.60 3 0.60
6 Advertising 0.15 4 0.60 3 0.45
Total 1.00 3.20 2.90
MATCHING STAGE
SWOT
SPACE
BCG
MATRIX
IE
MATRIX
GSM
SWOT ANALYSIS
SWOT Matrix
STRENGHTS WEAKNESSES
1. Highest Market Share 1.Scarcity of Raw Materials
2. Low Price Vehicles 2. Lack of coordination with Govt. Bodies
3. Large Distribution Channel 3. Less focus on Looks and design
4. Highly Innovative & Deep product line 4. Less Technical Training Institutes
5. Easy availability of spare parts
5. Less distribution channels in sub-urban
areas
OPPORTUNITIES S-O Strategies W-O Strategies
1. Increasing Demand for cars
1. Maximize market share by producing
more cars per year (S1,S2,O1,O4)
2. Develop more efficient and innovative
Engine which gives comparative advantage
(S4,O2)
3. Use efficient CNG systems (S4,S5,O4)
4. Focus on Looks and Design to compete
with Honda and Toyota (W3,O1,O3)
5. Fund and establish technical institutes to
gain more skilled workforce (W4,O3,O1)
2. Efficient EFI engines
3. Large Market to Operate
4. Small size CNG Cylinder
5. Global Spare parts market
THREATS S-T Strategies W-T Strategies
1. Tough Competitors

6. Maintain quality in affordable price will
help to compete with competitors and
imported cars (S2,S4,T1,T4)
7. Develop fuel efficient engines to gain edge
and eliminate threat of fuel prices increase
(S4,S5,T5,T2)
8. Enhance distribution to avoid threat from
second hand imported cars (W5,T4)
2. Inflation Rate
3. Heavy Taxes
4. Cheaper Imported Cars
5. Increase in Fuel prices
BCG MATRIX
Dogs
Question Mark Star
Cash Cows
High
Low

Low

High
Market
Growth
Market Share
MEHRAN

ALTO

CULTUS

RAVI

LIANA
APV

JIMNY

BOLAN

SWIFT

BCG MATRIX (CONT)
SPACE MATRIX
Financial Strength (FS)
Return on Investment +4
Working Capital +3
Short Term Assets +4
TOTAL:
+11
Industry Strength (IS)
Large Market to operate +5
Increasing per Capita Income +3
Consumption Oriented Culture +4
TOTAL:
+12
Competitive Advantages (CA)
High Quality Products -3
Sleek and Stylish Designs -4
Famous Brand Names -3
TOTAL:
-10
Environmental Stability (ES)
Tough Competition -2
Change in Govt. rules and regulations -3
Imported Refurbished Cars -4
Law and Order Situation -2
TOTAL:
-11
SPACE MATRIX
FS = 11/3 = 3.67
IS = 12/3 = 4
CA = -10/3 = -3.33
ES = -11/4 = -2.75
X-axis = IS+CA = 4-3.33 = 0.67
Y-axis = FS+ES = 3.67-2.75 = 0.92


SPACE MATRIX
CONSERVATIVE
DEFENSIVE COMPETITIVE
Aggressive
Strategies
IE MATRIX




EFE Matrix Scores

IE Matrix Scores

Strong Average Weak


4

3
2 1
Strong 4
i
ii
iii
3
Average
iv
v vi

2
vii viii ix
Weak
1
GRAND STRATEGY MATRIX(GSM)
Rapid Market Growth
Q1
Q2
Q3 Q4
Slow Market Growth
Weak Competitive
Position
Strong Competitive
Position
Market Development
Product
Development
Decision stage
Quantity
strategic
planning
matrix
QSPM MATRIX
Market Development Product Development
External Factors Weight
Attractiveness
Score
Total
attractiveness
score
Attractiveness
Score
Total
attractiveness
score
Increasing Demand for Cars 0.10 4 0.40 4 0.40
Efficient EFI engines 0.06 3 0.18 4 0.24
Large Market to operate 0.08 4 0.32 4 0.32
Global Spare parts market 0.04 3 0.12 2 0.08
Tough competitors 0.08 4 0.32 2 0.16
Inflation 0.06 1 0.06 1 0.06
Cheaper Imported cars 0.08 4 0.32 4 0.32
Increase in fuel prices 0.10 4 0.40 4 0.40
Internal Factors
Highest Market share 0.08 3 0.24 4 0.32
Low price vehicles 0.10 1 0.10 4 0.40
Large distribution channel 0.06 2 0.12 3 0.18
Easy availability of spare parts 0.02 3 0.06 3 0.06
Innovative and deep product line 0.06 4 0.24 3 0.18
Less focus on style and design 0.04 4 0.16 4 0.16
Scarcity of human resource 0.04 3 0.12 4 0.16
Totals 1.0 3.16 3.44
THE FOLLOWING ARE THE FINDINGS OF THE STUDY OF PAK
SUZUKI MOTOR COMPANY LIMITED.

EXTERNAL FACTOR EVALUATION MATRIX SCORE: 2.98

INTERNAL FACTOR EVALUATION MATRIX SCORE: 2.99

BCG MATRIX:

STAR: JIMNY, BOLNA
QUESTION MARK: SWIFT
CASH COWS: MEHRAN, CULTUS, ALTO, RAVI
DOGS: APV, LIANA


conclusion
CONCLUSION (CONT)
Internal External Matrix: Growth and Built
Strategy
Space Matrix: Quadrant 1, Aggressive
Strategies
Grand Matrix: Quadrant 1, Aggressive
Strategies
Market Development, Product Development
QSPM Matrix:
Market Development: 3.16
Product Development: 3.44

Chosen Strategy is Product Development