Case 11- Skoda Auto-2007
The case on Skoda Auto is based on figures and stats taken in 2007. The case explains the past position of the company, the current state and the position of the company compared to other automobile companies in the world. Skoda Auto Mobile Company was formed in 1895 in Czechoslovakia when Vaclav Laurin, a mechanic, and Vaclav Klemant, a bookseller, joined together to manufacture the bicycle later a motorcycle and then a four-wheel, 2-cylinder engine motor vehicle. Since then Skoda saw a lot of changes. It has improved its quality and has tried to change its perception in the minds of its clients. Volkswagen a parent company of Skoda is Europe’s largest carmaker producing cars, trucks and vans. It has been able to grow its share in the markets of the world and from being the national car of Czechoslovakia it have become a multinational brand. Currently Skoda is being sold in more than 90 countries and is constantly improving its dealership and has penetrated in the markets of Western Europe, Eastern Europe and Asia. Skoda follows a German model for its corporate governance and Volkswagen is its sole shareholder. One of the key components of Skoda’s strategy is quality. Suppliers are selected in a systematic and controlled process. A key part of the integrated management system at Skoda is the quality management system. Skoda has improved its quality and has penetrated in the market world. Skoda progressed so well improving the efficiency and attractiveness of its car that in 2006 it won 4 Awards consecutively in different parts of the world. Skoda Auto Company has also invested a great deal in its Corporate Social Responsibility. It launched the ‘Healthy Company’ program which focuses on improving employee health and fighting diseases. The company also places a great deal of emphasis on improving work conditions based on the result of measurement of employees’ duress. But the current challenge the company is facing is the...
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