Consultancy Report – Organizational Strategy for Proton’s Global Expansion
BBA 484 Global Strategies
Dr. Laura Pogue
April 3, 2006
Proton is currently operating in 50 countries. The company is thinking of exporting to places like Iran, Syria, China and Indonesia. In order for the company to become global it will need to think about expanding its business to markets such as South America where they are not currently present.
Proton should also consider expanding their manufacturing sites to each country in which they operate so that they will be able to reach their markets quicker and will have more local responsiveness. The parts can still be developed in the countries that they are being developed in but should be located close enough to the manufacturing plants so that turn around time on inventory and supply is faster which can save the company money.
In order to achieve the mission, Proton will need to develop alliances in the different countries, with other car manufacturers. This will help them with the research and development of cars more quickly and can also give them help with keeping down the costs of the manufacturing of the cars. They can also receive assistance in the technical aspects of the production of these cars. Questions can be answered as to what type of engines are most likely to sell and what accessories or components are rated the highest in the current market for the country. This will help them to get a better chance at marketing a product that will sell fast and will give the company a better return on their investment. The country is already in a “Rights to Signing” agreement with Egypt and should look at making the same agreement with other countries and manufacturers. This will help them to move into other markets more quicker and will help their brand be recognized.
I would operate the country in the transnational form so that they can begin alliances with different companies around the world. This would also help them in the transition of becoming a global company. The company would become a part of a global alliance with loose characteristics of a strategic alliance. The government can still see over the operations of the company from the home base but there would need to be a considerable amount of changes made in the organizational structure. There will need to be country managers would will have control of operations from their country and work in a network with those from the other countries.
In order to handle the cultural aspects of the company, the company will develop a strategy will be culturally fit. The country would operate as Geocentric, which is totally different than what they are doing now. This will allow optimizing and promoting of learning between the different constituent parts of the company.
In order to establish a competitive advantage the company will need to develop alliances with companies in each country that will allow them to learn more about the development of the cars for that country. The company will need to know what the current trends are for the country and what is selling more. This will allow them to develop products that are similar to those being marketed in these countries.
Each country subsidiary would be responsible for the operations in that country. They would still have to follow orders from the central headquarters where most decisions will still be made.
The Corporate Plan
The company’s mission is to develop and manufacture the finest and highest quality products that can be sold around the globe with market presence in each country. Products will be developed that will meet the needs of the local customers in each market. Proton will develop a strategy that within the next 10 years, they will be a company that is known globally and has earned a significant market...
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