Proton Strategic Managemen

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Strategic Management of Proton, Malaysia
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Strategic Management: Proton, Malaysia
Table of Contents
TOC \o "1-3" \h \z \u 1. Introduction. PAGEREF _Toc226437728 \h 3 2. Background of Proton. PAGEREF _Toc226437729 \h 3
3. Macro-Environment Analysis. PAGEREF _Toc226437730 \h 5
3.1 Political PAGEREF _Toc226437731 \h 7
3.2 Economic. PAGEREF _Toc226437732 \h 8
3.3 Social PAGEREF _Toc226437733 \h 8
3.4 Technological PAGEREF _Toc226437734 \h 9
4. Micro-Environment Analysis. PAGEREF _Toc226437735 \h 10
4.1 Strengths. PAGEREF _Toc226437736 \h 11
4.2 Weaknesses. PAGEREF _Toc226437737 \h 11
4.3 Opportunities. PAGEREF _Toc226437738 \h 12
4.4 Threats. PAGEREF _Toc226437739 \h 13
5. AFTA Compliance Problems. PAGEREF _Toc226437740 \h 13
6. Industry Analysis. PAGEREF _Toc226437741 \h 15
6.1 Threats of New Entry. PAGEREF _Toc226437742 \h 16
6.2 Threat of Substitution. PAGEREF _Toc226437743 \h 16
6.3 Buyer Power PAGEREF _Toc226437744 \h 17
6.4 Suppliers Power PAGEREF _Toc226437745 \h 17
6.5 Competitive Rivalry. PAGEREF _Toc226437746 \h 17
7. Recommendation. PAGEREF _Toc226437747 \h 18
8. The Strategic Triangle. PAGEREF _Toc226437748 \h 18
9. Aligning Organization Wide Strategies. PAGEREF _Toc226437749 \h 19 10. Adaptive Processes. PAGEREF _Toc226437750 \h 20
11. Metrics/Performance Measures. PAGEREF _Toc226437751 \h 20 12. Conclusion. PAGEREF _Toc226437752 \h 21
13. References. PAGEREF _Toc226437753 \h 23
14. Appendices. PAGEREF _Toc226437754 \h 25
14.1 Appendix A: Strategic Triangle. PAGEREF _Toc226437755 \h 25 14.2 Appendix B: Balance Score Card Dimension of Proton. PAGEREF _Toc226437756 \h 26 Table of Table
TOC \h \z \c "Table" Table 1 PEST Analysis. PAGEREF _Toc225758233 \h 6 Table 2 SWOT Analysis. PAGEREF _Toc225758234 \h 11
Table of Figures
TOC \h \z \c "Figure" Figure 1 Porter's Five Forces. PAGEREF _Toc225758249 \h 16 1. Introduction
The automotive industry in Malaysia is considered as one of the most vital and significant strategic industries in the manufacturing sector (ESCAP 2009). Malaysia is predominantly a passenger car market and the industry is considered as a domestic market-oriented (ESCAP 2009). The primary reason why passenger care market is prominent in the country is because of the economic status of the country. The objective of this paper is to focus on the case of Proton in terms of facing different dilemmas in the local and global automotive industry. Furthermore, it will use the Delta model in order to analyze the performance and recommend different actions to be done in order to maintain the position of the company in the market. 2. Background of Proton

Proton or synonyms for Perusahaan Otomobile Nasional Berhad was incorporated on May 7, 1983 in order to manufacture, assemble and sell different motor vehicles and other related products which include different accessories, spare parts and other important components (PMProject n.d.). Based on the technology and parts from Mitsubishi, the production of the first model or the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam Selangor by the Malaysian Prime Minister Dato’ Seri Dr. Mahathir Mohamad (Histomobile n.d.; PMProject n.d.). At first, all of the components of the car were entirely manufactured by Mitsubishi, but the local part has been able to be used, as technologies were transferred and skills were gained. In January 1989, the 100,000th of Proton Sage was produced (Histomobile n.d). At the end of 1990s, the logo of the car was changed from the Malaysia’s coat of arms and a fourteen-pointed star to a stylized tiger head. In 1993, a new model called Proton Wira was introduced that was based on the design and engineering of Mitsubishi Lancer/Colt where in more than 220,000 units were sold from 1996 to 1998. Together with that, the Proton Perdana that was...
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