Saab’s Sad Story: the Last Episode
SAAB’s Sad Story: The Last Episode
Contents:
1. Title Page 2. Abstract 3. Article summary and its implications for the business community 4. Looking at SAAB as a product of globalisation 5. The strength of emergent economies and why large companies look to them for assistance 6. The ‘Creative Destruction of Capitalism’ 7. Different strategic choices 8. References 9. Bibliography
Abstract
This report is divided into 5 sections. The first section aims to summarise the article, ‘SAAB’s sad saga: The last episode’ and look at its consequences it has had on the business community. Secondly, it will examine whether or not, this type of consequence is a product of globalisation. It will also look at how emerging economies are growing and why large companies look to them for financial help. The term ‘creative destruction’ will be explored and how it is related to SAAB. In conclusion, we will examine different strategic choices that could have helped SAAB stay in business.
Once admired Swedish car brand SAAB is on the verge of bankruptcy due to various factors. The brand, once innovative, has fallen behind the competition and become somewhat out-dated and unfashionable in the current market. The productive scale of SAAB is too small to be profitable on its own, recently only producing 120 000 units per annum with minimum required 200 000 for any mass volume car maker.
Its acquisitions by various large companies over the past few years have had a perceived negative impact on the brand notably on its once innovative technology and somewhat unique image. These factors, in conjunction with the global financial crisis have left SAAB on the brink of liquidation. Desperately hoping for a financial lifeline from Zhejiang YounGeneral Motorsan Lotus Automobile and Pang Da Automobile Trade in China to rescue the floundering carmaker, their
Contents:
1. Title Page 2. Abstract 3. Article summary and its implications for the business community 4. Looking at SAAB as a product of globalisation 5. The strength of emergent economies and why large companies look to them for assistance 6. The ‘Creative Destruction of Capitalism’ 7. Different strategic choices 8. References 9. Bibliography
Abstract
This report is divided into 5 sections. The first section aims to summarise the article, ‘SAAB’s sad saga: The last episode’ and look at its consequences it has had on the business community. Secondly, it will examine whether or not, this type of consequence is a product of globalisation. It will also look at how emerging economies are growing and why large companies look to them for financial help. The term ‘creative destruction’ will be explored and how it is related to SAAB. In conclusion, we will examine different strategic choices that could have helped SAAB stay in business.
Once admired Swedish car brand SAAB is on the verge of bankruptcy due to various factors. The brand, once innovative, has fallen behind the competition and become somewhat out-dated and unfashionable in the current market. The productive scale of SAAB is too small to be profitable on its own, recently only producing 120 000 units per annum with minimum required 200 000 for any mass volume car maker.
Its acquisitions by various large companies over the past few years have had a perceived negative impact on the brand notably on its once innovative technology and somewhat unique image. These factors, in conjunction with the global financial crisis have left SAAB on the brink of liquidation. Desperately hoping for a financial lifeline from Zhejiang YounGeneral Motorsan Lotus Automobile and Pang Da Automobile Trade in China to rescue the floundering carmaker, their
References: Wikipedia (2012) [Online] Available at: http://en.wikipedia.org/wiki/Globalization (Accessed 10th July 2012) Sloman, J. and Hinde, K. and Garratt, D (2010) Economics for Business 5th Edition. Essex: Pearson Education Limited Collins, S. (2011) Governing Business Development: Study Guide 1 & 2 Glasgow: ICS Ltd