Strategic Management Analysis of Pak Suzuki

Topics: Suzuki, Automotive industry, General Motors Pages: 22 (4982 words) Published: December 1, 2010

Assign By: Syed Nawab
Course Instructor

Group Member:
Junaid Akhtar 0936115
Jay Kumar 0936113
Farhan Khan 0936___
Mujahid Hussain 0936123



First of all, we would like to express our deep gratitude to Almighty Allah, who enabled us to undertake such an important task and to study about Pak Suzuki and the Strategies to operate in Pakistan Marketing. We also wish to acknowledge the valuable guidance provided by our respected teacher Mr. Syed Nawab. He always motivated and encouraged us in the completion of this report. We are thankful to Mr. Abdul Aziz who is the Production Manager in Pak Suzuki in Head Office Karachi and entire Pak Suzuki Management. They appreciated the efforts of SZABIST. They have provided all the relevant data as well as other information relating to the important independent variables.

In Year 2009 the demand for automobile was sluggish .The industry for cars and light commercial vehicles experienced 29% decline in the sales volume. The industry sold 107,768 units during the year against 151,517 units last year. It’s my pleasure to present review on the performance of the company for the year December 31, 2009 The demand has depressed during the year due to cost push inflation resulting from depreciation of Pak rupee, limited financing by banks/leasing companies and general economics recession. First half of the year was the worst. Sales volume during this period has dropped by 53% compared to last period of last year. Second half was some what better than first half year. As it was grew by 33% over the first half year. The market size of motorcycle has marginal improved by 2% over the last year in the organized sector. During the year 593,479 units were sold against 580,604 units last year. During the first half year Demand was 25% lower than same period of last year. However this loss of demand was offset by the increased demand latter half year.

Suzuki product remain popular .Despite sluggish market demand for automobile, Pak Suzuki remain market leader with 48% market share. The company launched new 1300cc car (SWIFT) in January 2010. This has been well accepted by the customers. Imported used cars do not really pose any threats to Suzuki products. Availability of spare parts at economics prices and reliable after sales service are the strength of Suzuki products. The export of Suzuki Ravi pickup to Bangladesh and exports of sheet metal parts of Suzuki Cultus to Europe going well. During the year Three hundred and sixty units of Suzuki Ravi pick up and parts worth Rs. 120 million and Rs. 22 million respectively were exported. LOCALIZATION

The company continues to pursue localization in order to reduce the cost of product and keep the prices competitive besides saving foreign exchange. HUMAN RESOURCE
Management and employee relations continued to cordial and industrial peace prevail during the year. A new charter of demand was negotiated in a congenial atmosphere and agreement was entered into for the period of ten years. Human Resource development remains one of the key objectives of the company. Company spent Rs. 12.5 million on the foreign and local training of its employees. ECONOMIC CONTRIBUTION

The company has distinctive position in an automobile industry as leading contributor to the public exchequer. The duties and tax paid and the foreign exchange saved by company its last six years of operations as follows:

Duties and taxes paid by the company during the year represent 0.6%of the total tax estimate forecast in the Federal budget for the fiscal year 2009-2010. Company contribution has reduced 1.06% in the last year because of lower sales volume.

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