Preview

Volkswagen and Porsche

Satisfactory Essays
Open Document
Open Document
3959 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Volkswagen and Porsche
Volkswagen and Porsche
- Corporate Finance Case study:
Mergers & Acquisitions of listed companies by
Joachim Häcker

What is the macro view of this case study?
Small fish tries to eat big fish (financial figures are end of 2005 and rounded):

VW: Market cap: €16 bn
Book value: €24 bn
Cash and cash equivalent: €8 bn
(+€4 bn marketable securities)

Porsche: Market cap: €11 bn
Book value: €3.4 bn
Cash and cash equivalent: €3.6 bn

VW Porsche case study – by Joachim Häcker
Seite 1

What is the macro view of the case study?
What is the agenda of this presentation?
What is the agenda of this presentation?

1. Basic understanding:
Basic understanding:
How did the small fish try to eat the big fish - the takeover process!
2. Question 1:
Question 1:
What does Porsche need to clarify in order to successfully attack the big fish?
3. Question 2:
How can Porsche make sure that nobody realizes that the small fish is about to eat the big fish?
4. Question 3:
How can Porsche finance the attack?

VW Porsche case study – by Joachim Häcker
Seite 2

1. Basic understanding of the takeover process: The situation of VW in 2005
P/B ratio of VW, Daimler-Chrysler and BMW, values rounded off (status: 2005 end)
€ bn

€ bn

€ bn

VW: Lowest P/B ratio
VW Porsche case study – by Joachim Häcker
Seite 3

1. Basic understanding of the takeover process: The situation of VW in 2005
Porsche: Growth of turnover from 2000/2001 – 2004/2005

CAGR of 10,2%
VW Porsche case study – by Joachim Häcker
Seite 4

1. Basic understanding of the takeover process: The situation of VW in 2005
Porsche: Growth of net profit margin from 2000/2001 – 2004/2005

Net profit margin almost doubled from 2001 to 2005
VW Porsche case study – by Joachim Häcker
Seite 5

1. Basic understanding of the takeover process: The situation of VW in 2005
Return on Equity Ratio, Porsche and the competitors (Status as of: 2004 or 2004/2005)

Incredible high profitability
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Fiat Chrysler
    • 2013 Words
    • 6 Pages

    Fiat Chrysler

    1. According to a major economics consulting firms, Fiat`s ¨South American operations are the jewel in the Italian company`s global operations¨. Fiat has plants in Brazil and Argentina, and Brazil is the biggest market, well ahead of its home-country market. In 2011, with the Chrysler venture taking up more and more of the firm`s attention – and as European sales suffered a steep decline – rumors began to circulate that Marchionne might move Fiat headquarters from Italy to the United States. Discuss Fiat´s takeover of Chrysler as part of strategy to transform itself from international business into a multinational or global business…

    • 2013 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Volkswagen of America
    • 1561 Words
    • 7 Pages

    Volkswagen of America

    Volkswagen of America is the U.S. subsidiary of the Volkswagen automobile company in Germany. Formed in April 1955 in Englewood Cliffs, New Jersey to standardize dealership service in the United States, it grew to 909 Volkswagen dealers in the United States by 1965 under the leadership of Dr. Carl Hahn. Under him and his successor as president of Volkswagen of America, J. Stuart Perkins, VW's U.S. sales grew to 569,696 cars in 1970, an all-time peak, when Volkswagen captured 7 percent of the U.S. car market and had over a thousand U.S. dealerships. The Volkswagen Beetle was the company's best seller in the United States by a wide margin.…

    • 1561 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Volkswagen of America
    • 1809 Words
    • 6 Pages

    Volkswagen of America

    This summary is about the Volkswagen of America, which had two major concerns: defining the governance and development of the process directives. Matulovic, the new chief information officer, faced a lot of issues such as new business architecture, inadequate funding and increasing pressure from his peers. As in the past, company had undergone the cycle of ups and downs, VWAG started diversifying its product offerings in the early 2000s. Therefore, VWoA, an American subsidiary, began responding to these new initiatives by improving the structures of their processes so as to meet this new global diversification strategy. IT was one of the key areas affected by this change and had to adapt to this new paradigm as well as to other changes such as e-Commerce applications. They implemented a new process where the submitted projects from all the business units over three phases were reviewed and the one that aligned with the company goals was selected. But, after going through the first iteration, the business managers realized that there were some obvious problems with the new prioritization process. Many factors such as high costs for existing legacy system, budget constraints and a complex prioritization process contributed to these problems. Furthermore, the high level business managers believed that the IT costs were high in comparison to the actual benefits that were delivered. Thus, for VWoA to go forward and increasing its revenues and operations, it must undertake a strategy to keep its IT Platform and architecture up thereby making it a strategic asset of the company.…

    • 1809 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Cadillac vs Mercedes vs Rolls Royce
    • 358 Words
    • 2 Pages

    Cadillac vs Mercedes vs Rolls Royce

    Cadillac is one of the most known car companies in today’s generation with its good quality cars. Cadillac is luxury brand owned by GM (General Motors). It was founded in 1902 by Henry Leland but later bought by General Motors in 1909. Henry Lenard names the company Cadillac after his ancestor “Antoine Laumet de la mothe, sieur de Cadillac”. Cadillac’s first vehicles were the runabout and tonneau which were finished in October 1902. They were first carriages which did not need horses to pull them. The runabout was powered by 10hp single cylinder engine. After winning from the intense competition against the foreign and unpopular models Cadillac became the premier luxury vehicle marque in the mid-20th century. Cadillac is an American company which is now owned by GM.…

    • 358 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Worms, Inc.
    • 777 Words
    • 4 Pages

    Worms, Inc.

    | *Current economic times (recession) can induce people to fish for food* 80% of market share can be gained.*low interest rates on loans*focus on healthy eating*Technology—internet sales*high price of fish in stores…

    • 777 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Fish Oil Health Benefits
    • 495 Words
    • 2 Pages

    Fish Oil Health Benefits

    "Governments and industry tell consumers to eat more fish because it is healthy," explains Rashid Sumaila, director of the Fisheries Economics Research Unit at UBC Fisheries Centre and study co-author. "But where do we get these fish? They are increasingly coming from the waters around Africa and other places where food security is a problem."…

    • 495 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Toyota, Ford and Gm
    • 4978 Words
    • 20 Pages

    Toyota, Ford and Gm

    Both Ford and GM completely abide by NYSE corporate governance standards, as they are domestic US companies. Ford and GM are required to strictly follow NYSE corporate governance standards. Toyota is permitted to follow certain corporate governance practices complying with Japanese laws and regulations, the NYSE has ruled that Toyota is exempt from certain NYSE corporate governance requirements. A significant difference in Toyota’s corporate governance structure is that the company currently does not have any directors that can be deemed as independent directors. Another major difference is that unlike domestic US companies Toyota is not required to have shareholder approval of equity compensation plans, therefore Toyota may choose to adopt an equity compensation plan under which stock acquisition rights are granted on specially favorable terms to the recipient without disclosing this information. It should also be noted that information regarding director compensation does not have to be disclosed by Toyota to the public.All three competitors meet NYSE corporate governance standards, although Toyota is exempt from several major requirements.…

    • 4978 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Best Essays

    Sustainability and Food
    • 1851 Words
    • 8 Pages

    Sustainability and Food

    National Geographic News (2003) Big-Fish Stocks Fall 90 Percent Since 1950, Study Says, 15 May 2003. http://news.nationalgeographic.com/news/2003/05/0515_030515_fishdecline.html…

    • 1851 Words
    • 8 Pages
    Best Essays
    Read More
  • Powerful Essays

    Porsche Case Study
    • 1534 Words
    • 6 Pages

    Porsche Case Study

    Porsche has a legendary existence of more than 55 years with a brand image of being high-end, masculine, status-oriented sports car. Finding great growth and revenue opportunities in the light truck industry, Porsche announced to extend the product line by launching an SUV named ‘Cayenne’. This offended the Porsche enthusiasts and their negative responses overwhelmed the internet, press and media. Further, SUVs being associated with soccer moms, safety and conservatism withered Porsche’s brand image and even led to face-to-face confrontations between Cayenne owners and Porsche sports car owners who declined to accept Cayenne drivers as their Porsche brothers. The community backlash intensified when Porsche shift from the German handcrafted heritage of the brand to Japanese manufacturing processes for the new model. Such negative online and offline buzzes critically challenged Mr. Wiedeking’s decision to build Cayenne.…

    • 1534 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Case Volkswagen
    • 2266 Words
    • 7 Pages

    Case Volkswagen

    Q#1: Given the case, provide your assessment of the new process for management of IT priorities. Are some of the criticisms warranted? Is it better than the last old process? Be specific.…

    • 2266 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Ferrari
    • 1260 Words
    • 6 Pages

    Ferrari

    , "To build unique sports cars destined to represent the excellence of Italian cars, whether on the road or on racing circuits."…

    • 1260 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Porsche internal and external
    • 1733 Words
    • 7 Pages

    Porsche internal and external

    Porsche’s mission, vision and its reputation are clouded after the take over of VW group. VW group oversaw the take over of other famous brands like, Bentley, Buggati and Lamborghini. Under the new leadership and direction from the top brass, the first move was to restructure Porsche. The restructuring saw Porsche’s top executives sent to other car brands in VW group to share expertise and Porsche’s success. Replacing them are executives from other car brands, like Matthias Muller from Audi whose main aim was to integrate Porsche into VW family, extend its product line and increase production, from 80,000 units to 150,000 units within 5 years. This puts Porsche’s current brand image and reputation in danger, as it is known to produce quality cars and not quantity.…

    • 1733 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Mercedes Benz
    • 1279 Words
    • 6 Pages

    Mercedes Benz

    During the recession in 1990, Mercedes -Benz struggled to adapt to changing markets. The luxury car market lost money for the first time in history in the 90’s. In 1993, there was a big sales slump in Mercedes-Benz sales. In its search for additional market share, new segments, and new niches Mercedes started developing a range of new products. One of the most radical and largest of the new range of products is AAV (all activity vehicles). In order to be competitive in the market, Mercedes-Benz needs to control costs and also meet the customer requirements at the same time. To achieve this goal, Mercedes-Benz adapted target costing. Is Mercedes-Benz heading in a right direction with target costing? Should they continue to use it? If target costing is not appropriate what is the best alternative?…

    • 1279 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Toyota
    • 1280 Words
    • 6 Pages

    Toyota

    - If unbalanced – the negotiation process and outcome may be affected and the party with greater power may choose a win-lose approach, and not a mutual-gains approach…

    • 1280 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Mercedes Benz
    • 2560 Words
    • 11 Pages

    Mercedes Benz

    Mercedes Benz Passenger Cars and smart (herein referred as Mercedes) is one of 5 divisions of the Daimler group, the leading Germann automaker. Daimler is a large organisation that had EUR149.6 billion in revenue and 365,600 employees in 2006.…

    • 2560 Words
    • 11 Pages
    Powerful Essays
    Read More

Related Topics