Summary PERODUA PROTON

Topics: Strategic management, Strategic planning, Management Pages: 3 (810 words) Published: December 3, 2014
Strategic management is simply a way of collecting comprehensive information regarding current ongoing processes and activities an organization utilizes in order to align its resources and systematically coordinate actions in accordance with the organization’s vision, mission and strategy. Activities in strategic management transforms the previously set static plan into a system which provides strategic performance feedbacks to decision making so that a plan is able to grow and evolve when requirements and circumstances change. Strategic management of an organization entails three ongoing processes which are analysis, decisions, and actions. This includes the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. For this paper, we shall be comparing the strategic management of Perodua and PROTON.

The SWOT analysis shows that both companies has different strategic management. Looking into the strengths of both companies, Perodua is leading as a low cost dealer in Asia. With the help of its own industry, they have successfully created a low cost automotive mentality among their workforce that would work together in a flexible, critical and highly committed manner to keep Perodua on top of its game. Similarly, PROTON’s strength is in its competitively priced products as well. Cars offered by PROTON targets people of the lower income group. An example of that would be the Viva model which can be seen in the streets of Malaysia.

However, the drawbacks of PERODUA is their over dependence on the domestic market, government support, and the foreign partnership through an indirect linkage to Toyota for the company’s survival and growth. This brings a weak brand image of PERODUA in the international market and in turn, makes it difficult for them to reduce the cost of products and be competitive when the trade barrier falls. Besides that, PERODUA is also...
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