Evaluate the Current State of Skoda’s Business in the Uk with Reference to Both Internal and External Factors. Based on Your Analysis Create a Strategy for Future Action in This Region

Topics: Automotive industry, SWOT analysis, PEST analysis Pages: 6 (1595 words) Published: August 6, 2013
BUSINESS REPORT

Evaluate the current state of Skoda’s business in the UK with reference to both internal and external factors. Based on your analysis create a strategy for future action in this region.

Table of Contents
Executive Summary……………………….…………………..……….2 Introduction……………………………………………..........................3 SWOT and PESTEL analysis……………………..................................3-6 Conclusion and recommendation………………………………………6 Bibliography………………………………............................................7 Appendices ……………………………………………………...……...8

Executive summary
The purpose of this report is evaluating the recent situation of Skoda in the UK. This essay will consider Skoda’s internal and external components by using SWOT and PESTEL analysis. At the end of essay, a suggestive strategy will be given to make Skoda remain invincible in the British auto market.

Introduction
Skoda, a car company, was founded by Czech firm in 1925 (Times, 2010). At the beginning of the Czech management period, Skoda was regarded as an ugly joke because of its poor reputation and low quality. In order to get rid of the dilemma, Czech chose a potential foreign company, Volkswagen AG, as an associate in 1990. After that, Skoda became the most popular name in the world auto market through the joint efforts of Czech and VAG (Lyndon, 2010). It was also regarded as the second largest import brand by British people. In 2011, its sales refresh a new record which is exceeded 80 thousand and in the UK, it increased by 12.2% (People, 2011). Although it has made ​​some achievements, but there are still many challenges and threats which need it to overcome. This report aims to:

• Use the SWOT method to analysis the internal states of Skoda in the UK. • Evaluate about the business environment of the United Kingdom whether conducive to the development of the Skoda by adopting the PESTLE analyses. • Combined with the above situations and make a constructive for Skoda’s development.

SWOT and PESTLE analysis
According to Boddy (2012), In order to make a strategy to reap profits, companies should use SWOT analysis, which should not only be considered the advantage and disadvantage in their own companies but also need to be thought about the outside environment such as changes and competitors. These four elements will be seen in SWOT and PESTLE analysis (see appendixⅠ)

The advantage for Skoda is the high satisfaction of its consumers. Because the higher satisfaction the customers give, the more products they buy. First, comprehensive and independent surveys were used by managers to obtain the information of customer feelings and suggestions. Up to now, in order to meet the needs of different groups, Skoda developed numerous new sub-brands such as Fabia, Octavia and Yeti. What is more, the exclusive service ideas, ‘Only the best is good enough for our customers(Skoda, 2012)’ and ‘the human touch’, has been accepted by European people, especially in British costumers’ mind, Which made Skoda sales satisfaction be ranked in the top three. Another factor is its low price which also meets client satisfaction, according to Admin (2012), Octavia is the Skoda best-selling car in UK, whose price is £18,000. In short, the strengths of Skoda are integrated surveys, unique service ideas and the low price.

However, every product has it weaknesses. Skoda is no exception and the poor quality image which was influenced by its low reputation of the earliest product. The reason is that its origins have bad quality and design and every one regard it as a loser. It has deeply bad effect on the emerging brand of Skoda. Because of its old image, few customers want to buy it, which made the sales in relatively small amounts of level and also led a low market share. Timepassguru (2011) showed that the market share of Skoda only occupied 2.3%, although it...

Bibliography: 1. Admin, C. (2012). Skoda Goes From Strength to Strength. Available: http://www.play-auto.net/2012/07/skoda-goes-from-strength-to-strength/. Last accessed 23th Aug 2012.
2. Boddy, D. (2012). Management. 5th ed. Harlow: Pearson. 178.
3. Datamonitor. (2011). Country Analysis Report: The UK. Available: http://www.marketlineinfo.com/library. Last accessed 18th June 2012.
4. Haiyang, C. (2011). Skoda 's global sales exceeded 800,000 mark for the first time. Available: http://paper.people.com.cn/gjjrb/html/2011-12/22/content_981678.htm. Last accessed 20th Aug 2012.
5. Kokemuller, N. (2012). Relationships between PEST and SWOT. Available: http://smallbusiness.chron.com/relationships-between-pest-swot-10083.html. Last accessed 22th Aug 2012.
6. Lyndon, N. (2010). Skoda has the last laugh. Available: http://www.telegraph.co.uk/motoring. Last accessed 13th Aug 2012.
7. Skoda. (2012). Why choose Skoda. Available: http://www.skoda.co.uk/GBR/why-choose-skoda/quality-production/Pages/default.aspx. Last accessed 20th Aug 2012.
8. Smmt. (2012). UK automotive attracts £56 million funding to drive low carbon R&D. Available: http://www.smmt.co.uk/2012/07/uk-automotive-attracts-56-million-funding-to-drive-low-carbon-rd/. Last accessed 22th Aug 2012.
9. The Times 100. (2010). SWOT analysis in action-A Skoda case study. Available: http://businesscasestudies.co.uk/skoda/swot-analysis-in-action/introduction.html. Last accessed 23th Aug 2012.
10. Timepassguru. (2011). SKODA sets all time registration record in UK. Available: http://www.neilstoolbox.com/bibliography-creator/reference-website.htm#. Last accessed 21th Aug 2012.
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