SWOT analyis PROTON

Topics: Automotive industry, Proton vehicles, Volkswagen Group Pages: 11 (2897 words) Published: August 3, 2014
Table of Contents

1.0 Executive Summary……………………………………………………………………page 2 2.0 Company Background………………………………………………………………….page 2 3.0 Environmental Analysis (SWOT)……………………………………………………...page 3 4.0 Strategic Competitive Advantage and Major Weakness……………………………….page 7 5.0 Strategic Recommendations……………………………………………………………page 8 6.0 Justification of Strategy ………………………………………………………………..page 9 7.0 Conclusion and Consequences…………………………………………………………page 9 References……………………………………………………………………………...page 10

1.0 Executive Summary
The main objective of the SWOT analysis in this report is to find out the internal and external factors that affect the weakness and strength of Proton-Edar Sdn Bhd. Once these factors are determined, this report shows the possible solutions and improvements that can be made in order to minimize the weaknesses and provide Proton with a greater competitive advantage. It will allow developing and understanding goals and objective of the organization (Proton-Edar Sdn Bhd).

2.0 Company Background
Perusahaan Otomobil Nasional Berhad (PROTON), was assembled as the first Malaysian automobile manufacturer in May 7, 1983. Their principal activities of subsidiaries are manufacturing, assembling and the sale of motor vehicles as well as related products and investment holding. The headquarters is based in Shah Alam, Selangor while the operation and manufacturing plant is located in Tanjung Malim, Perak. Proton was considered as Malaysia’s only carmaker until the establishment of Perodua in 1993 which became the second carmaker in Malaysia. It was owned primarily by the government company Khazanah Nasional until 42.7% of the shares were sold to DRB-Hicom in 2012. The first car that has been produced by PROTON is called Proton Saga on July 9, 1985 by former Malaysian Prime Minister, Tun Dr. Mahathir Mohamed. Technically, most of the car was influenced by the Japanese Mitsubishi engine. The new direction begun but the components of the car were manufactured by Mitsubishi and slowly technologies and skills were gained by Proton under influence of Mitsubishi motors. Proton continued to rely on the Japanese technology to produce cars until 2004 when the first fully Malaysian car was made called the Gen2. (Chacko, 2006) The company has a mission of creating trust and reliability among their shareholders by advancing its knowledge and quality of product. It prioritizes customers and hopes to move in a direction of strengthening its bond with them. Protons vision is to produce quality products with enhanced innovative skills in order to become a successful automotive company in Malaysia. (Simpson, Sykes, & Abdullah, 2008)

3.0 Environmental Analysis (SWOT)
What is SWOT Analysis?
SWOT Analysis is a tool which is used to analyze and better understand the strength and weaknesses of an organization by identifying its opportunities and threats both within the organization as well as externally. It enables an organization to assess and determine what the firm can or cannot do and at the same time, determine what the different opportunities are and can be implemented. SWOT analysis is defined by two types of environment: 1. Internal environment ( Strength and Weaknesses)

2. External environment (Opportunities and Threats)

Internal Environment Factors:
Strength:
Proton allies with several different ASEAN market which gets stronger over time by obtaining a reduce tariff from the ASEAN free trade area (AFTA). This is an advantage for other car manufactures based in Malaysia. In August 2007 the organization entered into a partnership with General Motors’ (GM) and DRB-HICOM Bhd. This partnership helps Proton strengthen its position in the market and evidently, attracting more investors such as Lotus advance Technology Sdn. Bhd. and Perrusahaan Nasional Sdn. Bhd. For the past few years, Proton has been best known and recognized for its economical cars which are relatively cheap. This has helped the company accumulate more...

References: Calingo, L. M. (vol 19). The evolution of strategic quality management . International journal of reliability and quality Management, 2009.
Chacko, G. K. (2006). Proton Transitioning to Malaysian Engine. Management Research News vol. 29, 139-140.
Mohd, N. A., Salleh, Kasolang, S., & Jaafar, H. A. (2011). Review study of developing an intergrated TQM with LM framework model in Malaysian automobile industry. The TQM Journal vol.24, 399-409.
Simpson, M., Sykes, G., & Abdullah, A. (2008). Case study: transitory JIT at Proton cars, Malaysia. International Journal of Physical Distribution & Logistics Management vol.28, 121-125.
Gunasekaran, A. (1999), “Agile manufacturing: a framework for research and development”,
International Journal of Production Economics, Vol
Haigh, R.H. and Morris, D.S. (1993), “Quality and productivity in health services through the
implementation of total quality management”, Proceedings of the Annual Conference of
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about SWOT Proton
  • proton Essay
  • Swot Essay
  • Proton Essay
  • Essay about Proton
  • Essay about Proton
  • Proton Essay
  • SWOT Essay

Become a StudyMode Member

Sign Up - It's Free