An Inside Look at the Automotive Industry

1

• An Inside Look at the Automotive Industry
• (Prestige Auto Co.)
• By
• Cicilia Anggara
• Amanda Aprilia
• Peter Labib
• Jin Yong Park
• Loide Siahaan
• Andry Soenario

2
Agenda

• Introduction
• GM analysis
• Toyota analysis
• New recommendations
• Conclusion

3
GM Strengths

• Robust revenue growth in Asia
• Strong brand portfolio
• Improvement in reliability
• Advanced technology

4
GM Weaknesses

• Poor performance in North America
• Weak profitability
• Vehicles seen as plain and unattractive
• Negative Company Culture

5
GM Opportunities

• Increase market share in Asia
• Introduction of new attractive vehicles
• Example Saturn Aura, Cadillac Escalade
• Roll out fully electronic and hydrogen cars

6
GM Threats

• Rise in the price of raw materials
• Supplier in Delphi is bankrupt
• Low capital spending
• Japanese roll out hydrogen and electric cars

7
Toyota Strengths

• High Commitment
• Powerful communication skill
• Trust from top management to low management
• Value diversity
• Fulfill customers demand

8
Toyota Strengths

• Customers satisfaction is 1
• Target different segments of customers
• TPS (Toyota Production System)
• Just in time strategy

9
Toyota Weakness

• Global Business
• Barrier to entry European Market

10
Toyota Opportunities

• Brand name for reliability for 40 years
• Introduce new innovation
• High-technological automobile
• Word-of-Mouth fame

11
Toyota Threats

• Compete with Honda
• Compete with China
• Monetary competition
• Rebate, non-APR finances, discounts

12
Recommendations for automotive industry

• Standard Company Cultures
• Having a good relationship with suppliers
• Establishing effective communication cultures
• Developing program management cultures

13
Specific Guidelines
14
Competitive Advantages

• Important to develop competitive advantages
• Our aim be the Starbucks of the industry.
• Provide a superior experience
• before
• during
• after buying a car.

15
More on Competitive Advantages

• Aggressively market with incentive deals
• Train employees on how to sell cars
• We must have a superior service experience

16
Supply Chain Relationships

• Communication is key
• Weed out ineffective supply chain members
• Maintain and reward supportive supply chain
  members

17
How to Select Members of the Supply Chain

• Takes time to develop a good supply chain
• Each employee needs to
• Understand
• Agree to the processes of the organization
• In order to do that
• Relationships must emphasize trust, commitment,
  and respect

18
Pull Strategy

• Consumers demand the products
• Example Toyota Production System (TPS)
• Avoids overproduction
• Increase profit

19
Empowering Supply Chain

• Create an atmosphere of inclusion
• Everyone has a voice
• Their voices must be listened
• Receptive to input from different areas

20
Target Different Segments to Keep Customers

• Fulfill what customers want
• Varieties in models, price, and engine
• Build loyal customers

21
Motivation

• Motivation for employees
• Reward
• Freedom for any ideas
• Excellent workplace
• Motivation for dealerships
• Reward
• The Prestige Company motivates dealerships and
  employees

22
Leadership

• Trait Theory
• 1. Desire to lead
• 2. Self confidence
• 3. Be smart
• 4. A good selling strategy

23
To be a good leader

• Proper training and education
• Ability to deal with the all components
• Solve problems in real-life situations
• Work as group

24
Work Places

• Team Work
• Diversity
• Employees Compensation
• 401 K, health care insurance, and retirement fund

25
Conclusion

• Positive culture
• Trust, commitment, and respect
• (Long-lasting relationship in supply chain)
• Diversity
• Motivation through relationships reward
• Imperfectly imitable competitive advantage
• Theory of constraints