PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry in Pakistan

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Text of PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry in Pakistan

  • 1. Submitted TO The University Of Lahore

2. Presented By 3. NAME Auto Mobile Industry PRODUCT 4. RUN E C 5. Competitive 6. Vision . Our vision is to be the country's best company for all our customers, shareholders, employees and the society. Our vision is to offer the best product and services to our customers. To always exceed customer expectations resulting in customer delight. 7. Mission Our mission is to delight our customers, employees and shareholders relentlessly delivering the best product and services. Our mission is to provide high quality products that combine value for money and performance while establishing a successful relationship with customer and supplier. Our mission is to consistently try to meet or exceed customer expectations on pricing, services and choice. 8. In Pakistan almost everyone wants to have a car but because of financial problems they could not afford it, if someone buys it then they face a lot of problems during its use like high petrol prices, non availability of CNG. On the other hand many types of cars in Pakistan are the big cause of pollution specially the cars on CNG put a lot of pollution in the air. As I mention in my vision that I select this business because I want to lunch economical and environmental friendly car (which is affordable and reduce the pollution as well). Background 9. Under the provisions of the Companies Ordinance, 1984 a company is a body corporate with separate legal entity and a perpetual succession and a company may be formed by persons associating for any lawful purpose by subscribing their names to the Memorandum of Association and complying with other requirements for registration of a company under the provisions of the Ordinance. Law in Pakistan 10. Machinery S.No Item Detail Quantity Unit Price ($) Total Price ($) 1 Lathe Machine 5 10,000 50,000 2 Forge Machine 2 120,000 240,000 3 Press Machine 3 100,000 300,000 4 Welder Plant 10 10,000 100,000 5 Grinder Machine 2 120,000 240,000 6 Boring Machine 4 22,000 88,000 7 Print Shop 3 24,000 72,000 8 Assembling machine 5 28000 140,000 11. 1:http://www.alibaba.com/product-detail/Used-machine-tools-of-all- varieties_163596381.html 2:http://www.alibaba.com/product-detail/forging-press-machine-used-for- auto_1494068203.html 3:http://www.alibaba.com/product-detail/Y81F-2000-hydraulic-scrap-car- press_1625026324.html 4:http://www.alibaba.com/product-detail/Q35Y-Series-universal-us-shearing- machine_642164632.html 5:http://www.alibaba.com/product-detail/High-Speed-Reciprocating-Precision-Grinder- grinding_139638650.html 6:http://www.alibaba.com/product-detail/2014-Newly-better-quality-core- used_1685762468.html 7:http://www.alibaba.com/product-detail/RD456II-Japanese-Used-Four-Color- Offset_1303216540.html 8:http://www.alibaba.com/product-detail/H-beam-Automation-assembly- machine_558216118.html?s=p 12. Corporate Strategy: Achieving profitable and sustainable sales operations Product and value chain enhancement Strong local manufacturing profitability Implementing workplace reform Strategy 13. H/R Strategy: Health Facilities to employees Training and development program Send the right candidate for next round 14. Marketing Strategy: Create & capture new demand Serving several distinct market 15. Operational Strategy: Minimize the cost Maximize the shareholder wealth Provision of better quality Availability of product almost everywhere 16. PESTAL Analysis 17. POLITICAL FACTORS: Aimed at promoting an integrated growth of the Pakistan's automotive industry. Instability Assist development of vehicles which work by alternate energy sources Income Tax: Law concerning taxation of income in Pakistan is stated in the Income Tax Ordinance, 2001 (the Ordinance).The Ordinance is a Central statute and is, therefore, applicable to the whole of Pakistan .Under section 4 of the Ordinance, income tax is imposed for each tax year at specified rates on every person who has taxable income for the year. 18. Economic Factor: Lack of transportation infrastructure Wide Financing Mature Market Interest Rate (10%) Inflation Rate (8.04%) Exchange Rate (1UAD=99.65) 19. Social Factor: upward migration in income levels. Small cars. Growth in urbanization. Population size (186,703,573) & growth rate is (1.94%) Seasonal change in life style Age Distribution: 0-14 years: 34% (male 33,774,720/female 31,967,787) 15-24 years: 21.6% (male 21,560,699/female 20,223,691) 25-54 years: 35.1% (male 35,272,193/female 32,587,417) 55-64 years: 5% (male 4,767,260/female 4,832,047) 65 years and over: 4.3% (male 3,877,418/female 4,375,636) (2013 est.) 20. Technological Factor: With the entry of global companies into the Pakistan market, advanced technologies, both in product and production processes have developed. Evolution of alternate fuels. 21. Environmental Factor: Pakistan have different weather and climate in a years. Change in temperature can impact on cars engine difficult to start when weather is cold and engine easy to overheat when weather is hot. Therefore I am going to develop specific engine in country due to weather and climate problem. Water pollution from raw sewage, industrial wastes, and agricultural runoff, limited natural fresh water resources, a majority of the population does not have access to potable water, deforestation, soil erosion. 22. Legal Factor: Due to employment laws in Pakistan, employee working hours and the wages. Working hours in Pak standard are 8 hours per day and minimum wages are RS. 10,000 to 12,000 per month. Due to this situation, company could be affected because of high wages in a company. Pakistan's government has proposed all the company workplace must be as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate of safety equipment to make sure employee are in safety situation. Employment Law: If you are working 8 hours/day, you are eligible for one-day holiday in a week. It can be either day in a week and can also be the day when your establishment is closed. But you need to remember that if you are made to work on your holiday; you cant be made to work consecutively for 10 days without being given a compensatory holiday for full one day. Your weekly holidays are paid and your employer cant deduct money for these holidays. 23. Portal Fire Force Analysis 24. Threat of new Entrants: Pakistan's incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to rural residents, the market is attractive. As such, we expect the threat of new entrants to be high. 25. The bargaining power of buyers: Buyers in Pakistan have a wide variety of choice. There are more than 20 foreign manufacturers selling in Pakistan. Of course bargaining power of customer will be high. 26. The threat of substitute products: Pakistan is famous for its two-wheelers (bikes) and three wheelers. These are very real and obvious threats to auto manufacturers. 27. The amount of bargaining power suppliers: It is likely that the suppliers to the manufacturers have considerable bargaining power. They are not held influence by one single manufacturer as they can market their products to any of the others in Pakistan. 28. The amount of rivalry among competitors: Is high. The industry is not yet in its shake-out phase and is still struggling to find the up- and-coming stars and possibly topple the leaders. 29. Employer contract: (upper layer) work to fulfill organization task. Insert all of their abilities. Only have organizational interest. Work to maximize the profit margin of organization. Managing people and building working community. Influence the operating environment and managing change. Improving and monitoring efficiency and quality. Achieving results and steering the organization. Work within the rules and regulation 30. Employer Behavior: (Down Layer) After 3 months when actual attitude, communication pattern are studied then found that some serious conflicts. Required production are not found. Not reached at targeted sale. Profit margin is very low. Lack of Efficiency. Lack of quality. 31. As the owner of organization I want to found all of causes of the failure. After some inspection and via making comparison of upper and bottom layers organization I came to know that the employer do not work as the contracted (Conflict in bottom and upper layer), found the reasons that some of them want the failure of upper management to get dominating position in org. They externally show full concentration but internally have something different. Decision: After watch out all the matter I decide to fire all of those employers who involves to mislead the organization and appoint some other efficient and honest employers. 32. Strategic Apex: BOD of my company decide to adopt best material, labor and also decided to use electronic media for advertisement. Because this is the start of business that's way do not think to earn to much profit, concentration should be on best quality products on reasonable prices, aware the public about your product via best way of advertisement, public dealing should be best. This is the sensitive stage of business that's way don not try to take any sort of risky step which cause bad perception in the mind of people. 33. Middle Line: Middle line work as communication medium b/w strategic apex and operating core. The strategic staff communicate to middle line managers that in production department best quality material should be use with all of labor expertise, sale department should be enough efficient to timely availability of product in all referred markets. If Sale department face any sort of problem to approach any specific market the problem are communicate to upper management via middle line. 34. Operational Core: Processing st