The Peugeot Citroen | Report
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Added on 2020-02-14
The Peugeot Citroen | Report
Added on 2020-02-14
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STRATEGIC ORGANIZATIONALPERFORMANCE1
Table of Contents1.0 Introduction....................................................................................................................................11.1 Background analysis..............................................................................................................12.0 Mission, vision and objective of Peugeot Citroen..........................................................................22.1 Core competences and capabilities of Peugeot Citroen.........................................................33.0 External Environment Analysis......................................................................................................43.1 PESTLE analysis...................................................................................................................43.2 Porter's five forces.................................................................................................................64.0 Stakeholder analysis.......................................................................................................................84.1 Stakeholder Mapping.............................................................................................................84.2 Satisfying the key stakeholders expectation..........................................................................95.0 Possible strategic options.............................................................................................................105.1 BCG matrix..........................................................................................................................105.2 Ansoff Matrix......................................................................................................................116.0 Conclusion and Recommendation................................................................................................12References..........................................................................................................................................13
1.0 INTRODUCTIONStrategic organization performance is the global concept in which firms tries to attaintheir goal by utilizing their resources efficiently. Modern era is highly competitive and to sustainin such environment companies have to measure the performance from multiple criteria so that itcan meet with the standards and can gain competitive advantage (Hogan and Coote, 2014).Present report is based on the Peugeot Citroen (PSA) which is the second largest auto maker firmof Europe. Currently company is facing the continuous loss and CEO is planning to change thestrategies of the organization so that it can gain high profit and can sustain in the market forlonger duration. Current assignment will analysis the background of the Peugeot Citroen. It willdiscuss the mission, goal and objectives of the cited firm. PESTLE and porters five forcesanalysis of cited firm will be done in this study. Furthermore, it will describe the stakeholdermapping in order to understand the satisfaction level of stakeholders (Scott and Davis, 2015). Inaddition, report will discuss the strategy of BCG matrix and Ansoff matrix in respect of PeugeotCitroen. 1.1 Background analysisPeugeot Citroen is the automaker company which is well known for its blendingtechnical innovation and french style. It was the first company that has manufactured the firstpetrol-powered car in the year 1890 (Gomez-Mejia, Berrone and Franco-Santos, 2014). Citedfirm has captured 13% of European maker and people are satisfied with the unique designing ofthe products. It has strong chain and it operates globally. Peugeot Citroen has sold approx3390000 vehicles in the year 2014 in more than 150 countries. PSA is facing the many challenges that is creating problem for the entity. These arediscussed as below:Many models and little profit1
It is one of the major issues for the Peugeot Citroen and due to this cited firm is unable torun its operation smoothly (Goetsch and Davis, 2014). Due to too many models operating cost ofthe organization is high whereas little profit is creating financial problem for the entity and dueto this it sometimes fails to manufactured new models. It is fact that cited firm has faced net lossof 7.2bn Euros over last two years. Reducing market shareIt is another issue for the Peugeot Citroen, Dongfeng Motors which is the Chinese partnerof the cited firm. Dongfeng and French government both have 14% stake in the business. That iswhy market share of the entity has been reduced from 25% to 14% (Dipboye and Colella, 2013). Inexperienced staff membersPSA has employed more than 208500 employees in the organization. But when it enteredin the Chinese market then cited firm has released that most of the workers of the company arenot having sufficient skills hat are required to work in this industry. Even many of them haveexperience to manufacture the trucks and buses. Whereas, Peugeot Citroen is manufacturing thepassenger cars. For that reason cited firm has to give them additional training so that they canunderstand the procedure and can perform their duties well (Dong and et.al, 2014). But due tothis, operational cost of the entity gets increased that reduces its profitability to great extent.Cultural differencesPeugeot Citroen is the second largest automaker firm of Europe but due to culturaldifferences employees of the company are unable to communicate with the population of theChinese and French market. Some times it creates the problem of miscommunication that createnegative circumstances for the entity to great extent (Child, 2015). New CEO of the PSA has announced that company will focus on the creative power ofteam and it will produce the products as per the demand. It will help the cited firm in reducing itsissues and entity will be able to improve its condition soon.2.0 MISSION, VISION AND OBJECTIVE OF PEUGEOT CITROENPeugeot Citroen is the brand name in the automobile industry, it is popular for itsinnovative designs and models (Chen and et.al, 2014). Cited firm has good people those who arecommitted towards the brand, they are focusing on the basic needs of the consumers and
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