Peugeot: Corporate Strategy Analysis and Evaluation Report

This report provides a comprehensive corporate strategy assessment of Peugeot, a French car manufacturer. It begins with an introduction highlighting the importance of effective strategy implementation. The main body of the report includes an external analysis using PESTEL and Porter's Five Forces, evaluating political, economic, social, technological, environmental, and legal factors, along with competitive forces. The internal analysis utilizes SWOT analysis to assess Peugeot's strengths, weaknesses, opportunities, and threats. The report then evaluates Peugeot's strategies based on the findings from external and internal analyses. The conclusion summarizes the key findings and recommendations. The analysis emphasizes the dynamic nature of the automotive industry and the need for Peugeot to adapt its strategies to maintain competitiveness and achieve its goals.

Corporate Strategy
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
External analysis..........................................................................................................................1
Internal analysis...........................................................................................................................4
Strategy evaluation.......................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Corporate Strategy Assessment refers to a process in which the different types of
strategies can be applied effectively and efficiently (Engert and Baumgartner, 2016). By making
the use of various types of strategies and tactics the achievement of different types of goals and
objectives can be made without problems and issues. Thus it is important for the companies to
make sure that the strategy is framed by them in the right manner effectively and efficiently. For
this report, Peugeot has been chosen. It is a French company which manufactures different types
of cars for a range of customer needs and requirements. In this report, detailed focus will be
made on External analysis, Internal analysis. Additionally, specific analysis on Strategy
evaluation will be made as a part of this project.
MAIN BODY
External analysis
The macro environment in which the organizations operate is quite dynamic in nature. It
can therefore change quickly and thus can affect them a lot (Gavril and et.al., 2017). For the
assessment of macro environment the use of the following can be made-
PESTEL analysis-
Political factors- These are the factors like Government policy, Political stability and
Tax policy. For an organization it is quite important that a consideration of these factors can be
made so that the achievement of goals and objectives can be made. Peugeot has to consider these
factors because it has to consider the political situation in the countries where it is present which
will help it in determining the strategy to be used to attain a higher-level of efficiency and
effectiveness. In the context of Peugeot they are important.
 Opportunity- If there is a significant improvement in Government policy then this can
help a company in achieving the goals and objectives related to profitability. Thus for
Peugeot this can lead towards an opportunity to maximize the level of profitability
without problems and issues.
 Threat- If there are trade restrictions which are being faced by the companies then this
can create an impact on the overall profitability level. Thus In the context of Peugeot this
can create a threat as the overall profitability level of the company can get affected due to
this reason.
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Economic factors- These are the factors like Economic growth, Exchange rates and Disposable
Income. Peugeot is required to make sure that it considers these particular factors because it has
to make use of a particular strategy which will result in an enhancement in its overall level of
profitability highly effectively and efficiently in the right way. For a company like Peugeot it is
quite important that a consideration of these factors are made so that the assessment of the
profits can be made without problems and issues.
 Opportunity- Increase in the economic growth can offer an opportunity for the
companies to boost their profits. Thus in this way Peugeot can make sure that the use of
the different types of opportunities can be made effectively and efficiently so that the
boost to economic growth can be given.
 Threat- Increase in the inflation rate can create a threat for the companies by affecting
their profitability. Therefore, Peugeot can face a decrease in sales if the inflation rate is
higher which can push the prices on a higher side thereby deterring the customers from
making big purchases.
Social factors- These are the factors like Population growth rate, Age distribution and Lifestyle
attitudes. Peugeot has to ensure that by considering these particular factors it is able to
understand the wide variety of social needs and requirements of the people and use appropriate
strategies and techniques to be able to fulfil them in the right way. Therefore it is quite crucial
for a company like Peugeot to consider them so that it can make sure that the level of its profits
can be boosted in the right manner.
 Opportunity- An increase in the Population growth rate can offer an opportunity for the
organizations like Peugeot because this can help them a lot. This is so because the level
of demand will be enhanced which will offer a lot of opportunities to the companies to
attain profits.
 Threat- A change in the lifestyle attitudes can create an impact on the organizations
because if the customers do not prefer to increase their overall level of expenses on the
purchase of expensive cars then this can affect the profitability level of companies like
Peugeot.
Technological factors- These are the factors like Technology incentives, Level of innovation
and R&D activity (Glushakova, Chernikova and Strekalova, 2020). In the context of Peugeot,
they are quite important because the new technology has to be applied by the company in its
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overall processes so that it is able to ensure that it attains its specific goals and objectives.
Peugeot has an importance of these particular factors because by considering them it will be able
to ensure that the use of advanced technology is made in its systems and processes which helps a
lot in the attainment of goals and objectives.
 Opportunity- Technology incentives can offer an opportunity for the organizations like
Peugeot because by enhancing their level of technology they will be able to make sure
that the attainment of goals and objectives can be made.
 Threat- If the companies like Peugeot are not able to adjust according to the
technological change which takes place in the business environment then this can impact
them as their overall profitability level will be affected.
Environmental factors- These are the factors like Weather, Climate, Environmental policies
and Climate Change. In Peugeot, they are quite important because they can help the company to
be able to ensure that it can develop environment-friendly products to be provided to the
customers. Thus In the context of Peugeot it is quite important that these factors are considered
so that the short-term, medium-term and long-term goals and objectives can be attained.
 Opportunity- If the Environmental policies of the government are in the favour of the
organization then this can offer an opportunity to ensure that the profitability level is
enhanced. Therefore for an organization like Peugeot it is crucial because this can help it
in enhancing the profitability effectively and efficiently.
 Threat- Climate Change can affect the organizations which are dealing in the
manufacturing of cars because change in the climate creates an impact on their sales and
overall level of revenues.
Legal factors- These are the factors like Discrimination laws, Employment laws Consumer
protection laws and Copyright and Patent laws (Grigoris, 2016). Peugeot has to make sure that
its management is able to consider the rules and regulations of the country where it is operating
which will help it a lot in the future to be able to attain the desired goals and objectives. For a
company like Peugeot it is quite important to consider them because this can affect the legal
status of the companies.
 Opportunity- Consumer Protection Laws can create an opportunity for the organizations
because if the companies like Peugeot are able to adjust effectively to these laws then
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they will be able to make sure that the enhancement of the overall profits can be
enhanced.
 Threat- Copyright and Patent Laws can create a threat for the firms because they are
required to adjust according to these laws. Thus for the companies like Peugeot can be
affected by them because their level of profitability can be reduced.
Porter's five forces-
This is a model which can be used by the organizations and can enable them to be able to
assess the impact of the forces which are operating in their macro environment (Jankalová and
Jankal, 2017). Thus In the context of Peugeot the use of these forces becomes quite important so
that the strategy can be made accordingly. The explanation of these forces is given as follows-
Competition in the industry- This refers to the level of competition which is prevalent
in the industry (Jiang and et.al., 2018). In the context of Peugeot this force exerts high power
because in this industry there is a presence of a lot of players within the market. This is so be
cause the industry has a lot of companies which provide their products and services to the
customers which makes it quite competitive in nature and ensures that the company has to make
frequent changes to its strategies and methods. Thus in this way it is important for the company
to make sure that the assessment of this factor is made correctly.
Potential of new entrants- This refers to the potential of new entrants within the
industry. The reason for this is that the companies are required to consider the new players which
can enter into the market so that a wide range of actions can be taken in the right manner
effectively and efficiently. Therefore, In the context of Peugeot a high-level of power is created
by this force because in this industry a lot of new players can enter into the market with low
prices and attractive offers which can thus impact the companies a lot.
Power of suppliers- This refers to the power which is created by the suppliers in the
market. This is so because the suppliers are the ones who control the prices of different types of
inputs which are provided in the market. The reason for this is that the company should choose
the supplier which offers them the inputs at low prices so that the company is able to enhance its
overall level of profits effectively and efficiently. Thus, for Peugeot this force exerts a high-level
of power because the suppliers can increase or decrease the prices of inputs provided according
to the level of demand which is prevalent in the market.
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Power of customers- This refers to the power which is created by the customers in the
market (Leal and et.al., 2016). In the context of Peugeot this force has a higher-level of power
because the customers are the ones which influence the demand in this industry and thus can
impact the overall level of profits. The company will be able to consider this particular power
because this will be quite helpful for it in ensuring that it can provide its customers with a wide
range of options which can help them a lot effectively and efficiently.
Threat of substitutes- This refers to the power which is created by the substitute
products in the market. For Peugeot, this force creates a low-power because the products of
branded companies cannot be substituted by cheaper substitutes for the customers. The reason
for this is that the customers who prefer branded products will not substitute them with the
cheaper substitutes which are available in the market and thus in this way this force will not
affect the company a lot. Thus in this way an impact can be created on the overall profitability
level. The company needs to make sure that the different types of substitutes can be considered
for this particular purpose. The company has to convince its customers that the products
provided by it are better than the products of the competitors.
Justification- 4 out of 5 forces have a high power and 1 force has a low power. Thus this
means that the market in which Peugeot is operating has a higher-level of competition and the
circumstances which are present in this market keep on changing quickly and requires the
companies to make the desired adjustments quickly.
Internal analysis
The internal analysis is very useful in the organizations because through it the assessment
of the internal situation can be made in the right manner (Massa, Tucci and Afuah, 2017). Thus
for a company like Peugeot it is important to carry out this analysis properly. For this purpose,
the use of different types of models can be made. The models which can be used are as follows-
SWOT analysis-
SWOT analysis
Strengths Weaknesses
 Peugeot has a brand name in the market
and due to this reason its goodwill has
been enhanced (Moldavska, 2017).
 Peugeot's marketing strategies are weak
as compared to its competitors because
these competitors are making the use of
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 Peugeot provides higher-quality in its
cars to the customers which has helped
it in establishing its goodwill in the
market.
 Peugeot has a presence in various
countries in the world and thus has a
massive base of customers.
aggressive marketing strategies.
 The complaint resolution process of
Peugeot is slow in comparison to its
competitors which are present in the
market.
 Peugeot does not has presence in
certain segments of the market which is
affecting its sales.
Opportunities Threats
 Peugeot can enter into different
segments in the market and this can
offer it an opportunity to maximize
revenues and overall profitability level.
 Lowering the prices can offer Peugeot
an opportunity to make sure that
higher-level of profitability can be
ensured.
 Bringing advanced features in the cars
can provide an opportunity to Peugeot
so that it is able to attract more
customers.
 Peugeot faces a threat from the higher-
level of competition which is prevailing
within the market which can therefore
impact the operations of the
organization.
 Peugeot faces a threat from the new
players who are entering within the
market which can therefore impact the
overall level of profitability of the
company.
 Peugeot faces a threat from the increase
in the price of inputs which therefore
impacts it a lot as the profitability level
of the company an be reduced due to
this reason.
Unique Tangible Assets of the company-
The company has unique tangible assets in the form of some cars which have unique
features which are not present in the cars which are manufactured by the other competitors in the
market.
Unique Intangible Assets of the company-
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The company has unique intangible assets in the form of goodwill and brand image
which can ensure that it is able to effectively and efficiently manage the wide range of needs and
requirements in an appropriate manner.
Unique Resources-
The company ensures that it uses effective and efficient methods for the purpose of
manufacturing of the different types of cars in the market which will help in ensuring that the
attainment of the overall goals and objectives can be done.
Unique Capabilities-
The company also has several unique capabilities which can be helpful for it in ensuring
that it attains a strategic edge over the competitors. These are strong manufacturing plant, use of
good technology etc.
VRIO analysis-
Resources Valuable Rare Inimitable Organized
Brand Image    
Customer base   
Quality products  
Goodwill 
Valuable resources- Brand Image, Customer base, Quality products and Goodwill are all
valuable resources. Brand Image is valuable because of a lot of effort has to be put in to create it.
Customer base is valuable because it helps the company in enhancing its value. Quality products
are valuable because they offer the businesses a chance to enhance the profits. Goodwill is
valuable because it helps in making the right image of the company within the market. Thus all
of them are valuable resources because they create an overall value for the company and ensure
that it is able to obtain an overall strategic edge over the competitors in the market.
Rare resources- Brand Image, Customer base, Quality products are all rare resources.
Brand Image is rare because not every company has a good brand image. Customer base is rare
because not every company has a sound customer base. Quality products are rare because not
every company offers good products. Goodwill is not rare because many companies in this sector
have goodwill in the market. Therefore all of them are rare resources which can be quite helpful
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in ensuring that the company is able to identify the way it can utilize these resources in the right
way so that it attains its particular goals and objectives and obtains a competitive edge over the
competitors in the market.
Inimitable resources- Brand Image, Customer base are all inimitable resources. Brand
image is inimitable because it is not easy to create a brand image which is present with a
particular company. Customer base is inimitable because most of the customers of the company
are loyal. Thus all of them are inimitable resources because the company has to make sure that it
can effectively and efficiently use them in the right way so that it is able to attain a strategic edge
over the competitors in the market.
Organized resources- Brand Image is organized because it has been created after years
of efforts (Nikolaev and et.al., 2017). Customer base is not organized because the customers of
the company can have different types of needs and preferences and can shift to other companies
also. Quality products are not organized because the quality of the goods can be affected due to
inferior inputs. Goodwill is not organized because it can be affected if bad quality products are
provided by the company to the customers. Therefore all of them are organized resources
because the company has to make sure that it uses them in a proper manner which will help it in
attaining a strategic edge over the competitors in the market.
Strategy evaluation
For the purpose of conducting a strategy evaluation the use of the following needs to be
made in the organization-
TOWS analysis-
SO- As Peugeot has a good brand name in the market it can maximize the opportunity of
increase in economic growth. By making the use of good quality products which it offers to the
customers maximization of the opportunity of technology incentives can be made effectively and
efficiently.
WO- Peugeot has weak marketing strategies and thus by making the use of opportunity
offered by improvement in government policy it can make sure to enhance profits. Also the
company has slow complaint resolution process which can be improved by making the use of
opportunity provided by Consumer Protection Laws.
ST- Peugeot has a presence in different countries of the world and this can help a lot in
minimizing the threat of not adjusting with the technological change in the market. Also the
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strength of good brand name in the market can minimize the threat of low sales due to change in
the lifestyle attitudes because the customers will prefer a brand with good reputation in the
market.
WT- By making the use of good complaint resolution process the weakness of slow
complaint resolution can be minimized and the threat of non-adjustment with technological
changes can be avoided. Also by using the strategy of expansion the weakness of lack of
presence in certain segments in the market can be minimized and the threat of trade restrictions
can be avoided.
Stakeholder analysis-
There are different types of stakeholders who may have interest within an organization
(Wetzstein and et.al., 2016). Some of these stakeholders are-
 Owners- Owners of a company have a specific interest in its affairs because they have
invested a substantial amount of money. Peugeot's owners will be affected with the
strategy of expansion of the company because they will be required to invest a substantial
amount of money for making this strategy successful. These are the stakeholders who
have the power to take different types of decisions are therefore are the most influential
in the company.
 Employees- Employees of a company have a specific interest in its affairs because they
work and manage its different operations and functioning. In the context of Peugeot an
impact will be created on the employees if the company decides to apply the strategy of
expansion because some of the employees may have to be shifted to the foreign base set
up by the company. These are the stakeholders who have interest in the organization
because this is considered with their several types of interests.
 Customers- Customers of a company have an interest in its operations because they are
the ones who purchase the goods and avail the services. Thus in the context of Peugeot an
impact will be created on them if the company decides to make the use of expansion
strategy because the customers who are present in the foreign countries will be benefited
due to the impact of this strategy. These are the stakeholders who have interest in the
organization because they have to pay a price to obtain the products and services.
 Suppliers- Suppliers of a company have an interest in its operations because they are the
ones who supply the different types of inputs to the organization (Sari and et.al., 2020). If
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Peugeot decides to apply the expansion strategy then the suppliers will be affected
because the company will choose the suppliers in the new foreign market where it will
expand its operations. These are the stakeholders who have interest because they are the
ones who determine the prices of the different types of inputs.
Impact on stakeholders- Owners and Employees will find the expansion strategy acceptable
because by making the use of this strategy an impact can be created on the overall operations of
the organization. This will help it in ensuring that the maximization of the overall level of profits
can be done effectively and efficiently.
Feasibility-
Financial resources required- The financial resources will be required for ensuring that
the analysis is done in the right manner. This will be quite helpful for the company to be able to
attain the specific goals and objectives in the future.
Skills required-
 Analytical skills- Analytical skills will be required for ensuring that analysis of the
different types of requirements related to finance can be made highly effectively and
efficiently. This will be helpful in ensuring that Peugeot is successful with this particular
strategy which it will use.
 Interpretation skills- Interpretation skills will be required to make sure that the relevant
interpretations can be carried out before investing an amount in a particular project. Thus
in this way Peugeot will be able to achieve its goals and objectives related to this strategy
in the right manner.
CONCLUSION
From the above report, it can be concluded that Corporate Strategy Assessment can be
carried out for determining the best strategy to be applied for achieving the different types of
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