Report on Management Problems, Solutions for Suzuki Motors

This report investigates the management challenges faced by Suzuki Motors, a Japanese multinational automobile brand, which has been experiencing decreased profits due to internal issues. It identifies problems such as a lack of innovation, variations in car models, and discrepancies in internal management, including HRM and strategic management. Research questions focus on major management problems, findings from secondary data analysis, and potential recommendations. The secondary data analysis reveals declining sales in the USA and China, along with overall company losses. Alternatives include focusing on Maruti Suzuki, venturing into new markets, and improving current management practices. The report recommends analyzing the market, improving technical innovation, focusing on potential countries, and utilizing human resources for better management. Desklib provides access to similar reports and solved assignments for students.

M A N A G E M E N T
P R O B L E M A N D
S O L U T I O N
S U Z U K I M O T O R S

Introduction
The automobile industry is on a booming stage with a number of
people buying their cars and other modes of transportation.
However, Suzuki has been trapped under management issues which
has caused tremendous harm to the overall business resulting in less
amount of profit.

About Suzuki as a company
• Japanese multinational automobile brands
• Has a collaboration with a number of brands from various
countries like India and Australia
• Operates all over the globe excluding Pakistan
• Founded in the year 1909
• Founded by Michio Suzuki (Global Suzuki. 2018)
• Headquartered in Minami-ku, Hamamatsu
• Chairman is Osamu Suzuki

Management problem in Suzuki
• Lack of innovation in cars which leads to the lack of interest for the
people buying cars
• Lack of variations in cars like SUVs for which their demands have
been lessened in China
• Internal management problem like lack of proper HRM and other
strategic management sources
• Discrepancies in the internal management like management bias
and lack of technical knowledge
• Lack of clear strategy in assessing the management and other
internal issues
• Less amount of demand due to monotonous nature of the cars

Research Questions
• What are the major management problems faced by Suzuki in terms of
business and decision making of the authorities?
• What are the findings that are derived from the secondary analysis data of
Suzuki?
• What are the potential recommendations that are there for solving the
problems of Suzuki?

Secondary Data analysis
• Sales of USA decrease rate is
great
• Less amount of sales due to
management problems
• Increase from the year 1984 to
2013
• Fairly stable condition from 1999
and then increment till 2008
• Fall in sales from 2008
Figure – Loss due to management
problems of Suzuki in USA
(Source - Hashmi and Biesebroeck 2016)

• Profit increase from 2002 to
2006
• Stagnancy in 2006-2007
• Steady decrease from 2008 to
2010
• Comparative stagnant from
2010-2012
Figure – Graph showing the
collapse of Suzuki in USA
(Source - Castillod 2016)

• Decline of growth of Suzuki cars
in China
• Steady decrease in growth from
2012 to 2017
• Structure and sales contributed
to it
• The variation of decrease in all
the cars
Figure – Decline of Suzuki cars in
China
(Source - Zhang and Stening 2014)

• Decrease of sales
• Loss of company
• Steady loss from the year
2015 to 2017
• 15000 in the year 2015 to
below 500 in 2017
Figure – Loss of the company
due to management problems
(Source - Anderson and Young
2012)

Identification of alternatives
• More focus on Maruti Suzuki, the Indian collaboration of
Suzuki which will make sure that the company will have
access to the Indian customers without any issues
• Venturing into other countries for better business which
are not present at the present moment like Pakistan and
other under developed countries (Ganesh 2016)
• Improvement of management form the current ones which
means that the strategic management and the other
management related issues are to be adressed.

• Analyse the market and find out the loopholes so that the
authorities can analyse the market and make proper
amendments in the future.
• Improve technical innovation which will attract more
customers in the front and also to make sure that more
customers are engaged in the overall purchasing
• Introduce and focus more on the other potential countries
with better management so that there is a scope for better
and improved business.
• Utilisation of human resource for better management which
means recruitment betterment and retention of employees
Recommendation

Reference
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