An Inside Look at the Automotive Industry (Prestige Auto Co.) By: Cicilia Anggara Amanda Aprilia Peter Labib Jin Y

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