Skodas Marketing Turn Around

Skodas Marketing Turn Around How did Skoda manage this major turnaround in the public perception of the company? Analyse the changes that have taken place [55 marks]. In your analysis, you should use knowledge of management strategies and approaches that you have gained from the module or further study [40 marks]. Please make sure that you give clear and complete references to the sources of any of the concepts or information on the company that you include. In the early 1990s Skoda was a struggling company, faced with a shortage of skilled labour, low productivity, high debts and low sales (North, 2009). Skoda was producing out-dated and unreliable cars, causing its brand to be synonymous with unreliability. VW turned around its fortunes with changes in technology, management practice and marketing. Key to its product offering was the utilisation of VWs common platform approach, another cornerstone was the recognition that the brand required a complete overhaul. Skoda is now a successful part of the VW Company and for the large part has seen strong sales and profit. More recently, tough market conditions have made business difficult with most competitors suffering. Skoda however, has found itself in a stronger position than many; an astonishing achievement considering its poor market position only 20 years ago. Skodas roots are based in early 19th Century Czechoslovakia when Và ¡clav Laurin  and Và ¡clav Klement began to produce their own bicycles. This progressed quickly to motorcycles and eventually automobiles in 1905. It was not until the 1920s when Laurin and Klement became partners with Skoda Works, the conglomerate arms manufacturer and the origin of the enduring name. After the global depression in the early 1930s, Skoda successfully exported models such as the Popular until the break out of World War 2 and the German occupation. During this time the Nazi occupation directed industry efforts towards arms and munitions and hence production in this period sharply fell. Post World War 2, Czechoslovakia fell behind the iron curtain and became part of the centrally planned communist soviet government. Designs were overhauled and updated models were still being developed through until the 1960s. However, at this point western technological advancements overtook that of Skoda and the i nherent inefficiency within the centrally planned economy began to take an effect. Towards the end of the communist regime Skoda were still producing models based on those from the 60s and subsequently became the basis of ridicule for poor reliability and quality (North, 2009). This is essentially the basis of the tarnished brand that had to be rebuilt in order to achieve its current position in the market. Skoda was producing cars that were poor compared to its competition and using technology that was hopelessly out of date (Edmondson, 2007). Ailing Skoda was bought by VW and began to turn Skoda around, largely by integrating it into its own highly successful business model the part and eventual complete sale by the Czechoslovakian government to VW represented an innovation in government foreign business policy (Lengyel Cadil, 2009). In order to compete in western markets in which capacity for cars exceeded demand resulting in a buyers market. In order to survive from competition, it needed to assess its product offering and brand image in the pursuit of market perceived value. In order to address Skodas issues VW re-aligned Company objectives to produce a quality value car and a strong brand image. In order to increase the efficiency and quality of the Skoda production, VW began to train employees in its management methods. Management across different businesses require consideration for organisational culture especially when working within an international setting (Naylor, 2004 pg120-121). The VW management had to deal with differences in business culture. Initially VW training did not improve the productivity of the Czech production plants, as the Czech engineers had adopted a very flexible improvisatory way of working. VW employed strict control on methods and made use lean production methods such as the just in time (JIT) management. Although it is generally more efficient and cost effective (Naylor, 2004, pg 510-511), JIT can involve short delays or pauses whilst waiting for the correct parts to arrive to maintain quality. This contrasted with the Skoda improvisatory style of working. VW took on more of a Human relations approach to its management, and by understanding and respecting Skodas business culture it was able to break down inflexible aspects of the old Skoda culture whilst working with other parts such as their vast and varied experience in order to bring about successful change. The management adapted their management style from a very directive role to include aspects of behaviour in order to deal with the cultural differences and more effectively manage the new workforce (Naylor, 2004 pg 10-11). The management also introduced novel methods to achieve Total Quality Management (TQM), this reduces the number of errors on the production by making everyone responsible for quality control as opposed to only checking for faults at the final stage of the production line and therefore increasing productivity (Naylor, 2004 pg 510-511). To achieve this VW introduced the Red Button which halted the production line when a fault was spotted by a member of staff. This introduction encouraged personal responsibility for fault checking. The knowledge that anyone could halt the assembly line and highlight individual errors combined with the fact that more errors were spotted and corrected before reaching the end of the assembly line resulted in less errors reducing the number of defects. After making changes to the management and workforce to deal with VWs culture, VW began to work with Skoda on its new vehicles, based on the VW common platform approach. The common platform approach allowed many cars to share the structure. This allowed Skoda to immediately take advantage of the latest advancements of VW technology, massively reducing the cost required to produce a new model. The common platform approach allows for innovation at the visible customer-facing parts of the vehicle. Creating a flexible management and employing VWs methodology worked well for Skoda. The result was the creation of cars which were as if not more reliable than VW badged counterparts. The Octavia beat its VW counterpart the Golf in endurance tests (North, 2009). The result of combining VW management and technology with Skoda know-how had resulted in cars that were more reliable than VW was producing on its own. Skoda now produces quality vehicles winning awards across Europe and the world (appendix 2.) including Car of the Year in India 2009 (Skoda, 2009). This high quality production also resulted in high customer satisfaction scoring Skoda highly in independent customer satisfaction surveys. In the 2007 European consumer satisfaction and quality studies, it ranked top ten in France and Germany and in Britain ranked 2nd (Edmondson, 2007). From internal customer research Skoda discovered that 98% of its customers would recommend Skoda to a friend (The Times Online). From the outset and throughout the introduction of the new VW based Skoda models, the branding of Skoda was overhauled. From the outset It was clear initially that Skodas brand was poor in most of Europe, Skoda was associated with cheap poor quality and unreliability and VW spend a large amount of money to Decontaminate the brand image adverts admitted flaws of the past 548 changes and Its a Skoda honest (North, 2009). In 2006 Skoda reviewed its market position and conducted a SWOT analysis. It was clear that the brand was still within a Niche Market an assessment of its brand suggested that although Skoda had been successful at disassociating itself with low-budget and low quality it still had a weak and neutral image compared with its competitors. (The Times Online) It was also clear that Skoda owners were happy about owning a Skoda and. Skoda decided once again to reposition its brand to gain market share in the mainstream car market. Skoda responded with a new marketing strategy, again leaving behind its successful brand defensive tactics. Its new market strategy was based around the happiness of its owners as shown in satisfaction surveys with the confident slogan the manufacturer of happy drivers. Promotion centred on this emotional draw with adverts such as the Cake during the advert the actual car is not shown at any point (The Times Online) This flexible management, commitment to quality and brand recognition gave Skoda the over-haul it needed. Since VWs take 20 years ago, Skoda sales have quadrupled to 650,000 cars and are responsible for 25% of VWs profits. Skoda product positioning was competing with other upmarket brands such as VW and Audi not only on price but also on quality (North, 2009). Skodas success followed the introduction of the Octavia and the Fabia, these were based on VW platforms this allowed the underlying chassis to be based on underlying modern, tried and tested technology. The Octavia beat its upmarket rival the Golf in endurance tests proving that management organisational and cultural changes at Skoda had allowed for the culmination of VW management and Skoda experience had produced a product even better than VW alone. In 2005 Skoda moved to diversify its brand by expanding its range into new and growth markets segments such as MPVs and SUVs allowing it to diversify and increase the size of its target market these also sold well. Similarities with Skoda can be found in Rover. Rover founded in 1877was nationalised in 1970 caused by labour strikes and financial difficulties. It was then privatised and passed around to various parent companies. Its issues with an out-dated and un-reliable product, with poor brand image and financial instabilities were never resolved and resulted in MG Rover declaring bankruptcy in 2004. Skoda was a struggling company, turned around by VW. Key to its success were VWs management strategies combining directive and organisation approach to management VW was able to aid Skoda in producing a competitive product and a strong brand image. Skoda is poised for future growth within both western and emerging markets (Edmondson, 2007). Bibliography (n.d.). Retrieved 03 1, 2011, from The Times Online: http://www.thetimes100.co.uk/downloads/skoda/skoda_13_full.pdf Edmondson, G. (2007). Skoda: Volkswagens Hot Growth Engine. Bloombery Businessweek, sep 14 2007. Lengyel, B., Cadil, V. (2009). Innovation Policy Challenges in Transition Countries: Foreign Business RD in the Czech Republic and Hungary. HUMAN CAPITAL, INNOVATION, KNOWLEDGE, Volume 16, Number 1, 174-188. Naylor, J. (2004). Management Second Edition. Prentice Hall. North, P. (2009). The Rise of Skoda . Engineering Automotive, pg 25-26. Skoda. (2009). Skoda Annual Report . Appendix 1. Laurin Klement is the original brand name used by the founders of the bicylcle company they started in 1895 which became Skoda, named after the company founders Và ¡clav Laurin and Và ¡clav Klement. As at the end of 2009, Ã…Â  koda Auto Groups worldwide workforce comprised 26,153 employees including 1,986 temporary employees and 1,336 people employed by subsidiaries of Skoda Auto Group. In 2009 Skoda Auto Groups injury rate was 1.6 injuries per one million hours worked. In 2008 Skoda Auto Group achieved 200,182 million CZK from sales and 10,818 million CZK in profit after tax. In 2009 Skoda Auto Group achieved 187,858 million CZK from sales and 3,462 million CZK in profit after tax Audi, Bentley, Bugatti, Lamborghini, Skoda, Seat and Scania are all part of the Volkswagen group. Source: Skoda Annual Report, 2009

Human Resources Challenges Essay -- Business Management

Introduction Some of the challenges that organizations' human resource department face are, operations, policies and procedures and selecting highly qualified candidates. Management depends on human resource department to select candidates through recruitment, interviewing and application screening. I will discuss a few methods that human resources departments use to select potential candidates through credit reports and social media. Credit Reports Organizations have been using traditional recruitment methods, placing help wanted ads in newspapers to look for potential candidates. Human resource department application selection process requires candidates to go through an interview, background check and credit investigation. The reason organizations do a credit investigation is to make sure candidates are creditable and trustworthy. By conducting a credit investigation human resource department can compare information on a candidate’s profile to make sure it coincides with information on their credit report. A good credit report would consist of no judgments, bankruptcy; pass due payments or any repossession. Base on the application process, this would be the ideal candidate for the job. Organizations will not hire candidates if their credit report, reported any negative blemishes. Organizations would be afraid if candidates had a lot of blemishes on their report, it would cause issue for the company, especially i f their job required a candidate to handle money transactions. Organizations view candidates as if they were having trouble handling their personal money affairs, they could not be trust to handle the organizations reasonability’s. Human resource department would not hire a highly qualified candidate wit... ...ponsibilities within an organization, the challenges they are face with is recruiting the right candidate for the position. It requires application screening, interviewing, background, and possible credit investigations. However there are many recruitment tools human resource departments can use to recruit candidates, social media, been the most popular. With so many challenges human resources face it is important to make sure they hire highly qualified candidates. Works Cited Fairley, J.. (2010, November). EMPLOYERS FACE CHALLENGES IN SCREENING CANDIDATES. Workforce Management, 89(11), 7. Retrieved November 22, 2010, from ABI/INFORM Complete. (Document ID: 2188682971). Sheehan, P.. (2010, October). Social recruiting targets job candidates. Long-Term Living, 59(10), 31. Retrieved November 22, 2010, from ABI/INFORM Complete. (Document ID: 2176149381).

Walt Disney and Paramount Pictures

The Dragonslayer is a Walt Disney and Paramount Pictures film that was shown on 1981. The story was basically about a dragon that was called as Vermitrax Pejorative which was destroying the kingdom of Urland with its fiery breath. In order to please this dragon, the king ordered a group of warriors to have an expedition to find someone who has the capacity to destroy this creature. The expedition was led by Valerian and their objective is to find a wizard in the name of Ulrich of Cragonmoor.However, Ulrich died upon an accidental mishap that happened because he wants to prove his power to Tyrian, a knight of the kingdom. Upon his death, his â€Å"inexperienced apprentice† has assumed to take his place. This apprentice was Galen Bradwarden who was an orphan which has magical powers sealed inside of him by Ulrich himself in able to protect him when he was still young. The story revolves on the adventures and misadventures of this young apprentice in order to save not only the wh ole kingdom but his pride as well.It also expresses a bit of dramatic and romantic unfolding and discovery of Galen’s personal strengths and abilities. As a hero he tried to rescue the whole kingdom all by himself without thinking about the circumstances that it may bring, however the story have shown how he have grown into becoming a man that thinks about the future and not merely of how to impress the people around him. The portrayal of this can be seen in the part wherein he tried his best to rescue the princess but failed to do so.Also, he grows with enough patience and dedication to accomplish his mission or his objective with a distinct trust to his guts and personal will. The perspective of the storyteller affects this story with regards to how the emotions and clarification of scenes would be relayed. As for the way that the characters would speak and how their intentions would reveal in the story would depend upon how the story teller have perceived or have understoo d the story as a whole.The storyteller is the one who is responsible in shaping the imagination of the listeners of the story as to what the characters looks like and how they act and react in the scenes in the story. The storyteller as a whole acts merely as guide in understanding the theme and the supposedly response and kind of thinking of the characters in the story. The storyteller is also the one who is responsible in unveiling the different facts and settings that should be incorporated in the minds of the receiver in order to fully appreciate the whole story.At the end of the story, there was an implication that everything that had happened was all planned by the great sorcerer Ulrich in able to reveal or at least help Galen discover his potentials. It also shows that the great sorcerer have used Galen in order to destroy the Dragon because it is a mission that he cannot deal with by his self. It was an irony because all along the receiver would think that it was all Galenâ €™s enthusiasm and yet at the end, everything was planned in the start. References: Robbins, Mathew. 1981. Dragonslayer. Walt Disney and Paramount Pictures.

Population 38.4 million. Currency Dinar. Geography...

Population: 38.4 million. Currency: Dinar. Geography: Northern Africa. Size: 2,381,741km2. Algeria may seem like just another country for most people in the world, even one they didn’t know existed or had maybe mistaken it for Nigeria. What they don’t know are all the hidden wonders and sights that define Algeria as truly beautiful. Algeria means unconditional love. It’s when I don’t visit for a whole year or two, but right when I pull up to the familiar aged, white-stone house that belongs to my grandmother, an immense feeling of comfort washes over my visage. I open the worn front door and am immediately greeted by my chubby-cheeked, wide-eyed cousins running towards me, smiling from ear to ear. Their capacious laughter drowns out by†¦show more content†¦I go buy some of our popular baguettes, crunchy on the outside but soft as cotton on the inside, and gaze at the beautifully historic French architecture still left over from the colonization er a. It’s a bizarre thought that even a proper and elegant country such as France couldn’t tame the insanity of our Arab world. I like the feeling of finding the craziness of it all beautiful compared to the order and structure I usually have in the U.S. Algeria is familiarity. It’s the feeling of connectedness when walking down the familiar road through the familiar schools in which your parents and their parents before graduated from. It’s when I take walks with my Mimi and she points out how we are related to each family on the block. Or when I drive around and realize that every face I see is just like me; Algerian, Arab, and Muslim. It’s a sharp contrast from America in which you would be lucky to pinpoint someone you know or of the same culture as you from a large crowd. It’s the relief when I don’t have to explain why our women wear a headscarf or why I’m considered Arab even though I was born in Africa. Standing out can b e a great thing; however, being able to say you’re a part of something bigger than just yourself is such a humbling experience. Algeria is history. I have a great-grandmother, Ama4, whom we nicknamed ‘Google’. She can trace any family in Tlemcen as far back as Algeria’s industrial revolution! I actually enjoy sittingShow MoreRelatedThe Colony Of Algeria1916 Words   |  8 PagesThe colony of Algeria was one of many that were established by the French in order to rectify their diminishing image on an international scale. Throughout history the nation of France has seemed to be in the shadows of Great Britain, as well as struggling to keep up with their advancements. Throughout the 19th century, France experienced its fair share of losses, bad leaders, and through their eyes, national embarrassment. 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