Lamborghini Strategy

by Mohammed Asrar

Founder: Ferruccio Lamborghini Founded: Sant'Agata, Italy President: Stephan Winkelmann (2005 - Present) Lamborghini's 831 employees produced 1,711 vehicles per year

About Lamborghini

Lamborghini was founded on October 10, 1963It originally was a producer of tractorsLamborghini went bankrupt in 19781998: Audi AG became the sole owner of the company

History

cCompany Success 2001: Lamborghini made one of the great cars, the

Murciélago

2004: Lamborghini made another great car, the Gallardo

2011: The Aventador is made, and is very expensive

2014: Lamborghini Huracan, yet another innovation by Lamborghini

SWOC AnalysisS - Known for superior handling & high speed i.e. performanceW - Lamborghini allegedly under the scanner of environmentalists who feel fuel

consumption is a lotO - To increase the global reach as currently it is present in very few regionsC - Government policies against high fuel consuming super cars

Porters Five Forces

McKinsey’s 7S Model Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm,

The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.

The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example, to help you: > Improve the performance of a company. > Examine the likely effects of future changes within a company.

> Align departments and processes during a merger or acquisition. > Determine how best to implement a proposed strategy.

• The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

• "Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

• "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

McKinsey’s 7S Model

The Seven Elements

Strategy: The plan devised to maintain and build competitive advantage over the competition. Structure: The way the organization is structured and who reports to whom. Systems: the daily activities and procedures that staff members engage in to get the job done. Shared Values: Called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Style: The style of leadership adopted. Staff: The employees and their general capabilities. Skills: The actual skills and competencies of the employees working for the company.

1. Strategy

What is your strategy?

• How do we intend to achieve our objectives?

• How do we deal with competitive pressure?

• How are changes in customer demands dealt with?

• How is strategy adjusted for environmental issues?

Lamborghini Strategy Objective of producing a refined grand touring car to compete with offerings from established marques such as Ferrari.

The company's first models were released in the mid-1960s and were noted for their refinement, power and comfort.

New products and model lines were introduced to the brand's portfolio and brought to the market and saw an increased productivity for the brand Lamborghini.

Classic engineering and precision manufacturing.

2. Structure

How is the company/team divided?

What is the hierarchy?

How do the various departments co-ordinate activities?

How do the team members organize and align themselves?

Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing?

Where are the lines of communication? Explicit and implicit?

The decision making is centralised.

3. Systems

What are the main systems that run the organization?

Consider financial and HR systems as well as communications and document storage.

Where are the controls and how are they monitored and evaluated?

What internal rules and processes does the team use to keep on track?

4. Shared ValuesWhat are the core values?

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team was built on?

The company has very strong value

Knowledge sharing and innovation

The complexity of the Lamborghini product, the challenges of the competition and the competitiveness

Together with the need to take into consideration the interests of all legitimate stakeholders in company activities, strengthen the importance of clearly defining the values and responsibilities

Lamborghini recognises, accepts, shares and undertakes, contributing to build a way of doing business which is better for all, collaborators, directors and stakeholder

5. Style

How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or co-operative?

Are there real teams functioning within the organization or are they just nominal groups?

The management supports it employees very much

They have a knowledge management system where best talents are identified and encouraged

The company commits to offer equal working and promotion opportunity to all staff

The manager of every organisational unit must guarantee that for all work relationship aspects which, employment, training, income, promotions, transfers and termination of the same relationship, staff are treated in a manner adequate with their capacity to satisfy the requisites of the task, avoiding every form of discrimination and, in particular, discrimination for race, sex, age, nationality and personal beliefs.

6. Staff

What positions or specializations are represented within the team?

What positions need to be filled?

Are there gaps in required competencies?

The company acknowledges that the motivation and professionalism of its staff are essential factors in preserving competitiveness

Company value and client satisfaction. The following principles confirm the importance of respecting the individual.

All members of staff must keep the work environment dignified, where everyone’s dignity is respected.

In particular, all Company staff members: > Must not work under the effect of alcohol or drugs; > Must avoid behaviour that might create an intimidating or offensive climate towards colleagues or subject them in order to exclude them or discredit them within the work environment.

7. Skills

What are the strongest skills represented within the company/team?

Are there any skills gaps?

What is the company/team known for doing well?

Do the current employees/team members have the ability to do the job?

How are skills monitored and assessed?

The employees represent high degree of skills talent and knowledge

High precision is needed

The organisation source different skills from different part of the world being designer, engineer…

The employees are regularly trained and motivated

Videos

Hexagon project - Episode 1 (December 2013) Hexagon project - Episode 2 (January 2014) Hexagon project - Episode 3 (February 2014) Hexagon project - Episode 4 (March 2014)

Thank You……………