Suzuki Report

8/9/2019 Suzuki Report

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Institute of Business Management (IOBM)

Table of Contents

TitlePage No

Introduction 2

Company Profile 2

Aims and Objectives 3

Vision 3

Mission Statement 3

Product Rane !

Production and Sales volume "

Analysis #

$rap%ical Analysis #&ori'ontal Analysis (3

S)O* Analysis (!

P+S* Analysis (,

Porter-s .ive .orces (/

0C$ Matri1 ("

Product ife Cycle (#

Conclusion (

0ibliorap%y 24

PAK SUZUKI MOTORS LIMITED Page 1


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INTRODUCTION

The topic I have selected for this presentation is Ananalysis of the Planning Strategies of

your choice of organisation.

The planning is normally the key to survival for any organization. It has often been observed thatorganisations forced into liquidation have deteriorating planning problems rather than low profits.

Company Profile

Pak Suzuki imited is the organisation I have selected for this presentation. Pak Suzuki !otor "ompany

imited is thelargest automobilecompanies operating in Pakistan. #thers are $tlas %onda& Indus !otors&

'andara (issan and )eewan *aroque !otors and etc. The basic activities of Pak Suzuki includethe

import& assembling andmanufacturing of automobile products. %aving an overall market share of around

+,-/ in the sector& Pak Suzuki is undoubtedly the market leader with Indus !otors +0-/ and $tlas

%onda +12/.

Pak Suuki! "#$

At%as &on'a! 1"$

In'us Motos! 1$

Ot*es! 11$

Market Share

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Aims an O!"ecti#es

The aim of this report is to analyze the performance of Pak Suzuki in terms of its *inancial Planning andproducts. This would be achieved by3

The 4ertical $nalysis 5 "omparison of the key ratios for Pak Suzuki over the years and in some

instances the absolute figures will also be used to analyze the planning function of organization.

The %orizontal $nalysis 5 "omparison of Pak Suzuki6s financial position with the ne7t competing

company operated in the sector& which in this case would be Indus !otors imited.

$ision

87cellence in all respects.

Our %ission

#ur mission to realize this vision is3

To provide automobile of international quality at competitive price.

To improve skills of valued employees by imparting training and inculcating in them a sense of

participation.

To achieve ma7imum indigenization and promote Pakistan6s automobile vending industry.

To make valuable contribution to socialdevelopment of Pakistan through developmentof

industryin generaland automobile industry in particular.

PAK SUZUKI MOTORS LIMITED Page #


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Prouct Range

*ollowing are some varieties of !oped with their and Prices3

S&I'T ()*++ cc,

The 8uropean inspired e7terior givesSwift a distinctive look. $ unique Stylishand design that turns a

head where you go .

-IANA()*++)/++cc,

The Suzuki iana available in 1-99 cc manual transmission and 1:99cc automatic transmission takes

you out of ordinary and into the realm.

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CU-TUS ()+++cc,

"ultus is the blend of space and craft. Its trim body conceals ample space ;fle7ibility for both passengerand storage.

A-TO ()+++cc,

$lto has a bright& roomy and comfortablecabin which keeps body rela7 and strong and lighter body shell

resulting in smooth drive due to reduction of unpleasant noise harshness and vibration.

RA$I PIC0UP (1++cc,

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Suzuki


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to en>oy a comfortable day long ride.

5I%N6( )*++cc,

Steady& sturdy and smart. Suzuki ?imny +Imported/ with new wide tread brings

you the ultimate pleasure of a real@=wheel drive.

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7O-AN $AN (1++cc,

The Suzuki Aolan %i=roof gives you everything you ever wanted in a van. Spacious interior for

comfort& tough engine to carry large loads and plenty of room for passengers.

7I02S

Pak Suzuki assembles three models of bikes which are as follows3=

Su8u9i :S;)4+ Su8u9i Sprinter ())+cc,

Su8u9i Shogun ()++cc,

PAK SUZUKI MOTORS LIMITED Page .


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PRODUCTION & SALE OF SOME VEHICLE FROM 2! to 2"

Na#e 2$ 2% 2 2' 2"

Me%ran P 3#!33 !(## 2"2! (323 24/3S 3#2" !(#! 2"44 (344" 24#(

Alto P 24#!( 2(,!/ (##4, //!( ((!3"

S 24"2 2(!2 (#4! /,,4 ((2

Cultus P 2!#23 2!#" (4" #(4 (33##

S 2!3/" 2!", (((" "2! (34"/

0olan P (!!2 (,,24 (3#( /3 (!/3

S (3#!2 (,,4" (34" (23 (,44(

iana P /2"4 ,/! 23,2 /#! 3,

S ,42 ,#! 2(#3 ,"" !("

Ravi P !(# (4#! 42" (2(4" (,242

S #"3 ((24, ("# (22!! (!#2

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ANA-6SIS

The ma>or part of this analysis will be based upon the financial ratios calculated using the financialstatements as of *) Decem!er


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00, 00- 00. 00/ 010

0

0000

+0000,0000

.0000

100000

10000

1+0000

Sa%es o%ume 2as in

t*ousan's

Sales volume increase by 11 in 0992 which later on decrease by 0, and @@ in 099D and 099C

respectively due to higher interest rates since most of the customers buy the cars on lease. In 0919& the

economy revived a little and the sales volume increase by ,-.

:ross Profit %argin

00, 00- 00. 00/ 010

0

+

,

.

10

1

1+

3oss Po4t

Magin

The ratio e7plains the relationship between operating profit and sales. The 'ross profit ratio has shown a

decline from 11.D in 099: to C.@ in 0992. ater on& it decreases to 1.,& 0.0 and 0.@ respectively

in 099D& 099C and 0919.The primary reason of this decrease is the movement in e7change rates.

Profit !efore Ta=ation



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00,00-00.00/010

0

1000

000

#000

+000

"000

,000

Po4t 5efoe ta6 in

mi%%ions

Profit before ta7 is a better indicator as compared to profit after ta7 because the ta7es paid by a

company over the years vary depending upon the variation in ta7 rates. There has been a phenomenal

decrease in profit before ta7 from *B 099:to *B 0919 of around D2. This happened due to the

increase in e7change rate& administration e7penses and loss in other operating income.

PAT (Profit after Ta=ation,

00, 00- 00. 00/ 010

0

"00

1000

1"00

000

"00

#000

#"00

Po4t afte ta6 in mi%%ions



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00, 00- 00. 00/ 010

07"

17"

7"

#7"

+7"

"7"

,7"

-7"

PAT as % of Sales

PAT as $ of Sa%es

Profit after ta7 as a percentage of sales revenue declined to 1., in 099D as compare to 0992 where it

was ,., . In 099C& it declined to 1 and in 0919 it further declined to 9.,.

PAK SUZUKI MOTORS LIMITED Page 1#


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Current Ratio

00, 00- 00. 00/ 010

1

17"

7"

#

#7"

+

+7"

8uent atio

$ rule of thumb is that the current ratio should be at least 0. It has increased from 1.,D to 0.0D in 0992

and then increased to @.@@ in 099D& representing an increase of @@ and C, respectively. In 099C&

current ratio decreased to -.2@ and -.91 in 0919.

2=change Rates

#..,/#/0"#/#+#/+1-#/,00#/-.##//,"+01+.+0##0+0"1#+0,/"

07000

07+000

07,000

07.000

170000

17000

e62*ange ates (9en :PKR )

#..,/ #/0" #/#+ #/+1- #/,00 #/-.# #//," +01+. +0##0 +0"1# +0,/"

".70000,#70000

,.70000

-#70000

-.70000

.#70000

..70000

e62*ange ates (; :PKR )

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The increase in e7change rates is e7cessive which causes the cost of goods sold to increase becausema>or parts are imported from ?apan and trade is only allowed in ES) so a double hit of e7change rate

effects the cost of goods sold .2arning Per Share

00, 00- 00. 00/ 010

0

10

0

#0

+0

Eaning


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00, 00- 00. 00/ 010

07"

17"

7"

#7"

+7"

"7"

Dii'en'


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This shows how much of a company6s profit is distributed to each share holder. Pak Suzuki6s )PS has

decreased from


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S&OT ANA-6SIS

Strengths

%ighest !arket Share.

ow Price 4ehicles.


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8asy available of spare parts.

-S +Sales& Service and spare Parts/ at

your door step.

Opportunities

Increasing )emand for "ars.

8fficient 8*I engine.

arge !arket size to operate.

'lobal spare part market.

Space saving Small size "(' cylinders.

Threats

ocal "ompetitors like Toyota& and %onda.

*oreign Investment and setup production

facilities.

Inflation rate.

%eavy Ta7es.

"ompetition from import cars ( -i9e

$IT>? P-AT>? DU2T etc,

Increase of *uel Prices.

oad shedding by H8S".


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aw and #rder situation.

87change


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pickups etc for >ourney. They also have their own as well e.g. cycle& bikes etc and lots of people are

pedestrian. Aut now the people who haven6t any source of transportation they also want something for

their convenience because they wants to save their time as much as they can. People want to use such

vehicle which looks beautiful and also affordable.

Technological 2n#ironment

Technology is grooming with the passage of time. People also want that the product that they have is full

of technology. Ge never control on technology for e7ample you launched the product last year and your

sale volume on that time is very high but after sometime due to latest invention a lots of substitute e7ist

in market which affect on your business so you can6t hold on it.

%ar9et Analysis

Porter@s 4 'orce

The strategic business manager seeking to develop an edge over rival firms can use this model to better

understand the industry conte7t in which the firm operates.

). Potential ne entrants

In the (ew 8ntrant category of Porters , forces& we can see that it would be tremendously

difficult for another car manufacturer to enter into the market. The rate at which the industry is changing

does not allow for new entrants to come into the market very easily& and the cash investment for a new

firm to produce massive quantities of cars is in the billions.


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*. 7argaining poer of suppliers.

Pak Suzuki6s suppliers have been known to be some of the most dedicated suppliers in the industry. Ay

virtue of the ?ust=In=Time production concept pioneered by Pak Suzuki& the auto industry itself has seen

a very positive relationship develop between its suppliers and producers.Suppliers are e7pected to make

deliveries of parts in small quantities several times a day. Pak Suzuki& by reducing its part inventory& has

been able to speed up production costs& save money by not letting parts sit on the shelf& and improve itsrelationship with parts suppliers& which rely on Pak Suzuki for their revenue.

B. Threat of su!stitutes

"onsumer preference is changing +!ini cars are being replaced by compact or midsized cars/ .Setting

up integrated manufacturing facilities may require higher capital investments than establishing assembly

facilities. Pakistan passenger car market is moving towards cars of higher capacity.

4. Ri#alry !eteen competitors

Industry competition between auto makers is fierce. The typical consumer& when searching for a

particular vehicle is bombarded by choices. *or e7ample& a search for $T# +Product of Suzuki/ yields a

result of "uore +)aihatsu/ with a minimal e7tra amount.

PAK SUZUKI MOTORS LIMITED Page

7C: %ATRI


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Question MarkStar

Cash Cow

High

Low

LowHigh

MarketGrowth

MarketShare

Dog

3S>1"0S


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PAK SUZUKI MOTORS LIMITED Page +

ME&RA?

8ULTUS

RA@I

LIA?A

AP@

S&O3U?

SI=T

IM?9

S&O3U

ALTO

BOLA?

SPRI?TE

BCG positions throughout the produtlife !le"


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Conclusion

Automo5i%e in'ustC is a mao 2onti5uto to t*e 3DP of Pakistan7 It *as enomous


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7i!liography

1! PakSuzuki $nnual

Suzuki Report

Documents