Proton Case Study Essay

878 Words Jun 20th, 2015 4 Pages
PROTON
From SAGA to IRIS
MAF 680
INTEGRATED CASE STUDY

EXECUTIVE SUMMARY
A multinational motor industry giant (assume MAZDA) had sensed opportunity in Proton and approached a consultant, Chartered Accountant Saiful Alawi, to review Proton and recommend whether an investment or collaboration should be considered. Saiful Alawi needed to consider a number of significant factors in order to arrive at the decisions. Basically, PROTON was incorporated on 7th May 1983 to manufacture, assemble and sell motor vehicles and related products. PROTON produced Malaysia’s first car, the Proton SAGA which was commercially launched on 9th July 1985. Proton’s model products includes Saga, Iswara, Wira, Satria, Perdana, Putra, Gen 2, Savvy, Satria
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ALTERNATIVE SOLUTION
In order to provide a recommendation to MAZDA Company, I as a Saiful Alawi used Balanced Scorecard approach to review the Proton performance.
Customer perspective measures a firm performance that indicates how well firms are satisfying customers’ expectations. Nowadays, customers think that overseas cars are better than the national cars. National Proton car is lack of quality as compared to international Proton cars. A simple accident can lead to a car crash. The Proton cars design sometimes is very bad. For example, the design of Tiara cars did not produce many sales since it does not meet customer satisfactions. This shows that customer perspective towards Proton is not good.
Internal business perspectives measures of firm performance that indicate how well firms’ internal processes, decisions and actions taken by them. Proton supplier did not provide a good quality of raw materials in manufacturing Proton’s car. These resulted the PROTON cars in a bad quality and fail to meet customer satisfaction. In 1983, PROTON signed a joint venture with Mitsubishi to produce Proton Saga. In 2004, Proton had technical discussion with Renault SA and GM. PROTON buys 57.57% stakes in MV Agusta S.p.A at €70 million and sold MV Agusta in 2006 to GEVI S.p.A for a token of €1. Khazanah Nasional Bhd exercised its rights by kicking out Tengku Mahaleel as CEO of Proton in July 2005. In 2008, Proton being sued by its former Chinese

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