1

UNIVERSITY OF TECHNOLOGY MARA JOHOR SEGAMAT CAMPUS

BACHELOR IN BUSINESS ADMINTRATION (HONS) IN

(MARKETING)

STRATEGIC MARKETING MANAGEMENT MGT 652

MAJOR ASSINGMENT:

MARKETING PLAN Perusahaan Automobile National Bhd. (PROTON)

Prepared For:

PM MOHD ZAINAL BIN LODE

PREPARED BY:

YANG IZHANI BINTI ITHNIN 2006211286

AHMAD AKMAL BIN MOHHID 2005655098

MOHD AKIB BIN MOHD ZIN 2005655066

MUHAMAD ZULHANIF BIN BAHARUDDIN 2005655041

AZMI BIN MOHD NOOR 2006848206

CLASS: BMB5M1

SUMMITED DATE: 11TH April 2008

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DECLARATION OF ORIGINAL WORK

BACHELOR OF BUSINESS MANAGEMENT (MARKETING) FACULTY OF BUSINESS MANAGEMENT

UNIVERSITI TEKNOLOGI MARA JOHOR CAMPUS

“DECLARATION OF ORIGINAL WORK”

Hereby, declare that,

This work has not previously been accepted in substance for any degree program locally or overseas and is not being concurrently submitted for this degree program or any other degree program.

This project paper is the result of our independent work and investigation, except where otherwise stated.

All verbatim extract have been distinguish by quotation marks and sources of our information have been specifically acknowledged.

Signature: _______________ Date: ___________

1. YANG IZHANI BINTI ITHNIN 2006211286

2. AHMAD AKMAL BIN MOHHID 2005655098

3. MOHD AKIB BIN MOHD ZIN 2005655066

4. MUHAMAD ZULHANIF BIN BAHARUDDIN 2005655041

5. AZMI BIN MOHD NOOR 2006848206

3

ACKNOWLEDGEMENT

In the journey making this report they are many difficulty and best moment in our

life. Friends and lecture all of them play a part in this report. It is our pleasure to

say something for all the effort from the group members and others.

First of all, we would like thank and praise to Allah S.W.T. The Al-Mighty and

Merciful because give us an opportunity to complete this project paper in time.

Without the grace and help from Him, it is impossible for us to have greater

endurance, courage and spirit in order to complete this project paper.

We would also like to thank our advisor, PM Mohd Zainal Bin Lode who has

constantly guide, encourage and advise us during the completion to this project

paper.

We would also like to thank to all friends, especially to our classmate in BMB5M1

and everybody who help us directly or indirectly in completing this project paper.

Special thanks also to the librarian of UiTM Johor campus, for their cooperation

and help throughout the success of this study.

We would be forever thankful to them. Only the Allah can replay them

Thank you,

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TABLE OF CONTENTS Declaration of Original Works i

Acknowledgement ii

Table of Contents iii

Executive Summary Latter iv

1. Company Background 1-2

2. Proton Vision And Mission 3

3. Proton Existing Objectives 4

4. Proton Strategies 5-6

5. SWOT Framework 7-10

6. SWOT Matrix for Proton 11-14

7. Financial Ratio Analysis of Proton 15-19

8. BCG Matrix (Boston Consulting Group) 20

9. The Internal-External (IE) Matrix 21

10. Long Term Objective 22

11. Recommendation 23-25

12. Time Phase Plan 26

13. Cost Estimates for Recommendation 27-28

14. Conclusion 29

15. Reference 30-32

16. Appendix

5

Executive Summary Letter

By study of Strategic Marketing Management, we are enabling as marketers to

understanding and predict the real situation in the developing the marketing plan.

It also concerned not only with what company strategic plan but also with why,

when, where, how and how often they used it in selling their product. At the end

to give clear view to inform the potential customer to notice about product line

and mix and at the end will buy, used and loyalty with the product and the

company for long term period.

The field of the report is rooted in the marketing plan and the strategic objective

for Proton Berhad. to selling and distributing the variety of the product brand in

Malaysia. Next, in this report we will determine such the marketing strategy,

SWOT analysis that determined the competition position, the variety product and

the key of success in their marketing strategy.

In created and understanding Mission better, the third segment we will focus on

the organization external opportunities by critical analysis with Proton Bhd

marketing objective, target market, positioning and marketing research and mix.

Understand Proton Bhd strategic in financial analysis also be include in this

report. And in last segment we will go throw recommendation and conclusion that

we have learn by adoption the theory in the subject with the Proton Bhd

Marketing Plan.

We hope that this executive summary give you better understanding about our

report and please enjoy our research on Marketing Plan by Proton Bhd

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1.0 BACKGROUND OF THE COMPANY

PROTON was incorporated on 7 May 1983 with three primary national policy

objectives: to spearhead the development of component manufacturing

industries, to acquire and upgrade technology and industrial skills within the

automotive manufacturing industry and to strengthen the international

competitiveness of Malaysia’s industrial capability.

Today, PROTON is the clear market leader of the Malaysian automotive industry

with the largest domestic market share and a distribution network that spans the

globe. The business of the Group has been expanded to include engineering

consultancy, manufacturing, distribution, financial services and property

investment. With a turnover exceeding RM10 billion in 2002, it is one of the

largest companies listed on the Bursa Malaysia Berhad.

The Group design and produces cars for diverse consumer preferences.

PROTON portfolio includes the world-renown sports cars Lotus Elise and Lotus

Esprit, the sporty Satria Gti, the stylish Gen.2 and the versatile Jumbuck. These

cars are manufactured in Malaysia and UK. The Group also has manufacturing

joint ventures in Vietnam, China and Indonesia.

The engineering consultancy business is led by PROTON wholly owned

subsidiary, Lotus Group, which has offices in the UK, USA, Malaysia, China and

Germany. Lotus Group is a leading sports car manufacturer and engineering

services consultancy with numerous international awards for innovation and

design including the Sir Henry Royce Award for engineering excellence.

The Group conducts research in its centers in the UK and Malaysia for new

technologies with the ultimate aim top put these innovations into production

through partnership with Tier One Suppliers or OEM customers. A number of

these patents have been licensed to leading car manufacturers.

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Currently, the Group has almost 10000 employees who are involved in the whole

spectrum of the business from research, design, development, testing, stamping,

casting, machining, and assembly to marketing, distribution and after-sales.

Strong customer orientation and competitively priced products are the foundation

of the business and essential to the success. Proton aim to maintaining the

market leadership by continuing to develop innovative products and satisfying the

customers better and more profitably than the competitors.

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2.0 PROTON’S VISION AND MISSION

2.1 Vision

To become a successful Malaysian automotive engineering and manufacturing

company globally by being customer oriented and producing competitively priced

and innovative products.

2.2 Missions

2.2.1 To Customer

PROTON strives to deliver total customer satisfaction through the provision of

quality automobiles and related products and services more efficiently and

effectively than the competitors.

2.2.2 To Shareholder

PROTON strives to generate good earning with steady growth through the

efficient management of resources.

2.2.3 To Employees

PROTON is committed to promote a conducive working environment while

focusing on human resource development and long-term employment.

2.2.4 To Business Associate

PROTON strives to develop and maintain mutually-beneficial, value-added

relationship of the highest degree.

2.2.5 To Nation

PROTON shall be a responsible corporate citizen and shall be the impetus

towards the realization of Vision 2020.

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3.0 PROTON’S EXISTING OBJECTIVES

1. Produce excellent products and services to conduct business and expand

to enhance returns.

2. To seek new opportunities to add value to the business with investment

from local and foreign investors.

3. Enhance corporate culture and align corporate goals with the interest of

shareholders and other stakeholders.

4. Drive a success as a transparent, accountable and ethical organization.

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4.0 PROTON’S STRATEGIES

Product and Services

I. Customer orientation product and services.

II. Developing new innovative product features.

Research and Development

I. Conduct projects through collaboration with Malaysian and UK

universities with some funding provided by the Malaysian government.

II. Development of new low cost flexible engine.

III. Development on an aluminum-bodied vehicle and increased fuel

efficiency.

Manufacturing

I. Flexible manufacturing system installed to changing customer demand

with faster changeover of models.

II. Joint venture plant with other countries such as Indonesia and

Vietnam.

Quality Management

I. Adopt three-stage line inspection – 1. Static evaluation on fitting and

appearance exterior and interior cars. 2. Dynamic evaluation on

function and drivability. 3. Final inspection before approved fit for

delivery to customers.

II. Vendor quality addressed at source by using Advance Product Quality

Planning (APQP) teams.

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Sales and Distribution

I. Strengthening of domestic sales and service network to improve

customer service and maintain market share.

II. Launched Customer Management Center known as “Proton I.Care” for

customer to contact with Proton Edar for product and service enquiry

as well as 24 hours emergency breakdown assist.

III. International expansion plants and distributors to oversea countries

such as Middle East countries, Australia, United Kingdom, Indonesia

and Singapore.

Shareholders

I. Investor relations program involves the participation of the Board and

senior management.

Business Associate

I. Over 100 Malaysian manufacturers were appointed as Simultaneous

Engineering Partners in development of new range of products.

II. Select alliance opportunities that enable to deliver better ideas into

market place include Asian, European, North America and South

American companies.

III. Formed a joint venture with Miyazu of Japan to develop Malaysian

capabilities in die design, manufacturing and maintenance.

Human Resources

I. Recruit, reward and retain the best employees.

II. Internship program for graduate trainees’ implementation.

III. Development communication of policies affecting employees.

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5.0 SWOT FRAMEWORK

5.1 Opportunities

1. China economy is growing faster after they had opened their

market to foreign company. China is a big market for

automobile industry.

2. Increase demand for cars in developing countries as it

becomes a necessity and part of modern lifestyle especially

in ASIA country.

3. Increase demand because of high marriage rate in ASEAN

region and new family is seeking cars for their daily usage.

4. New technology such biodiesel, hybrid cars, hydrogen as

alternative fuel and more efficient cars had create new

demand in automobile industry.

5. Implementation of AFTA (Asian Free Trade Area) and

liberalization with United States and Europe country had

establish new market segment internationally to be serve.

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5.2 Threats

1. The increase of oil price up to US68 per barrel had slow the

growth of automobile industry.

2. Intense price competition among the car manufacturer had

push up higher quality level and competitiveness of each

new car model been produces.

3. The increase of steel price had increase cost of production

and minimizes profit gained by manufacturer.

4. Well establish car makers had launch hybrid car and

sophisticated car that use fuel economically thus reducing

demand for ordinary types of cars.

5. Most of Resources, Distribution network, High Technology,

Brand Preference, International market share and

engineering expertise is own by foreign car makers.

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5.3 Strengths

1. Proton is a market leader in domestic market and acquire up

to 70% of market share of car sales in Malaysia.

2. Proton has develop the engineering expertise, own engine

and own manufacturing and research and development

platform through the years.

3. Proton had own Lotus engineering expertise who is a leader

in sport car segment worldwide thus increase proton

reputation and ability to compete in global market.

4. Proton own Proton city at Tanjung Malim (2004) which is an

integrated information city, super high speed networking,

smart homes, and sophisticated e-commerce thus possess

the ability to design, test, produce and market cars from the

scratch.

5. Proton business including providing engineering consultancy,

manufacturing, distribution, financial services and property

investment worldwide.

6. Proton own manufacturing facilities in Malaysia, United

Kingdom, Vietnam, China and Indonesia.

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5.4 Weaknesses

1. Image projected by Proton is perceive as ordinary brand not

exclusive brand (in term of quality of cars been produced)

especially in domestic market.

2. Proton car not popular in international market because of

Proton’s lack of networking, aggressive marketing and brand

power advertising campaign.

3. Lack of high quality car model thus lowered its brand power

and less competitive with foreign car maker such Honda,

BMW and Hyundai.

4. Bureaucratic and ‘play it safe’ management style had hold

Proton potential and performance from becoming sensitive

towards the shift of customer wants and competitors new

technology and new car model thus decrease its domestic

market share.

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6.0 SWOT MATRIX FOR PROTON

STRENGTH

1. Proton is a market leader in

domestic market.

2. High Engineering expertise, own

engine and manufacturing and R&D.

3. Own Lotus engineering expertise

thus increase its reputation and

ability to compete in global market.

4. Owned Proton city at Tanjung Malim

(2004) thus possess the ability to

design, test, produce and market

cars from the scratch.

5. Operate in Engineering consultancy,

manufacturing, distribution, financial

services and property investment

worldwide.

6. Owned plant in Malaysia, United

Kingdom, Vietnam, China and

Indonesia.

WEAKNESS

1. Low Brand Power and Brand

Image.

2. Lack of networking, aggressive

marketing and brand

advertising campaign.

3. Lack of high quality car model

thus lowered its brand power.

4. Bureaucratic and ‘play it safe’

management style.

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OPPORTUNITY

1. China economy growth and

large populations.

2. Owning cars in developing

countries becomes a

necessity and part of

modern lifestyle especially

in ASIA country.

3. High marriage rate in

ASEAN region and new

family is seeking cars for

their daily usage.

4. New technology such

biodiesel, hybrid cars,

hydrogen as alternative fuel

and more efficient cars had

create new demand.

SO – STRATEGY

1. Developing high technology,

sophisticated and exclusive cars

applying hybrid system, using

biodiesel fuel and economical fuel

consumptions. (S1,S2,S3,O4)

2. Focusing in China Market and other

developed country, establish brand

power and produce more cars that

suit foreign customer needs and

wants. (S6,O1,O2,O5)

WO – STRATEGY

1. Developing new car models

that high quality and unique

design and sell at affordable

price. (W1,W3,O2,O3)

2. Penetrating new market in

developed countries where

price sensitive is high and sell

cars at premium price to

Establish Market Share.

(W3,O2,O3)

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5. Implementation of AFTA

(Asian Free Trade Area)

and liberalization with

United States and Europe

country.

THREAT

1. The increase of oil price up

to US68 per barrel.

2. Intense price competition

among the car

manufacturer.

3. The increase of steel price

had increase cost of

production and minimizes

profit.

4. New Hybrid car and

sophisticated car that fuel

economically thus reducing

demand for ordinary types

of cars.

ST – STRATEGY

1. Develop and produce cars that

economical fuel consumptions, high

performance engine, nice design

and giving more added value to

customers. (S3,S4,S5,T1,T4)

2. Outsourcing Proton expertise,

operations and networking through

joint venture, acquisitions and

strategic alliances. (S3,S4,S5,T2,T5)

WT – STRATEGY

1. Establish strategic alliances

with global player in automobile

industry to increase the

distribution channel, marketing

ability and R&D capacity.

(W2,T2,T5)

2. Applying cost leadership

strategy in management and

productions by using new

technology and methods.

(W3,W4,T1,T2,T3)

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5. Resources, Distribution

network, High Technology,

Brand Preference, market

share, engineering

expertise is own by foreign

car makers.

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7.0 FINANCIAL RATIO ANALYSIS OF PROTON

RATIO 2007 2006

LIQUIDITY RATIO 1) CURRENT RATIO Current Asset Current Liability 2) QUICK RATIO

Current Asset – Inventory Current Liability

RM3,502,203 RM1,533,075 = 2.28 times RM3,502,203 – RM374,149 RM1,533,075 = 2.04 times

RM4,352,605 RM1,908,142 = 2.28 times RM4,352,605 -RM372,458 RM1,908,142 = 2.09 times

LEVERAGE RATIO 1) DEBT TO TOTAL ASSET RATIO Total Debt Total Asset 2) DEBT TO EQUITY RATIO Total Debt Total Stockholder Equity 3) LONG TERM DEBT TO EQUITY Long Term Debt Total Stockholder Equity 4) TIMES INTEREST EARNED RATIO Profit Before Interest and Taxes Total Interest Charges

RM1,703,001 RM6,668,476 =25.54% RM1,703,001 RM4,965,475 =34.30% RM169,926 RM4,965,475 =3.42% RM344,174 RM14,604 = 23.57 times

RM 2,130,410 RM6,865,855 =31.02% RM2,130,410 RM4,735,445 = 44.99% RM222,268 RM4,735,445 = 4.69% RM946,598 RM12,565 = 75.34 times

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ACTIVITY RATIO

1) INVENTORY RATIO

Sales Inventory 2) FIXED ASSET TURNOVER

Sales Fixed Asset 3) TOTAL ASSET TURNOVER Sales Total Asset 4) ACCOUNT RECEIVABLE TURNOVER

Sales Account Receivable 5) AVERAGE COLLECTION TURNOVER

Account Receivable Sales/365 days

RM4,825,658 RM374,149 =12.90 times RM5,259,781 RM3,166,273 =1.66 times RM5,259,781 RM6,668,476 = 0.79 times RM5,259,781 RM252,581 = 20.82 RM252,581 RM5,259,781/365 days = 17.53 day

RM6,466,738 RM372,458 = 17.36 times RM7,674,265 RM2,513,250 = 3.05 times RM7,674,265 RM6,865,855 =1.12 times RM7,674,265 RM455,479 =16.85 RM455,479 RM7,674,265/365 days = 21.66 day

PROFITABILITY RATIO 1) GROSS PROFIT MARGIN Sales – Cost of Goods Sold Sales 2) OPERATING PROFIT MARGIN

Earnings Before Interest and Taxes Sales 3) NET PROFIT MARGIN Net Income Sales

RM434,123 RM5,259,781 = 8.25% RM329,570 RM5,259,781 = 6.27% RM321,836 RM5,259,781 = 6.12%

RM1,207,257 RM7,674,265 = 15.73% RM934,033 RM7,674,265 = 12.17% RM772,286 RM7,674,265 = 10.06%

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4) RETURN ON TOTAL ASSETS (ROA) Net Income Total Asset 5) RETURN OF STOCKHOLDERS EQUITY (ROE)

Net Income Total Stockholders Equity 6) EARNINGS PER SHARE (EPS) Net Income Number of Shares of Common

RM321,836 RM6,668,476 = 4.83% RM321,836 RM4,965,475 = 6.48% RM321,836 RM1,000,000 =RM0.32 per share

RM772,286 RM6,865,855 = 11.25% RM772,286 RM4,735,445 = 16.31% RM772,286 RM1,000,000 =RM0,77 per share

GROWTH RATIO 1) SALES -Annual percentage growth in total Sales. 2) NET INCOME - Annual percentage growth in profits.

RM5,259,781 -RM7,668,748 RM7,668,748 = -31.41% RM321,836 - RM772,286 RM772,286 = -58.33%

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ANALYSIS Liquidity Ratio

The liquidity ratio is the measure of the overall ability of the firm to meet its

maturing obligation by relying on its current assets, in other words. It measures

the ability of the firm’s liquid resources to pay current and maturity on items. For

current ratio for Proton Holdings Berhad is also same. This indicates that the

ability of the asset to be liquid into cash is same.

Leverage Ratio

Leverage ratio is concern with how much the company owes outsider in relation

to assets value of the company and to the company’s long term capital structure.

Higher borrowing indicates risk because the firm needs to finance the interest

charge imposed on them. As measure in Proton Holdings Berhad financial

statement, the Debt Ratio is decreasing from 31.03% to 25.54%. its show that the

ability of the one unit of total asset to pay the debt is decreasing.

Activity Ratio

Activity ratio use to measure the efficiency of the management in utilizing the

assets of the company as well as managing the overall operation of Proton

Holdings Berhad. The account receivable turnover indicates the ability of this

company stock to be sol is increase from 16.85 times to 20.82 times. This

indicates that the ability of the company to charge its stock over the year is

increasing to 3.97 times per year.

Profitability Ratio

The profitability ratio measure the relative success of the firms that is combine

the effect of liquidity activity and leverage management on the firm’s overall

operating result. It relates to the firm’s ability to obtain returns relative to sales,

assets and equity. Profitability ratio gives an insight into the company policies and

is regarded as an important ratio by the auditors to detect any errors or unusual

fluctuation as due to error of fraud. The Profit Margin, its indicates by the ratio we

24

found out that the Net Profit Margin for Proton Holdings Berhad decrease from

15.73% to 8.25%.

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8.0 BCG Matrix (Boston Consulting Group)

RELATIVE MARKET SHARE POSITION

ANALYSIS

From our analysis, Proton is in the Question Marks quadrant because Proton

possess low internal market share in the high growth automobile industry.

Division in Quadrant I have a low relative market share position, yet they

compete in a high-growth industry. Generally this firm’ cash needs are high and

their cash generation is low. These businesses are called Question marks

because the organization must decide whether to strengthen them by pursuing

an intense strategy (market penetration, market development or product

development) or to sell them.

STAR

II

QUESTION MARKS

I

CASH COWS

III

DOGS

IV

Medium 0.50

Low 0.00

High 1.00

Low -20

Medium 0

High +20

INDUSTRY SALES

GROWTH RATE

% . Proton

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9.0 THE INTERNAL –EXTERNAL (IE) MATRIX

THE IFE TOTAL WEIGHTED SCORES

STRONG AVERAGE WEAK 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 4.0 3.0 2.0 1.0 High 3.0 to 4.0

3.0 Medium 2.0 to 2.99 2.0 Low 1.0 to 1.99

1.0

ANALYSIS

The IFE total weighted score on the x-axis and the EFE total weighted scores on

the y-axis for the Proton company are 3.15 and 3.35, so that the prescription for

division falls into cells I,II,IV that can described as grow and build. Intensive

(market penetration, market development and product Development) or

integrative (Backward Integration, forward integration and horizontal integration)

strategies can be most appropriate for these divisions.

1

11

111

1V

V

V1

V11

V111

1X

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10.0 LONG TERM OBJECTIVE

1. To implement and strengthen more on the marketing strategies in order to

become world class service manufacturing.

2. To develop more on designing and supporting for component of services

advanced technology.

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11.0 RECOMMENDATION

Proton has excessive resources, backward, forward or horizontal integration may

be effective strategies. If Proton too heavily committed to a single product, then

concentric diversification may reduce the risks associated with a narrow product

line. Proton can afford to take advantage of external opportunities in several

areas: they can take risk aggressively when necessary.

From our analysis, Proton we recommend the strategies as below: -

11.1 Repositioning

Repositioning can be used to aim diversity away from existing market by

uncovering new applications, uses or market segment for current product.

In Proton situation repositioning means Proton can niches their

segmentation to be more focus and realistic. By using the same objective,

should Proton repositioning their product more toward the middle segment

people? The answer will be yes. Persona is the best example of

repositioning but it limited in long destination to European and China

market. Proton should develop new services that not only capture sub

domestic market but also future market in Middle East such as UAE, Qatar

or Arab Saudi in addition to increasing better image about quality

automobile industry from Asia.

11.1.1 Advantages

By implemented this strategy Proton can achieve as below advantages in

their performance and operation:

Strategic decisions involving services and product-which product lines

should be continue, which to add and which to delete.

Can identified and select the potential market in which Proton will have

competitive advantage.

Such statement of focus can drive the operations of a firm.

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11.1.2 Disadvantages

By implemented this strategy Proton should also consider several problem

that may occur such as:

Product and services that provide small and limited growth rate will be not

notice as potential market

Limitation in terms of management power and financial cost

11.2 New Product Lines or Additional

New product lines means Proton develop such product (1) new to the

provider as opposed to the market place (2) be additional to the product

range already on offer. For example, Proton can provide service such as

van and buses to tack customer from the local transport to airport or

having travel tour in stop destination for customer during the waiting time

in local destination. This develop new lines in Proton service and other

development can Proton done such as selling Insurance cover to the

passenger.

11.2.2.1 Advantages

By implemented this strategy Proton can achieve as below advantages in

their performance and operation:

It helps in the task of the long term objective

Differentiation, can be based on product quality, product features,

innovation, service, distribution, or strong brand name

Lost cost strategies can be based on an experience curve, which links

cost reduction to cumulative production volume, or on other factors such

as no-frills products or automated production processes.

A preemptive move attempts to generate a “first-mover” advantage.

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11.2.2.2 Disadvantages

By implemented this strategy Proton should also consider several problem

that may occur such as:

Difficult to coordinate various functional are strategies so that Proton don’t

work at cross-purpose.

Focus strategy will direct its effort toward narrow part of either the product

line or the market.

From our research we had find out that proton had develop engineering

expertise and sophisticated manufacturing facilities and have all the ability to

compete in the global market. Step taken by Proton in buying Lotus Engineering

(leader of sports car industry in the world) is a good strategy in order to boost its

capacity in designing and developing its own technology.

Recent strategy under process is establishing distribution channel world

wide with Volkswagen and other well establish corporation that possess the

ability to market the Proton car worldwide. By 5 years from now we believe that

Proton is able to design, develop, test, produce and market its own cars by using

its own expertise and technology worldwide as Honda and BMW do.

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12.0 Time Phase Plan

Implementation Phase 1 Phase 2 Phase 3

Who Cooperate Level Functional Level Division Level

When 1 to 3 month 6 Month to 1 years

1 years to 5 years

Control Tools 1. Benchmarking 2. Budgetary

Control

1. Corrective Action

1. Benchmarking 2. Budgetary

Control

Evaluation Process The Balanced Scorecard

Effective and efficient operation and management evaluation

The Balanced Scorecard

Problems 1. Changing the culture of management 2. Power conflict 3. Legal and law Differentiation 4. Pricing not parallel with quality service

1. Difficulty to adopt the new culture 2. Conflict with personal interest

1.Large numbers of Customers 2. Huge Area to be Recover 3. Longer Time to be Acceptable 4. Not satisfied with the quality services

How To Overcome Contingency Planning

Contingency Planning

Supporting

Final Results 1. Adopts the differences

2. Reducing

Conflict

3. Adopts the new cultures

1. Changes by Time 2. Adopts the differences

1. Increasing the numbers of sales 2. Position as number one company in Consumer product n more markets

32

13.0 Cost Estimates for Recommendation

In order to adopt product development strategy, which involves introducing the

new or modified services to the present markets, we expect the sales and

marketing expenses increase by 11.27%, property, plant, and equipment

increase by 57.4%, administrative expenses decrease by 41.22%, other

operating expenses increase by 59.54%, investing activities increase by 35.62%,

financing activities increase by 29.3%. Income and expenses for each income

statement are translated at average exchange rates.

The estimated useful lives and residual values of property, plant and equipment

based on factors such as business plan and strategies, expected level of usage,

future technological developments and market prices.

Future results of operations could be materially affected by changes in these

estimates brought about by changes in the factors mentioned. A reduction in the

estimated useful lives and residual values of property, plant and equipment in

particular the residual value of aircraft frames and engines would increase the

recorded depreciation and decrease the property, plant and equipment.

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Projected Cost for Automobile Industry

Additional Expenditure

Estimate Money

(RM’000)

Operating activities 250,904 Investing activities 1,575,636 Financing activities 1,140,602

TOTAL AMOUNT 2,967,142

Recommendations for Proton are to enhance its quality of service after sales to

parallel with other automobile from Japan or Korea from aspect safety,

worthiness, technology, and punctuality. Although it provides a cheaper price than

others automobile competitor but more customers not satisfied with their

services. So, Proton must be develop their services to attract and satisfied their

customers.

Another recommendation is Proton should be use a Seven-S Method to improve

their operation system or their structure. Proton also should be done a more

promotion to advertise their services and also image of the company. It can

invest in other country to get higher profit.

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14.0 CONCLUSION

From this study, we can conclude that Proton have a potential in order to perform

well in the global market. With the strengths that they have, they can perform in

the global market if they used all the strengths that they have. Those strengths

can also become competitive advantages to Proton in competing in this industry.

Although there are many competitors for Proton, we believe that Proton can

compete with their competitor effectively with the help of their strengths.

35

REFERENCE Journal and books:

Proton financial statements 30 June 05, 30 June 2007 and 31 December 2007 Christy Harvey, “Greeting lifetime customers”, Customer Relationship Management, October 2001, page 25-26 Christy Harvey, “Greeting lifetime customers”, Customer Relationship Management, October 2001, page 25-26 Fred R. Dvid, “Strategic Management Concept and Cases”, Eleventh Edition, Pearson Education, New Jersey,2007 Kotabe Helsen, “Global Marketing Management” WIJEL, Fourt edition, United Stated of America, 2008 Lamb, Hair, McDaniel, “Marketing”, Seventh Edition, 2004, page 292-315 Mark Steeling, “An Empirical Analysis of Sponsorship”, Journal of Consumer Research, June 97 Martin Christopher, Adrian Payne and David Ballantyne, “Relationship Marketing; Bringing quality, customer service and marketing togethet.” Second Edition, Butterworth-Heinemann Ltd, Oxford, 1994 Sarah Ellison, “On Cloud Blue”, Operating on the low rate but high frills concept, Wall Street Journal, 12February 2002 Seelan Sakram and Bhupinder Singh, “All System Go”, A look At Malaysian General and Commercial Aviation, Asian Economic, February 2004, page 107-109

36

Newspapers and Magazines:

Australia’s Number One Industry Newletter January 2006 Azli Ayob, “Proton tarik balik Savy”, Berita Harian, 3 Mac 2008 David Wolfer, “Proton IPO Price Disappoint”, Fazailah Ptd dan A Precila Shantini. “Proton kuasai semula pasaran tempatan” Berita Harian. 7 Mac 2008 Fazli Ayub, “Bank Negara kekal Kadar Faedah” Berita Harian 5 Mac 2008 Francica Tan, “Proton plans entry to automobile in Thailand Market” Business News, 25 July 2005 Gina Imperto, “Proton in sponsorship deal”, The Star, 22 February 2005 Ismail Jalaluddin, “Proton launches new generation of Saga” The Star, 3 March 2005 Mastura Hamid, “Proton launches persona” New Strait Times, 23 August 2005 Sharizan Salian, “Proton umum tiga lagi kerata baru”, Berita Harian 6 Mac 2008 Tong Gok Chong, “Proton: When the business of doing business comes first” Malaysian Business, July 2005

37

Website:

Financial Report 2005, Mac7 008, 15:00 www.proton.com.sg/financialreport05/

Financial Report 2005, November 2005,14.20

www.proton.com/financialreport05/

KLSE Quates Sorted By Counter, Tuesday, Dec27 05,20.40 www.klse.com.my

KLSE Quates Sorted By Counter, Tuesday, Mac7 08, 14:05, www.klse.com.my

Organizational structure of Proton Company in 2005. 14350,

www.proton.com/investorRelations