Corporate and business strategy of PSA Peugeot-Citroen

Résumé du document

PSA Peugeot-Citroën Company is a French car manufacturer, property of Peugeot family. In 2010, the company was the leader car manufacturer in France and the second in Europe taking over Volkswagen . Nevertheless, PSA had to face some issues. As a strategy consultant for PSA, my aims are to solve these problems. Thus, I decided to analyze the "Organizational structure", that means the internal business of the company then I will work on the "Macro environmental and industry analysis" trying to find an appropriate strategy.

I chose to study the internal situation of the company to establish a complete diagnosis before setting up a strategy. I began with a functional analysis of the organization. This allowed me to identify the strengths and the weaknesses of each internal functions of PSA because they are necessary before the elaboration of an action plan.

Then I analyzed the key factors of success imposed by the environment. It is essential for a company to know and control these elements to remain competitive in the market. The market and the purchasing behaviors evolve faster, a company has to remain informed of these factors as it can lead to the risk of losing market shares.

Finally, I studied the value chain of PSA. According to J. Gopalkrishnan , "the value chain is a systematic approach creates by Michael Porter to examine the development of a competitive advantage. The chain consists of a series of activities adding some value. They end in the total value supplied by a company." The key factors success and the value chain are both necessary to understand the nitty-gritty of the company operation in order to have a competitive advantage

Extraits

[...] To complete this external study, I analyzed the opportunities and threats. Conclusion Through these analyses, we can raise the situation of PSA Peugeot-Citroën in the current context. Because of the economic crisis, the car manufacturers have to revise their strategy to boost their growth. An in- depth restructuring is necessary to get out of this crisis. Companies such as General Motors were almost completely bankrupt, nevertheless this company was a major actor in the world automobile market. http://www.drivingvisionnews.com/pdf/PSA_report_profile.pdf J. [...]

[...] Now, thanks to these two models, I am able to analyse the whole business environment of PSA Peugeot-Citroën Company. Before elaborating a new strategy, we have to identify the strengths and weaknesses of the company. According to Philippe Varin[3], CEO of PSA, the group is mainly composed of competent working teams and offers high quality and innovative products. Moreover, the company is deeply committed to sustainable development. For instance, PSA has sold low emissions cars (120g CO2/km) in Europe in 2010. [...]

[...] Corporate and business strategy of PSA Peugeot-Citroen PSA Peugeot-Citroën Company is a French car manufacturer, property of Peugeot family. In 2010, the company was the first car manufacturer in France and the second in Europe behind Volkswagen[1]. Nevertheless, PSA has to face some issues. As a strategy consultant for PSA, my aims are to solve these problems. Thus, I decided to analyse the “Organisational structure”, that means the internal business part of the company, then I worked on the “Macro environmental and industry analysis” to try to find out an appropriate strategy. [...]

[...] Outbound logistics: Once the production completed, the vehicle are sent to dealers. Marketing and sales: It is about the advertising and sales force. Service: They are all the services associated with the purchase of a vehicle as a guarantee extension or additional options. Support activities: Procurement: This function is nothing more than the negotiation of the prices for the purchase of raw materials. Technology development: It is the investment spent by the company to improve its products in order to obtain a competitive advantage. [...]

[...] The main strength of PSA is to offer wide ranges of products for every need. For example, the model SW developed by Peugeot transforms the classic models of the brand into station wagon models (207sw, 307sw, etc.). Moreover, for the professionals, Peugeot and Citroën propose a wide range of commercial vehicles (Partner, Berlingo, etc.). These two brands are also very involved in the small urban vehicles market and offer each their models. In order to reduce the costs and facilitate the production of vehicles, Peugeot and Citroën use a platform sharing management[4] which consists to use the same bases for the vehicles of equivalent range. [...]