Business Decision - week 5 (porshe)

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  • Created by: jf00632
  • Created on: 07-03-19 09:17
When was Porshe found and who by?
Founded in 1931 by Ferdinand Porsche with son-inlaw Anton Piech father of VW Chairman Ferdinand Piech.
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What did it start selling?
Started as The Porsche Engineering Office (PEO) selling engineering design to other car makers
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What did Hitler ask in 1934?
1934 Adolf Hitler asked PEO to make a car for the people ”Volkswagen
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What was VW first car?
VW first car was the VW Type 60 and first dedicated plant started manufacturing in1938
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When did it start production and with what series?
Porsche started production in 1948 with the Porsche 356 series
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How many of porches cars were still on the road in 2011?
2011 97.4% of Porsches purchased 25 years ago are still on the road
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What were named the most reliable cars?
The Cayman and Boxster named the most reliable cars
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What was named as the most relaible german car?
The 911 as the most reliable German car
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What were Porshes problems? (5)
1. Individual craftwork uncoordinated 2. Lack of collaboration with the entire production line 3. Rigid simultaneous engineering system 4. Focused on one type of cars 5. Just in time sales
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What were some more of their problems? (5)
Joint production with VW 7. Already crowded market 8. Launched a new model with little understanding of the requirements of women 9. Association with mass market 10.40% of development capacity belong to VW
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Problem identification?
Production was fat and wasteful 2. Weak USA economy resulting reduced orders 3. 1999 they were producing virtually what they produced no additional income to reinvest ( figure 2 )
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Outside engineering (3)
Essential part of the Porsche business model 2. Clients owned the research Porsche produced -> Porsche reserved the right to use it if the client chose not to. 3. This IP could not be sold to anyone else.
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Outside engineering (2)
Porsche could test, develop ideas funded by its clients. 5. Exception being VW where they were forbidden to design a car for another company between 1.0 and 1.3 litres 1949-1974
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Outside engineering (3)
Unique position of working with a number of US carmakers and Harley Davidson 7. Porsche Engineering services(PES) not seen as a competitor due to limited production 8. All visitors signed a confidentiality agreement
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outsdie enginerring (2)
PEG worked with nearly all auto makers worldwide. 10.Revenues at about 3 percent
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Outside engineering (2)
New blood 600 graduates budget of $30 million to finance internships, 10% would be offered jobs and others would be part of an alumni network that could be called upon for research etc. 12.2006 PES is sold
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Their competitors (outsourcing engineering)
Lotus engineering–Sola–Hawtal Whiting–MSX international Inc–Modern Engineering Inc
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their competitors (performance sports car manufacturing)
Ferrari–Maserati–Lamborghin
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their competitors (brands with substitutes)
Audi, BMW, Mercades
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What did the new CEO do to turnaround the company?
1.Introduced lean manufacturing 2.Team concepts and processes3.Synchronised engineering 4.New models5.New relations6.Slashed production costs7.Used Porsche cash to enter the financial markets: currency hedging8.Buy VW
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What did the chairman of VW agree to?
•2008 Porsche board included the chairman of VW who agreed to increase their shareholding from 31% to 50%
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Porsche takeover of VW or VW acquisition of Porsche? (3)
1. 2005 Porsche acquires 20% of VW 2. 2007 increased share to 31% 3. 2008 Porsche owns more than 74% of VW
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Porsche takeover of VW or VW acquisition of Porsche? (3)
Hedge funds loose money as they expected value of VW shares to fall5.Investigation of “Market abuse”6.Unable to complete takeover as VW law creates an anomaly
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Porsche takeover of VW or VW acquisition of Porsche? (3)
7.Government of Saxony own 20.1% which blocks a majority.8.Porsche cannot change this law9.VW share stay high even though other companies are looking value
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Porsche takeover of VW or VW acquisition of Porsche? (3)
10.2009 Porsche is in trouble at the start of financial crash. 11.Porsche has large tax liability12.Qatar considers purchasing Porsche
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Porsche takeover of VW or VW acquisition of Porsche? (2)
13.VW buy the 50% share in Porsche14.A Porsche tax liability is resolved by the merger of VW and Porsche.
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Card 2

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What did it start selling?

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Started as The Porsche Engineering Office (PEO) selling engineering design to other car makers

Card 3

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What did Hitler ask in 1934?

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Card 4

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What was VW first car?

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Card 5

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When did it start production and with what series?

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