Porsche - Strategic management case

5409 Words Nov 14th, 2013 22 Pages
BUS 497A

California State University Northridge
Fall 2013

List of content
History ................................................................................................................................................. 2
Takeover by Volkswagen................................................................................................................. 2
SWOT analysis ................................................................................................................................... 3
Strengths........................................................................................................................................... 3
Weaknesses
…show more content…
Takeover by Volkswagen
As mentioned earlier, because Ferdinand Porsche designed the first Beetle, there has always been a relationship between Volkswagen and Porsche. In 2005 Porsche bought an 18.65% share in the VW
Group to prevent other companies from taking over the VW Group. Two years later Porsche had a plurality stake and intended to eventually increase their share to 75%. However, in their pursuit of a

1

http://en.wikipedia.org/wiki/Porsche#History and case material

2

majority holding of VW Group the company built up debt exceeding 10 billion EUR and in the end was unable to acquire enough capital. This resulted in Porsche and the VW Group merging to an
“Integrated Automotive Group” with VW taking control. As VW was eager to use Porsche’s human resources in their other division, a large restructuring followed and Porsche also got a new CEO.
After the case was written, the VW Group acquired full ownership of Porsche by buying the remaining shares from Porsches shareholders for 5.61 billion USD2.

SWOT analysis
In the following we will use a SWOT analysis to evaluate the factors in Porsche’s internal and external environments, and we will specify which strengths, weaknesses, opportunities, and threats that are new to the company as a division of Volkswagen Group.

Strengths
One of Porsches main strengths are the engineering capabilities they have. As mentioned earlier the company has a great history of engineering
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