preview

case Study : From Saga to Proton

Decent Essays

ACC 4291 INTEGRATED CASE STUDY SECTION 1 CASE REPORT CASE 3: PROTON – FROM SAGA TO EXORA Question 1 From a financial analyst perspective, has the proton management done a good job? Based on the financial performance of PROTON from 2005 till 2009, our observation from a financial analysis perspective showed that Proton management has not done a good job as far as financial performance is concern. The Key Financial Indicators (KFIs) covers measurements such as basic earnings per share, net assets per share; dividend paid as well as retained earnings carried forward. At a glimpse, almost all the KPI of Proton shows decrement throughout the years. Basic earnings per share (EPS) fluctuated vastly from 2005 to 2009. Proton recorded highest …show more content…

On its own, PROTON has limited funds for research and development. Therefore collaborating with bigger automotive players lend research and development (R&D) capabilities would be very beneficial, particularly in production of hybrid and electrical vehicles. Question 3 What broad consideration should determine the part of proton that are worth keeping and developing and matter of operation needs to be relocated or closed down? Proton needs to reconstruct its business structure by forgoing some part of business which are not worth keeping and expand those activities which generates ample profit. After analyzing Protons overall condition, firstly, the partnership with Lotus has helped Proton in strengthening the engineering, providing Proton an edge in Europe. Since Lotus is a British company that builds sports car, they have very well developed motor engineering technology which might be a gold opportunity for Proton to move forward and create more elegant and high-performance car models. In, Lotus even appeared in the Paris Auto Show 2010 with five slick looking sport cars. In order to move forward, Proton should seriously invest in R&D with its strategic partner Lotus, to strengthen quality which they are unable to do themselves. In order to draw sales, you have to know how to attract

Get Access