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Swot Analysis Of Psa Peugeot

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Recommended: Describe the process of strategic plans

RODUCTION Achieving a competitive advantage position and enhancing firm performance relative to their competitors are the main objectives that business organizations in particular should strive to attain. A well designed organizational strategic plan and strategic human capital plan is essential. Raduan C. et al (2009) contends that Strategic planning helps determine the direction and scope of an organisation over the long term, matching its resources to its changing environment and, in particular, its markets, customers and clients, so as to meet stakeholder expectations (Johnson and Scholes, 1993). The business environment is constantly changing and being associated with …show more content…

It posted a 1.4 percent drop in first-quarter group sales, dragged down by negative currency effects, but the French carmaker said it was more optimistic about the European auto market this year ( Markets: Wed Apr 27, 2016 2:41am EDT).

1.1.2 CHALLENGES FACING PSA PEUGEOT
i. Most of its global auto sales is concentrated in Europe. This lack of geographical concentration exposed the firm to a high degree of business cycle risk in Europe. ii. Market coverage focused more on light vehicle segment, accordingly high sales volume of business in this type of segment exposed the firm to substantial financial risk. iii. Inefficient production configuration. Most of the group output capacity was based in France, a country with very high production costs and low productivity. iv. Automotive manufacturers and suppliers are confronted with increasing complexity as a result of increasing numbers of products and options, shorter technology cycles, increasing pressure to innovate and global supply networks.
v. Demographic changes and profound shifts in global economic power are causing massive upheavals in

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