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An Introduction to the Skoda Company

The two cyclists, who had been known as Vaclav Laurin and Vaclav Klement, are believed as the founders of Skoda Company. Both cyclists were used to design and produce their own bicycles and eventually it was founded as Skoda. In 1925, Skoda was established in Czechoslovakia and steadily, it was expanded towards Eastern Europe by producing vehicles, farm ploughs, and aero planes apart from bicycles. Skoda must cope with crisis in company background such as conflict, economic problems as well as the changes in the political environment. While the Skoda is grown up internationally, there was a requirement of a strong overseas spouse. By, 1990 Volkswagen AG experienced dominated by signing up for Skoda. Volkswagen AG is recognized as the primary car supplier in Europe by developing variety of branded products such as Volkswagen, Skoda, and Audi (Skoda Vehicle, 2011). The amazing thing is the Skoda UK is advertising Skoda automobiles through its' self-employed network of qualified dealers.

1. 2 Business as a transformation process

In common, there can be an input and end result can be evidently identified in a company. Input may consist of working make, entrepreneurship, capital and land. Result may be goods and services. Therefore, the procedure of transformation is common for all your organizations and the majority of the time, end result can be viewed as as a combo of goods and services (Oxford University or college Press 2007). For a good example considering the hospitality as a small business foods and beverage could possibly be the goods they provide and the lodging will be the service they offer. The critical thing is to be produce outputs which might worth greater than the inputs. In financial conditions, it is recognized as the profit with regards to the organizations which are expecting profits. But, regarding non profit focused organizations such as universities and clinics other indicators are being used to measure the progress. Transformation varies from business sensible. The critical thing is to employing progressive methodologies of value addition for the merchandise and services while cost reducing (Oxford University or college Press 2007). Value addition can be done by processing outputs that the clients are ready to pay money more than common price. Because the brand name may be incorporated with customers' lifestyle and preferences, effective branding bring about superior sales. For an example, plain couple of sneaker can be sold to a higher price by branding it with brands like Nike or Addidas.

Chapter 2

Organizational audit and the business enterprise environment

2. 1 Organizational Audit

Organizational audit is crucial for a small business to meet up with the following targets.

To analyze their organizational framework, procedures and flow chart.

To investigate the contest between your job descriptions, tasks and the circulation chart of the business.

To emphasize the unsatisfactory areas of the current composition of the business.

To define development paths for improvement of the business.

To satisfy these goals organizational audit is being done by analysis of existing data, summary reporting, specific interviewing procedures and analysis of uncooked data obtained through the studies. Organizational audit is vital for a small business to cope with the business enterprise environment.

2. 2 Business environment

It is thought that business transformation process might not occur in vacuum pressure. Firms are influenced in particular frameworks and subjected by the business enterprise environment. Business environment can be divided in to two.



Micro environment contain individuals or organizations that your business offer with a normal basis. It could include customers, employees, distributors and suppliers that are known as the stakeholders. That all components may possess the direct engagement of the business activities and it could be afflicted by the actions of the business. Therefore, it can be figured micro environment play a vital role in the success and the action of your business. The macro environment may contain factors that are lying outside of the immediate control of the business. It includes market, policies of the government and also the interpersonal changes. Since these macro factors can generally change the environment of your business one individual business can rarely do much alone to condition them. Theoretically, the macro environment can be examined by using PESTEL research. (Scott, 1982)

Chapter 3

The PESTEL evaluation for Skoda Company

PESTEL Analysis

PEST examination is the methodology of studying the macro environment in almost all of the countries. But, the expanded Infestations model which is recognized as PESTEL is commonly used in UK (CIPD, 2009). PESTEL is stand for Political, Economical, Social, Technological, Environmental and Legal research. It explains the put together of macro environment with regards to the business enterprise environment.

Referring to the political factors, it includes policies executed by the government including the involvement throughout the market. In addition, it includes the type of goods and services to be produced and the priorities in relation to the business support. The political decisions may play a essential role for some businesses which are related to education health and also in the infra composition facilities. Taking into consideration the Skoda Company, the changes in regulations such as accounting criteria, taxation requirements and environmental regulations and legal power of the overseas states may impact on the business especially in the international trade. Therefore, it is advisable to monitor the government authorities' procedures and legislation in a continuing manner. (Lynch, 1999)

Economic factors can include economic growth, interest rates, exchange rates as well as the inflation rate. Those will be the factors that could have the potential to make effects on operations and decisions. Discussing Skoda, interest rate may have an impact on its' cost of capital. Therefore, it decides the amount of the progress of the business enterprise and extension. Exchange rates may have an impact on the expenses of exporting goods and the source and price of imported goods.

Social factors include ethnic aspects, health perception, population development rate, age syndication, career attitudes and emphasis on safe practices. Changes in sociable factors affect in the merchandise demand and operation. For example, increasing age process may make smaller and less-willing labor force. This might lead to increasing the labour cost. Therefore, referring Skoda to handle these trends there must be various management ways of be implemented. For a good example, it ought to be more worried on get older limit of the employees when recruiting new personnel.

The factors such as rate of technical changes, automation and the technological inducements altogether considered as scientific factors. Those factors may effect with the outsourcing decisions, market admittance barriers and reliable production level of a company. When contemplating the Skoda, it is producing top quality motor automobiles. Therefore, technology should be their main emphasis. Because, it generates opportunities for new products and product improvement in relation to the marketing. As the technology improvements, services may kick off. (Scott, 1982)

Ecological and environmental aspects such as weather, weather, and local climate changes can be viewed as as environmental factors. Those factors may especially influences business such as travel and leisure, farming, and insurance. Furthermore, growing awareness of the potential effects of climate change is affecting how companies operate and the merchandise they offer, both creating new marketplaces and diminishing or demolishing existing ones.

Discrimination legislations, consumer laws, antitrust law, career law, and health and safety law can be considered as the element of the legal factor. These factors can effect with the procedure process, cost of development and the demand for the products. Legal aspect mainly targets the effect of the nationwide and world legislation. The Skoda Company will get all the protection under the law applicable in the type of the business and every innovations and product developments are always entering the branded process. I. e. Audi, Skoda.

The PESTEL factors are coupled with external micro-environmental factors and inner drivers in relation to the business enterprise. Furthermore, it could be discussed as opportunities and threats in a SWOT analysis.

Chapter 4

The SWOT analysis for Skoda Company

SWOT Analysis

SWOT is stand for Strengths, Weaknesses, Opportunities and Threats. Strengths can be described as internal components of a business that lead to its' expansion. Weaknesses can be recognized as the capabilities that can make disturbances business or make the business susceptible. The exterior conditions that may lead to future development are known as the opportunities in SWOT. Threats are referred to as the exterior elements which will make negative effects on a business. (Lynch, 1999)

To recognize its advantages, Skoda obtained information through researches from both customers and also from the reliable indie surveys. For a good example, annual JD Power customer satisfaction study had questioned the automobile owners about their emotions on the vehicle for previous half a year by using questionnaire for about 20, 000 owners. Based on the results Skoda dominated in the very best five car manufacturers for previous 13 years (JD Electricity 2010). Not only that, in 2007, Top Gear's review revealed that one of the 56, 000 viewers Skoda dominated as the main car manufacturer (Top Gear 2007). Corresponding to those results, Skoda discovered that the business excelled at gratifying its customers when focusing the owner experience rather than on sales together. Almost all of Skoda's customers would recommend Skoda branded vehicle to others, means that Skoda possessed a distinctive durability. As a result, Skoda manufactured automobiles that their customers could enjoy, alternatively than simply making the most of the sales. Therefore, Skoda brand name themselves as a quality product that satisfies its customers.

Skoda's analysis confirmed that in order to grow the business required to addresses issues about how exactly the small company match the highly competitive market. An out-dated perception of the Skoda brand, related to the business's Eastern European origins, contributed to the business' small size. By 1999, Volkswagen AG possession had transformed this bad attitude about Skoda. But, in 2006 brand Health Check uncovered that the weakened and neutral image in mid market range is still existing when compare to the Ford, Peugeot and Renault like brands (UK Branding 2006). Though, Skoda still deficient of a solid charm, it is noticed that the business needed to decrease the defensive campaigns exemplifying the particular brand was not and start new promotions illustrating what Skoda had to provide. The change was simple and Skoda knew that its owners were satisfied with their vehicles.

Skoda had became aware that its rivals' marketing solutions are mainly focused on the merchandise itself. However in contrast, Skoda will concentrate its attention on emphasizing the owner's experience with their autos and the customers' satisfaction with Skoda vehicles. This SWOT research may lead Skoda to tell apart its product from its opponents.

Considering the united kingdom market, there are 50 different car creators reselling around 200 vehicle models. To survive in this large and competitive market, Skoda needed to ensure that its note would not be lost or drowned out within the packed environment. Because of this, Skoda had produced seven different autos such as city car, luxurious car, and family car handling different market sections with subsequent degrees of pricing.

Chapter 5

The planning for a business and implementation a fresh strategy

5. 1 Strategic planning, Tactical planning and Operational planning

Depending on the PESTEL and SWOT evaluation, the business plan for the business should be created by the management of the business. Planning process can be determined as three stages such as strategic planning, tactical planning and operational planning.

Strategic Planning can be considered as a long term planning attempted by senior management of a business. I. e. the professionals. It includes making decisions that may work toward reaching an organizations quest and vision assertions.

Tactical planning it the middle term planning. It may range from weeks up to about two years. This involves middle management those who plan ways of achieve a business's' tactical goals.

In contrast, functional planning is boring planning managed by front series managers. They could report to middle management and enact the knee work of the strategies produced by middle management to accomplish strategic goals.

5. 2 Execution of the new strategy

Novel business strategies are designed to increase the overall utility of an business, its employees and increase profitability of the business. But change may be troublemaking and can be costly within its framework as employees offer with new steps, information technology, products or an organizational matrix. To reduce the cost, disturbances and negative effects of implementing new strategies, it will implement a strategy for implementation. Essentially, a well planned and accomplished execution plan may lead to reduce confrontation to the changes. The procedure of implementing a new strategy can be determined as six major steps (Kaplan and Norton 2010).

Split the new strategy into smaller portions.

Aware the employees about the map of change

Create and post a scorecard for the new implementation, aiding as a cheerleader to employees throughout the process that success is acceptable step sensible.

Acquiring the reviews regarding the new strategy at each stage by employee research.

Request customer satisfaction.

Doing the correct modifications in the new strategy, time scale and goals predicated on feedback and customer satisfaction.

5. 3 Conclusion

With the focused research of the PESTLE, the Skoda Company will continue steadily to emerge and develop if they have the ability to find solutions in several challenges that the entire firm might face in the future. Since the external environment is extremely complex and powerful it is important to executing the PESTEL in a normal basis. Basically, it may not possible to identify almost all the significant changes in the business environment. But, still they may in a position to find some of those critical changes through their assumptions and that will lead them to take the correct decision in the foreseeable future. At the moment the PESTEL structure is further broadened as STEEPLE and STEEPLED by taking into consideration the moral and demographic factors. Therefore, it can be important to stick to this latest model, because in some businesses those factors considered to be critical. To boost its performance, it can be needed to execute a brand placement exam by obtaining market research data from both inner and exterior audits, allowing Skoda to carry out a SWOT analysis.

Skoda's SWOT analysis may facilitate the company to disclose that customer satisfaction by purchasing their products. Not just that, it also reveals that the brand was no more regarded as a poor, out-of-date car, the company could operate within a position in the market, and a change in public areas notion was very important to Skoda's ability to broaden within an extremely competitive market.

SWOT analysis makes the fresh information which might accumulated from a study in to an order therefore, it could support managers to investigate both internally and externally. Therefore, it could also highlight the main element internal weaknesses of a business, and also the strengths the particular management should be alert on their business. Depending on the SWOT and PESTEL research, it is required to implement a fresh business strategy. The critical thing is to put into practice that home based business strategy without disrupting the business.

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