Peugeot Citroen Case Notes - PSA Peugeot Citron: Strategic...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
PSA Peugeot Citroёn: Strategic Alliances for Competitive Advantage? CASE ASSIGNMENT You are the Chairman of the Supervisory Board for PSA Peugeot Citroen, and you have invited Christian Streiff to join the company in the capacity of Special Advisor, reporting to the Chairman of the Managing Board. As he considers the possibility of taking on the new role, he has requested another meeting with you to gain more insight into the company's direction and strategies. In particular, he has asked to discuss the following points: 1. Review the company's business strategy. How does PSA differentiate itself from its competitors? 2. Review the company's international strategy. What actions is PSA taking to pursue global opportunities? 3. Review the company's cooperative strategy. How does PSA overcome the risks and manage the difficulties of participating in multiple strategic alliances? 4. Discuss the merits of PSA's independent research initiatives. Should the company take a less independent approach to further accelerate innovation? To prepare for your meeting with Streiff next week, you decide to outline the critical material that you want to be sure to cover. Streiff would be a great resource for your top management team, and you would really like to see him join the company. This meeting is your opportunity to convince him to be a part of PSA's exciting future. 68
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PSA Peugeot Citroёn: Strategic Alliances for Competitive Advantage? STRATEGIC ACTIONS: STRATEGY FORMULATION 1. Review the company's business strategy. How does PSA differentiate itself from its competitors? PSA Peugeot Citröen's business-level strategy is to deliver a diversified customer offering based upon a controlled number of platforms to manage product costs. PSA's potential growth is linked to the company's ability to satisfy a wide range of customer expectations by bringing distinctive, innovative cars to market as quickly as possible. Efforts to expand model portfolios are based on the platform policy and play a core role in vehicle design and production. The platform policy contributes to model diversity and efforts to bring distinct new models into each market segment at a faster pace. A platform is a base (made up of the subframe, powertrain, transmission and chassis system) which is shared across different body styles (hatchbacks, estates, MPVs, cabriolets or coupes) to develop several Peugeot and Citroën models. PSA's platforms correspond to lower/mid-range, upper/mid-range and executive vehicles. The platform policy optimizes the use of production capacities, covering at least 60% of a vehicle's production cost. It makes it possible for PSA to lower costs, reduce assembly times, use industrial resources more flexibly (as dictated by commercial needs) and maximize the utilization rate of assembly capacity. The company's goal is to ultimately have each assembly plant in Europe organized around a single platform to maximize the benefits of the approach.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Peugeot Citroen Case Notes - PSA Peugeot Citron: Strategic...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online