What Characteristics A Foreign Partner Must Have Essay Example
What Characteristics A Foreign Partner Must Have Essay Example

What Characteristics A Foreign Partner Must Have Essay Example

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  • Pages: 3 (697 words)
  • Published: May 2, 2018
  • Type: Case Study
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The asset turnover ratio gauges the efficiency of asset utilization for income generation by management. Proton's ratio shows little variation from 2005 to 2009, indicating inadequate financial management. The government considers Proton an emerging industry despite its joint ventures and controlling stakes. This coincides with Proton's contentment with its progress since inception. Question 2 queries the ideal attributes a foreign partner should possess to optimize synergies.

In order to produce superior products, Proton requires cooperation with other companies as it lacks sufficient resources to function independently. For the collaboration to be successful and mutually beneficial, the foreign company must possess certain qualities that will aid Proton in maximizing its synergies.

Technology advancement or expertise

Honda, Haunted, Toyota, Mazda and other automotive companies are known for their efficient technology upgrades based on customer preferen

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ces. However, in our opinion, Proton has not kept pace with technology advancements in the industry and may face the possibility of collapsing or shutting down due to high competition in the automobile industry.

Proton can benefit from both the technological advancements and marketing strategies of its foreign partner, which will help improve their products and ensure their global distribution. It is important that the partner has extensive industry experience and effective marketing techniques to continuously promote the product's brand and presence in a highly competitive market. Such partnerships may also positively impact Proton's future sales.

Production efficiency

Collaborating with a highly efficient company is essential for Proton to achieve good product quality and cost savings in the automotive industry, where expenses are high. This helps ensure maximum customer satisfaction while minimizing production costs. Moreover, the need for collaboration is drive

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by factors such as capital investment.

Proton can enhance its company by increasing and fully utilizing its capital. It should prioritize learning and adapting to new technologies to improve product quality, as it currently lacks experience in producing high-quality cars. Good performance and functionality of products are essential factors in the automotive industry, closely tied to quality.

To improve their products, Proton should regularly monitor quality and customer preferences. Thorough research is important to identify current product strengths and weaknesses, which will inform future innovation. Proton's distribution network in Malaysia could also be utilized to introduce competitively priced products for an advantage in the automotive industry.

To enhance public perception and marketing strategies, it is crucial to establish customer trust in Proton products. This can be achieved by creating superior products and implementing effective marketing tactics during these challenging times.

The 2009 National Automotive Policy review has identified potential areas of collaboration with Proton in the event of a partial merger or takeover. One such area is the elaboration of manufacturing licenses for high-impact segments in the industry, which can result in higher margin production for Proton and the manufacture of business-related and environmentally friendly vehicles.

To increase its competitiveness and viability in the global market, Proton may consider a strategic partnership with an Original Equipment Manufacturer (MOM). Additionally, a gradual phase-out of importing used commercial vehicles, parts, and components should be implemented. This would involve prohibiting all imports of used parts and components as well as used commercial vehicles.

Proton should prioritize technology by promoting the production of critical and high value-added parts, as well as high value and green technology. With current technological

advancements, Proton can invest in developing hybrid and electric vehicles while also promoting their production of essential parts and components.

Why would additional information beyond the case be useful for Useful Alai to provide a more significant recommendation?

Disclosing certain items in the Income Statement, corporate information Research and Development, and SOOT Analysis would be helpful as Proton has not provided detailed information regarding its costs and expenses from 2005-2009. Examples of items that should be disclosed include the cost of sales, distribution cost, administrative expenses, and finance cost.

Reporting the amount of R cost in the income statement is important as it can assist Useful Alai in determining whether Proton's research efforts have been successful or not. By comparing the cost of research to the research outcomes, Useful Alai can gain insight into the effectiveness of Proton's efforts.

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