The story of PSA Peugeot-Citroen starts with the Peugeot's brothers when they started to provide accessories for clock factories in 1810. Lead by the industrial revolution, they rapidly began to build cars; the 100000th car was reached in 1925. In the 1970's, Peugeot took Citroen over and the group PSA Peugeot-Citroen, a kind of holding which managed its several activities (cf. appendix: Activities organization chart p.1-3 and activities presentation), had been created.
Now, PSA Peugeot-Citroen is the 7th manufacturer worldwide with 3,457,000 cars produced ahead its main French competitor Renault-Dacia-Samsung which is 10th with 2,669,000 cars.
The biggest manufacturer in the world is Toyota-Daihatsu-Hino. Nevertheless, PSA is the 2nd European constructor and the first in France.
This paper is split in three parts: firstly, the environment of the firm, then, two analysis such as organizational structure and strategic capability analysis and finally a discussion on the issues. Some ideas explained are based on my experience with car dealers of the brand Peugeot. The study will focus on the French market.
The environment analysis contains three parts: Porter's 5 forces, PESTEL analysis and opportunity and threats.
[...] To sum up this environmental analysis, let's design the opportunities and threats for PSA Peugeot-Citroën on its market. Opportunities are the fact that the demand is attracted by poor CO2 emitters cars (cf. article: Peugeot Citroën leads the CO2 emissions in Europe”) and PSA has the lowest rate CO2 emission in Europe (cf. appendix: “Bonus/Malus Aftermath”). And Christian Streiff, the chairman of the board of PSA, announced the strategy and ambitions of the group until 2010-2015, the project is called a very ambitious strategy (cf. [...]
[...] suffering from the general growth of the metal products' price. (cf. appendix: material price level” p.). To conclude, the group controls the most part of its supplying system but it's powerless at the hands of the raw material price growth. The second force is the bargaining power of customers; they are of course the main interest of each business. We differentiate two types of customers: particular and professional. The production and the market shares of foreign cars in growing (cf. [...]
[...] article: “Factory closure in Poissy” and by the crisis, PSA suppress 3550 jobs”). (Suitet of the political side: cf. appendix) The socio-cultural side leads us to reflect on the consumption habits. The French people are starting to become aware of the environment issue. Now it so much a big issue that a famous French environmental militant, after had threaten to be a candidate at the last elections, created a polemic during the presidential election. He managed to introduce an environmental policy in the government which wasn't really settled (cf. [...]
[...] Activities presentation Name Activities Comment Faurecia Equipment manufacturer Seats Vehicle interior These Front end entreprises Exhaust systems doesn't contract exclusively with Peugeot and Citroën Gefco Services supply chain management Overland, sea and air transport etc Supply chain expertise (global sourcing, inbound logistics ) PSA finance Suggest to customers a range of financing solutions Finances the vehicles and replacement parts inventories Peugeot Production/Distribution of motorcycles motorcycles Peugeot/ Production/Distribution of vehicles Citroën Raw material price level Number of enterprise creation Brand new cars quotation since 2004 Currency quotation Currency quotation Source : “Annual report” CCFA Car spending evolution Bonus/Malus Aftermath Executive board Evolution of manpower Source: “Annual report” PSA Peugeot Citroën Kanban principles References Electronic journal articles The 2,500$ car [On line] Available at: http://metalib.hud.ac.uk/V/3Y28LXERE7YVB8PIFNV5PBX1H1B17SLGG653EDNP55QATPU47 5-24534?func=quick-3&short- format=002&set_number=006898&set_entry=000006&format=999 [Accessed at 2November] Driving on air [On line] Available at: http://www.forbes.com/technology/forbes/2008/0505/058.html [Accessed at 4 November 2008] Factory closure in Poissy [On line] Available at: http://www.lemonde.fr/web/imprimer_element/0,40-0,50- 1122679,0.html [Accessed at 2 November 2008] Hit by the crisis, PSA suppress 3,550 jobs [On line] Available at: http://www.lemonde.fr/cgi- bin/ACHATS/acheter.cgi?offre=ARCHIVES&type_item=ART_ARCH_30J&objet_id= [Accessed at 2 November 2008] French TV presenter looks for presidency [On line] Available at: http://proquest.umi.com/pqdweb?did=1176717681&Fmt=3&clientId =67318&RQT=309&VName=PQD [Accessed at 6 November 2008] Green Cars for Those with Lots of Green [On line] Available at: http://metalib.hud.ac.uk/V/U68USD4UU32ACD3KTDLNNJQTUIS7BM2G8DLYNHJ1KD5I2QT3N V-05768?func=quick-3-full- save&doc_number=004834749&format=999&encoding=UTF_TO_WEB_MAIL [Accessed at 27 October 2008] Credit crunch aftermath on the automobile sector [On line] Available at: http://www.senat.fr/questions/base/2008/qSEQ08100162G.html [Accessed at 9 November 2008] Car tax aims to spur green upheaval [On line] Available at: http://proquest.umi.com/pqdweb?did=1506148741&Fmt=3&clientId =67318&RQT=309&VName=PQD [Accessed at 10 November 2008] Bonus/Malus aftermath [On line] Available at: http://www.cnpa.fr/includes/fileview.php?id=11637 [Accessed at 8 November 2008] No low cost in France [On line] Available at: http://www.leparisien.fr/automobile/mondial-auto-2008/psa-ne- fera-pas-de-low-cost-en-france-02-10-2008-263083.php [Accessed at 12 November 2008] Websites Annual report CCFA (French car constructor committee) [online] Available at: http://www.ccfa.fr/IMG/pdf/Analyse_Statistiques_2008_FR.pdf [Accessed at 28 October 2008] Annual report PSA Peugeot Citroën [online] Available at: http://asp.webpublication.fr/v2/index.jsp?id=152/127/1018&lng=fr [Accessed at 28 October 2008] Car spending evolution [On line] Available at: http://www.insee.fr/fr/themes/detail.asp?ref_id=ir-conso2006 Accessed at 2 November 2008] History of PSA Peugeot-Citroën [On line] Available at :http://www.histomobile.com/dvd_histomobile/histomo/22/history1.asp [Accessed at 28 October 2008] Activities presentation [On line] Available at: http://www.psa-peugeot- citroen.com/fr/psa_groupe/groupe_b1.php [Accessed at 2 November 2008] Number of enterprises creation [On line] Available at: http://www.insee.fr/fr/themes/document.asp?ref_id=ip1120®_id=0 [Accessed at 2 November 2008] Brand new car quotation [On line] Available at: http://www.insee.fr/fr/ffc/ipweb/ip1159/ip1159.pdf [Accessed at 5 November 2008] Currency quotation, source: CCFA [On line] Available at: http://www.ccfa.fr/IMG/pdf/Analyse_Statistiques_2008_FR.pdf [Accessed at 4 November] PSA Peugeot Citroën leads the CO2 emissions in Europe [On line] Available at: http://www.peugeot.com/en/news/2008/9/2/psa-peugeot- citro%C3%ABn-leads-the-co2-emissions-in- [...]
[...] PSA uses a system of platform which enables to build, on a same, base different models in the same range no matter which brand is it. Given that the group produced 3,670,400 cars in 2007, PSA estimated this process generate 600 millions of saving. Thirdly, the supply cost. Thanks to the vertical integration the building and logistic costs are reduced, the supplier's margin is removed. And finally: the experience. PSA got the advantage of its old experience: more than a century which is longer than its main competitors like Toyota or Volkswagen. [...]
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