Porsche Macg Case Study

1797 Words8 Pages
1.0 Porsche AG in brief Porsche AG emerged in history when Dr. Ferdinand Porsche established in 1931 the design firm Dr. Ing. h.c. F. Porsche KG, which rolled out the first design of the Volkswagen Beetle (Porsche AG history, 2015; Henderson & Reavis, 2009). The first Porsche branded vehicle came of the plant in 1948. Its products are renowned for their high performance and excellent handling capability. In 1964, it introduced the Model 911. However, Porsche AG suffered drastic drop in its 1991 sales and a three-year losing streak followed, forcing new CEO Wendelin Wiedeking to radically cut on costs. In 1996, the lower-priced Boxster rolled off and demand outpaced production and Porsche AG went back to profitability. For the outsourced car…show more content…
3.4 Threats: Political strife and economic slowdown in markets: This threat is only weakly applicable to Porsche AG. For instance, in Italy where economic uncertainties persist in 2014, the premium segment showed solid growth of 39 percent year-on-year (Porsche AG, 2014). Moreover, in Europe, where its key markets (e.g. Italy, France, Russia, and Eastern Europe) suffered from the economic backlash of the Ukraine crisis, growth continued at 20 percent. However, political strike in Syria, Iraq, Yemen, and Nigeria resulted to economic issues that cut on its sales. 4.0 Quality of decisions…show more content…
This approach to financial management had put to shame behemoth automakers with single-digit to zero profitability against revenues. However, as the company takes on larger markets globally, current financial controls may prove difficult to sustain. This is particularly true to Porsche as a group of automobile manufacturing companies, which experienced low profitabilities (e.g. Volkswagen). Thus, there is a need to take a closer look into the financial management of these subsidiaries and follow the model of Porsche

More about Porsche Macg Case Study

Open Document