Figure 1: Renault Morocco Growth
These Case Studies were written from students at the SZIE Szent Istvan University in Gödöllö. The international Mechanical Engineering students have visited the lecture “Enterprise Management”.
In this book Case studies from different companies will be presented. The development of their enterprises, the position in the market and their strategies.
Prof. Dr. Patrick Siegfried Ph.D. has worked with the students. He has the Guest professorship for Entrepreneurship at the SZIE University, Faculty Mechanical Engineering.
Mohamed, A.
Through the creation of employment in other economic sectors, the automotive industry has an enormous and critical role in the economies of many countries—the implementation and enhancement of the car industry. However, have adverse environmental and social effects. The automobile industry recently started paying particular attention to its operations' ecological and social impacts because of the rising strain.
The country is classified as Africa's 2nd largest automaker, behind South Africa, and the 1st manufacturer of passenger cars. In the same year, Morocco's automotive industry created more than 148,000 direct jobs (over the 2014-2019 period), comprised more than 250 companies, and produced more than 400,000 vehicles with a local integration rate of 60 %.
Today, Morocco has four main industry clusters, Tangier, Kenitra, Rabat, and Casablanca, and four institutes of specialist education. The European industry accounts for 80% of the automobiles assembled geographically, primarily for France (31%), Spain (11%), Germany (9%), and Italy (9 percent). Turkey (8%) and Arab countries are also destinations (5 percent).
This article will examine the various facets of Renault's strategic management of the PESTEL, PORTER, and SWOT analyses. How are these techniques to strengthen Renault's competitive strategic vision?
In 2012 Renault was founded in Tangier, Morocco. This manufacturing site has changed the automobile industry landscape radically by being the fruit of a relationship between the Kingdom of Morocco, Renault, and Veolia Climate, both zero carbon and zero industrial fluid emissions.
In light of growth, which it knew over recent years, the Moroccan automotive sector has expanded its strategic emphasis on national industrial policy. For the next decade, it still provides more possibilities. Morocco was also one of Africa's countries that followed their independence with the formation of the Casablanca SOMACA assembly line in 1959 and introduced an industrial strategy for the automotive industry.
Figure 1: Renault Morocco Growth
Furthermore, the government is considered the Moroccan automotive sector as a threefold strategic sector in terms of job creation, wealth generation, and foreign exchange generation. Therefore, the Moroccan government does not hesitate to get involved in its development. It shows the willingness to carry the sector, structure it, and create the perfect conditions for its development. The Moroccan government offers investors some packages providing infrastructures, quality services, incentive framework, and human resources training solutions.
The National Pact for Industrial Emergence (NPIE) designated the automotive industry as one of its key sectors. In September 2007, Renault revealed a plan dedicated to establishing a new assembly plant for private cars in tangier with an annual capacity of 340,000 vehicles, and whose construction cost was estimated at 1 billion euro.
In February 2012, Renault finished its initial building process and began running its first assembly line, which has 170,000 units annually of capacity. It is also announced that a second production line, with 170,000 units of annual capacity or 340,000 vehicles of total yearly capacity, was built in October 2013. In 2014 Sandero's right hand is being produced for the UK market, Lodgy Taxi, and Lodgy & Dokker Step. Renault-Nissan Tangier sponsored the Chennai plant to begin Lodgy in India directly in 2015 as a mother plant. This was the 500,000th car's manufacturing time.
Following on the same route, Renault Group Morocco welcomes its suppliers in Tangier in 2016 and signs agreements to improve the ecosystem with the state. After that, the Renault plant in Tangier will celebrate the launch of 1,000,000 vehicles in 2017. The 318,600 cars on Renault Tangier lines also marked a major annual high in 2018.
PESTEL Analysis
It is one of the technical instruments of importance in strategic management and marketing. It is essential for a situational study before some form of strategy or tactical approach can be introduced.
The PESTEL is also part of this and should be replicated periodically to recognize macro-environmental changes. Organizations that track and respond effectively to changes in the macro-environment may separate themselves from competitive advantages.
In the example below, we will show the Renault Company macroenvironment with the tool PESTEL.
Six Forces Model (Porter)
This Porter six-power model is a strategic method for industries to determine profitability and competition. It also offers a view or viewpoint by analyzing six main market areas and competitive strengths that form any sector.
Figure 2: PESTEL Analysis of the Renault Morocco
This model aims to define the structure and capabilities of the market to establish a business strategy better.
Suppliers
Strategic business area
Key success factors
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.1
Figure 1: SWOT Diagram
Strengths
Weaknesses
Threats
Opportunities
Strategic market analyses on the entity or unit level describe, characterize, scale, and prioritize its programs and initiatives. It guarantees the organizations match the goals, objectives, and plans of the company.
The 3D (user*function*technology or who*what*what*how) benchmark helps to understand the target market's reach. For instance, a business may concentrate on a limited customer base but make a difference with its excellent market awareness. It can opt alternatively to represent a larger market and expect savings in size.
This definition of the target market also helps define how the company differentiates its offering from the rest of the market, sometimes even when it decides to address several market segments and differentiate its offering between its different products. For example, one of Renault's problems with the Twingo launch was not to cannibalize the Clio market. One of the problems with manufacturing the Logan at €5,000 is not cannibalizing the small car market at €10,000.
Renault is now ready to introduce more multinational, centralized regionalized companies related to efficiency, technology, and profitability through synergistic development and productivity results, equal if not to the world's leading car manufacturers.
Renault implemented an integrated, efficient strategy that was based on a just in time approach, which enforced the full control of quality and increased competition on the level of international standards in the case of Samsung and Dacia.
References
BOOKS/RESEARCH
1. Research article dissemination of sustainable practices in Moroccan automotive industry: the case of Renault-tangier. AHADDACH/M. AMMARI/L. BEN ALLAL/A. LAGLAOUI. ABDEL MALEK ESSAÂDI UNIVERSITY, Faculty of Sciences and Techniques, Tangier, Morocco.
2. Le cas Renault | dossier de management stratégique | exercice 5. ALMUDENA DE SI-MON/AUDE WARTELLE/DAMIEN GUERY /MATTHIEU ALBRIEUX /ANASS ABDENABAOUI.
ARTICLES
3.Morocco reaps the benefits of the car industry strategy. The North Africa Post. February 22, 2019
4. Moroccan automotive value chain profile and opportunities
a. Mr.Zouhair Kanouni. Trade Commissionner/Ambassade du Canada au Maroc Rabat - Souissi, Morocco.
5. Renault-Nissan Tangier plant, the largest in Africa.MAP/OCTOBER 9, 2013.
WEBOGRAPHY
6. https://blog.oxfordcollegeofmarket-ing.com/2016/06/30/pestel-analysis/
7. https://businessanalysisexperts.com/strategic-business-analysis/
8. https://www.in-vestopedia.com/terms/s/swot.asp
1 https://www.investopedia.com/terms/s/swot.asp
Almesber, L.
Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn't need to compromise to drive electric that electric vehicles can be better, quicker, and more fun to drive than gasoline cars.
Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better.
Launched in 2008, the Roadster unveiled Tesla's cutting-edge battery technology and electric powertrain. Tesla designed the world's first-ever premium all-electric sedan from the ground up" Model S," which has become the best car in its class in every category. Combining safety, performance, and efficiency, Model S has reset the world's expectations for the car of the 21st century. It has the most extended range of any electric vehicle, over-the-air software updates that make it better over time, and a record 0-60 mph acceleration time of 2.28 seconds as measured by Motor Trend. In 2015, Tesla expanded its product line with Model X, the safest, quickest, and most capable sport utility vehicle in history that holds 5-star safety ratings across every category from the National Highway Traffic Safety Administration. Completing CEO Elon Musk's "Secret Master Plan," in 2016, Tesla introduced Model 3, a low-priced, high-volume electric vehicle that began production in 2017. Soon after, Tesla unveiled the safest, most comfortable truck ever, "Tesla Semi, "designed to save owners at least $200,000 over a million miles based on fuel costs alone. In 2019, Tesla unveiled Model Y, a mid-size SUV with seating for up to seven, and Cybertruck, which will have better utility than a traditional truck and more performance than a sports car.
Tesla is taking a proactive approach to safety, requiring production employees to participate in a multi-day training program before setting foot on the factory floor. From there, Tesla continues to provide on the job training and track performance daily so that improvements can be made quickly. The result is that Tesla's safety rate continues to improve while production ramps.
To create an entire sustainable energy ecosystem, Tesla also manufactures a unique set of energy solutions, Powerwall, Powerpack, and Solar Roof, enabling homeowners, businesses, and utilities to manage renewable energy generation, storage, and consumption. Supporting Tesla's automotive and energy products is the Gigafactory1a facility designed to reduce battery cell costs significantly. By bringing cell production in house, Tesla manufactures batteries at the volumes required to meet production goals while creating thousands of jobs.
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