Distribution de PSA du groupe Citroën (document en aglais)

Adrien Bouly

STRATEGIC MANAGEMENT

ASSESSMENT

PSA

SOMMAIRE

Introduction

I- Presentation of PSA

II- External study

a- PESTEL Analysis

b- 5 forces of PORTER

III- Analysis of the Value Chain and Key Factors In Success.

a- Capacities

- VRIO

IV- SWOT analysis

- Opportunities/Threats

- Strengths/Weaknesses

V - business level strategy

VI - corporate level strategy

Bibliography

Conclusion

Introduction

PSA Peugeot Citroën is a French automotive manufacturer, in which the Peugeot Family is the main shareholder with almost 30 % and hold the automotives brands Peugeot and Citroën.

With a production of 3,605,524 vehicles in 2010, the group ranks as the second European manufacturer behind the German group Volkswagen AG (7,341,065 units) and the 8th World (6th in 2009), just behind the Japanese Honda (3 643 057 cars) and well ahead of Japanese Suzuki (2,892,945).

In 2010, the company ranks 1st in France, with 32.4% market share for its two brands combined.

In this study, I am going to make an Internal + External Analysis of PSA, and deal with the business level strategy.

I- PRESENTATION OF THE COMPANY

1.1) History

1810 :The Peugeot company launches its metallurgy business.

1890: First petrol car manufactured by Peugeot

1919 : Launch of the Type A car, the first Citroën car.

1976: The PSA Peugeot Citroën Group is created by the merger of Citroën S.A. and Peugeot S.A. Automobiles Peugeot and Automobiles Citroën become wholly-owned PSA Peugeot Citroën subsidiaries

1977 : Jean-Paul Parayre appointed Chairman of the Managing Board replaces François Gautier.

1978 : PSA Peugeot Citroën acquires Chrysler Europe.

1979 : - The Talbot brand is introduced to replace the Chrysler brand in Europe.

- Creation of Compagnie Générale de Crédit aux Particuliers (Crédipar).

1980 : Peugeot and Talbot merge

1984 : Jacques Calvet appointed Chairman of the Managing Board

1987 : Aciers et Outillages Peugeot and Cycles Peugeot merge to form ECIA, a PSA Peugeot Citroën subsidiary and pan-European auto equipment manufacturer.

1992 : DCAC joint-venture set up with Dongfeng Motors to assemble Citroën ZX models in China. The final assembly plants is built in Wuhan, Hubei Province, while mechanical components production is based in Xiangfan.

1997 : Jean-Martin Folz appointed Chairman of the Managing Board

1998 : - Acquisition of Sevel Argentina

- ECIA completes a friendly acquisition of equipment manufacturer Bertrand Faure. The new company, named Faurecia, is more than 50% owned by PSA Peugeot Citroên.

- Common-Rail, direct Injection HDI diesel engine presented and later offered on all the Peugeot and Citroën line-ups.

2000 : Diesel particulate-filter system unveilled and introduced.

2001 : Porto Real production plant inaugurated in Brazil.

2002 : Joint-venture DPCA created with Dongfeng Motors to expand cooperative production of Peugeot and Citroën models in China.

2004 : New Automotive Design Network ( ADN) center inaugurated in Vélizy to house all of the Group's styling studios and innovation teams

2005 : Joint PSA Peugeot Citroën - Toyota production plant inaugurated in Kolín, Czech Republic.

2006 : New production plant inaugurated in Travna, Slovakia.

2007 : Appointment of Christian Streiff as Chairman of the Managing Board

2008 : The cornerstone is laid for the Kaluga plant in Russia and an agreement is signed with Mitsubishi Motors Corporation.

2009 : Appointment of Philippe Varin as Chairman of the Managing Board.

2010 : Signature of a joint-venture with China Changan Automobile Group in China (approved by the Chinese authorities in July 2011).

2011: BMW and PSA Peugeot Citroën invest 100 million euros in a new hybrid technologies joint-venture.

2012 : PSA Peugeot Citroën and General Motors create a long-term and broad-scale global strategic alliance

1.2) Activity

PSA Peugeot Citroën is a major European automakers with 13.3% market share in Europe. It built on a strong general two brands, with global reach and distinct personalities through coordinated international strategies and a plan consistent product. In addition to his major automaker, PSA Peugeot Citroën has three main businesses: financing of commercial networks and customers automotive brands (Banque PSA Finance), transportation and logistics (Gefco) and finally the design and production of components and modules for the automotive production (including PSA Faurecia is the majority shareholder).

The turnover of the group PSA Peugeot Citroën reached € 59.9 billion for the year, up 6.9%.

The operating profit of the group falls declined to € 1.3 billion against € 1.8 billion in 2010.

After an increase of 1.8% in the first half to € 1.2 billion, operating income of

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