1. The Saab Case
Group 3: Nele Rogenbaum, Robert-Jan van de Waal, Amit Rawat, Philip
Avornyo
April 11,2012
2. Presentation content
• Sweden, Culture and business
• The Bidders (Cultural Dimensions and Business styles)
• Prospective Changes
- Marketing Strategy
- Organization Culture
- Image
• The Saab Dilemma
• Dilemma Reconciliation
3. Sweden Culture and Business
Sweden= believe in equality
Flat management structure
Decentralized decision making
Meeting and arguments are debate based.
Silence is considered to be virtue
Emphasis on written documentation and communication
Parallelism for women and men
Independence in task execution
Sustainable business practices
Marketing strategy SAAB: Independent, unconventional, futuristic
Brand perception SAAB: quirky, innovative, safe, high value for
money
5. The Bidders
China= (Confucianism) emphasis on love for
humanity, learning, peace, justice, devotion to India= hierarchy based
family - Concern for relationships are demands of the
- Focus on relationships and obligations situation. Knowing people is the key
- Long tradition of functional bureaucracy - Individuals are responsible for themselves
- Formal, maintain social distance, senior person within the group
leads discussions - Strong respects for responsibilities, hierarchy
- Indirect communication specially concerning age and social status, educational
opinion, criticism, conflict etc achievements require respect.
- High context communication; who when where - Multi ethnic, multi cultural; women on top are
carries the message respected
- Lack of access to information and feeble - Recent economic achievements and
empowerment willingness to work hard
- Women at the top are respected - Extensive exchange of information to make
sure right person takes the decision
Turkey= relationships - Team leaders take responsibilities for failures
- Spend time in establishing and successes
relationships
- Maintaining high level of formality as
hierarchy is important
- Communications tend to be indirect
- Most senior business person takes a
parent role
- Deadlines and high pressure
techniques are not used in business
negotiations
- Personal relationships are extremely
important
Male dominant society
6. China Youngman Automobile Group Co. Inc.
Organizational Culture
Flat management structure vs. hierarchical
Decentralized vs. Centralized
Written vs. verbal communication
God working environment for women employees
Independence in task execution vs. team dynamics
Marketing Strategy
Focus on well laid showrooms with easily identified trends and values.
Focus towards the high selling products.
Focus on promotions to create catalytic effect on consumer buying behavior.
Focus towards reliability, functionality and technical performance.
Focus on relationships promotions through Internet advertisements .
Brand Image
The brand will be perceived as a European luxury brand and high value for money.
Brand will be perceived as reliable, functional and instead of quirky and innovative.
The technical excellence and safety as a core base of brand perception shall remain .
7. Turkish Brightwell Holdings
Organizational Culture
Working environment for existing women in the company will change.
Moving from decentralized to centralized operations
Lack of deadlines and low-pressure environment may add up to the creativity of Saab team.
The execution through managing and focusing on building long-term relationships will help in
enhancing business.
8. Mahindra and Mahindra
Organizational Culture
The multicultural environment will pose a challenge.
The hierarchical framework shall delay decision-making and curb innovation within the company.
The mix of individuals taking higher responsibilities within the group.
Centralized versus decentralized.
Women in the organization may find it easy to adhere to the changes in leadership.
Marketing Strategy
The intention of Mahindras is to employ the technological edge of Saab in their company, to improve their
existing product quality.
The acquisition will heavily marketed and advertised.
Infusing Brand Image of Saab to Mahindras.
Mahindras will try pushing their products through the European networks of Saab
Brand Image
Brand image of Saab will uplift Mahindras to eventually introduce them in the European market.
Technological and competitive edge over the competitors.
The Saab as brand will eventually be associated as being a part of Mahindra’s.
9. Description of Dilemma: Identification of dilemma:
On the one hand: What Saab does(Functionality) How will Youngman satisfy
On the other hand: What Saab is (Status) customers with demand
Dilemma Holder: YOUNGMAN’s CMO for highly luxurious cars to
create status and not
10 1,10 10,10 dissatisfy customers with
prime focus on only
Positives: technical performance with
Reliability functionality as well as
good product and service
Measurable
cars.
results BELOW ARE ON THE DIAGRAM:
Chart of the dilemma:
Link to relevant dimension:
5,5 Stretch of the dilemma:
Epithets:
Reconciling the dilemma:
Action points:
Negatives:
Lack of status as
a luxury brand
Loss of Rich
Chinese
customers
10,1
What Saab is (Status) Dimension: Achievement
0,0 10
Positives: Negatives: Action Plan: The behavior supports:
Increase sales in China Loss of reliable Provide highly technical Creativity in using the less
Win other customers with customers
Less product and with luxury cars at a costly raw material
taste for luxury cars service associations premium price. Ability to be innovative
and focus on functionality
and safety.
10. Description of Dilemma: Identification of dilemma:
On the one hand: Low Context (No loyalty to a model) How will Turkish Brightwell
On the other hand: High Context (Create loyalty to a model) Holdings create the balance
Dilemma Holder: BRIGHTWELL HOLDINGS ‘ CMO between loyal-to-a-model
customers and no-loyal-to-
10 1,10 10,10 a-model customers in order
to maintain the company’s
Positives: heritage?
Promotions BELOW ARE ON THE DIAGRAM:
Chart of the dilemma:
driven cliental Link to relevant dimension:
Increase sales Stretch of the dilemma:
Epithets:
Reconciling the dilemma:
5,5 Action points:
Negatives:
Are not generally
reliable
Less participation in
Company’s social
activities.
Monotonous
information
10,1
High Context (Create loyalty to a model) Dimension: Communitarian
0,0 10
Positives:
Creates personal relationship with the Negatives: Action Plan: The behavior supports:
company It takes time to build a High customer orientation Be customer savvy
High profit margin
Reliable for social activities organized by the relationship. Participation in social Design innovation
company Low sales
In-depth knowledge of models
Builds trust Very slow activities
Enticing customers
11. Description of Dilemma: Identification of dilemma:
On the one hand: Consistency (easy and same trends) How will Indian Mahindra &
On the other hand: Flexibility (Try new things/brands) Mahindra create the
Dilemma Holder: MAHINDRA AND MAHINDRA’s CMO balance between
customers who are very
10 1,10 10,10 consistent as well as
reliable to Saab products
Positives: and customers who can
Reliability easily switch to the new
model such as SUVs?
Customer loyalty
BELOW ARE ON THE DIAGRAM:
Chart of the dilemma:
Link to relevant dimension:
5,5 Stretch of the dilemma:
Epithets:
Reconciling the dilemma:
Action points:
Negatives:
Task the company
to be clear with
everything
May not patronize
new brands
High degree of
standardization
10,1
Flexibility (Try new things/brands) Dimension: Particular
0,0 10
Positives: Negatives: Action Plan: The behavior supports:
Not difficult to deal with Low brand loyalty Highly trained sales Ability to learn new ways
Increase sales personnel of sales
Empowerment of brand Standardize show rooms. Ability to synchronize
existing and new practices