cost-cutting programme

Cost-Cutting Programme

Erstaunliche AutosTompkins & Kosters inc.

1. SWOT Analysis2. Cost-Cutting Recommendations3. Sales-Increasing Recommendations4. Expectations5. Q&A Session

Table of Contents

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Tompkins & Kosters

1.Strenghts: -Experienced car manufacturer -Established brand name2. Weaknesses: -High production costs

SWOT

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Tompkins & Kosters

3.Opportunities: -Fast growing market in China Sales growth of 32% -Many countries offering cheap labour4.Threats: -Fierce international competition

SWOT

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Tompkins & Kosters

1. Close Belgium factory:Offer Belgium quality managers

jobs in Indian factoryEmployment programme for

Belgium factory workers

Cost-Cutting Recommendations

5

Tompkins & Kosters

Productivity Chart

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Tompkins & Kosters

2.Introduce 5-day workweek:

Increase of productivityDecrease of production costsTo

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Cost-Cutting Recommendations

Tompkins & Kosters

3. Select Indian Suppliers: Lower costsQuality agreements in contractQuality checksTransport by ship

Cost-Cutting Recommendations

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Tompkins & Kosters

4. Establish factory in India for Chinese Market

Near China Low labour costsSent quality managers

Cost-Cutting Recommendations

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Tompkins & Kosters 10

Factory Location

Tompkins & Kosters

1.Engineer fuel-efficient cars:

Discounts in European countriesSales will increaseBoosts reputation and brand

name11

Sales Increasing Recommendations

Tompkins & Kosters

2. Luxury cars for Chinese market:

Produced in IndiaRolls-Royce sales growth: 53%Bentley sales growth: 43%

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Sales increasing Recommendations

Tompkins & Kosters 13

Car Sales China

Tompkins & Kosters

3.Covert Advertising:Sponsor films by giving carsExamples: James Bond, Mission

Impossible

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Sales-Increasing Recommendations

Tompkins & Kosters

Expectations

15Tompkins &

Kosters

1. Close Belgium Factory

2. Open Indian factory

3. Select Indian suppliers

4. Engineer fuel-efficient cars

5. Enter Chinese market

6. Covert Advertising

Q&A

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