Porsche

Porche Marshall

April 9, 2017

Managerial Finance

Porsche

Porsche's are the greatest production sports car in the world, because of their manufacturing, innovation, and production methods, high performance and sleek design. Shaping the future of the sports car is their strategy. At the heart of the strategy is their future product portfolio. The sports car of the future will blend the history and values of the Porsche brand with innovative technologies, while at the same time ensuring sustainability. In achieving this, topics such as electro mobility, digitalization and connectivity will play an important role. Embracing these topics will allows them to shape the exclusive and sporty mobility of tomorrow. Nevertheless, with all the innovations and modifications in front of them, one thing remains constant. Anything that carries the Porsche crest will also feature the excellent quality that is synonymous with Porsche.

The company's main objective is to achieve value-generating growth. Only by achieving such growth can we make sustainable investments in innovative technologies, new products, and most importantly, in their team. With this approach they are already on their way towards rethinking sporty mobility. They strive to want to excite customers with their products and services. They are also aiming to consolidate their reputation as an excellent employer and business partner that fulfils its social and environmental responsibilities. And the return needs to be sufficient too. They have plenty of resources to achieve their objectives: vehicles that will take your breath away and a team that is passionate about its work.

The Porsche consultants develop individual project plans for their clients in order to continuously reduce the costs in direct and indirect production processes. They start with a comprehensive analysis in which they determine the relevant cost drivers and how they are interconnected with waste in the processes. They then determine which cost reduction targets should be reached for which departments and processes. And finally, they define the right measures and set up a control system to monitor them. With the help of a project management office, they continuously check and control all the activities. This is what ultimately results in a measurable increase in efficiency.

Looking at Porsche’s revenue from 2002 until 2015, it is definitely safe to say that the CEO and management staff from then to now has done an excellent job. However, they did hit a bump in the road in the 90’s. The company almost went bankrupt until the new CEO Wendelin Wiedeking, stepped in and saved the company. Its production became inefficient and wasteful because of the recession. Porsche’s revenue has increase yearly by significant amounts. The Porsche brand’s deliveries to customers increased by 18.6% to 225 thousand sports cars in the reporting period. According to their annual report, with 58,009 vehicles, China became the brand’s largest single market for the first time, thus superseding the USA, where Porsche delivered 51,756 units. Porsche sold 219 thousand vehicles last year, 17.0% more than in 2014.