1.

Introduction

1.1 History of Mazda

Jujiro Matsuda (1875-1952) forms Toyo Cork Kogyo, a business that makes cork, in
Hiroshima, Japan; just over a decade later the company produces its first automobile and
eventually changes its name to Mazda. Today, Mazda is known for its affordable, quality-
performance vehicles, including the Miata, the world’s best-selling two-seat roadster.

The company launched the Mazda-Go, a three-wheeled vehicle that resembled a

motorcycle with a cargo-carrier at the back. The company’s car development plans were halted
during World War II and the bombing of Hiroshima. In the 1950s, Mazda began making small,
four-wheel trucks. The company launched its first passenger car, the R360 Coupe, in 1960 in
Japan. Seven years later, Mazda debuted the first rotary engine car, the Cosmo Sport 110S.
Mazda entered the American market in 1970, with the R100 coupe, the first mass-produced,
rotary-powered car in the U.S. In 1978, the Mazda RX-7, an affordable, “peak-performing”
sports car debuted. The following year, the Ford Motor Company took a 25 percent stake in the
company.

In 1989, at the Chicago Auto Show, Mazda unveiled the MX-5 Miata, a two-door sports
car carrying a starting price tag of $13,800. According to Mazda, the concept for the car was:
“affordable to buy and use, lightweight, Jinba Ittai (‘rider and horse as one’) handling, and
classic roadster looks.” The 2000 “Guinness Book of World Records” named the Miata the best-
selling two-seat convertible in history.

There is another milestone for the company, a Mazda 787 B won the 24 Hours of Le
Mans race, becoming the first rotary-powered car as well as the first Japanese-made auto to do
so. However, Mazda was impacted by the economic slump in Japan in the 1990s and in 1996,
Ford took a controlling stake in the automaker and rescued it from potential bankruptcy. The two
companies shared manufacturing facilities in several countries along with vehicle platforms and
other resources. In 2008, Ford, which had been hurt by the global economic crisis and slumping
auto sales, relinquished control of Mazda by selling 20 percent of its controlling stake for around
$540 million. (Also that year, General Motors sold its stake in Japan-based Suzuki Motor.)

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 In 2009, Mazda celebrated the 20th anniversary of the MX-5 Miata, whose sales by then
had topped nearly 900,000 and which had won almost 180 major automotive awards.

2. Planning and Strategic Management

2.1 Basic strategies used to respond to uncertainty (Defender, Prospector, Reactor and Analyzer)

Mazda’s history dates back to 1920 with founder Jujiro Matsuda. The small scale
proprietorship was renowned for its quality product upheld until now. A business that makes
cork in Japan, just over a decade later the company produces its first automobile and eventually
changes its name to Mazda. Today, Mazda is known for its affordable, quality-performance
vehicles, including the Miata, the world’s best-selling two-seat roadster.

Reactor

Mazda’s company make adjustments and reacts only when finally force by environment
pressure. To maintain their position, the company had chosen the reactor strategy in order to
respond to uncertainty.

For example, in February 2012, Mazda announced Structural Reform Plan, in order to
address changes in external environment and ensure future growth, and have implemented major
initiatives. Under the Structural Reform Plan, Mazda reinforces business in emerging countries
and establish global production footprint, such as new automatic transmission plant in Thailand
launched as planned and operations are on track and New Mazda2 launched simultaneously in
Hofu, Thailand, and Mexico.

Defender

From the brief introduction from above, we can conclude that Mazda’s Company is
applying the Defender strategy in their business. The company are expert at producing only.
Besides, they do not tend to find any opportunities outside their market as their produce and sell
products which are expert to them.

The company focuses on the improvement of the quality of their products. Moreover,
Mazda’s company also tries to produce a more effective way than their competitors such as
Toyota and Honda. For instance, to ensure that an equivalent product quality to that of vehicles
produced in Japan is maintained, production and inspection processes similar to those in Japan

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are introduced. Mazda also, Mazda facilitates the sharing of quality information among
production sites globally, thereby enabling overseas production sites to ensure an equivalent
level of as found in vehicles produced in Japan.

Under its Corporate Vision, Mazda further advances the efforts it has made and promotes
united collaboration among all areas, continuing to enhance Mazda’s unique value.

2.2 Establish mission and vision

Mission

 Roles and responsibilities

With passion, pride and speed, we actively communicate with our customer to deliver
insightful automotive product and services that exceed their expectations.

Vision

 Corporate vision

To create new value, excite and delight our customer through the best automotive
products and services.

2.3 Perform SWOT analysis

Strength

 Basic Approach to Human Resources

Mazda recognizes that people are its most important resource and aims to be a company
staffed by people who enjoy their work. To this end, the company promotes human resources
training based on the Mazda Way principles that are shared throughout the entire Mazda group
worldwide. Also, the company has established group-wide human resources policies and
measures along with promotion of various initiative.

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  Good management system

Mazda views the enhancement of corporate governance as one of its most important
management issues, and along with statutory bodies including the General Meeting of
Shareholders, Board of Directors, and Audit & Supervisory Board, the Company has
introduced .an executive officer system to separate execution and management functions This is
intended to expedite decision-making by increasing the effectiveness of the Board of Directors as
a supervisory body, by enhancing the deliberations of the Board of Directors, and .by delegating
authority to executive officers As of June 30, 2015, Mazda’s Board of Directors is composed of
eight members, two of whom are outside corporate directors with a high degree of independence.
A quorum for a Board of Directors meeting is a majority of the Board members. The average
attendance rate of the Board members was over 90% in FY March 2015.

 Pursuing Innovative Design

Seeing a car as not just an object but as an animate thing, Mazda has pursued designs that
purely represent the power of life beyond the limit of conventional vehicle shapes, and explored
various forms that depict “motion.” In its work to further evolve these designs, Mazda has
focused on the strength, beauty and tension found in the instantaneous movement seen in
animals. For example the lighting adjustment is important for bringing out the beauty of forms.
Mazda thinks the different shape of body of car would create different lovely shades of light and
darkness in relation to the direction the light comes from. So, they will design new shape of car
that brings beautiful lighting adjustment and good-looking in every colors. For example the
'KODO – Soul of Motion' design direction has shaped the dynamic style and premium presence
of All-New Mazda2, Mazda3, New Mazda6 CX-5, CX-9 and our first small SUV, Mazda CX-3.

Weakness

 Low car performance

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 While Mazda 3 is been produced on 2008 there is some of the customer complaints about
the air condition not functioning, clutch and engine failure in Mazda car on the web. Mazda
should solve all these problem and get a good performance of the car so can fulfill the
customer’s needs.

 Bad attitude of employees

The employees of Mazda Company will blame the customer’s bad habit of driving when
the customer bring back their car for repair. It may be the employees is too confident of
themselves. This may cause the low confident of customer to the whole company. Manager of
Mazda Company should take action in changing the employee’s bad attitude to the customer
such as participate in additional training and giving advises.

 Small business units

In Malaysia, Mazda can only found in big city such as Kuala Lumpur and Putrajaya
which is also attractive place for tourists. However, some places which is considered as high
population of people such as Klang, Shah Alam, Subang Jaya but Mazda store is less to be seem.
Mazda may can apply outlet in these place so that the people can get chance to know more about
Mazda and purchase Mazda car.

Opportunities

 Global market

Mazda and its Zoom-Zoom spirit, races alongside the top automakers in Japan. It
comprises more than 50 subsidiaries, including sales companies: Mazda Motor of America,
Europe, and Australia. The company manufactures in Japan, China, and Thailand.

 Increase sales growth rate

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 Setting a 20-year record, Mazda tallied 24,123 vehicles sold for April 2015 and year-
over-year sales up 7.5 percent. As sixth-generation vehicle sales grow so does SKYACTIV®
TECHNOLOGY. In April 2015, 91.0 percent of Mazda’s sold were equipped with SKYACTIV
TECHNOLOGY. Sales are up 14.0 percent.

 New market

In 2015, Mazda Southern Africa is proud to announce the introduction of the Mazda with
advanced technology, improved functionality and refined interior and exterior design to the
South African market. The 2015 Mazda CX-5 is the first Mazda model in South Africa.

Threat

 Strong competition

In Malaysia, there are many other car company such as Honda, Nissan and Toyata. When
the number of competitors increases, choices of customer increases and the profit decreases. So,
the customer may try new things and reduce the sales.

 Limited models

Mazda is well-known as a slow moving car brand which means Mazda spend long time
to produce new car. For example the period of time of first generation and second generation of
Mazda 3 is about 4 years. At these time, other car company may get the chance to produce new
products such as good designs of car’s body, a better air conditioner, to fulfill the customer’s
wants. Mazda can maybe have their new plan to shorten the time in producing cars.

 Environment

Environment surrounding the company’s activities is rapidly changing, and it can be

expected to change even further in the future. Continued growth is anticipated. However,

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unforeseen or unanticipated effect would reduce the disposable income. Mazda can take action in
reusing/recycling booth decorating items, decreasing the amount of handouts to reduce CO2
emissions and implementing carbon offset by calculating CO2 emissions from event activities.

2.4 Assess the grand strategy of the company

Grand strategy of Mazda is having growth strategy to expansion such as market

penetration, market development and product development. Growth strategy have many different
type of way and step to help the business stable in the market. Mazda put their effect at marker
development which increase sales by developing new market and geography-wise.

Mazda develop their marker through establish the branch company in other country such
as Mazda Motor Europe which is the regional headquarters of Mazda for the European market. It
was established in 1998. It has grown rapidly over the past few years due in large part to its
ambitious product development plan, which launched a new generation of cars. The company
views Customer Relationship Management (CRM) as a key factor in helping to acquire new
customers and building loyalty for repurchases going forward. However, it lacked a consistent
European-wide CRM program to support the growth strategy.

Therefore, Capgemini worked with Mazda Motor Europe to develop a cross-divisional

CRM road map and implementation plan for the company’s key European markets. The single
European CRM process and systems platform, operating on Siebel, establishes end-to-end
processes from campaign set-up to customer management execution. The new system established
the foundation for Mazda Motor Europe to develop improved CRM capabilities in a consistent
and uniform way. The solution will also allow the company to continue to expand its CRM
strategy in the future.

2.5 Assess the competitive strategies used by the company

Four competitive strategies display the competitive advantage in an organization in order

to success a distinct position in the market. Whereby, the four competitive strategies are cost-
leadership, differentiation, cost focus and focus-differentiation. Mazda is focus- differentiation.

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 Mazda offers unique and superior product in a narrow market. Mazda is to be unique and
valuable to customer. Mazda new high technology——SKYDIV engine—— which is 20 percent
better fuel efficiency is very attractive for all people nowadays because it can reduce cost.
Moreover, there are many innovative design in the car body which brings good shades of
lightness and darkness and this will actually captured the eyes of customer to buy it.

Mazda has its own website and catalog is upload on that website. Customers can actually
take references without going out. In fact, Mazda has also upload the company’s number,
customer who is interest or has any question can contacts the number and gets more information.
This facilities actually convenient.

Mazda is aimed serve the needs of a specific customer group such as working people,
housewife, and college students. They produces unique technology and design of the car which
makes the customers who consumes Mazda’s product are willing to pay price rather than hesitate
about the price.

3. Recommendation

3.1 Utilizing the identified strengths and opportunities

Strength

 Basic Approach to Human Resources

For a company, having a good basic approach of human resources is very important.
Mazda Motor Corporation has done a good job in this field. They know how to give their
employees a good working environment. A good working performance will only be done in a
good working environment such as a good relationship between colleagues and superior.

 Good management system

One of the way to maintain a good management system in the company is hold a general
meeting at least once per year. This is to ensure that the members of the board of directors are
chosen under the agreement of the other shareholders. It can avoid others that are unsatisfied
with the person who have been chosen. Besides that, if the company is facing any big problems,

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it can be propose at the meeting and decision can be done immediately and avoid facing any
loos.

 Pursuing Innovative Design

The Mazda Motor Corporation can recruit more people who are expert in the interior
design. For an example, they can hire more young people to work in their design team. This is
because most of the young people can come out with some new, fresh and creativity ideas in
their design. Besides that, Mazda Motor Corporation can also pay higher salary for the position
of the design team. With this approach, the company can attract other good and experience
designer from other company to work in Mazda. If the company using this two solution, it will
let the company become more internationally and it can help to increase the sales.

Opportunities

 Global market

Mazda is a top automakers in the Japan or in the world. To get the global market,
company should analyze which country is the most suitable country to sell our product. This is
because the company can avoid the loss. After that, company should plan what type of cars we
mainly sell in which country. For example, in Malaysia, economy cars are the popular, so
company can use economy car-type as flagship product in Malaysia to cater the Malaysian.
Mazda also can analyze the product which will has market in the future.

 Increase sales growth rate

To increase the sales growth rate, we should analyze that what type of the car is needed
most in nowadays. We can collect the information via doing survey with online. This is easy to
increases the growth rate if we have the products that suitable and convenient for the customer.
We can also sell our products follow the upsurge flavor of the people nowadays. For example,
young people would like to have a sport car but usually they wouldn’t buy it because they are
expensive and normally will buy sedan as their car but if we design a product that “sporty

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sedan”, young people will attracted and our sales maybe will grow up. Company also can
produce the mini car with cheap price to attract more customer which needs car in short time.

 New market

Nowadays, many automobile companies already give up in sport car market because
people now need a sedan car more than a sport car. Company can try a new market to make a
product that is unique and only Mazda have. For example, there are many fans of RX series sport
cars in all around the world. Mazda can make the special edition and limited of RX series to
attract the fan to buy it. Company can set a high price to sell this product. Although the price is
expensive, there is still a market for the fans to buy the product. Company also can produce the
motorcycle to establish a new market of motorcycle to gain more profit.

3.2 Overcome the identified weaknesses and threats

Weakness

 Improve car performance

To improve car performance, company can use the high quality of accessory to improve
the engine performance to solve the engine failure problem well. This is to make sure the quality
and performing of car is always on the level. Otherwise, manager should make sure that the
employee do not use the inferior materials that will cause the air-conditioning problem.
Company also can hire the professional automobile engineer to develop the new technology to
improve the car performance.

 Improve attitude of employees

To improve the attitude of employees of company, company should have some meetings
between the employees to let them reflects on themselves. This is not only to improve their
attitudes and also the performance of the products. Otherwise, company can counselling the

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employees to make their attitude more positive. Company also can organize soft skills training to
improve their attitude but not just only technical skills

 Increase business units

Mazda can apply outlet at those places to increase business units and let more people
know the brand. Otherwise, Mazda also can find some famous artists to let more people know
about Mazda. Company also can create an event about Mazda to spread the brand name of
Mazda and attract them to buy the product.

Threat

 Strong competition

Although Mazda Motor Corporation is a distributed around the world, but in Malaysia
this company is not so well-known by the consumers as its competitor such as Honda, Nissan
and Toyota. One of the way to avoid being forgot by the consumers is having a lot of promote.
This is the fastest way to let the company go into the public view. Mazda Motor Corporation can
often doing roadshow in the shopping complex. Through this roadshow, it will surely let the
public have a deeper understanding with the brand. Besides that, Mazda Motor Corporation can
also publish their advertisement on the mass media such as internet and newspaper. Mazda can
use the slogan such as lowest interest loan compare to other company, rebate up to RM20k,
participate in the lucky draw and win grand prize worth up to RM70k and etc.

 Limited models

To solve this problem, Mazda should often convene a meeting and gather all the related
department such as marketing department, design team, research and development department
and etc. In this meeting they should voice out all the problem there are facing to change this
situation. For example if they are facing difficult to get the materials, they should figure a
solution or either change a supplier that are able to let them get the materials faster. If they are
shortage of man power in the production line, they should hire more people to solve this

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problem. Besides that, Mazda should also do more research and development to get a more and
better cars model.

 Environment

A meeting should convene often to let all the management understanding what is
happening outside. If the management failed to observe and take note of the changes of the
environment, it may lead to the company produce the things are not required by the customers
anymore. When the management make the wrong decision, it will drag the sales and decrease the
profit earn.

4. Conclusion

4.1 Assess the overall achievement of the company’s

In October 2014, Mazda 2 that is sell in Japan get the reward 2014-2015 Japan Car of the
Year by Japan Car of the Year Committee. The next month, Japan Institute of Design Promotion
reward the same model of car in Japan with the award Good Design Award 2014: Good Design
Gold Award (Minister of Economy, Trade and Industry Minister’s Award).

Mazda Motor Corporation has taken the wraps off Mazda-designed artworks, including
"Bike by KODO concept" and "Sofa by KODO concept" on the eve of opening the event "Mazda
Design: The Car as Art," in the Italian city of Milan from April 14, 2015. "Bike by KODO
concept" is a track racer that seeks to express the innate beauty of the bicycle. Its minimalist
structure is composed of the least possible number of parts. The frame was painstakingly formed
by hammering a single sheet of steel and the black leather saddle is hand-stitched, featuring the
same red thread and stitch design as the all-new Mazda MX-5. The bicycle's mixture of
dynamism and allure is evocative of the Mazda MX-5's styling.

"Sofa by KODO concept," a collaborative effort between Mazda's designers and Italian
furniture makers, exhibits an exquisite blend of Mazda Design's refined sensibilities and fine
Italian craftsmanship backed by a long tradition of furniture-making. The form of the sofa is as
honed as that of the all-new Mazda CX-3 and evokes the strong stance common to all Mazda's

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new-generation vehicles. These two has become a new challenge for the Mazda Motor
Corporation.

With these new design, Mazda Motor Corporation received three awards for the Global
Design Team, CX-3 and Bike by KODO Concept in the Automotive Brand Contest in September
2015. After received the rewards, the entire team will continue to work to create dynamic and
energetic designs that will excite their customers.

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