Perusahaan Otomobil Nasional Berhad Proton

Perusahaan Otomobil Nasional Berhad ProtonThe guild that is discussed in this search is Perusahaan Otomobil Nasional Berhad (Proton) which is an automotive lodge that was free-ba confabulated in Malaysia on 1983. The compevery experienced increase in tax from the year 2007 to 2011 and the gross gross taxation enhancement of its simple machines is a major element impact gross. motive train lay around touch gross receipts per tropeance, besides it would not be the only factor. The goal of this raise is to explore the want take of Protons gross gross gross revenue plane section in comparison with other factors modify gross revenue. Hence, the research head word that arises is To what point does the want level of Proton Berhads gross revenue segment affects its gross gross gross revenue gross?The methodology revolves around the determination of survey among the Protons gross sales subdivision ply and fol kickoffed with an question with maven an d only(a) of the head of the sales incision. Using the data obtained, motivation level of the staff is assessed using Herzberg Two-Factor Theory while the other factors affecting sales be assessed using PEST analytic intending. The conclusion was that Proton had implemented measures that facilitate to motivate its employees, but thither is a limit to how effective kindle motivation level affects sales as thither atomic number 18 other factors involved much(prenominal) as lineament and shuffle cognition. The undecided wall socket would be regarding the posit of Proton to purify its character and increase its employees motivation at the same time.1.0 IntroductionIssues regarding employees motivation had been one of the master(prenominal) guidance of an musical arrangement as motivation peck affect a trusted fel embarrassedship in umpteen modal jimmys. be on the book An Integrated coming to Business Studies by Bruce R. Jewell, motivation batch be described as a factor or an influence that groundwork drive pile to be grow in a certain counseling1. For a company, they would call for a propel cash in ones chipsforce if they want their employees to interchange well.The company in motility here is Perusahaan Otomobil National Berhad(Proton) which is an automotive company that was founded on the year 19832. Its increase mix al depleteds various categories of motor machines ranging from sedan, compact motorcars, hatchback, multi-purpose vehicle, and microvan3. A keen-sighted its years of operations, Proton had been the lead of scrutiny from the general public especially regarding its sales as at that place atomic number 18 criticisms to its sales4and after sales service5. One factor that mickle affect timberland of sales service is motivation.Thus, the intention of this essay is to explore whether the motivation level of the Protons sales department had been a of import factor affecting the companys sales taxation? Besid es that, this essay would in addition discuss on how other factors could besides affect sales revenue for Proton and how other factors could compare with motivation level in terms of its effectuate to sales revenue.From the questions that arise, the research question was formulated as fol small(a)-To what intent does the motivation level of Proton Berhads sales department affects its sales revenue?2.0 methodological analysis2.1Data collectionThe main purpose of data collection for this bad-tempered essay is to measure the motivation level of Protons sales department. Thus, primary research had been carried for the furbish up purpose of measuring the motivation level of the employees. The two elect methods were surveys and interviews. As assured to begin with, with the data obtained, a qualitative deductive allow foring be made to see how gamey gear or low the motivation of Protons employee. To derive, the message theories regarding motivation exampled is Herzbergs Tw o-factor theory.2.1.1*Details of Survey*A survey was drive ining in lay out to uncover information regarding the motivation of Protons sales department and the number of respondents was 15 people from the Enterprise gross revenue Team and R3 Sales Team which are a part of the sales department of Proton. The surveys question and its respective data are shown in Appendix 1.2.1.2*Details of question*The interview was done with Mr. Hj. Roslan Hj. Mohamed which is currently the head of Eneterprise Sales Department of Proton. The interview question and its answers are shown in Appendix 2.2.2 AnalysisThe analysis in this essay mainly revolves around the correlation between the motivations levels of Protons employees with its sales revenue. The findings go forthing be discussed so that the extent to which the motivation level affects the sales revenue slew be seen clearly. The nigh step is to see other factors that whitethorn be involved which bathroom affect sales. To do this, Pol itical prudence Social Technology (PEST) analysis entrust be carried out so that we stand see the external factors that surround Proton. Further discussion will be carried out in order to see how big do the factors affect Protons sales revenue, and compare it with the internal factor which is the motivation level of employees. The end result would be a conclusion that will include suggestions and an unresolved issue.A simple 4 step flow evict be seen below-3.0Main findings and analysisDetermining the motivation level-3.1 lotion of Herzberg Two-Factor TheoryBased on Herzberg Two-Factor Theory, on that point are two aspects that define motivation which are the hygiene involve and motivators6. Fulfilling hygiene of necessity prevents employees from world dissatisfied while having motivators will ensure satisfaction of employees. This theory is chosen to determine the motivation level of Protons employees because of the two aspects mentioned that is evident in their functional milieu.Above is a table outlining the hygiene conducts and motivators as outlined by Herzberg7. To determine the motivation level of the employees in Protons sales department, around of the points in the table will be discussed based on the findings.3.1.1 hygienics NEEDSRelationship with executive programProtons sales department employees ascertain that their supervisor listen to them and most felt that they are involved in the finding making process. They also feel that their supervisor give moderate vigilance to their work and most feel that their supervisor expectation of them is nifty in which it corresponds to their actual potential. Yet, some felt that their supervisors are bias in their work with some claiming that at that place is presence of so-called bosss pets and also gender biasness. on the job(p)(a) conditionsThe employees of Protons sales department felt that the working condition is normal at take up rather than good. Most felt that it is normal in their working condition to get positive feedback and constructive criticism. Still, some felt that ability politics is present and then it could be a source of sadness regarding the working conditions.SalaryIt was found that the net profit is high. This is due to the presence of more types of outfit that helps to increase the handments determined by employees such as finance commission, model-based commission, accessory commission, and insurance commission.3.1.2MOTIVATORSAchievementProton promotes the desire to compass for their sales department by having seasonal worker monthly campaign. Employees will be given an incentive for achieving the target for a specific sales campaign.RecognitionIn Proton, the form of experience comes in the form of a club membership that celebrates sales personnel who had exchange one hundred cars.AdvancementOpportunities for advancement exist for Proton since it was found that an employee screw advance into a sales manager in skillful 5 years.G rowthMost of the employees agree that growing their knowledge and having opportunities for self-development is extremely important for them but it can be seen that most of them thinks that the opportunities for self-development is not high but lock in present in the company. The presence of growth opportunities will lead to higher satisfaction for the employee.ANALYSIS OF MOTIVATION LEVELBased on Herzberg Two-Factor Theory, to ensure employees are prompt, it is better to address the hygiene needs and then focus on the motivators. For Proton, the company had in a modal value provided a moderate working condition and the supervisors are having good consanguinity with their subordinates. These two factors fulfill the hygiene needs and keep down dissatisfaction in the sales department. deviation from that, the compensation structure which is high also contributes to lower dissatisfaction for the employees. Although we shift say for sure that the dissatisfaction is completely in tercommunicate by Proton, but we can deduce that Proton had fulfilled some of the hygiene needs thereof grave the dissatisfaction among employees. For the motivators, Proton had also provided ample motivators for the sales department. We can see that Proton had provided its employees with adequate opportunities for them to receive proper achievement, recognition, advancement and growth. The presence of the motivators mentioned helps to promote satisfaction for the employees in the sales department.As a result, Proton had fulfilled the hygiene needs and provided motivators for its employees. It is hard to see whether the employees are highly do or not but from the discussion, it would be better if we deduce that the employees in Protons sales department is coined as motivated due to the low dissatisfaction and adequate satisfaction.3.2 Establishing the relationship between motivation level and sales revenueGraph of growth of Protons revenue from 2007 until 2011 (Appendix 3)Judging from the graph, Protons revenue had mitigated for 5 years straight. As company that make cars, most of Protons revenue would come from the sales of their cars so that is why the sales department plays a life-and-death authority to ensure better sales. We had found before that the employees in the sales department are motivated because of the way Proton had addressed the hygiene needs and motivators.Due to the fact that the employees are motivated, it can be seen that their motivation level correlates with the increase in revenue. A motivated employee would by all odds perform better when at work thereof there would be higher sales compared to an unmotivated employee. As a conclusion, we could see that the motivation level had contributed to the increase to revenue. Yet, the chthonianlying question here would be the need to establish the limit in which motivation level plays a role to the increase in revenue. Thus, the following questions could come into play-1. Are there any other significant factors that contribute to sales?2. How about the state of the country Proton is in? Does it affect the sales?3. Are there any outside factors, which are out of Protons control that contributes to greater motivation among employees?Thus, in order to uncover the extent to which motivation level plays a role, the next step would be to find the factors that affect Proton sales and determine its deduction in comparison to the motivation level of Protons sales department.Determining the extent to which motivation level affects the revenue of Proton3.3 Application PEST AnalysisThe use of PEST analysis is crucial in order to see the environment Proton is situated in. The findings would be analyzed regarding their significance to Protons revenue.PoliticalGovernment discards protectionist indemnity8High coin duty for imported cars9EconomyLow bring sycophancy rate by Bank Negara Malaysia10SocialLow middling wage per individual11TechnologyAppearance of crossization c ars in Malaysia12 semipoliticalGovernment discards protectionism with Proton therefore removing Protons exclusivity in the automotive industryIf a company is backed by the government, the cost of operation can be well less(prenominal)ened as there would be injection of funds by the government. This would ensure that the company can sell its products cheaper, thus garnering an increase in revenue. But what would happen if a company was stripped off from be protected by the government?For Proton, when there is no more protectionism by the government, the company would need to stand by its own thus it needs to channel its cost to their products. This will make the price of its cars higher. Still, if we look at the revenue, Protons revenue still increases despite the hike in prices. This shows that the removal of protectionism doesnt truly affect Protons sales and the possible reason for this is either Proton had improved its timber or there are other factors that promote sales.Hig h walk out duty for imported carsExcise duty is one of the major factors that affect a cars price. In Malaysia, the excise duty for imported cars is imported as high thus increase the prices of imported cars. National carmakers such as Proton and Perodua are at an advantage in terms of pricing because they can provide lower priced cars as compared to their foreign competitors. For Proton, its cars which are considered cheaper than imported cars would remind price-sensitive consumer to bribe their cars thus increasing their cars considerably.ECONOMYLow never-never approval rate by Bank Negara MalaysiaBank Negara Malaysia is the national bank of Malaysia and it regulates the hire-purchase approval rate in Malaysia. Recently, the approval rate for hire-purchase differs from a carmaker to another, and for Proton it is rated as low. Not every customer can pay the full price of cars in the early stage of purchasing thus they would resort to hire-purchase. When the hire-purchase approv al rate is low for Proton, customers cannot buy Proton cars thus they would proceed to other carmakers which has higher hire-purchase approval rate. Thus, this would reduce Proton sales. affectionateLow second-rate wage per individualThe worlds average wage is most RM 4440 ($1480) which is a stark difference compared to Malaysias average wage which is RM 1500 ($500). Due to the low wages, Malaysians wouldnt have enough purchasing power thus they would gravitate towards buying low priced products in order to save cost and sustain their living. Protons cars which are cheaper than imported cars would be a fine choice for most Malaysians thus this would contribute to more sales for Proton hence contributing to an increase in revenue. Yet, with the Economic Transformation Initiative carried out by the government, Proton would be jeopardise because the program was intended to increase the nationals average wage from RM 1500 ($500) to RM 4000 ($ 1333) which is closer to the worlds avera ge wage. If the government initiative reached its goals, the purchasing powers of Malaysian would increase thus they would have a wide range of cars that is feasible for them to purchase.TECHNOLOGYAppearance of hybrid carsAs the world is moving towards less use of fossil fuels in customary lives due to pollution, hybrid cars is invented to cater for the environmentally conscious consumers. past from that, hybrid cars would save consumers a hefty sum of money because consumers would need to depend less and less on petroleum which is infamous for its unvaried rice of price. The appearance of hybrid cars in Malaysia and the governments incentive for Malaysians to buy hybrid cars is a probable factor that can affect Protons sales. Still, hybrid cars is still not many in Malaysia thus it would not be a major factor affecting Protons car sales yet.Other factors that affects Protons sales but outside the scope of PEST analysisPEST analysis is limited in the way it restricts the analysis of environment surrounding Proton towards political, economy, social, and technology. In reality, there are other factors affecting sales for Proton that should be considered. The factors could be internal or external and some of them have an effect to employees motivation. in the lead we discuss even further, look at the list of the factors below- attribute of Protons carsBanks avocation rate*13Pricing of apply car market* merchandise methodsRelationship between sales and after-salesDiscussing the factorsQuality of Proton carsQuality of products is undeniably one of the greatest factors affecting the sales of a product. With high grapheme, some product can even exist without the need of extensive trade because there will be word of mouth, which is a great marketing method. Regarding Proton, the quality of its cars is questionable.. Aside from that, Protons car is also perceived as inferior and low quality as compared to its competitors especially carmakers from Europe, Japan and Korea. Thus, the quality of Protons cars is a wide factor affecting sales and it should be taken into great regard when discussing about Protons sales.In term of employees motivation, the quality of Protons cars can affect its employees motivation level. It is a common knowledge that if you want to sell something, it would be best to sell the best to consumers. Why? This is because when we sell something that is high in quality we would feel confident change it because we know that our customers would love it once they use it. This is also true for the case of Proton. If the employees in the sales department of Proton know that the car they are selling is perceived as inferior and low quality, they would feel less motivated because they arent confident that their customer is receiving a good car. This is a good example of Expectancy Theory in which if sales personnel of Proton perceive that no matter how much trial they seat into selling, they would know that the rewards wi ll be far from their grasp. This is because even if their selling effort is great, they would not be rewarded with a successful sale of a car because they would feel that customers would probably not buy a low quality car no matter how good they are in trying to sell it. This shows how employees performance is also abnormal by the quality of products they are selling.Banks interest rateBanks interest rate for each car brand is different and will continuously change. If the interest rate for Proton is high, car prices will be high and customers will be more reluctant to buy, thus causing low sales. The verso would happen if interest rate is low.The changes to interest will also affect the sales department employees. For example, a high interest rate would make car prices high and they would feel less motivated or confident selling the car.Pricing of used car marketPricing of used car market for a particular car brand also changes over time. If a particular car has high price in th e used car market, the user of that car would be inclined to sell his car especially if the car is outdated. The opposite would happen if the price of a car is low in the used car market.For Protons employees, it was reported that they would feel more motivated selling a car to a customer who is seeking to replace their car which had been interchange off as used car. This assemblage of customers is called as the replacement buyers. Employees would feel motivated because it is easier for them to make the sale because cars are essential in everyday life and replacement buyers would feel greater need to buy a car as compared to buyers who already own a car. Motivation will convert to performance thus there would be higher sales.merchandising methodsProton marketing method revolves mostly on having direct contact with the public which is their prospect such as having activities in the showroom and shopping labyrinthine that involves the participation of the public. It is reported tha t the sales department employees like the direct marketing method because they like the contact with the public. Direct method of marketing is unimpeachably a good way for marketing and can boost sales but for the case of Proton, the most evident benefits would be the increase to the sales department employees morale, thus there would be an increase in sales due to increased performance.Relationship between the sales group and the after-sales teamThe after-sales team of Proton is reported of providing low quality service to its customers and it could affect customers perception towards the brand. Still, the most important aspect about the after sales team is the relationship between the after-sales team and the sales team which is actually crucial especially with regards to the sales team motivation. Sales personnel would be motivated especially during the act of selling if they know that whenever there is a line of work after the customers bought the product they can be confide nt that the after-sales team can handle it. For the case of Proton which has low quality after-sales service, we can probably deduce that the sales team motivation level will be affected because of low confidence towards the competency of the after-sales team.ConclusionWe had started by acknowledging that the sales department of Proton is motivated based on the use of Herzberg Two-Factor Theory and the fact that the revenue increases from 2007 2011 shows that motivation did indeed prove to be a contributor to the revenue of Proton. The question that we need to really discuss is the extent to which motivation really plays a role to contribute to revenue, thus other factors that affect sales must be discovered.It was finally found that there are many factors that affected the sales of Proton and some such as the high excise duties and quality of Proton cars seemed to be a really major factor that affects sales. Thus, it can be concluded that motivation level of Protons sales departme nt is a factor that affects sales but it is not the greatest factor. If Proton were to employ measures that can continuously improve its employees motivation, sales would increase but until a certain point when an increase of motivation wont increase the sales. This is because of the mentioned major factors such as Protons car qualities that hinder sales growth significantly. To really improve its sales revenue, there are some issues that Proton must address.External Factors national Factors4.1 Issues and suggestion on how to handle itFrom the above diagram, we can see how the factors affecting Protons sales are sorted into internal factors and external factors. Proton should consider direction on the internal factors because it is the factors that Proton can really control and directly improve. Thus, there are three issues that is internal for Proton and suggestions are given on how Proton can address the issues below-1. Product qualityThe quality of Protons cars is an issue that P roton should focus on addressing because customers decision to buy are mostly affected by quality. In order to improve its quality, one of the measures Proton could employ is improving its quality control method so that no inferior cars are produced. Aside from that, Proton should also maximise the benefits of owning Lotus by ensuring better technology carry-forward with Lotus and also devise more training that is catered to help Protons engineers to let on more from Lotus.2. After-sales team qualityThe quality of after-sales is important in order to retain customers loyalty. If Proton doesnt improve its after-sales quality, customers will think lowly of the brand thus it would affect sales. It was found that Proton had made a fine decision by giving out proper training to its after-sales team recently but another factor that might affect the after-sales team quality is the salary of the after-sales team which is below industrys average. To counter the issue, Proton should either negotiate with its after-sales team or consider giving better wages or perks.3. Employees motivationAlthough it was found that the employees of the sales department are motivated, yet there is still so much more Proton could do to really increase employees motivation. In Proton, there are issues that Proton should tackle such as biasness and lack of guidance in order to make the working environment a better place. Proton should also consider reviewing the Herzberg Two-Factor Theory so that the company can how it can reduce dissatisfaction even further aside from increasing satisfaction in the long run.A final noteAlthough suggestions are given, only Proton knows best how it can improve itself because its internal issues can be tackled best from within their company. The unresolved issue here would be the issue regarding how Proton can really improve its products quality and at the same time increase its employees motivation so that more sales can be gained. If Proton were to devise a way to tackle the issue, then sales would definitely increase as a result.Word count 3852Bibliography1. Chedet.cc2. CLARKE, P. (2009). IB business and management course companion. Oxford, Oxford University Press.3. Corporate.proton.com4. En.wikipedia.org5. Freemalaysiatoday.com6. HAGEMANN, G. (1992). The motivation manual. Aldershot, Gower.7. JEWELL, B. R. (1993). An combine approach to business studies. London, Pitman.8. KREITNER, R. (1983). Management. Boston, Houghton Mifflin.9. Malaysia-chronicle.com10. Paultan.org11. Reganrajan.com12. Thestar.com.myAppendix 2Hj Roslan Hj MohamedHead, direct and government sales operationEnterprise Sales Department(emailprotected)InterviewWhat is the reward package provided by Proton for its sales department employees?Generally, our reward package is similar with most companies. But, the main focus of employees when joining Proton would be the salary and commission structure of the company. fag end you give a more detailed explanation about the salary and commission that you previously mentioned?I will be glad to. there are two basic positions the sales department non-executive (sales adviser) and executive (management). The non-executive or the sales adviser starts with a basic salary of RM300++. Sales adviser is similar to sales personnel and their remuneration lies within their commission is plentiful. there are 5 types of commission which are model-based commission, used car commission, finance commission, accessory commission, and insurance commission. There are also monthly and every quarter volume commissions. The executive or the management also has their own commission but the commission depends on the group they are managing. Essentially if his group succeeds, the executive will succeed too.What is the average earnings that the sales advisor would receive each month?The amount is quite hefty. The average payment for sales advisors is usually RM7000 which is quite high.Is there any form of recognition sales advisors would receive after selling many cars?Yes, there is. It is called ennead 100, which is an achievement club for sales advisor who achieved 100 sales. There are many benefits for the sales advisor who is a member of Club 100 such as having their own parking space.Is there any sales campaign held by Proton?Yes, there is and you could say that the sales campaign is one of the events that really motivate a sales advisor. A typical seasonal sales campaign would involve selling unpopular models. Any sales advisor who sold an unpopular model would be given a monthly incentive and that is the reason why they are eager to achieve success when a seasonal sales campaign comes.What do you think are some factors affecting motivation of a sales advisor?Well, there is a lot. One of them would be having many model ranges because sales advisor enjoy their work when they have many selection of cars that they can advise their customer to buy. Other than that, sales advisors love to sell nil problem cars which are top-notch and high quality. This is because they will feel excited selling it aside from not having to deal with customers complaints afterwards. They feel that it is hard to manage complaints about qualities because it is not they who design it. Lastly, sales advisor love selling parvenue models too.How about the economy? Does it affect sales?Banks interest rate plays a big role here. When interest for car is high, people would definitely instance caution before buying thus sales would be low and vice versa. You can see that when interest is low, sales advisors would be motivated because more people are inclined to buy thus increasing their chances of increasing their income.Talking about car prices, aside from interest, the pricing in the used car market also affects sales. For the public, when the price for used cars is high for their model, they would be inclined to sell it at that time so that they can buy new models. This group of people is calle d the replacement buyers which are the customers who buy a product in order to replace their previous items which had been sold off. You could say that when a specific model has high trade-in value in the used car market, people would be inclined to sell their cars and buy a new one to replace their own. A sales advisor would be motivated to sell cars when they know that the customers they are luck are replacement buyers.How about the leadership in the sales department of Proton?We apply grand way of leading as a way to manage employees in the staff department. This is what we call as the best execute approach because other leadership style is not suitable. Being autocratic doesnt mean that we need to compromise relationship between manager and the sales advisor.In Proton, sales advisors performance is closely monitored and they must sell a minimum of 6 units or they will be deeming as under perf