Macro and Micro Environmental Research: Proton


Macro environment identifies the frustrating and exterior factors that the organizations cannot have the influence which make a difference its business if not resolved. The economy of Malaysia has been around a healthy expansion, however it the year of 2012 has slipped. In addition, the inflation rates of the entire year 2012 have fell from a whopping 2. 7 to satisfactory 1. 3 during a year.

These factors have immediately damaged the inflation and unemployment rates of Malaysia, this is because the inflation rates have dropped and the unemployment rated have dropped as well.


Micro environment identifies the internal factors that relates to a business environment which can affect the business' operation. These factors are suppliers, shareholders, competition, customers and distributors. These factors have enjoyed a very big rule in the performance of proton, where proton has a huge problem with their suppliers, as well as a drop in its market shares, as they have got a big competition on the market which is Perodua, the other factor that has afflicted proton is the traditions, where Proton is facing problems in working with their customers, in simple fact proton is losing its customers because of the insufficient service and lack of trust.

Cross Culture and Global Issues:

Being an automobile industry, this organization has to offer with other cultures on a daily basis. Cultures are hard to explain values, norm, and practices. Understanding culture can be an extremely complex strategy. Various ideas have been made on culture however the most projecting perhaps is of Greet Hofstede's.

Hosfsted's Cultural Sizes:

Collectivism and Individualism: This identifies the scope to which folks of a country a willing to interact. In collectivistic societies people tend to better put the categories needs first reducing personal goals, whereas countries with invidualistic culture have follow personal or specific attainment over the groups.

Power Distance: this identifies the magnitude to which people allow the hierarchal position to be power available environment. Indicating in high ability distance societies like Pakistan, India, Bangladesh, people tend to respect the specialist because of their hierarchal of communal status other than personal achievement like that in the reduced electric power distance societies like France, Italy.

Uncertainty Avoidance: Identifies the extent to which people allow change in the population. Countries like Indonesia, North Korea, and Japan stand for a high uncertainty avoidance whereby they dislike change.

Masculinity and Feminism: relates to the role of women in various ethnicities, masculine culture is convinced Men to be the dominant part of the family and the only person allowed to support the family fiscally. Ethnicities with low masculinity aspect show females to be an important area of the workforce.

Global issues:

When it comes to handling global issues to and automobile industry (Proton) almost all of the issues are relevant, whether it is of increasing cost, taxation, global financial crises, restrictions safety and health issues, every one of the issues can be tracked back to a car industry (proton). There are plenty of factors that Proton has to constrains prior to going overseas, for example, the tax fees differs in various countries, as well as the financial condition that will have an impact on the sales, they are some of the problems which may have to be attended to from Proton.

Business volatility and risk Management:

Considering the automobile industry (Proton), it got thousands of failed endeavors before finally making a planes that could've proved helpful. With every attempt being taken down, the quantity of risk involved kept increasing but it was a necessary evil to attain to the idea now where cars are made with excellence and counter abilities to truly have a safe traveling.

In the situation of Proton, there are a number of risks included that your mangers in control have to think about. Initially, since the auto industry is a huge business, the risk of investing extensive capital is the perfect risk which makes a decision the fate of the procedure. Secondly, there is the risk of economic decline or inflation to sweep over which would immediately affect the firms in the service industry such as carmakers. Finally comes the price of the fluctuating cost of materials steals globally which has been increasing. The main point is not to note out the hazards involved the main point is to manage dangers associated with the merger effectively.

Branding Success and Difficulties:

Branding is a concept originated for dating back to the 1200 in Sweden, where they used to lose insignia's over a horse to distinguish it from others. For a company that needs its name out in the market, it takes comprehensive marketing, heavy money, and lots of patience because it requires a while. Reaching brand awareness is only the first step, and then the company needs to reach its target market, once it's done then it comes Brand loyalty, whereby customers like choosing a brand they have become loyal to. If the brands present a particular negative belief of the company then it might take a long time and efforts to improve the understanding of the public. For example, when Lexus was first revealed and appreciated by the people, it was unfamiliar so it belonged to Toyota, because of Toyota's conception of being an economical and affordable automotive vehicle.

Business Sustainability:

It is one thing to start a business but it is another to preserve it. By sustaining it doesn't always mean jogging it profitably, it also include interpersonal and environmental obligations, risk and opportunities they have. There are a number of ways in which companies can ensure their business sustainability which would be as follows;

  • Shareholder proposal.
  • Environmental management system.
  • Reporting and disclosure.

If proton implements these lasting strategies to their procedure and monito the product quality, sustainability can be expected.

Tuckman ideas on teamwork


For the subject of Business and Commercial Recognition, we got an assignment to make a business plan for Proton. Regarding to Dr Mahathir's statement "our immediate plan is always to change its strategy from being a manufacturer of cheap automobiles to become world standard car make".

Stage one: Forming

The category was divided into a group of five members, each one of the members was supplying a section to focus on, and these departments are Fund, Operation, Human Resource, and marketing. However I was given Finance office, where I have to analyse the existing situation of Proton's funding performance. However, before the assignment my knowledge of finance was considerably lower than an average final year learner of Business Supervision, but I've acquired a mind-set never to focus on things that do not interest me for dating back to I can keep in mind.

Stage two: Storming

Then we transferred into the second level which is storming, in this level we began to push against boundaries. We've many issues between us in the nature in our working style, where each one of the members has a new working style, for example in marketing team, where Amir and Khider were handed this part, that they had many issues in fixing the problems which cause disappointment to the complete group, as well as I was giving Fund department, that was a big concern for my power. As the team work wasn't evidently described, which cause us to feel stressed by the workload. I think that it was objective impossible for us to overcome the issues we were facing in this level; we could not even come up with the platform for our strategies, that was a major disappointment. We finish up working these issues out with Dr Tan, and lastly we could proceed to the next step.

Stage three: Norming

In this level we finally discovered our goals, and each of the members is completely aware of the techniques and the strategies that ought to be adopted in order to attain our goal. As well as trust and apperception was built between us, where the leader of the group Ben was a large motivation for us, he has helped each of us to take responsibility for improvement towards achieving the goal. As most of the discussions were conducted by having a facebook web page.

Stage four: Performing

In this level we solved all the problems and issues by using appropriate settings, and we have achieved and effective and satisfying result. It had been amazing that we worked collaboratively to attain our goal, as there was nurturing from the participants towards each there. For instance Brain Scot was very useful in assisting me with my part in Fund department, he suggested me on how to finalize my part. In addition to, the commitment from the group participants increased positively on the group work comparing to the first stage.

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