The Swatch Group Essay

1854 Words Aug 6th, 2007 8 Pages
1. INTERNAL ANALYSIS 1.1 Mission, Vision, Goals and Performance Mission and Vision: The explicit mission statement has not been announced, Swatch's mission is likely to be "to offer low cost, high quality, and accurate watch with synthetic material", targeting to young people who are most likely to buy low-priced watches. According to the low cost objective, the operation has been separately managed in global manner in Switzerland, Brazil, China, and India where the labor cost is low enough to compete with Japan and Hong Kong. Moreover, in order to keep reaching the efficiency and effectiveness, the fully automated assembly line is implemented without the human intervention. In addition, to keep Swatch competing with low cost …show more content…
Diversification to car business with Mercedes-Benz has provided a great opportunity to Swatch to involve with various business transactions and obtain the valuable experience. The diversification has been implemented and targeted to the existing customers who are likely to be young people with the existing knowledge of microelectronics. Due to the differences in operation both with Siemens and Mercedes-Benz as a result of budget overrun as well as lack of decision-making power have put the lessons from the cooperation in term of joint venture. Retrenchment strategies: Swatch decided to terminate their unprofitable business unit to reassign the resources to more profitable business unit in order to be more profitable and effective. As mentioned, Swatch has diversified its business to telecom and car businesses with Siemens and Mercedes-Benz respectively. The result of the joint venture with Mercedes-Benz was the development of Smart car. Nonetheless, the conflict was raised according to the lateness in production and over budget as a result of selling of 19% interest in the joint venture to Mercedes-Benz. Moreover, the establishment of joint venture with Texan businessman did not generate the expected outcomes as a result of the termination of the

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