Renault’s strengths and weaknesses Essay Sample

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1. – What are Renault’s strengths and weaknesses with regard to the strategy of international market growth which the company is pursuing?

strengths:
-The characteristics with which feature trucks with French design, but manufactured in America are much better. (anti shock, less pollution, safer). – The labor is cheaper.
– For the manufacture of chassis, Renault can provide workshops on all automotive factors, thanks to AMC plant capacities.

weaknesses:
– The French company has to adapt to American standards.
– The taxes are much higher.

2 What are the arguments that favor the installation of a new Renault factory in Mexico?

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The average cost of a motor equipment for Sahagun is lower than in France.
– There was a large number of jobs in Hidalgo Sahagun.
– Sales increased considerably.
-Some provinces will give certain benefits to put their factory in Mexico.

3 What type of product and in what quantity must be fabricated? What location appears to be the most judicious?

The amount of product that must be manufactured has to go according to the history of recorded sales. And the change in foreign currency according to the French price

4 What system of logistical distribution (transport, stockage, customs procedures), seems to you the best adapted to respond to commercial objectives and to regulations restrictions

I think the distribution logistics system more appropriate would be “piggy back”, because although the delivery time is a little longer, the cost is less. The serious storage in the warehouse closest to the plant where it will assemble the car, and therefore where there is greater demand.

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