Management - Skoda Auto


Table Of Contents

Introduction 2

Company Overview 2

SWOT Analysis 3

Addressing Ethical Values against AMA Values 4

BCG Matrix 4

Stars 5

Question Mark 5

Cash Cows 5

Dogs 6

Customer value creation and co-creation model 6

Revenue Stats of Skoda 7

Conclusion 8

References 9


The project focuses on the Management of an organization, Skoda Auto, thus enlightening the basic concepts of management. The success for any business or non-business organization lies basically on the management of the organization. Management primarily signifies the completion of any task by the utilization of the resources allocated and available, simply put in its base form; management clearly signifies the act of getting things done through the help of manpower. The organization in consideration for the project is Skoda Auto and through the work and market presence of the organization an intricate understanding of the management system of an organization is the focus. Management being an organizational activity it is best understood through the reports and real-life activities of an organization, here Skoda auto. The factors of support and threats would be rigorously discussed into the project for the basic understanding of the fairly generic term, Management.

Figure 1: Logo of SKODA

(Source: Kotek et al., 2019)

Company Overview

Skoda Auto hugely popular as as ŠKODA is one of the largest manufacturers of automobiles and automotive parts across the world. The company has its current headquarter at Mladá Boleslav, Czech Republic and started its operations in 1895. The founders of the company are Václav Laurin & Václav Klement.

In 1895, the founders started off by making its Slavia bicycles and, later on, motorbikes. Automobile production was launched in 1905. The Laurin & Klement logo had been gracing cars from Mladá Boleslav until 1925, since when they have sported ŠKODA’s winged-arrow symbol, which late became a symbol recognizable worldwide. An organization does not simply become a recognizable brand over time, it takes much more than that, it takes a meticulous amount of effort and an immensely dedicated management system (Wilz, Walczyk, & Meagher, 2016). Since 2015 Bernhard Maier has taken up the role of a CEO of Skoda and the company currently operates worldwide, with its main areas of operation being, Asia, America, Europe and so on. As per records the total asset of the company lies somewhere around $ 100.98 billion till the year 2016 and since the year the company has gained huge market trust. Their revenue for the year 2017 remains to be somewhere around $ 18.78 billion. The company successfully employs more than 33,000 people. The major competitors of this company being giants such as Hyundai, BMW, Maruti Suzuki, Tesla and so on, Volkswagen being its parent company does not act as a prime rival. The high reliability of its products makes Skoda stand on top of most of its rivals in the market (Morecroft, 2018).

SWOT Analysis


SWOT analysis


Strengths: The key factors that denote as the strengths of Skoda, which keep it ahead in the game among its competitors are (Niederwieser et al., 2016):

  1. Products are available in wide ranges of under the fuelling category of Petrol as well as Diesel.

  2. The interiors of most Skoda vehicles ate considered spacious and pretty demi-luxurious.

  3. One of the pioneers to include power steering, anti-skid braking, anti-theft, no look parking assistance, smart tracking and many more industry revolutionizing technologies.

  4. Recall value is comparatively higher than the peers in markets such as Asia and Europe.

  5. Skoda had produced unit of more than 1,253,700 units in the year 2018 alone, and since then the numbers have been constantly increasing.

  6. They had been internationally acclaimed as high performing cars for racing events, year in year out.

  7. Skoda follows excellent strategies for advertising themselves thus allowing a global name to be recognised.

  8. Skoda has consistently received awards for bringing in breathe taking technologies over the years.

Weakness: Following are some of the key factors that signify as the weaknesses of the organization.

  1. Skoda has a stiff market of competitors hence any wrong move can lead it to be a fatal move for the organization.

  2. Poor strategy to penetrate into emerging economies unlike its counter parts.

  3. The elevated maintenance cost for its products often leads to driving potential customers away and hence decreases the perception from costumers.

 Opportunities: Following are some of the key factors that signify as the potential opportunity for the organization.

  1. Collaborations with automobile giants such as its parent company, Volkswagen, to embed deeper in the market through servicing network and distributorship.

  2. Adding greater focus automobile market can be beneficial for Skoda as the particular segment of automobile industry is still growing rapidly.

  3. Cheaper variants of cars can help Skoda increase its market radius to different factions of people hence ensuring a higher market share to itself.

  4. Skoda needs to focus on its existing products which are going well thus ensuring cars focused on the necessities of the costumers.

Threats: Following are some of the key factors that signify as the underlining threats for the organization.

  1. Rapid technological advancements from competitors of Skoda can formulate as a growing threat to the organization.

  2. The increased varieties of products from the peers have evidently shown the decreasing share of Skoda market shares.

  3. Skoda had been particularly negligent of development towards smart and hybrid cars thus losing a bunch of potential customers.

  4. Increasing cost of raw materials.

Addressing Ethical Values against AMA Values

Skoda emphasises on employee satisfaction; they aim at always scoring in surveys measuring long-term employer attractiveness towards their own organization (Brotherton, Kao, & Crigger, 2016). Skoda appreciats the work their employees do and strive to create the best conditions for them by providing safety before work, even outside of work with the advantages provided through employee benefits and a strong hold on management policies and ethics.

BCG Matrix

BCG matrix is a framework which was developed by Boston Consulting Group to intricately examine the strategic position of the business and its potential stand into the market (Torquati, Scarpa, Petrosillo, Ligonzo, & Paffarini, 2018). It mainly classifies the business products or businesses into four basic categories based on the reception of the products by the market.

(Figure: Basic four segments of the BCG Matrix)

(Source: Chandrashekhar, Ravi, Murthy, Kumar, & Sanju, 2016)


Those band of products which pose as the most successful performers of a company and the basic share of revenue come from the upselling of these products. Such products are gravely invested into to keep up with the inflated demands in the market Some of such products are:

  1. Skoda Rapid

  2. Skoda Kodiaq

  3. Skoda Superb

  4. Skoda Octavia

Question Mark

Some products pose higher threat of failure while being developed and hence there is a certain uncertainty even after hitting the markets, but at times this may lead to poor reception of a new product. However, the risk of failure is also present which can be drastic in nature. Some of such products are:

  1. Skoda Fabia

Cash Cows

Skoda being an automobile manufacturing company generate different amount of cash. Few products bring in huge part of the revenue of the company. The market share of these products being an established market the advertisement needs for promoting such products decreases the production and manufacturing value quite prominently. These products are known as cash cows. Some of such products are:

  1. Skoda Rapid

  2. Skoda Octavia


Products manufactured by a company achieve success in the market.. These business units are termed as dog in the BCG Matrix. Some of such products are:

  1. Skoda Fabia

  2. Skoda Yeti

  3. Skoda Superb V6 4x4

Customer value creation and co-creation model

Customers holds the highest level of trust regarding the products and services that are been offered. Thus, customer value is the worth of an organization itself. The target audience is not always based on monetary terms but also on physiological terms. However, costumer value is directly proportional to the needs of future growth of the organization in the local market. Different customers may pose different needs for the products. Different costumers will pose different needs according to the monetary resource they hold and the sector they primarily focus to, such as some need great looking cars but some need high performing cars. Since the very beginning the main focus has remained to serve the costumers over anyone. The company pioneers into cutting edge technologies for the automobile industry and they continue to strive forward no matter what.

Revenue Stats of Skoda

(Figure: Basic four segments of the BCG Matrix)

(Source: Bokšová, 2017)

The following pie-chart shows the basic stats for the revenue for the company, Skoda: 

(Figure: Basic four segments of the BCG Matrix)

(Source: Zdanowska, 2017)


Therefore, it is safe to say Skoda Auto teaches us the fundamentals of management in an organization. The main aim of the research is to understand the ways to tackle management flaws in an organization thus ensuring better future scope of business for the company. Skoda holds a minimal share in the market, 1.7% in 2019, and the number would considerably rise to 3% till 2020 yet they continue to function as a highly successful organization. Thus, we can conclude the management of a company is more important to attain economic and ergonomic success.


Bokšová, J. (2017). Are Revenues from Gross Written Premium of Insurance Companies Comparable?. International Advances in Economic Research, 23(4), 425-426.

Brotherton, S., Kao, A., & Crigger, B. J. (2016). Professing the values of medicine: the modernized AMA Code of Medical Ethics. Jama, 316(10), 1041-1042.

Chandrashekhar, C., Ravi, M. D., Murthy, D. S., Kumar, H. K., & Sanju, N. H. (2016). Evaluation of Gastric Lavage in the Diagnosis of Childhood Pulmonary Tuberculosis using Gabbet's Cold Stain. The Indian Practitioner, 69(2), 27-30.

Kotek, M., Mařík, J., Zeman, P., Hartová, V., Hart, J., & Hönig, V. (2019). The Impact of Selected Biofuels on the Skoda Roomster 1.4 TDI Engine’s Operational Parameters. Energies, 12(7), 1388.

Morecroft, J. D. W. (2018). Management attitudes, learning and scale in successful diversification: a dynamic and behavioural resource system view. In System Dynamics (pp. 69-106). Palgrave Macmillan, London.

Niederwieser, D., Baldomero, H., Szer, J., Gratwohl, M., Aljurf, M., Atsuta, Y., ... & Iida, M. (2016). Hematopoietic stem cell transplantation activity worldwide in 2012 and a SWOT analysis of the Worldwide Network for Blood and Marrow Transplantation Group including the global survey. Bone marrow transplantation, 51(6), 778.

Torquati, B., Scarpa, R., Petrosillo, I., Ligonzo, M. G., & Paffarini, C. (2018). How can consumer science help firms transform their dog (BCG Matrix) products into profitable products?. In Case Studies in the Traditional Food Sector (pp. 255-279). Woodhead Publishing.

Wilz Sr, D., Walczyk, J. A., & Meagher, M. (2016). U.S. Patent Application No. 14/695,364.

Zdanowska, N. (2017). Distribution of foreign direct investment across the national urban systems in countries of Central and Eastern Europe in 2013. Geographia Polonica, 90(2).

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