1. Abirami(29001)
Bharathi Swetha(29010)
Harini Audisekar(29015)
Jyotsna (29018)
Rachel Priyanka (290)

2. • Pininfarina - Italy based Automobile company
• Founded by Battista Farina in 1930 as a Niche car firm
• Largely, a family business
• Went public in 1986 (30%)
Year No. of Automobiles No. of Employees
1939 800 500
1972 > 23,000 1900

3. Niche Volume
Range 1-2 to 50-60 cars per day 1000 cars per day or
more
Cost Lower total cost Twice the cost of Niche
Producers
Workforce Requires highly skilled
workforce
Highly skilled workforce
is minimal
Assembly Line ‘Stop and Go’ Process Continuous Assembly
line
Profit > Largely based on
Volume producers
> Margin - 2%-4% of
Target Unit
manufacturing cost
*Highly profitable than
average projection
(For Japanese firms in a
comparison analysis)

4.  Whether Renato Bertandi, Manager of Operations, should accept the
Mitsubishi proposal to manufacture Mini SUVs to cater to European
and Asian Markets?

5. • Global
penetration
• Failure of
Risk
management
• Dwindling
financial
prospects
• Vast
Experience
Strength Weakness
OpportunitiesThreat

6.  Financial prospects
 Brand Image
 Higher Employability
 Learning & Experience

7.  Monetary gains
 New source of revenue
 Chance to improve the deteriorating financial results
 Opportunity Cost
 Increased employee base
 Increased Customer base
 Expertise Improvisation
 Skill improvement – worker employment
 Enhanced technology

8.  High risk, high pay-off
 Higher visibility on successful execution
 Global Exposure
 Penetrate into unexplored avenues
 Networking
 Business Networking (diverse suppliers)
 Practically feasible adaptations
 Design
 Balance between Niche & Volume Production

9.  Increase in Liabilities
• Net margins viability
 Transition period
• Niche to Volume brand image
 Logistics
• Shipping Time
• Painting

10.  Changes to infrastructure/production method
 Risk management
 Adaptability
• Fast learning
 Lack of concrete specs
• Definition of Quality
• Proposed Volumes

12. Source : http://www.pininfarina.it/media/files/bilanci/2001_annual_report.pdf

13. THANK YOU!