Investment and Portfolio Management

Investment and portfolio Management

1. Examine and analyse exhibit 3-porsche competitive positioning 2002 and from the figures provided, explain how does porsche differ from other European based auto manufacturers?

Porsche have a strong competitive position and also very specific for Porsche’s products is the exchange rate pass-through. They pass through the changes of exchange rate upon the final consumer. Moreover, Porsche is famous for its independent thoughts and occasional stubbornness, which makes them different from other auto manufactures. Its quarterly reporting management and it only use German accounting standards, which is more detailed and more frequent report, also can protect their own rights and privacy.

Besides, its innovation makes Porsche more outstanding, it has three different vehicle platforms: the 911, the Boaster roadster and the Cayenne. These three modes provide customers more options. Being different is what exactly people chasing for nowadays, Porsche know how to be distinct from others company, it’s special strategy makes people think Porsche is rare and valuable to buy and also can meet up what customer wants.

Porsche is a privately owned company controlled by the Porsche and Piece family. They not only hold all the 8.75 million voting shares but also mainly large institution investors hold the other 8.75 million non-voting shares. Despite the fact that stock exchange and analysts’ requests are more frequent and detailed financial reporting, Porsche is not willing to meet these needs. Another thing is the management compensation that only depend on Porsches profitability from year to year and not the share prices. Porsche manufacturing is conducted in German but also in Finland which make them a global brand with a cost base mainly in euro. They want to keep it so despite the fact that 42% of its revenues come from sales in the US since they believe that the heart of the brand comes from its performance in manufacturing and...