George Simpson, the CEO of British Aerospace was facing a troublesome plight in his company. One of the company noncore businesses, spider the automobile footslogger is making loss for the company and need to be interchange because of the restructure of British Aerospace. In the same time, BMWhad shown their interest to debauch British Aerospaces full equity s require in Rover in order to gain their desired benefit. British Aerospace loss to sold the unprofitable Rover to BMW but their longtime(prenominal) accessory Japanese political machinemaker, Honda unwilling to generate the new partner of BMW and refuse to negotiate with them.
2.0 Issues
There were few issues need to take notes on this case study.
i. Is it a wise termination to set about an alliance with Honda?
ii. Why BMW wanted to buy Rover?
iii. What decision should George Simpson make?
3.0 SWOT Analysis
SWOT Analysis (Rover)
Strength
Design Studio
Rover own a design studio from parent company, British Leyland Motor Corporation long ago and they piddle been utilise it to design their car for many years. This studio contributes much to their car cultivation and has full facilities inside.
Government Injection
In 1974, British governing body takes over 98% of British Leyland Motor Corporation shares and become majority shareholder.
After that, numbers of capital had been injected to musical accompaniment British Leyland Motor Corporation afloat.
Weakness
overlook of Management skills
Although Rover had been turn parent companies from British Leyland Motor Corporation to British Government. none of them knows how to manage the Rover business well. Thus, this make the Rover keep losing their market share and get losses in their business.
Lack of Fund
Rover keep losses of profit cause them to have less fund for their business. Rover has low number of specialist and having hard time to fund the development activities. This make their development slower and create problem that delayed the development of their business.
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