Proton Essay

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Hyundai can take action on them if Hyundai has power and rights through investment on Proton.

Last factor to be considered is performance of the Proton. For financial performance , Proton was unable to generate profit due to sales, assets and equity in year 2007 and 2009 because the ratio shows the negative percentage. For non-financial performance, Proton has receives many complaints from their customers about car and services. Customers said Proton has a poor quality of product and non-descript designs. Moreover, the most widely known of window problem of Proton cars are still consider to be the biggest weaknesses of Proton cars up till now that prove Proton have a lack of quality. So, if Hyundai collaborate with Proton, Proton could provide Hyundai with the excessive manufacturing capacity because the lower production in Proton cars. In returns, Hyundai could provide Proton with the technology advancement where Proton could improve its quality.

As a conclusion, Hyundai is recommended make partly collaboration and investment with Proton could lead to an advantage to both company. Proton could gain benefits of having high technology advancement and could be able to penetrate foreign market. With the collaboration, Proton could gain benefits of technology sharing with the credible partners that enable Proton to enhance their technologies and design of cars. In return, proton can provide facilities to Hyundai so that Hyundai could manufactures their car in Malaysia. Hyundai has legal control in Proton, if Hyundai decide to invest more than 50% and make Proton as their As overall, the collaboration could bring more benefits towards Hyundai and Proton development in the future.