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The Peugeot's Company Charter contains all the types of objective model apart from the objectives of Result, which is understandable, because this charter talks a lot about principles, concepts and company's policy.

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Introduction

Question 1 The Peugeot's Company Charter contains all the types of objective model apart from the objectives of Result, which is understandable, because this charter talks a lot about principles, concepts and company's policy. This kind of elements, by definition, does not have to display precise figures; this charter seems to be made to help dealerships to understand the views of Peugeot, concerning their place in the P.S.A group, its aims, its staff, its customers and suppliers, its costs and its expectations for the future. * Objectives of Intent Let us start with the Objectives of Intent. The three points concerning "the participation as a part of the P.S.A group" seem to be clearly some of them, because first, they introduce no measurable aspects, and secondly, because they are all made by the same way, enouncing the way of thinking of P.S.A, in terms of partnership, their views of their future, in order to make their partners apply and share their values and policy. Concerning the first point, we can indeed notice that they only indicate the way they see their partnership in terms of production and consequently, there are no emphasized level of involvement concerning their support, that could be monitored. Concerning the two others points, the main information that is given, is that the firm has to help and support the group in order to increase the sales, the market shares, and to improve the profitability, in order to be more competitive. These two objectives gives us no data concerning the level of commitment a partner has to respect toward the group. We can conclude this part by noticing that at every time, the Charter let hover an ambiguity over concerning the objectives, because they give clear ones to the group and let the place of the firm not precisely defined (certainly, in order to get more freedom to define it later). ...read more.

Middle

The operating Standard part concerns the respect of the policy of the firm, which corresponds with the main idea behind the first part of the Charter, because the dealers are judged on their degree of appliance of the procedure, which is implemented by the management service. The example of the sales department highlights this, because they do not seem to be assessed on this part by their results, but by the points of the sales procedure they have to respect, such as the letters and the prospects, and by the fact facts that all is painted in the same colors of Peugeot. The two first parts can be linked up to "our people" part too, because by using the Peugeot's work tools, it shows that ensure them of the dealers use their technology and follow their methods of works, therefore it is a good measurement of appliance of their staff to their policy. Finally, the customers assessment has to be linked with the part of the Charter called "our customers" because it measures the way that a dealer to try answer the expectations of its customers, and so it helps Peugeot to gauge how he tries to satisfy him which is one the main issue of this Charter. For the same reasons as said previously, it may be linked up to "our people" to see the degree of respect of the established procedures. Question 3 The Peugeot customers' assessment stressed a lot on the contact between their customers and their two main aspects of their activity, i.e. the sales & after sales services. Indeed, in order to establish a strong relationship with their customers, this assessment takes not less than 3 questionnaires and 5 ways of contact beforehand. In fact, this form has for aim to target each attempt made by the dealers to stay in contact with their customers. It shows that they have total reliance on their customers' loyalty and that they consider that it is very profitable for the company to target them. ...read more.

Conclusion

The dealers do not seem to think their results relevant, because it does not judge the quality of their work but the kind of their potential customers. Moreover, this kind of drawbacks is reinforced by the fact that the evolution of their results in term of sales and in term of efforts make toward the customers are not accounted by the forms, so they really cannot be showed the efforts made by each dealer to make its areas more profitable. As no financial results are attached with these tables, the comparisons between them is not possible too, because such statistics would enable to understand the difference between dealerships, and that would justify the fact that they do not find them relevant. Peugeot in order to try to reduce such kind of inconvenient produced by this tool, has tried to implement a bonus system attached with some promotions. But they do not seem to be very efficient because, as the main rewards are given with the "Lion Standards", these bonuses do not seem to be very significant to the dealers, because they perceive that the Lions' ones contribute more to their profits. On the other hand, Peugeot, by inserting in their customers assessment two delays of contact of their customers, it has as a result improved the concordance between their policy and their assessment, and so it has eliminated such problems (see first part of this page). Concerning the problem of the specificities of the market place, Peugeot, thanks to the dealer Council system, has tried to reduce it, by grouping in "profit clinics groups" their dealers together, to talk about their firm policy, and their way they see the evolution of their business. So perhaps, these tables have not been changed, providing the bad consequences of such disparities due to the difference between the areas, but thanks to the meetings, the dealers can show their dissatisfaction, which can be recorded at a higher level of the firm (Peugeot managers0, and which could be, by this way, fixed. 1 ...read more.

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