In its simplest form, business transformation involves a set of actions taken to change a business from an undesired situation to a desired state in its industry segment. The proposed 10-year transformation strategy of SAAB in this paper begins with a general overview of the transformation concept, followed by an historical snapshot of SAAB. SAAB Automobile AB was an original Swedish company founded in the 1930s and entered the U.S market in the late 1950s. The automobile company was very innovative, introducing new technologies, which made it a popular brand in Sweden. In 1969, SAAB merged with another Swedish firm, Scania, with Scania specializing in trucks production while SAAB concentrated on producing passenger cars. General Motors bought 50 percent interest of SAAB-Scania in 1990 to create a joint venture. With the intention of turning SAAB around into a profit-making company, General Motors purchased the rest 50 percent interest of SAAB-Scania in 2000. However, the sales targets were not met and General Motors was deep in financial crisis. Spyker, a Dutch automobile firm acquired SAAB Automobile AB in 2010.
The transformation plan is divided into 3 phases. In phase 1, “As-Is” assessment of SAAB is conducted to identify and analyze problems, critical issues, weakness, strengths, threats, opportunities and possible solutions. Further more, the urgency for the transformation is clearly communicated to the leadership, decision makers and other stakeholders and their full support for the transformation gained. In phase 2, a detailed transformation project plan is developed and project groups formed in consultation with key decision makers. The detailed project is reviewed and amended until all parties agree. After accepting a fixed date for the kick-off, the project plan is signed-off. The implementation of the transformation strategies begins in phase 3 as scheduled in the project plan. In phase 4, the results of the transformation strategies are audited and continuous improvement methods are developed to enhance SAAB’s competitive edge and profitability. At the end of the 10-year transformation period, SAAB will be profitably positioned as a very strong automobile brand that is globally recognized for fuel efficiency, environmental friendliness, consumer safety combined with trendy design.
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Transformation in the Automobile Industry
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