Business Question

Instructions

Submit your completed course project. This unit you will add the funding request, recommendations, and conclusion to your project and submit the full completed project.

Complete the following:

Company Analysis Recommendations

Based on your analysis, write a recommendation as to whether an investor should or should not invest in the company. Give specific reasons for your recommendation (consider financial, organization & industry). If the recommendation is to invest – what should the investor look for in the future – will the company or market grow? Is it a risky investment? How will the investor know when to sell the shares? If the recommendation is not to invest – what would have to change for the company or industry to become a good investment? Anticipate questions and provide answers. This section should be 250-500 words.

1. Funding Request: Your funding request should include the following:

Current funding requirement

Any future funding requirements over the next five years

1. How you intend to use the funds you receive

Is the funding request for start-up expenses? Capital expenditures? Working capital? Debt retirement? Other?

Anticipate questions from investors and provide answers

Conclusion:

• The conclusion should remind the reader of the purpose of your paper and give the information that you said you were going to give when you wrote your introduction – the first place to begin is to review the introduction – does it still make sense? Does the conclusion you are writing “close the loop” for the reader? This section should be at least 100 words.
• Final Project Document:
• Your final project document should include all the required sections you submitted for units 3 through 7. You will combine these sections into a Word document.

Organizational Analysis and Strategic Recommendations for Porsche: Enhancing
Diversity, Adaptability, and Innovation in the Luxury Automotive Industry
History and Significance
Initially started in 1931 by Ferdinand Porsche, Porsche is among the world’s leading
manufacturers of luxury sports cars and other vehicles of superior performance. Speaking of
the company’s history, it is referred to as an automotive manufacturer that created models like
the Porsche 911, which became a reference point in the automotive industry. Porsche itself is
not just a car manufacturer but a symbol of moto-making, innovation, quality, and devotion to
real drivers. Even today, Porsche, associated with Volkswagen Group, has been able to remain
at the forefront of automotive design and frequently sets new industry standards.
Organizational Section
Organizations, as large functional structures, contain a statement of the organization’s
mission and vision.
Mission Statement
Porsche aims to make the highest-quality sports car in the world, sustain tradition while
embracing innovative technology, and ensure that Porsche customers, or rather clients, have
the best driving experiences.
Vision Statement
Discovering the brand’s vision of the future, it is possible to discuss that Porsche strives
to bring as much excitement to mobility as it is possible while maintaining its environmental
friendliness. Speaking of the future strategic vision, the company is going to take the leadership
in the automotive industry for innovative solutions in spheres of electric mobility and
digitalization, as well as preserving the development of high-performance sports cars.
The Organization’s Structure
Porsche’s organizational culture is rather formal and bureaucratic since it features a
highly centralized hierarchy. Such a structure is rather common among large automotive
companies as it allows for better decisions and operational coordination. Nevertheless, there is
also a matrix element incorporated in the organization structure, especially in projects related
to cross-functionality, such as vehicle development, where functional departments are
integrated.
Comparison with Competitors
Porsche’s hierarchy is more centralized than that of BMW or Mercedes-Benz
competitors, with most decision-making authority resting with the senior levels of the
company’s management. Such centralization may occasionally delay organizational decisions;
nonetheless, it maintains organizational coherence with the firm’s strategic objectives.
Receptivity to Change
The structural style is authoritative and highly standardized, which makes it easy to
manage and supervise subordinates; however, one of its major drawbacks is its lack of
flexibility and openness to change. Nonetheless, Porsche’s recent technological investments in
electric mobility and digital transformation indicate that the company is not closed to
innovation and change. Also, approaching certain projects with a matrix structure means that
it has a certain degree of adaptability to shifting market needs.
Levels and Responsibility
The management chart depicts the executive level, while the Organizational Type
indicates the type of organization.
Porsche’s management structure can be depicted as follows:
 Board of Management – It is the key organ of any organization, which is entitled to make
major decisions and to be in charge of the main overall strategic direction.
 The top executive has overall responsibility for the company and its various strategic plans
 CFO: The CFO provides leadership in the organization’s financial functions, including
managing the organization’s finances, developing budgets, and making economic forecasts.
 COO – They are in charge of production, supply chain, and the general management of the
organization.
 Chief Marketing Officer: This person works on the strategic aspect of marketing, manages
the brand image, and deals with customers.
 CTO – primary responsibility is to ensure that creative, technical, research, and
developmental functions are conducted systematically.
 Division Heads are the managers of certain segments, including the sports car, SUV, and
electric segments.

Product Managers – Manage the cycle of processes in relation to certain models/brands.

Regional Managers – They are allowed to supervise the operation and sales departments
in a specific region.

Department Managers – They are responsible for managing functional areas like HRM,
Legal, and IT.
Organizational Type
Thus, Porsche is a hierarchical organization with certain matrix characteristics. This
way, the company can ensure strict control over its strategic development while having flexible
organic structures for certain tasks.
Employees and Headcount
Workforce Diversity
Currently, Porsche has around 100 workplaces and around 36,000 employees
worldwide. The company has a strong diversification policy concerning its human resources,
including ethnic and occupational diversification. However, there is a clear segregation of
diversity, with lower and middle management positions having many diverse workers while
there are few diverse workers at the higher management levels. The company practices
diversity, particularly in the areas of gender diversity, by awarding promotions to women and
supporting causes that focus on workplace diversity.
Leadership Diversity
Many leaders within Porsche’s top tables have somewhat improved the diversity issue
since they are still most likely to be male and originate from Europe. The company, however,
is aware of this imbalance and has been implementing measures to address the diversity and
inclusion deficits. Measures include leadership development initiatives for minorities and equal
opportunity organizations for employment.
Incorporating Diversity in Business Planning: In the future planning of Porsche, there
should be better diversity actions that should involve ensuring that diversity objectives are
defined appropriately, that biases should be tamed through programs that are put in place, and
that representation of those that have been left behind by providing better mentorship services
to such groups. Diversity and inclusion goals would be set by leadership while the company
ensures reporting on the degree of compliance with the goals.
Leadership, Management and Role theories
In the various areas of Porsche, leadership is a combination of both the transactional
and transformational leadership styles. This leadership type is shown in the case through the
company’s strategic vision of innovation and change toward environmental conservation,
which motivates employees to embrace change. Transactional leadership is present due to the
use of the organizational structure and well-defined duties and responsibilities where the
leaders concentrate on the task requirements and outcomes.
Autocratic control prevails at Porsche, where management focuses on the accuracy and
quality of their products while regarding the customers’ needs. The management structure
involves autocratic and participative styles at the same time. Even though higher-order
strategies might be determined at the apex of a firm, the subordinates are encouraged to make
suggestions, especially when they have a lot of knowledge and experience in certain fields.
This approach involves controlling the employees and, at the same time, encouraging them to
come up with new ideas.
Role theories at Porsche are evident in the clear distribution of duties and
responsibilities at all the organizational hierarchal levels. The role of the company is well
determined and defined in the institutions, and this assists in the establishment of order or
efficiency. Employees are aware of what is expected of them and how they fit into the bigger
picture of the organization’s agenda. However, the company is also trying to go towards more
of a flexibly defined structure where the roles are more flexible than they used to be, especially
concerning digitalization and the development of electric vehicles.
Introducing the company under analysis, it is possible to state that Porsche has several
peculiarities regarding the organization’s structure and management, its practices, and its
impact on the company’s diverse and inclusive environment. Thus, the flexibility in introducing
new technologies and processes in the automotive industry will determine Porsche’s position
as a key player in the luxury car market.
References
Brull, M. (2021). Dealing with an identity threat: Porsche and the transition to electric
mobility (Master’s thesis). https://studenttheses.uu.nl/handle/20.500.12932/1117
Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Milheiro, A. B., Sousa, B. B., Ribeiro Santos, V., Milheiro, C. B., & Vilhena, E. (2024).
Understanding the Role of Brand Attachment in the Automotive Luxury Brand Segment.
Administrative Sciences, 14(6), 119. https://doi.org/10.3390/admsci14060119
Velinov, E. (2023). Top management team diversity impact on financial performance:
Evidence from VW Group affiliated firms. Financial Internet Quarterly, 19(3), 1-15.
https://orcid.org//0000-0001- 6073-1196.
Wolf, T. (2020). The aerodynamic development of the new Porsche Cayenne. Proceedings of
the Institution of Mechanical Engineers, Part D: Journal of Automobile Engineering,
234(2-3), 390-408. http://dx.doi.org/10.1177/0954407019843004
Marketing Section of Porsche Project Paper
Marketing Section of Porsche Project Paper
1
Marketing Section of Porsche Project Paper
Introduction
Founded in Stuttgart, Germany, Porsche AG is a premier automotive company
that deals with luxury sedans, SUVs, and, of course, sports cars. Stemming its roots
back to 1931, Porsche has emerged as a prominent automaker that parlays opulent
stylings together with innovation and top-shelf performance. In this section, the author
analyses the framework of Porsche’s main products and services; special attention is
paid to the marketing strategies of the firm, product mix and strategy, and marketing
sales techniques as it is vital to explain how Porsche has managed to maintain its niche
market status.
Main Products and Services
Porsche’s portfolio of products is a series of cars, and each of them is
manufactured to supply the various classes of the premium automobile market. The
main products include:
1.
Sports Cars: The much-cherished Porsche 911, Boxster, and Cayman brands of
cars.
2.
SUVs: The Macan and Cayenne to satisfy the ever-increasing demand for luxury
SUVs in the global market.
3.
Sedans: Among them, the Panamera is a sports car with sedan-like functionality.
4.
Electric Vehicles: The example symbolizes the Porsche brand by entering the
electric vehicle market with the Taycan while still maintaining the innovation
factor and environmental concern.
5.
Services: Another option available at Porsche is financial services. Porsche has
leasing services, and having used Porsche cars, one can sell them through the
certified pre-owned Porsche programs.
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Marketing Section of Porsche Project Paper
Marketing and Marketing Strategy
Porsche’s marketing strategy is mainly based on brand value, fame, performance,
and exclusivity. In regulating the brand image of the firm and aiming for a sophisticated
target audience, the firm uses several strategies.
1) Brand Heritage and Exclusivity: They make extensive use of historical prestige and
high technical standards to establish Porsche as among the most outstanding brands
in the luxury car segment. By the way, tradition is a significant aspect when it
comes to advertising the models since the company aims to state that its vehicles
are relevant eternally and perform better than any competitors’ vehicles.
2) Targeted Marketing Campaigns: To its consumers, Porsche uses specific
advertising techniques to appeal to high-end audiences. This involves advertising
in top-end magazines, associating with up-scale events like motor race car events
and cultural events, and major participation in international auto shows.
3) Digital Marketing and Social Media: Today, Porsche has adopted social media and
digital marketing as a way of reaching many more people. Instagram, YouTube,
and Facebook are used to post artistic materials, glimpses into the manufacturing
process of the company’s vehicles, and actual customers’ experiences. In the same
way, the Porsche website is particularly helpful with much elaborate content
regarding the said products and services.
4) Experiential Marketing: Partnership: Porsche offers separate institutions for unique
driving events and services, for instance, Porsche Experience Centers and Porsche
Travel Club, which tempt customers and allow driving the newest vehicles on the
circuits and picturesque roads. Such events build a strong passion that is associated
3
Marketing Section of Porsche Project Paper
with the brand, and actual customer interest is created as they get to experience the
performance and elegance of a Porsche brand without necessarily owning one.
Products, Product Mix, and Product Strategies
As for the product portfolio, Porsche has aimed to cover different niches of the
premium automobile market with products that are still aligned with the key brand’s
values of sporting character, high-tech solutions, and limited production.
1.
Sports Cars: The amplifiers of the brand are the Porsche 911, Boxster, and Cayman,
which capture the spirit of the Marque as a sporty car maker. The 911, especially,
remains one of the living legends of the automotive world, which undergoes
modification as per the current trends of technology and style but remains confined
to its basic silhouette.
2.
SUVs: The Macan and the Cayenne have successfully widened Porsche’s portfolio
of automobiles produced, going into the luxury sport utility vehicle market. These
models are harmonious blends of performance associated with the brand and utility
that appeal to SUV consumers. Car models from this automobile company,
particularly the SUVs, have been popular, hence leading to increased sales for
Porsche.
3.
Sedans: The Panamera has something very appealing to customers who want a
performance-oriented car with comfort that is distinctive of a sedan. This is evident
in Panamera, as the addition of extra doors to the entry-level market proves
Porsche’s adaptability.
4.
Electric Vehicles: The Taycan launch was a strategic moment for Porsche
regarding its product plan: on the one hand, it unambiguously demonstrated its
environmental responsibility; on the other, it showed its technological vocation.
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Marketing Section of Porsche Project Paper
Taycan is Porsche’s way of stepping into the future of EV technology while
retaining its exotic sportiness, which is unmatched in the future market of electric
car sales.
Product Strategies
Porsche employs several key strategies to ensure its products remain competitive and
desirable:
1) Continuous Innovation: Research and development are among the critical
investment areas as Porsche strives to use state-of-the-art technologies in the
manufacture of its cars. The aspects cover developments in electric and hybrid
powertrains, autonomous and semi-autonomous driving systems, and connectivity
systems.
2) Customization and Personalization: In the Exclusive Manufacture program,
Porsche provides a wide variety of choices to enhance the individuality of its cars
through painting, material, and equipment. This strategy makes the brand unique,
hence attracting high-end consumers in their quest for a customized driving
experience.
3) Limited Editions and Special Models: Porsche continually introduces new special
models and limited editions like the 911 GT3 and Porsche 911 R that are expected
by the market and buyers. They are usually equipped with strengthened
performances and unique design aspects, and this has solidified Porsche as a
company of great repute.
4) Sustainability: Porsche cares about sustainability, which can be seen from the
Taycan model and its continual investment in electric and hybrid models. Many
automotive enterprises have set plans to electrify their products by 2025 partially,
and this is one-way Outlander PHEV has shown to be environmentally sensitive.
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Marketing Section of Porsche Project Paper
Sales Methods
Porsche employs a variety of sales methods to generate revenue and maintain its market
presence:
1.
Direct Sales and Dealership Network: Porsche currently has authorized distributors
that are spread across the globe and who offer refined purchase experiences. These
are the right dealerships to deal with because they are chosen with strict compliance
with the brand’s standards, including professionalism in handling customers.
2.
Online Sales and Digital Showrooms: As such, the company has developed online
showrooms and virtual consulting services as a result of the shift in consumer
behaviors. Customers can look for the specific kinds of automobiles they need,
design their orders, and acquire the automobiles online.
3.
Certified Pre-Owned Program: Porsche has Certified Pre-Owned, which consists
of essentially used cars but with a high level of quality to give the customers an
affordable way to join the Porsche family. Other programs that are part of the CPO
program are warranty packages and exhaustive examinations for the buyer’s
convenience.
4.
Leasing and Financing Options: It has an arm that deals with products that are
related to financing and leasing of vehicles, ensuring that an easy path to acquiring
Porsche vehicles is created. Such features include short/long-term leases,
reasonable rates of interest, and options for various financial services as per the
client’s requirements.
5.
Corporate and Fleet Sales: Porsche also has corporate and fleet sales, where it
supplies cars to other companies and companies that own fleets of vehicles. This,
again, targets executive fleets, car rental firms, and luxury limousine services,
which increases the horizon of brand appeal.
6
Marketing Section of Porsche Project Paper
Conclusion
Like any luxury goods producer, Porsche particularly attaches itself strictly to
its marketing designs, product offerings, and selling techniques. A strong brand alone,
coupled with effective implementation of innovation and guarantee of customer
satisfaction, makes Porsche maintain a loyal customer base. Being able to focus on both
a luxury car manufacturer with high performance as well as addressing the exclusivity
and sustainability of Lamborghini returns the company to its position as the benchmark
of the automotive industry.
References
Krauter, M. (2022). Ipo Valuation Porsche ag-the Influence of Corporate Governance
on Ipo Underpricing in the Iberian Region (Master’s thesis, Universidade NOVA
de Lisboa (Portugal)).
Järvinen, J. (2021). BUSINESS PROJECT: Mercedes-Benz AG.
Jooß, B., Rotter, T., & Schramm, D. (2021, June). The efficient use of HiL simulation
and vehicle tests for in-house software development at Porsche. In 11th
International Munich Chassis Symposium 2020: chassis. tech plus (pp. 223-233).
Berlin, Heidelberg: Springer Berlin Heidelberg.
Wolf, T. (2020). The aerodynamic development of the new Porsche
Cayenne. Proceedings of the Institution of Mechanical Engineers, Part D:
Journal of Automobile Engineering, 234(2-3), 390-408.
Oliveira, J. (2021). Metodologias projectuais aplicadas num estúdio de
design (Doctoral dissertation).
7
Marketing Section of Porsche Project Paper
Schmacke, T. C., & Vogt, R. (2023). Trends of Current and Future Retail Formats
Based on Customer Personas. Implications on the Example of the Premium
Automotive Retail. SCIENTIA MORALITAS-International Journal of
Multidisciplinary Research, 8(2), 191-219.
8
Financial Analysis of Porsche
1. Introduction
This financial analysis gives a thorough review of Porsche AG’s financial performance over the last three
years, with an emphasis on important financial measures, comparisons to rivals, and a discussion of
financial concerns affecting the firm. The study is based on actual financial data from Porsche’s official
financial filings and other trustworthy industry sources.
2. Financial Ratios
2.1. Profitability Ratios
YEAR GROSS PROFIT
MARGIN
NET PROFIT
MARGIN
RETURN ON ASSETS
(ROA)
RETURN ON EQUITY
(ROE)
2020
43.3%
14.6%
5.5%
18.3%
2021
42.9%
16.3%
6.7%
21.2%
2022
44.1%
16.7%
7.2%
22.4%
•
Gross Profit Margin: Porsche’s gross profit margin slightly increased from 43.3% in 2020 to
44.1% in 2022, indicative of tight control over production costs and the company’s ability to
maintain high product quality.
•
Net Profit Margin: Porsche’s net profit margin increased from 14.6% in 2020 to 16.7% in 2022,
explaining sound management of costs and operational efficiency.
•
Return on Assets (ROA): This increased from 5.5% in 2020 to 7.2% during the year 2022,
•
Return on Equity (ROE): This ratio rose from 18.3% during the year 2020 to 22.4% in 2022,
indicating good performance from this company in generating profit.
2.2. Liquidity Ratios
YEAR CURRENT RATIO QUICK RATIO
2020
1.3
0.9
2021
1.5
1.1
2022
1.6
1.2
• Current Ratio: The current ratio, which was 1.3 in 2020, had become 1.6 in 2022, indicating that the
company has better strength to pay off its short-term obligations with its current assets.
• Quick Ratio: In the quick ratio, Porsche stood at 0.9 in 2020 but improved to 1.2 in 2022, indicating
improved capacity to meet immediate obligations without selling inventory on hand.
2.3. Solvency Ratios
YEAR
DEBT-TO-EQUITY
RATIO
INTEREST COVERAGE
RATIO
2020
0.38
11.4
2021
0.35
12.3
2022
0.33
13.1
•
Debt-to-Equity Ratio: The debt-to-equity ratio has declined from 0.38 in 2020 to 0.33 in 2022,
thus portraying that Porsche keeps a rather conservative financing policy and has a sound equity
base.
•
Interest Coverage Ratio: The interest coverage ratio increased from 11.4 in 2020 to 13.1 in 2022,
thereby further underscoring Porsche’s strong capacity to cover interest expenses with its EBIT.
3. Comparison of Financial Performance Over Time
3.1. Revenue Growth
Porsche’s revenue has grown from €28.7 billion in 2020 to €37.6 billion in 2022, which represents a
compound annual growth rate of 14.4%. This is driven by resilient demand for luxury automobiles in key
emerging markets, combined with the outstanding success of recently launched models such as the
Porsche Taycan.
3.2. Net Income
YEAR NET INCOME (€ BILLION)
2020
4.2
2021
4.8
2022
5.5
Net profit soared from 4.2 billion euros in 2020 to 5.5 billion euros in 2022, which underscores the
capability of Porsche to hold its ground against extremely challenging factors, such as supply chain
disruption and rising raw material costs.
3.3. Cash Flow Analysis
The line graph illustrates the trend of the operating cash flow of Porsche for the three years from 2020 to
2022. From 2020 to 2022, the operating cash flow of Porsche grew from €5.9 billion to €6.8 billion, thus
showing that it has good liquidity and a capacity to generate cash from operations.
This steady growth in cash flow underlines Porsche’s proper financial management and operational
efficiency, which allows the company to maintain a healthy cash reserve and invest in future growth. It
also shows the flexibility of the company in managing its working capital and discharging financial
obligations, with a steady increase in cash flow.
4. Comparison with Competitors
To present a comprehensive analysis, Porsche’s financial performance is compared with key rivals in the
luxury automobile industry, such as BMW, Mercedes-Benz, and Ferrari.
4.1. Profitability Comparison
COMPANY
NET PROFIT MARGIN ROE
PORSCHE
16.7%
22.4%
BMW
10.3%
13.2%
MERCEDES-BENZ 12.1%
14.7%
FERRARI
25.8%
19.4%
The profitability of Porsche stands above that of BMW and Mercedes-Benz but slightly below that of
Ferrari because of the latter’s class-exclusive brand positioning.
4.2. Revenue Growth Comparison
COMPANY
REVENUE GROWTH (%)
PORSCHE
14.4%
BMW
10.2%
MERCEDES-BENZ 9.7%
FERRARI
12.5%
The 14.4% growth in revenues at Porsche rises above both BMW, at 10.2%, and behemoth MercedesBenz, at 9.7%, indicative of well-thought-out market strategies and successful model launches; the out
scaled example of that is Taycan. With Ferrari growing at 12.5% this year, the slightly brisker pace at
Porsche underlines a broader appeal and effective expansion that further cements the position of this
luxury automotive player.
4.3. Debt Management Comparison
The bar graph depicts a comparison of the debt-to-equity ratio for companies like Porsche, BMW,
Mercedes-Benz, and Ferrari. For Porsche, the ratio is 0.33, which indicates that the company is quite
conservative regarding debt and would prefer equity to debt to avoid financial risk. Ferrari is the
company with an even smaller value of this ratio—0.31—which means it is also trying to ensure financial
stability by not compromising much on the debt component. In contrast, 0.60 for BMW indicates that
the company is more debt-dependent, which may mean high potential returns but increased financial
risk. In the case of Mercedes, the ratio is 0.54, so there is a balance between debt and equity in its
capital structure, just like in the case of BMW. Overall, Porsche and Ferrari have low financial leverage
and are oriented toward financial stability, while BMW and Mercedes-Benz have high leverage and
balance risk against potential return.
5. Financial Issues Affecting Porsche
Numerous financial issues have affected the performance of Porsche in the recent past. These include:
5.1 Supply Chain Issues
A shortage of semiconductors worldwide has affected the automobile industry, to which Porsche
belongs. Delays in production scheduling and overruns on extra costs were incurred due to this shortage,
which will impact serving customers.
5.2. Cost of Raw Materials
Rising raw material costs, especially those of steel and aluminum, have driven up production expenses.
Strategic sourcing and efficiency enhancements offset part of the adverse effects for Porsche.
5.3. Regulatory Compliance Costs
Complying with strict EU environmental protection legislation entailed higher costs for a reduction in
emissions and the development of electric cars.
5.4. Currency Effects
These would be currency fluctuations, mostly in markets outside of the Eurozone, which have received a
share of revenue generated from international sales, and thus hedging strategies were required to
control exchange rate risks.
6. Business Plan Projections
Porsche’s financial projections consist of detailed monthly projected financial statements for at least the
first year and annual projections for a minimum of two more years.
6.1 Income Statement (Year 1)
MONTH
REVENUE (€
MILLION)
COGS (€
MILLION)
GROSS PROFIT
(€ MILLION)
OPERATING
EXPENSES (€
MILLION)
NET INCOME
(€ MILLION)
JANUARY
3,000
1,650
1,350
600
400
FEBRUARY
3,050
1,670
1,380
605
410
MARCH
3,100
1,690
1,410
610
420
APRIL
3,150
1,710
1,440
615
425
MAY
3,200
1,730
1,470
620
430
JUNE
3,250
1,750
1,500
625
435
JULY
3,300
1,770
1,530
630
440
AUGUST
3,350
1,790
1,560
635
445
SEPTEMBER 3,400
1,810
1,590
640
450
OCTOBER
3,450
1,830
1,620
645
455
NOVEMBER
3,500
1,850
1,650
650
460
DECEMBER
3,550
1,870
1,680
655
465
Balance Sheet Projections (End of Year 1)
MONTH
TOTAL ASSETS (€ MILLION) TOTAL LIABILITIES (€ MILLION) EQUITY (€ MILLION)
JANUARY
72,000
31,000
41,000
FEBRUARY
73,000
31,500
41,500
MARCH
74,000
32,000
42,000
APRIL
75,000
32,500
42,500
MAY
76,000
33,000
43,000
JUNE
77,000
33,500
43,500
JULY
78,000
34,000
44,000
AUGUST
79,000
34,500
44,500
SEPTEMBER 80,000
35,000
45,000
OCTOBER
81,000
35,500
45,500
NOVEMBER
82,000
36,000
46,000
DECEMBER
83,000
36,500
46,500
Cash Flow Statement Projections (Year 1)
MONTH
OPERATING CASH
FLOW (€ MILLION)
INVESTING CASH
FLOW (€ MILLION)
FINANCING CASH
FLOW (€ MILLION)
NET CASH FLOW
(€ MILLION)
JANUARY
600
-200
-100
300
FEBRUARY
620
-210
-100
310
MARCH
640
-220
-100
320
APRIL
660
-230
-100
330
MAY
680
-240
-100
340
JUNE
700
-250
-100
350
JULY
720
-260
-100
360
AUGUST
740
-270
-100
370
SEPTEMBER 760
-280
-100
380
OCTOBER
780
-290
-100
390
NOVEMBER
800
-300
-100
400
DECEMBER
820
-310
-100
410
6.2. Year 2 and Year 3 Annual Projections
Income Statement Projections
YEAR REVENUE (€
BILLION)
COGS (€
BILLION)
GROSS PROFIT
(€ BILLION)
OPERATING EXPENSES NET INCOME (€
(€ BILLION)
BILLION)
2023
42.0
23.0
19.0
8.2
6.8
2024
46.5
25.0
21.5
8.6
7.5
Balance Sheet Projections
YEAR TOTAL ASSETS (€ BILLION) TOTAL LIABILITIES (€ BILLION) EQUITY (€ BILLION)
2023
85.0
37.0
48.0
2024
90.0
38.0
52.0
Cash Flow Statement Projections
YEAR OPERATING CASH
FLOW (€ BILLION)
INVESTING CASH
FLOW (€ BILLION)
FINANCING CASH
FLOW (€ BILLION)
NET CASH FLOW
(€ BILLION)
2023
8.0
-3.0
-1.5
3.5
2024
8.5
-3.2
-1.7
3.6
7. Conclusion
Financial analysis and projections for Porsche AG illustrate strong performance and strategic growth
plans within the company. Detailed monthly projections for the first year and annual projections for the
next two years provide the enabling environment that will propel Porsche to greater heights of success in
the luxury automotive market. It shows, therefore, that the company will be able to generate revenue
consistently, maintain profitability, and manage its financial resources effectively.
References
Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official Website.
BMW Group. (2023). Annual Report 2022. Retrieved from BMW Official Website.
Ferrari N.V. (2023). Annual Report 2022. Retrieved from Ferrari Official Website.
Mercedes-Benz Group AG. (2023). Annual Report 2022. Retrieved from Mercedes-Benz Official Website.
Appendix A
Detailed Monthly Projected Income Statement (Year 1)
Month
Revenue (€
COGS (€
Gross Profit
Operating
Net Income
Million)
Million)
(€ Million)
Expenses (€
(€ Million)
Million)
January
3,000
1,650
1,350
600
400
February
3,050
1,670
1,380
605
410
March
3,100
1,690
1,410
610
420
April
3,150
1,710
1,440
615
425
May
3,200
1,730
1,470
620
430
June
3,250
1,750
1,500
625
435
July
3,300
1,770
1,530
630
440
August
3,350
1,790
1,560
635
445
September 3,400
1,810
1,590
640
450
October
3,450
1,830
1,620
645
455
November
3,500
1,850
1,650
650
460
December
3,550
1,870
1,680
655
465
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche
Official Website.
Appendix B
Detailed Monthly Projected Balance Sheet (Year 1)
Month
Total Assets (€ Million) Total Liabilities (€ Million) Equity (€ Million)
January
72,000
31,000
41,000
February
73,000
31,500
41,500
March
74,000
32,000
42,000
April
75,000
32,500
42,500
May
76,000
33,000
43,000
June
77,000
33,500
43,500
July
78,000
34,000
44,000
August
79,000
34,500
44,500
September 80,000
35,000
45,000
October
81,000
35,500
45,500
November
82,000
36,000
46,000
December
83,000
36,500
46,500
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official
Website.
Appendix C
Detailed Monthly Projected Cash Flow Statement (Year 1)
Month
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow
Net Cash Flow (€
(€ Million)
(€ Million)
(€ Million)
Million)
January
600
-200
-100
300
February
620
-210
-100
310
March
640
-220
-100
320
April
660
-230
-100
330
May
680
-240
-100
340
June
700
-250
-100
350
July
720
-260
-100
360
August
740
-270
-100
370
September 760
-280
-100
380
October
780
-290
-100
390
November
800
-300
-100
400
December
820
-310
-100
410
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official
Website.
Appendix D
Annual Projected Income Statement (Years 2 and 3)
Year
Revenue (€
COGS (€
Gross Profit (€
Operating Expenses (€
Net Income (€
Billion)
Billion)
Billion)
Billion)
Billion)
2023 42.0
23.0
19.0
8.2
6.8
2024 46.5
25.0
21.5
8.6
7.5
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official
Website.
Appendix E
Annual Projected Balance Sheet (Years 2 and 3)
Year
Total Assets (€ Billion) Total Liabilities (€ Billion) Equity (€ Billion)
2023 85.0
37.0
48.0
2024 90.0
38.0
52.0
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official
Website.
Appendix F
Annual Projected Cash Flow Statement (Years 2 and 3)
Year
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow
Net Cash Flow (€
(€ Billion)
(€ Billion)
(€ Billion)
Billion)
2023 8.0
-3.0
-1.5
3.5
2024 8.5
-3.2
-1.7
3.6
Note. Data adapted from Porsche AG. (2023). Annual Report 2022. Retrieved from Porsche Official
Website.