Magna International Inc.

Topics: Ford Motor Company, Automotive industry, Opel Pages: 12 (3915 words) Published: October 31, 2008
Magna International Inc.
Magna International Inc. (Magna) is a manufacturer of automobile parts since its inception in 1957 (At the time was called Multimatic Investments Limited). Founded by Frank Stronach, Magna has since become Canada’s largest automobile parts manufacturer. Magna is the primary supplier of automobile parts to many car manufacturers, including General Motors, Chrysler, and Ford Motor Company. The following discussion will draw upon Magna’s management strategy, its mission statement, where the company is currently, how the corporation is doing, and whether it is consistent with what Magna stated to do. A PEST analysis will take into consideration of the macro-environment that Magna is pressured in the future outlook of consistently maintaining its reputation of what it wishes to accomplish in its mission statement. 2.1 CONTEXT OF MAGNA’S STRATEGY: THE MISSION STATEMENT

In the abundance of my research conducted on Magna, the starting point would be its mission statement. Ironically, Magna does not follow a traditional mission statement. Instead, Magna took upon a unique approach by laying out key principles in their responsibilities within their “Corporate Constitution” and “Magna Employee’s Charter”. Within these two statements of their purpose, Stronach developed a philosophy for Magna of which the company wants to be known as “a Fair Enterprise Corporation”. Abiding that philosophy, Stronach stresses that this includes not only to the management, but also to shareholders and employees within the Corporate Constitution and Employee Charter. 2.2 Magna’s Employee Charter

It appears that fairness and concern to employees is more enunciated with Magna due to a separate charter exclusively made for employees about the principles and what they offer. Many of these principles related to the Employee Charter include: Job Security, A Safe and Healthful Workplace, Fair Treatment, Competitive Wages and Benefits, Profit Participation, Communication and Information, The Hotline, and Employee Relations. (1) In other words, the corporation aspires to cater to its employees. I find it very interesting that Magna did not made it to the Maclean’s annual list of Canada’s Top 100 Employers for 2007 and 2008. (2) However, Magna’s philosophy is not limited by the scope of Maclean’s opinions. It is whether Magna does deliver on the promises in the past, present, and future. In the Employee Charter, it stated that every employee should share the financial success in the company. One source claims there is uniqueness in the corporation’s culture, confirming that Magna does have profit sharing plans and puts 10 per cent of pretax earnings into employee deferred stock plans. (3) In addition to caring for the employees, Magna provides job counseling, training, and employee assistance programs to support the employees’ needs of having an optimal fit with the corporation. Along with that, the fair treatment principle states that the company will only base equal opportunity on employees’ performance and qualifications, no discrimination. To this date, there has been no breaking news that has tainted on Magna being prejudice within the workplace. To further strengthen the integrity of the employee charter, Magna has even implemented its own internal hotline open to any employee whom feels that the company is not doing its part in maintaining its loyalty to its employees. This alone would provide a good indication that Magna is doing its part staying true to its philosophy, and to this day, there has been no news as to whether any employee is claiming that Magna has been breaking its promises. 2.3 Magna’s Corporate Constitution

As Magna is treating its employees well within the company, there is also a need for the employees to contribute to the company in return. And just like every other business wanting in return is: profit. In the Corporate Constitution, Magna management...

References: (9) Strumpf, D. (Sep 24, 2008). Car buyers shunning gas hogs. Retrieved
October 1, 2008, from The Toronto Star.
October 3, 2008, from Report On Business.
October 3, 2008, from TeamFate.
October 3, 2008, from Yahoo! Finance.
Magna: 2008 company profile edition 2,14-16. Retrieved October 6, 2008, from
ABI/INFORM Global database.
(14) Keenan, G. (Apr 29, 2008). Magna 's next car to be powered by electricity. Retrieved
October 3, 2008, from Report On Business.
October 3, 2008, from Yahoo! Finance.
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