Submitted by: Submitted by san4265
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Category: Business and Industry
Date Submitted: 03/23/2013 03:15 PM
MANAGEMENT CACSE REPORT
CHRYSLER AND FIAT
I. Description of the company
Fiat was founded in 1899 by a group of investors. FIAT Group is traditionally one of the big six carmakers in Europe and the dominator of the Italian market. It controls nearly all Italian car brands existed today, i.e. Lancia, Alfa Romeo, Ferrari and Maserati. As its home market is strongly biased towards small cars, FIAT is especially strong at building small cars, such as the historical 500 Topolino, Nuova 500, 127, Panda, Uno and Punto. Fiat has acquired numerous other companies; e.g., it acquired Lancia in 1968, became a shareholder of Ferrari in 1969, took control of Alfa Romeo from the Italian government in 1986, purchased Maserati in 1993, and became the majority shareholder of Chrysler, including Dodge and Jeep, in 2011. Although FIAT is doing well in European and also in Brazil, it has little performance in the rest of the world. In the future, only global players may survive. Therefore FIAT will need to expand its market to the North America and Asia. The merger with Chrysler could be a good opportunity.
II. Summary of the situation discussed in the case
“Shifting Gears in the Auto Industry” (Griffin, 2012) describes that Chrysler and Fiat has been merger. Firstly, Chrysler lost too much money in recent years. Importantly, it had to face bankruptcy. Then, Chrysler has no choice to agree merger with Fiat. In order to to get more benefits, the CEO of Fiat has changed management strategy. The author (Griffin, 2012) commented, “Marchionne brought an ‘unconventional approach’ to the task of managing a car company in tenty-first century” (p.146). After Mr. Marchionne changed strategy, Fiat had started to earn too much money; even its stock price had doubled since 2000. Finally, Chrysler and Fiat revenue many benefits and begin to get an important position in American marketing.
III. SWOT Analysis of the company
Strengths | Weaknesses |
1. Firm alliances and...