FIAT CHRYSLER ASSIGNMENT
prepare a report, focusin" rel="nofollow">ing on three issues:
1. An analysis of the external factors impactin" rel="nofollow">ing upon the car in" rel="nofollow">industries in" rel="nofollow">in which the company operates and the rationale for the two companies to go together
This question refers to the reasons behin" rel="nofollow">ind the merger/acquisition. Why did Marchionne make a multi-billion dollar bet? Why did he decide to buy a moribund Chrysler (it wasn’t the first time that Chrysler had gone bankrupt)? What external factors could justify this decision? The question is orientated to external factors but the firm/environment in" rel="nofollow">interface should not be ignored. A ‘reduced’ PESTLE (i.e. analyse only relevant elements, skip the rest) is of course useful, but other tools such as Porter’s 5 forces may be more analytical in" rel="nofollow">in revealin" rel="nofollow">ing the in" rel="nofollow">industry key factors. (Usin" rel="nofollow">ing chapters 4 to 6 in" rel="nofollow">in Haberberg & Reiple as startin" rel="nofollow">ing poin" rel="nofollow">int).
2. How Fiat-Chrysler is likely to perform compared to its rivals and any competitive advantage it may obtain" rel="nofollow">in from goin" rel="nofollow">ing together; this in" rel="nofollow">includes the identification of critical resources
Here we are in" rel="nofollow">interested in" rel="nofollow">in your critical evaluation of Chrysler’s and FIAT’s performance (in" rel="nofollow">in a general sense) sin" rel="nofollow">ince the merger. General and specific performance in" rel="nofollow">indicators should be chosen in" rel="nofollow">in accordance with the elements revealed as critical in" rel="nofollow">in question 1. (Use chapter 11 in" rel="nofollow">in Haberberg & Reiple as startin" rel="nofollow">ing poin" rel="nofollow">int).
3. Three strategic options appropriate for implementation subsequent to goin" rel="nofollow">ing together
Strategy in" rel="nofollow">in a busin" rel="nofollow">iness context is about procurin" rel="nofollow">ing above average sustain" rel="nofollow">inable returns (for profit makin" rel="nofollow">ing organisations at least). In this light, a strategic option is a means to an end; a tactic used in" rel="nofollow">in order to arrive at the fin" rel="nofollow">inal goal which is higher returns (the textbook is a little vague on this question and uses different words to mean strategic option). This answer should flow from question 2. What are the key issues at stake for the two firms (and in" rel="nofollow">in particular FIAT because they are in" rel="nofollow">in the driver’s seat)? How should these issues be addressed? Recommendations should be as concrete and developed as possible (imagin" rel="nofollow">ine you are a consultant or the boss of FIAT), use a 5 to ten year framework. (Use chapter 12 in" rel="nofollow">in Haberberg & Reiple as startin" rel="nofollow">ing poin" rel="nofollow">int).
Remember, what you are required to do is build a justified and substantiated discussion usin" rel="nofollow">ing academic references—also known as analytical thin" rel="nofollow">inkin" rel="nofollow">ing and writin" rel="nofollow">ing