...Introducing Alfa Romeo into Canada Introducing Alfa Romeo into Canada P720 – Strategic Management Table of Contents Executive Summary 2 Company Background/History 3 Statement of Problems 3 Analysis 5 Brief History Overview 5 Industry Overview 5 SWOT 6 Porters 5 Forces 7 PEEST 8 VRIO 10 Competitor Overview 12 Alternatives 12 Decision Criteria 14 Implementation 16 Contingency 19 References 21 Exhibits 22 Executive Summary Alfa Romeo, a company steeped in automotive performance history is being evaluated for re-entry into the North American and specifically Canadian consumer market. The company was founded in 1910, and has been producing high performance vehicles to present day. To-date its sales focus has been focused on the European market, with over 90% of units sold in Europe. It was acquired by, then Fiat Group, in 1986 from this acquisition a partnership was brokered between Fiat and Chrysler Motor Company in 1988 for exclusive rights to sell Alfa Romeos through Chrysler dealerships from 1988 to 1995, at which time Alfa Romeo pulled out of the North American market. In 2015, due to the recent partnership between Fiat and Chrysler and the creation of Fiat Chrysler Automotive Group, Alfa Romeo is returning to North America. Three key problems have been identified that must be overcome for Alfa Romeo to be successful in the Canadian market place and North American market overall. The first is to develop strong brand recognition...
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...Angeles motor show last week, alongside a revamped Chrysler range. Fiat’s return to America is the first visible result of what is intended to be an ever closer union with Chrysler, agreed on last year when the Detroit giant was in bankruptcy. The two companies are betting that the Fiat 500—designed by Frank Stephenson, the man behind BMW’s transatlantic success with the MINI—will also prove as popular with Americans as it has with Europeans. Returning to a country from which Fiat was driven out by poor quality—Americans used to quip that its name stood for “Fix It Again, Tony”—is a big risk. But the reward is to get back into one of the world’s largest markets and gain the scale that will promote Fiat from a smallish European firm (albeit with a successful business in South America) to the ranks of global carmakers. Its home market in Italy is too small, and its operations there too uncompetitive, to provide the basis for long-term survival. Merging with Chrysler will mean sharing development costs and technology, but will also mean having to...
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... PH.D F IGURE 1: A 2011 FIAT 500 On March 18, 2011 two hundred strange looking tiny cars lined up on the streets around the Quebec Business Centre. FIAT, a major European car manufacturer, was celebrating its return to Canada after 28 years of absence. This comeback became possible thanks to a partnership with one of the Detroit Big Three car manufacturers – Chrysler. From Montreal, columns of FIAT 500 cars paraded to designated Chrysler dealerships where FIAT opened its “FIAT Studios”. A number of important and at times sad developments led to this celebratory moment. Once a powerful player in the North American market, in early 2000s Chrysler Corporation was struggling with declining demand and decreasing market share. In 1998 the company “merged” with German Daimler Benz to form DaimlerChrysler AG. In fact, the German automotive giant took ownership of Chrysler, but after nine years the new owner acknowledged that the “marriage” was not successful and it could not improve Chrysler’s financial performance. In 2007 Daimler sold the Chrysler for $7.4 billion to the investment group Cerberus Capital Management. If the inflow of German technology and management could not improve the situation at Chrysler, a group of investment bankers had even less chances to rescue the company, especially when global 1...
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...Fiat Chrysler Automobiles Company Instructor name and presented to: Dr/ Amany Abdel Haleem Presented by: Nourhan Magdy 20120346 History and kinds of products. The first FIAT branded automobile rolled out the factory sometime in 1901. Engineered by talented Ceirano employee Faccioli, the coach-looking car was powered by a 2 cylinder archaic Boxer 3 hp engine. The investment group heads approached Faciolli on developing a front-engined vehicle. Faciolli's response was not the expected one: he resigned. Like any company would have done, a replacement was sought and found in the blink of an eye. Enrico took on the job and in a year's time he presented a new 1.2 liter four cylinder model, developed with technology borrowed from Mercedes. As time went by, the company gained in popularity and although it was becoming bigger by the day, it still hadn't exited its lengthy development and research stages. After many tryouts using 4 and 6 cylinder models, FIAT was ready to reveal its first mass-produced car, the 1912 “Tipo Zero”. Pre-war time was soon to be over and FIAT would plunge in boringly new production stages to cover for aircraft and tank demands. Post-war times however would bring Fiat lots of sales-figures related merriment – the 501 Cavalli designed model was built in over 45,000 units by 1926. After experimenting with some floppy luxurious big engined models, Fiat resumed the development of its highly popular...
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...problem of financial crisis of 2008-2009 and was not able to perform after de- merging with Daimler in the year 2007. In North-America Chrysler was facing challenges of its bankruptcy filing and global financial crisis, because of which the demand of its car decreased in the domestic market. In order to recover from this loss, Chrysler had no other option but to find a partner with whom it could serve the foreign market. Chrysler surveyed the possibilities of various big automakers like Nissan, TATA Motors, Ford, Volkswagen, GM and Fiat. Finally they decided to create a strategic alliance with Fiat. In this alliance Fiat agreed for 20% of Chrysler stake and increased to 35% within five years. With this Alliance, Fiat got the opportunity to enter the US Market and instead of paying for the 35% of Chrysler stake, they provided Chrysler access to their technology in automobiles. (Calabrese, 2012) Fiat announced publicly their intention to open a production center in North America for manufacturing of Alfa Romeo and Fiat brands. By doing so they gained 35% stake in Chrysler and gained access to the Chrysler production center in America. Similarly, Chrysler also benefitted by gaining access to the European market and was able to learn and apply Fiat technology for engineering small cars. The joint venture between the companies would not have fulfilled the strategic alliance goals since there was a huge difference between them in terms of technology, working environment, working style,...
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...Maria Bejarano Dr. Blankson October 21, 2014 International Management Chrysler Fiat case 1. What are your views of the Chrysler fiat auto alliance and its status in 2012? The strategic alliance amongst both companies, Fiat and Chrysler, doesn’t precisely rescue o completely help Chrysler. It does allow Fiat to go in U.S. market. Concisely, Fiat will acquire 35% of Chrysler Company’s stake, without the any respective compensation for the stake, and it will provide Chrysler entry and use of its technology. Fiat openly announced that it aimed to open a manufacturing base in the U.S for the Fiat brand as well as for its subsidiary, Alfa Romeo. Thanks to the 35% that Fiat is obtaining from Chrysler, the automotive company would seemingly be able to use an U.S. factory to manufacture its cars. Chrysler doesn’t have a good story in recent years through mergers since after separating from Daimler in 2007, Chrysler did not do well because of the existent global economic crises. Moreover, Chryslers’ monetary constraints and sharp competition in the United States represent some of its other issues which are some of the reasons that led the corporation to seek a partnership and Fiat ended up being the right fit. Both corporations display similarities in their manufactured goods, worldwide procedures, and machinery and equipment areas which will help build a strong alliance and benefit both companies. The association will probably assist Chrysler in order to get more capital...
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...the automotive industry over the years and the changes yet to come the Ford Motor Company needs to position itself in the market and embrace the changes. In 2013 Ford Motor Company had an outstanding year. Retail sales were up 14 percent and Ford is expecting 2014 to be another great year around the world. Ford is expecting to introduce 23 new vehicles to customers and open three new production plants worldwide. “Our strategy in Asia Pacific is to serve our customers with even more One Ford products, and to increase our capacity to provide these great products with manufacturing hubs in China, India and ASEAN,” said Dave Schoch, group vice president and president, Ford Asia Pacific” (Ford Motor Company, 2013). With these expectations there will need to be some changes to be monitored. The changes in the automotive industry can be broken down into the following areas. There are new companies entering the market, mergers and acquisitions and globalization that affect pricing and sustainability of profits. There are government policies and regulations, currently and in the future, that will affect the industry. With global competition there will be decisions made by management that will change the way we compete in the industry in the future. New Companies Entering Market Major issues to consider with the many companies entering the automotive market are the many forms of mergers and acquisitions and opportunities that will become available. The slight difference between...
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...1. Introduction What is the effect of a third who joins into a negotiation which was initially distributive and bilateral? Can this entry at the table shift the negotiation, which is now multilateral, from distributive to integrative? How? The deepening of the decision-making processes commonly known as "negotiations" has been always dear to scholars in management, within the studies on strategic cooperation between companies(Fisher, Ury, & Patton, 1981; Komorita, 1985; Kramer, 1991; Lax & Sebenius, 1986; Lewicki, Weiss, & Lewin, 1992; Raiffa, 1982; Sheppard, 1984; Walton & McKersie, 1965; Zartman, 1977).Over the years, these studies have contributed to the construction of the so-called negotiation theory, which has assumed the development of techniques and models designed to solve political problems as the primary target of investigation. Management studies relating to negotiations have mainly focused on negotiation processes between companies, customers, suppliers, and industrial relations. The negotiations involving two companies that design strategic paths of cooperation – or have to implement a designed one – are less investigated, especially those concerning the effect of the intervention of outside (third) parties. I intend to focus on the latter. Through the analysis of the case studies relating to the negotiation between Fiat and Chrysler to establish a strategic alliance in the automobile sector, the article would like to investigate how the entry of interested third...
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............................................................ 5 SUV Ferrari SWOT Analysis ...................................................................................................................................... 8 Objectives ................................................................................................................................................................ 9 Market Strategy ..................................................................................................................................................... 10 Ferrari SUV Case Study August 22nd 2014 2 Ferrari SUV – Marketing Case Study Management Summary This study will try to explain why Ferrari motor company should to manage the hypothesis to start an R&D on a new car model in its lineup. In this case the study will focus on luxury SUV category. Why luxury SUV ? Because data is confirming the interests of people in this segment. As we will try to see by using the following figures, almost all main manufacturers companies have invested or are about to invest in a market that does not seem to suffer any kind of economic crisis. As already done my Mercedes, VW group, Audi, Porsche, major asian brands and, in a short time, also...
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...The current 3 Series model is a market leader in a mature market sector. Its high market share leads to a high cash flow rate, and its position in a mature market means that investment supports in areas such a product and process development is low. The 5 series too, is comfortably positioned as a cash cow. It is a mature product, placed and sold in a less volatile market than the 3 series. This means that the 3 and 5 series family of products have extremely high profitability, due to their high level of sales, and the low level of expenditure needed to maintain the sales levels. The 7 series however is a model in decline in terms of its lifecycle. It is found at the ultimate destination of all products, a ‘dog’. The production does have market share, but its desirability is waning and its performance relative to its competitors is not what it once was. The market for the 7 series however, is still performing well. This means that BMW should, and will review the model with a view to re-launch in the near future. The above products are all fairly settled. Many of them have been being manufactured for many years now with several re-designs and re-launches. BMW has however recently begun expanding its portfolio, and the result of this is some new star and problem children. One of these stars is the X5. The X5 is a new market area for BMW. The 4x4 market can be extremely profitable, especially the ‘On road’ 4x4 products. This market is very large and growing, and BMW have made an...
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...been rather less proportionate because of some bad financial performances especially in 1999 and 2008. This takes us to the new strategic guidelines BMW's management board have set with their Number One strategy which was presented in 2007. The first direction along which the plan is being deployed is increasing profitability. The profitability target, which has not been revised lately, unlike the volume target, foresees a return on capital employed (ROCE) of 26% and a ROE (Return On Sales) of 8–10%. All this for the sole automotive division and for the year 2012. The underlying policy to achieve this challenging goal is a tighter control on costs. The very first activity that was carried out to reach the above mentioned target encompasses a generalised reduction of headcount. BMW cut 8,500 positions in 2008, 4,500 through buyout offers and 3,000 through natural not replaced turnover. The reduction allowed €500m in savings in 2008. Additional 1,000 jobs are expected to be axed in 2009 through natural attrition. This will take total workforce just below the 100,000 threshold in 2009. Other areas on which BMW will focus include efforts to spot inefficiencies and unnecessary costs are purchasing, which was identified as the primary source of savings, (as described in the purchasing strategy section) and marketing & retail activities. In particular BMW wants to reshape its US sales by cutting local corporate jobs, by cutting lease...
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...LIST OF NONCONFORMING MOTOR VEHICLES THAT ARE ELIGIBLE FOR IMPORTATION (BY OR THROUGH A REGISTERED IMPORTER) as of October 1, 2011 Under 49 U.S.C. § 30112(a), a person may not permanently import into the United States a motor vehicle manufactured after the date that an applicable Federal motor vehicle safety standard (FMVSS) takes effect unless the vehicle complies with the standard and is so certified by its original manufacturer. This prohibition applies to both new and used motor vehicles, but does not apply to motor vehicles that are at least 25 years old (based on the date that the vehicle was manufactured). Under one of the exceptions to this prohibition, found in 49 U.S.C. § 30141, a motor vehicle that was not originally manufactured to comply with all applicable FMVSS can be lawfully imported into the United States, provided it is determined eligible for importation by the National Highway Traffic Safety Administration (NHTSA), and is imported by a registered importer, or by a person who has a contract with a registered importer to bring the vehicle into compliance with all applicable FMVSS following importation. Import eligibility decisions can be made either on the initiative of the Administrator of NHTSA or on the petition of a manufacturer or registered importer. One basis for determining a motor vehicle eligible for importation is that it 1) is substantially similar to a motor vehicle of the same model year that was manufactured for sale in the United States and certified...
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...enviroment, ultimately leading to its current state of poor sales and near-bankruptcy. We believe GM’s management now needs to be proactive in rectifying its current situation, instead of adopting short-term, stop-gap measures. GM’s traditional strategy is to have a full array of cars, trucks and minivans for each of its brands[1]. It has particularly relied on big cars and trucks – like SUVs, the GMC Yukon and the Chevy Tahoe[2] - as opposed to direct competitors like Toyota, that are known for smaller, more fuel-efficient cars. Also, GM follows the core assumption that job satisfaction leads to profits[3]. This strategy worked well for GM in the past when it controlled the greatest share in the auto market. Between the 1930s and 1980s, GM held a 41% to 46% share of the US car market[4]. It was dependent on this strategy and did not undertake intensive product innovation or streamlining of production processes[5]. Recently, however, this share slid to 26%[6] as its competitors were positioned to capitalize on the environmental shifts that disadvantaged GM. Global Environment The global environment poses both...
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...April TRAINING EXECUTIVE EXECUTIVE BUSINESS SIMULATION MARKET RESEARCH MARKET RESEARCH PACKAGE FOR THE EUROPEAN PASSENGER AUTOMOTIVE INDUSTRY 2009-2010 Release 9 MARKET RESEARCH MARKET RESEARCH PACKAGE FOR THE EUROPEAN CAR INDUSTRY THE EUROPEAN CAR MARKET The European motor industry is the world's largest car market, having exceeded the US market in total units sold (excluding light trucks). It is also an extremely competitive arena. Some of the patterns to emerge from this market over the last few years are listed below. 1. Sales Figures1 Historical and Current The last strong rise in sales was in 1998 (14.3m), continuing into 1999, however, in 2000 sales fell by 2.2% (14.7m) and stayed at this level in 2001. In 2002 sales fell by 3%, 2003 saw an increase of nearly 5% but this was a result of an expanding marketplace, in reality there was another fall of 1% when comparing sales in the same EU member countries. 2004 saw a genuine 2% increase in registrations, remained stable in 2005, showed a substantial 4% rise in 2006 but then the percentage increase dropped to 1% in 2007. In 2008 European car sales figures were easily the worst for over a decade: 14.6m in extended Europe, 13.6m in the core economies, a drop of 8.2% and 8.1% respectively over 2007 figures. Gloomy forecasts for 2009 proved to be well founded with the whole market falling by a further 0.7% to 14.5m, however, the market excluding the new EU countries did show a 0.7% improvement to 13.7m...
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...Brand Analysis- Ferrari EXECUTIVE SUMMARY Ferrari is known and is highly valued everywhere in the world. From the US to Japan, from Germany and Switzerland to India, to France, Australia, New Zealand, Russia, Brazil and Argentina. THE BRAND Ferrari is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles in 1947 as Ferrari S.p.A.. Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it has enjoyed great success. Ferrari Values: Ethics, Initiative, Excellence, Pride of Affiliation. Ferrari Achievement. Enzo Ferrari founded Ferrari back in 1943, during WW II. The first Ferrari premises were bombed and heavily damaged. Enzo Ferrari was not an Engineer, nor he was an enterpreneur. Enzo Ferrari never went to college, not even high school, no PhD, never made and MBA. Enzo Ferrari was "just" a mechanic at Alfa Romeo, with a strong passion for engines, speed and racing. He was a tough guy, and he had his own ideas on engines and cars. Ferrari Passion. The first Ferrari car was the 125 S. It was built in1947. Only 3 of them were produced. None survived to our days, yet a 125 S engine is on display in Galleria Ferrari in Maranello, Ferrari dynamic museum. Galleria Ferrari is the Louvre, the Guggenheim, the Moma...
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