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Business Report

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Submitted By jenlin1993
Words 646
Pages 3
Date: November 12, 2013, 2013
Subject: Report
Chrysler Group is not an ideal company for Fictitious University to establish an internship program for their students. The group is facing the threat from recalls impacting its brand image, substantial indebtedness and ignored the discrimination in workplace. It is important for the Fictitious University to choose a suitable company in order to help students with their career. However, Chrysler Group has many weaknesses that are not a good company for student from Fictitious University.
Recalls impacting its brand image
Report shows Chrysler announced too many recalls that impacted its brand image. Among these recalls some are the most popular mode. For example, in 2012, Chrysler recalled about 67,872 Jeep Wrangler sport utility vehicles because the transmission problems that can cause vehicle catch fires. In the same month, Chrysler recalled about 127,350 Dodge Charger because they have problems with stability control and anti-lock braking system. In March of 2012, Chrysler recalled about 209,734 Jeep SUV due to problems that could lead to a loss of control by the driver. In February 2012sl, Chrysler recalled about 10000 Dodge Charger due to overheating problems that can cause headlamp and brake failure. It is important to obtain a good business brand image in order for customers to trust the brand. However, these recalls impacting its brand image and demonstrate the bad quality which leads negatively impact from customers.
Substantial indebtedness Chrysler Group has a substantial indebtedness which can impact the company’s ability to operate its business. As of end of 2011, the group’s total debt was $13,382 million. The heavy debt could force Chrysler to take a large portion of cash flows from operations to debt service payments. As a result of this, the group’s ability to obtain additional financing would be limited, therefore it loses advantage against its competitor who have less debt. Further, if Chrysler is unable to generate enough cash flow from operation to service its debt, it would face problems that it need to reduce business operating expenses, sell asset and all possible way in order to have enough money. The substantial indebtedness limits the group’s development. Ignored the discrimination in workplace
Chrysler is sued by one of its employees, Otto May Jr., on how it ignored the discrimination in workplace. Otto was a Cuban immigrant who converted to Judaism. Because of that, he becomes a target of a campaign’s harassment. The situation turns worst from people write negative stuffs on his car, to receiving threat note. Otto reported to his manager, however the company tells him to park his car in salaried employee lot, which was monitored by cameras. However, this idea is not sufficient because a lot of those cameras do not work. Even though, Otto suggests the company that they should replace the broken working camera, but the company does not take any action. As things get worst, Otto has no other choice so he sued the company. This employment litigation causes Chrysler group seems careless about how its employees feel. The way it ignored the discrimination in workplace make it not a suitable company for Fictitious University to establish an internship program with.

Work Cited
"Chrysler Group LLC SWOT Analysis." Chrysler Group LLC SWOT Analysis (2012): 1-10. Business Source Premier. Web. 12 Nov. 2013.
"Employment Litigation And Discrimination." Business Torts Reporter 25.9 (2013): 254-259. Business Source Premier. Web. 12 Nov. 2013.
"Chrysler Group LLC SWOT Analysis." Chrysler Group LLC SWOT Analysis (2012): 1-10. Business Source Premier. Web. 12 Nov. 2013.
"SWOT Analysis." Dollar Thrifty Automotive Group, Inc. SWOT Analysis (2010): 1-9. Business Source Premier. Web. 12 Nov. 2013.
"Chrysler Group LLC." Corporate Philanthropy Report 28.9 (2013): 7. Business Source Premier. Web. 12 Nov. 2013.
"Chrysler Group LLC." Corporate Philanthropy Report 27.9 (2012): 5-6. Business Source Premier. Web. 12 Nov. 2013.

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