...The 2009 Chrysler-Fiat Strategic Alliance Part-I What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The strategic alliance between Chrysler and Fiat was a beneficial step for both the companies. Chrysler was facing 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...
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...Case Study – Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? * According to me, the alliance is good both for Chrysler and fiat. Fiat can take care of the technology of Chrysler. It can have fiats well-developed distribution network in European market. Fiat will have the advantage of North American market. Combined production capacity will bring profits. * They also have problems in many aspects. Different corporate culture Mismatch of brands Regulatory issues 2. Analyze and evaluate Chrysler and Fiat’s strengths and weaknesses before and after their 2009 strategic alliance (see Table II and III). Fiat | Strengths | Weakness | Before Alliance | * Fiat acquires Lancia and 50% of Italian icon Ferrari. * Fiat became the largest automaker in Europe by acquiring Alfa Romeo from the Italian government. * Fiat hires Sergio Marchionne to become its CEO * Fiat was the largest automaker in Europe. | * Fiat had labor strikes and assembly line problems. * Took off jobs of many employees. | AfterAlliance | * Fiat have the advantage of getting new technology * Large distribution network in Europe and North America. | * Labor union problems * Ownership problems | Chrysler | Strengths | Weakness | Before Alliance | * Chrysler had a market share of 12.5% in U.S in 2008. * The company was a big player in North America in mini...
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...Case Study 3 The 2009 Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? When it comes to dealing with worldwide economic recession, grave steps have to be taken in order to ensure the survival of businesses, as too many livelihoods depend on it. Also, due to the investments that shareholders make, and the wide array of other businesses that the company would affect, it puts a lot of pressure on the board or the people running the company to make sure that they survive the bad times and emerge victorious. For Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely very...
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...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 parties can influence the dynamics of a negotiation process. In particular, this work shows how this input has allowed the management of a...
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...Case Study On Chrysler in Trouble Prepared For: Tanvir H Dewan Course Coordinator of CBA,IUBAT Prepared By: Group Name: Brain Crash Name | ID | Section | Program | Md. Manik Molla | 12102462 | B | BBA | Kazi Mahmud Hasan | 12102482 | B | BBA | Mahidul Islam | 13202013 | B | BBA | Monika Shama | 12102450 | B | BBA | Course Name: Strategic Management Course Code: MGT - 403 Section – B Date of Submission: 29th November 2014 IUBAT- International University of Business Agriculture and Technology I. Current Situation A. Current Performance Chrysler is an American automobile manufacturer headquartered in Auburn Hills, Michigan and owned by Italian automaker Fiat. Chrysler is one of the "Big Three" American automobile manufacturers. It sells vehicles worldwide under its flagship Chrysler brand, as well as the Dodge, Jeep and Ram. Other major divisions include Mopar, its automotive parts and accessories division, and SRT, its performance automobile division. In 2014, Chrysler Group LLC is the seventh biggest automaker in the world by production. In 1998, Chrysler merged with German automaker Daimler-Benz AG to form DaimlerChrysler; the merger proved contentious with investors and Chrysler was sold to Cerberus Capital Management and renamed Chryvgsler LLC in 2007. Like the other Big Three automobile manufacturers, Chrysler was hit hard by the automotive industry crisis of 2008–2010 and filed for Chapter 11 bankruptcy reorganization on April 30...
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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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...Annual Report At 31 December 2013 108th financial year Annual Report At 31 December 2013 All our reports are available at http://2013interactivereports.fiatspa.com Go to the online version of the Fiat Annual Reports to learn more about the Group's financial performance, sustainable development and other corporate information. | | Download our app www.fiatspa.com/mobileapp 3 General Meeting An Ordinary General Meeting of Shareholders will be held at 11 a.m. on 31 March 2014 (single call) at Centro Congressi Lingotto, Via Nizza 280, Turin to vote on the following: Agenda 1. Motion for Approval of the Statutory Financial Statements and Allocation of 2013 Net Result 2. Compensation and Own Shares: a) Compensation Policy pursuant to Article 123-ter of Legislative Decree 58/98 b) Authorization for the Purchase and Disposal of Own Shares Attendance and Representation Shareholders are entitled to attend the Meeting if they hold the right to vote at the close of business on the record date of 20 March 2014 and the Company has received the relevant confirmation of entitlement from an authorized intermediary. As provided by law, shareholders entitled to attend the Meeting may also be represented by proxy. The Company has appointed Computershare S.p.A. (Via Nizza 262/73, Turin) as the Designated Representative, pursuant to Article 135-undecies of Legislative Decree 58/98, upon whom shareholders may confer proxy and instruct to vote on all or some of the motions on the agenda...
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...Operations; Management Contracts; International Joint Ventures; Fully-Owned Subsidiaries; e-Business Proactive Reasons Management Focus: Mexico's Cemex Reverses Course to Comparative Management in Focus: Strategic Planning for the EU Market Strategic Choice of Opportunities in South Africa Reasons for Going International Respond to Global Downturn Strategic Formulation Process Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment Institutional Effects on International Competition Sources of Environmental Information Internal Analysis Competitive Analysis Strategic Decision-Making Models Global and International Strategic Alternatives Approaches to World Markets Global Strategy Regionalization/localization Ali Sulaiman 71859876 aassbk@gmail.com Timing Entry and Scheduling Expansions The Influence of Culture on Strategic Choices Conclusion Summary of Key Points Discussion Questions Application ic Exercises Experiential Exercise Internet Resources Case Study: YouTube LLC: Going Global by Acting Local AUL_KASLIK – MBA Helen Deresky International Management OBJECTIVES 1. To understand why companies engage in international business. 2. To learn the steps in global strategic planning and the models available to direct the analysis and decisionmaking...
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...newly found economic and financial power and demanded a bigger participation in world governance. The tsunami that struck Fukushima in Japan in March 2011 creating a nuclear accident has convinced many nations to reconsider their energy policy. Despite all of this, globalization, even though criticized, is still active. Firms are moving to the new emerging economies in order to capture the consumption appetite of the growing middle classes. It is still relevant and important to put together all aspects of global strategic management. This third edition is still about global firms and global management. Its objective remains to help undergraduate and graduate students, as well as company executives, to understand the main issues that companies and their managers confront when they ‘go global’ or ‘manage globally’, and to cope with these issues. Data have been updated and several new cases and examples added. At the end of each chapter there are now one or two new ‘Mini-Cases’ that students may discuss in class. The book...
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...maltamirano@monroecollege.edu Phone: (914)563-1764 | Course Information: Online Course | Course Description Managers in the twenty-first century are challenged to operate in an increasingly complex, interdependent, and dynamic global environment. In this course, students are introduced to these challenges as they explore the tools and processes needed to accurately assess the political, legal, technological, competitive, and cultural factors that affect a firm’s strategies and operations within international and cross-cultural contexts. Integrative case studies are used to familiarize students with the challenging strategic decisions that global companies face as they work to ensure sustainable competitive advantage. Emphasis is placed on how the variable of culture interacts wth other national and international factors that affect managerial procesess and behaviors. This course also focuses on effective strategic, organizational, and interpersonal management as students learn how to develop the skills necessary to design and implement global strategies, conduct effective cross-national interactions, and manage daily operations in foreign subsidiaries. The growing competitive influence of technology is also discussed throughout the course. Prerequisites KG 592 Foundations of Business Management and Marketing Learning Objectives Students who successfully complete this course should be able to: 1. Use Porter's Five Forces Model to analyze specific domestic...
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...Global Automobile Industry: Changing with Times By Chithra Gopal R.S., M.Sc (Agri) Executive Summary From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to 1890s, the global automobile industry of 2006 has come a long way emerging as market leader in manufacturing activity, providing employment to one in seven people, either directly or indirectly. Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the automobile industry (US) set standards in manufacturing activity by contributing mass production techniques during early 1910s. The Japanese soon followed by offering lean production techniques in the 1970s. Riding high on economical revival in many developing countries in Asia and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a downward slide in market share, the Big Three was fast losing their dominant position to Toyota, Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK, served as the single largest customer for European auto-makers. Japanese players were the leaders in the light vehicle market and hybrid market. China and India attracted the attention of global auto-makers, vying for setting up a cost-effective export base for meeting the demand from Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7 million commercial vehicles in 2004. With reports of highest growth in mobility in the world at...
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...R e se a rc h a n d Stat i s t i c s B r a n c h working paper 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION RESEARCH AND STATISTICS BRANCH WORKING PAPER 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries Peter Wad Copenhagen Business School UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010 This paper was prepared by Peter Wad, UNIDO consultant and backstopped by Nobuya Haraguchi, UNIDO staff member, Research and Statistics Branch, Programme Coordination and Field Operations Division. Iguaraya Saavedra provided administrative support. The designations employed, descriptions and classifications of countries, and the presentation of the material in this report do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. The views expressed in this paper do not necessarily reflect the views of the Secretariat of the UNIDO. The responsibility for opinions expressed rests solely with the authors, and publication does not constitute an endorsement by UNIDO. Although great care has...
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...A Case Study of the Acquisition of Swedish Volvo by Chinese Geely Author: Lieke Wang Supervisor: Thomas Danborg Master's Thesis in Business Administration, MBA programme February 2011 Abstract The acquisition of the famous Swedish Volvo by the unknown Chinese Geely has attracted a lot of attention in the world-wide medias, particularly in Sweden and China. It is the largest overseas acquisition ever by a Chinese company, which marks a beginning of a new era that the fastest growing China has become a superpower in the world economy. Because this acquisition is such a complex business where two involved companies are so much different, it is of high interest to make a case study of this in the business research area. The thesis begins the study by looking at the basic facts of these two companies: the products, market, finance situation, brand and technology, etc. It was found that these two companies have very little in similarity, but a huge difference in product segment, technology and brand, inter-culture, language, etc. Therefore, there is no immediate cost saving through the integration of two companies and the sharing of the common components, which indicates that the risk of failure of this acquisition is relatively big. However, there do exist some opportunities lying ahead. The most obvious opportunity is the possible rapid expansion in the growing Chinese market as Volvo’s second home market. To be successful in China, Volvo must address several issues: quickly...
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...Strategic development TATA MOTORS Introduction: Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive components and Fiat and Tata branded vehicles. Founded in 1945 as a manufacturer of locomotives...
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...developing rapidly since the 1990s. In recent years, China has become the world’s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world’s biggest market for automobile sales. Meanwhile, China’s auto sector development and policies have caused concerns in the United States, from automotive trade, China’s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. China’s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China’s large and fastgrowing market. The domestic Chinese automakers, who occupy the lower end of the market, struggle to improve design and quality to expand sales overseas. China exports and imports relatively few vehicles. Most of the cars produced in China stay in China and its vehicle exports are mostly light trucks and passenger cars shipped to developing country markets. Automotive trade between the United States and China has increased in recent years,...
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