...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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...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 important for Chrysler as it had huge losses in 2006, had to lay off over 13000 people, and was going bankrupt. It could not keep up with the turbulent economy and needed to be bailed out. For Fiat it made sense over GM, Toyota or Volkswagen to form an alliance with Chrysler, as it fit in the long term plans of the new CEO, Sergio Marchionne of re-entering the North American market. For Fiat...
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...DUCATI CASE 1. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? Through out what we call a “Turnaround program” leaded by the Italian Federico Minoli. I believe his experience in turnaround management during his stay in Bain & Co. and his previous jobs in Procter & Gamble and McKinsey gave him a tremendous background to manage a company such as Ducati. However, as we have seen in the case, the Italian firm has nothing to do with other motorcycle companies. Ducati is unique because of its culture and huge potential that was hidden before Federico’s arrival. As he said, “I accepted [the chance] to run Ducati because I saw a company that, beyond its liquidity crisis, needed to be radically changed in order to fully exploit its enormous potential.” In this sense, it had to be an Italian CEO the one in charge of a strategy that ended up in what “The World of Ducati” is today. Minoli stablished from a good mission statement an even better vision statement. He had clear ideas of what his goals were and started from the very basis. This was by putting together a talented group of engineers that felt the companies as theirs. These people were “the Ducati’s soul” (as Minoli used to call them). In my opinion, this principle is something that every person who runs a business should take into account. A good manager is one who is surrounded by others better than him, and if these people perform in a company...
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...------------------------------------------------- EXPORT PLANNING ------------------------------------------------- AMB210 ASSIGMENT( SEM1,2013) By KA SUEN CHAN (N8376875) Executive Summary The Fresh Cheese Company is predominantly a manufacturer of multi-award winning high quality Italian style cheese in Victoria. Local success and popular in some other existing foreign market show the competitive advantage of the company’s product. Company is currently seeking for more market expansion oversea. This report will focus on China as a great potential market. Traditionally, cheese was not a favourite food in China. In recent years, influenced by western culture, cheese has become increasingly popular in most developed cities, especially among new generation. With huge population and great purchasing power, China’s cheese market is still in an infancy stage but growth rapidly in recent years. The purpose of this report is to conduct a consolidated analysis to construct an export planning. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Export readiness analysis 4 2.1 Competitive advantage 4 2.2 Production capacity 4 2.3 Export experience ...
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...Schwarzenegger, George Clooney, and Jay Leno Designs and builds many of the components in its cars, including the power electronics, motor and battery packs Weaknesses • • • • Doesn’t have much brand recognition among the general public A very small company with small sales volume, so no economies of scale Possible supply problems with components, especially if demand increases The Tesla Roadster hasn’t been on the market for very long, the longevity of fully electric cars remains to be proven Opportunities • • • Threats • • • • Wrightspeed X1, a prototype high performance electric car that caters to the same market; the only direct competitor to Tesla that offers a similar product Large automobile companies entering the market with full and hybrid electric cars, the GM Volt and Toyota Prius The price of oil falling dramatically in the short run A competitor having a breakthrough in related energy technologies, like hydrogen powered cars, natural gas, or ethanol Moving towards the family sedan market and making a product that is meant for more of the automotive market Price of oil and gasoline skyrocketing, making the price premium for an electric car less of an issue Expanding into developing lithium-ion batteries and other energy technologies, partnering with a battery company to improve battery technology 2 2 Six Force Analysis Competitors • WrightSpeed X1 – small two-seater performance electric car based on existing design, meant for enthusiasts rather than daily...
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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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...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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...Chery Automobiles International Business Project Report 2014 Prepared by: Group 8, Section B Megha PGP17/093 Swati PGP17/117 Shreya PGP17/113 Umang PGP17/121 Ved PGP17/123 Contents Background of the company 3 Growth of the company 3 Chinese automotive industry 3 External Environment Analysis 4 Business Strategy 6 Internationalization 6 Competitive landscape 8 Chery automobile - During the recession 9 Chery automobile - After recession 10 Exhibits 11 References: 15 Background of the company Chery Automobile Co. Ltd is a government owned automobile manufacturing company in China founded in the year 1997.The product portfolio of Chery consists of 15 models which includes minivans, passenger cars and SUVs including the QQ compact, the A5 sedan, and V5 crossover. It also offers full electric and hybrid models. The exports of Chery account to 25% of its total production and it is the largest passenger car exporter since 2003. Chery has manufacturing facilities in China and their assembly operations are in around 15 countries. It has factories in Ukraine, Egypt, Uruguay, Syria, China, Iran, Indonesia, Malaysia, Thailand, Brazil, Taiwan, Venezuela, and Vietnam. Apart from that, Chery also focuses on new product development and its R&D expenses accounts to 7 % of total revenue. Growth of the company Due to certain quality issues faced by the auto exports from China, expansion plans of Chery have been challenged. Chinese products were...
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...the world, including an extremely unprofitable partnership with GM in 2005. The brand had a negative reputation in the United States, and it was senseless for the brand to invest resources in the American car market. By 2006, however, Fiat was turning a profit, and in 2009, the company was named one of Fortune magazine’s most admired companies and became Europe’s third-largest car company and the ninth largest in the world. As Fiat experienced this massive success, transforming into a true multinational business became a viable option. Purchasing the struggling Chrysler brand was a logical way for Fiat to truly become a part of the American automobile market and become a multinational company. Instead of merely exporting cars to the US or entering a joint venture with a US automobile maker, Fiat is able to have full operations in the United States using Chrysler’s existing resources. The merger was practical for both brands, as Chrysler desperately needed resources, and by buying out Chrysler, Fiat gained access to Chrysler’s network of distribution channels in the United States and the brand recognition of Chrysler. As a multinational business, Fiat will still be able to adapt product offerings and strategy for each country, but will have better access to the markets of each country and more efficient operations. Question Two The merger between Fiat and Chrysler has many benefits for both parties. Most importantly for Chrysler, they were able to avoid going bankrupt. Without...
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...average quality as a result of inefficient production and poor management. Until 1996 it was driven by the imaginations of its engineers rather than by goal-oriented strategic decisions. Minoli described Ducati’s top management as operating in “a structured chaos” (Gavetti, 2004, pp.861). He believed that by incorporating certain basic structural changes and by redefining company’s strategic goals, it could be turned into a profitable brand-driven company. Ducati’s turnaround focused on brand building which was supported by the reconfiguration of a number of activities ranging from increased efficiency in the production process to broadening its customer base. Having almost doubled its market share in 2001, Minoli wanted to find new sources of growth. Among others he considered the cruiser market, currently dominated by Harley Davidson. His goal was to compete directly with Harley Davidson in Europe by introducing a cruiser that combined Ducati’s high performance engine with its own unique design. This essay will begin with a SWOT analysis of Ducati as it stands at the end of its turnaround program. The analysis will bring to light Ducati’s strategic position in the industry as well as any potential that the company may...
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...industrial, they face many difficulties such us political issues, economy changes, environmental, technology and lack of resources and many obstacles they go through with it while the process of internationalization. However, firms in developing countries such as China, going global for them is very easy process because they seek advantages such as compete and gaining profit and to built up a strong economy region, on the other hand they face challenges when embarking on overseas investment. Internationalization of Firms: Internationalization of firms is a process in which the firms in developing countries gradually raise their international participation in the world-wild economy. Firms internationalize for two factors a) - Economy= increase country revenue. b) - Business= to gain profit. (The internationalization process of the firm- Jan Johnson 1973 university of Uppsala) The Internationalization Model: Market Commitment: It’s all about two factors, the amount of resources and the average of commitment to use these resources in the market. Market Knowledge: A firm before going international should have a basic knowledge of market s opportunities, market environment, and performance of activities, resources, culture, language and technology. These can be different from market to market and time to time. The most important is the outside knowledge. Market knowledge is considered as a resource and...
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...the FT luxury summit in Monte Carlo FT.com/luxury-video SPECIAL REPORT | Monday June 15 2009 www.ft.com/business-luxury-2009 Slimming all the rage as belts tighten Haig Simonian investigates the problems faced by luxury goods conglomerates in the current market F or years, equity analysts urged Johann Rupert to spin off tobacco and turn Richemont, the company he chairs and controls, into a “pure play” luxury goods group. In 2008, the independently-minded Mr Rupert finally took heed and returned Richemont’s stake in British American Tobacco to shareholders, leaving his group focused on Cartier jewellery, Montblanc pens and much else. Today, some of the same pundits are regretting the loss of those high and stable BAT dividends, as the world’s luxury goods industry struggles with its biggest challenges in decades. Demand has tumbled virtually across the globe with no clear sign of recovery. Manufacturers from LVMH Möet Hennessy Louis Vuitton, the world’s biggest luxury goods group, to Italy’s Bulgari, find themselves saddled with stubbornly high costs, leaving little room for manoeuvre. Even beauty has proved vulnerable, contrary to the common claim, as figures for L’Oréal and others show. On top of the market problems, the sector faces tough secular change. Globalisation has put a premium on size – but sheer mass risks diluting the exclusivity that is luxury groups’ key feature. The grim economic backdrop has also come just as some companies, notably in leather goods...
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...Ducati By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive growth and profitability. Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to 6.7% in 2000 (see Exhibit 1). Despite this success, Minoli was concerned with the future of the company. He knew that Ducati could not grow indefinitely, and was struggling with what strategy might overtake these bounds. Minoli and the rest of Ducati’s top management team were considering different alternatives. One alternative was to attack Harley Davidson’s niche with a Ducati interpretation of a cruiser. Was this broadening of Ducati’s traditional niche the right move to sustain the profitable growth of the company? The Market for Motorcycles in 2001 The roots of the motorcycle industry date back to 1868, when Louis Perraux installed a steam engine on a rudimentary bicycle. In 1894, the Hildebrand brothers and Alois Wolfmüller produced the first motorcycle with an internal-combustion...
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...global accepted quality measures at a lower cost. This makes it a perfect destination for production-outsourcing of automobiles. 4. The availability large talent pool at cheap prices. 5. Availability of cheap R&D; IITs be deemed as centers of excellence for automobile research and access to latest technology. WEAKNESS The biggest and probably the only weakness of Indian automobile Industry is its slow growth in Research and Development most companies (barring TATA and M&M) do not have adequate spending on R&D in comparison to their turnover. Maruti for instance is completely dependent upon Suzuki for any new technology all of the successful cars sold by it were developed by Suzuki; Swift, A-Star (which replaced alto in other markets as New Alto), SX4, Ritz etc. This weakness will soon become history as Indian companies are catching fast in R&D and are showing strong signs of success e.g.: M&M Scorpio Hybrid, TATA Nano. Besides R&D the other weakness is political hostility (TATA Nano Singur plant) but is only a regional problem of less developed states or pro-communist states, states like Gujarat, Maharashtra are proving to be a haven for Industries.12 Page 26 - http://www.planningcommission.nic.in/aboutus/committee/wrkgrp11/wg11_automaive.pdfPage | 31 • 33. OPPOURTINITES 1. India has a large pool of cheap talent which can be utilized in decreasing the R&D expenses. 2. India has potential to become manufacturing and export hub with it cheap labor availability...
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...GAVETTI Ducati By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive growth and profitability. Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to 6.7% in 2000 (see Exhibit 1). Despite this success, Minoli was concerned with the future of the company. He knew that Ducati could not grow indefinitely, and was struggling with what strategy might overtake these bounds. Minoli and the rest of Ducati’s top management team were considering different alternatives. One alternative was to attack Harley Davidson’s niche with a Ducati interpretation of a cruiser. Was this broadening of Ducati’s traditional niche the right move to sustain the profitable growth of the company? The Market for Motorcycles in 2001 The roots of the motorcycle industry date back to 1868, when Louis Perraux installed a steam engine on a rudimentary bicycle. In 1894, the Hildebrand brothers and Alois Wolfmüller produced the first motorcycle with an internal-combustion...
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