Essay on Fiat Chrysler

The purposes of the loans were to provide operating cash for G.M. and Chrysler, and keep car loans available to buyers. GM earned $23 billion in 2010 and has invested $8.1 billion in thirty four U.S. plants and created or retained more than 23,000 jobs since 2009 (Shepardson, David 2013).

1. High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy: A. global B. multidomestic C. transnational D. overall cost leadership 2. Foreign direct investment includes the following form of entry strategy: A. licensing B. franchising C. joint ventures D. exporting 3. According to Michael Porter, firms that have experienced intense domestic competition are A. unlikely to have the time or resources to compete abroad. B. most likely to design strategies aimed primarily at the domestic market. C. more likely to design strategies and structures that allow them to successfully compete abroad. D. more likely to demand protection from their governments.

simplicity of market entry: Advances in telecommunications, computer technology and transportation have made entry into foreign markets by

The Company was eventually accepted by the world and was seen as the pioneer for quality and perseverance. The company gave the world sturdy cars that were safe as well as has style. The philosophy that they followed was of quality and with this they kept on expanding their

An observable artifact is defined as the physical manifestations of an organization. These artifacts can include a company’s dress code, stories about the company and rituals within the company. The main observable artifact that Chrysler had and the reason Mr. Marchionne was upset about was the way manager Fong doubled rebates in order to make sales. This tactic was part of the culture that led to the company not being profitable. Another observable artifact came with the changes Mr. Marchionne implemented such as his weekly meetings with his staff. Espoused values can defined as the normal standards

Henry Ford was an engineer from Detroit, Michigan who had an idea. By 1902, Ford had attempted several times to produce a gas powered vehicle, but with little capital, he realized that his attempts were futile. Ford approached a man by the name of Alexander T. Malcomson about the possibility of manufacturing an automobile. Malcomson, a friend of the family and wealthy coal merchant was reluctant at first but finally agreed with Ford, and decided to assit Ford financially with his endeavor. With Malcomsons investment and Ford's engineering skills a partnership was formed and in mid June of 1903, papers of incorporation for the Ford Motor Company were filed in Dearborn, Michigan.

2. The tax breaks as a US company for Fiat will be very beneficial as far as marketing/advertisement but a major draw back will be the high cost in labor as opposed to the labor cost in countries such as Mexico. Fiat will also have a situation of dealing with new labor laws. American labor laws are more stringent than other companies. This is also power tolerance country. Employees are not as submissive as those of other countries. Americans are considered lazy.

The four key behaviors of transformational leaders apply to the Chrysler story by showing what the Mercedes-Benz merger and new president Zetsche wished to achieve. He wanted to motivate the company to push themselves harder, the way they do when their back is against the wall; he used his influence of showing up to testing of the newest vehicle to help motivate the team. Zetsche also took into consideration that, Chrysler still wants to happy to be German owner, so he worked his way into the team, giving them input; praising them on things well done while also giving suggestions. With this intellectual stimulation he helped motivate employees and push them to see things in a new light, along with make it their personally responsibility

“In 1921, Walter P. Chrysler joined as Chairman of Maxwell Motor Corporation” and inherited the company’s World War I driven debt (Wheelen & Hunger, 2012, p. 17-2). The company would stop selling vehicles under the Maxwell name in 1923 and would release the first Chrysler named vehicle in 1924 called the Chrysler Six (Wheelen & Hunger, 2012, p. 17-2). Between 1928 and 1951 the company would acquire Dodge Brothers, develop “the DeSoto and Plymouth Divisions”, release the Chrysler Airflow, and build the Firepower engine, which would later be known as the Hemi (Wheelen & Hunger, 2012, p. 17-2). The 1960s would deliver Chrysler to Europe and the 1970s would lead Chrysler to a decline in auto sales as well as its first corporate restructuring, where CEO Lee Iacocca would initiate “several cost-cutting measures” that would allow the company to rebound by the mid 1980s (Wheelen & Hunger, 2012, 17-3).

Fiat and Chrysler had very different points of strengths and weaknesses before and after the alliance. They both were also in very different circumstances that created varying levels of success domestically as well as internationally. Fiat’s points of strengths include small cars, their diesel engines and transmissions, as well as in exotic cars. Fiat is one of the largest producing car manufacturers in all of Europe, particularly in Italy. Fiat is also the leading seller in Brazil, producing a quarter of the markets cars and light trucks. However, only leading in this country and partially the continent did not satisfy their hunger for global expansion, as international sales were relatively low. The United States was a market that Fiat was ready to re-enter but couldn’t do so effectively without forming an alliance that would allow for the manufacturing of their brand of cars. Fiat aimed to fix its tarnished reputation in the U.S of producing lower quality vehicles relative to its European siblings. Fiat does have strong leadership in their CEO, Sergio Marchionne. Chrysler has always been a step behind GM and Ford in quality and technology in its long history. Surviving without these two elements in this industry is not possible. They were always late to any consumer demands met by its competitors and were in constant economic trouble. Chrysler’s management during previous partnerships was not

challenges, however, are the most difficult ones to face and overcome. Some environmental issues that

The US auto market is slowing down and will most likely finish below 2016’s peak numbers. Still, somewhere between 16.8 and 17 million new passenger vehicles will likely sell as the books close in early January — that’s still an impressive range.

It has made its name in the global market and has given a good competition to other companies in automobile sector.

Currently recession is prevailing in the market so the global car sale of Toyota is showing a downward trend. Also changes in interest rates, inflation and currency rates can act both as a threat and an opportunity. Inflation rates differ from country to country for instance in Japan the inflation rate is relatively low as compared to USA. The lower the interest rate, the better its for Toyota since the

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.