Corporate Strategy: PESTEL Analysis, Porter's Five Force Model, Value Chain Analysis, VRIO Model

Applied Corporate
Strategy
Table of Contents
INTRODUCTION.....................................................................................................................................3
PESTEL Analysis..................................................................................................................................3
Porter’s Five Force Model..................................................................................................................5
Internal Analysis of Fiat Chrysler Automobiles..................................................................................6
Porter’s Value Chain Analysis............................................................................................................7
VRIO MODEL......................................................................................................................................8
SAFe...................................................................................................................................................9
CONCLUSION.........................................................................................................................................9
REFERENCES.........................................................................................................................................10
Books and Journals..........................................................................................................................10

INTRODUCTION
Corporate strategy is long term strategy developed by the company with aim of gaining
competitive advantage over their competitors. It is a portfolio which is designed by the
management of the company to deliver value to its customers and fulfilling stakeholder’s promises.
It focuses on developing strategies to maange the resources of the company. Fiat Chrysler
automobiles is company headquartered in London (LOREDANA, 2019), UK is world’s eighth
largest auto maker. On 31 October, 2019 the FCA Company announced its merger with Group PSA
(Peugeot) with the aim of expanding the business and analysing different opportunities for
achieving growth in the competitive environment. This report involves the PESTEL analysis of the
external environment of the company and for anaysing the internal environment SWOT analysis is
performed (Hamed and Mubarak, 2019). It has also covered the value chain analysis of the
company, VRIO framework and SAFe.
PESTEL Analysis
To evalueate the external environemnt of the company or any organisation there is high need of
PESTEL analysis. This is a framework implied by the company for the analysis of the external
environment factors that impact the growth of the company. It covers all the factors which are not
covered in the SWOT analysis and keeps track of the changes in the external environment of the
company. The PESTEL analysis can be explained as follows:
POLITICAL FACTORS
Political factors involve the interference of the government in the operations of the
company and how the laws of the government are affecting the company. The government make
certain rules and regulations that are beneficial for the citizens but has a great impact on the
company which includes the Brexit. In relation with the Fiat Chrysler Automobiles, the Brexit
policy has a great impact on the company’s working. The government have also formed certain
laws which include tax laws, safety laws which affect the productivity of the automobile company
(Baporikar, 2018). The government leaders are dynamic and their political ideologies also affects
the company’s growth and further opportunities.
ECONOMICAL FACTORS
There are also impact of inflation, GDP, unemployement along with interest rate which
are there able to impact the economy of the country. This change in economy helps the Fiat
Chrysler automobile to get impacted. Economic factors have huge impact on the success of the
company and it is important for the company to analyse its economic environment effectively to
achieve stability in the industry. The economic factors that affect the company includes the change
in fuel prices, tax rates and many more. The change in the economic policies and conditions affects
the company's operation in a negative way. so, the company must analyse these factors to avoid the
wastage of the resources. There are also impact of inflation, GDP, unemployement along with
interest rate which are there able to impact the economy of the country. This change in economy
helps the Fiat Chrysler to get impacted.
SOCIAL FACTORS

Social factors are also known as socio-cultural factors which depicts the culture of the
target audience of the company. These factors explain the characteristics, attitude and perception of
the customers regarding the company and their brand products. The customers prefer valuable
products with safety and comfort driving from the companies. The companies must analyse the
buying behaviour of the customer to identify what they actually want. These factors can be
identified as opportunity for the industry to enhance their operations.
TECHNOLOGICAL FACTORS
Technology is one the factor which have high impact on the company. In relation to
this, use of latest technology which is there ablet to use different technology can help the company
to give better impact in realtion to profit and attracting large cusotmer base. Technology acts as the
driving force for the growth and development of the company. It is an important factor for
achieving success in this competitive digitalisation era across the globe. In relation with the Fiat
Chrysler Automobiles, the company mainly focuses on different technological factors which are
designing environment friendly cars, maintaining fuel efficiency, installation of self-driving
technology in their cars and many more. The latest technology will attract many new customers
towards their products and persuade them for immediate purchase (Bernhold and Wiesweg, 2018).
ENVIRONMENTAL FACTORS
Environment includes the surroundings in which the company is operation and working
as a cooperative business for its customers. These factors start from the natural disaster and
continue till the climate change. These factors affect the company’s operations and its workforce
who is working by taking environment protection as their primary concern. In relation with the Fiat
Chrysler Automobiles, the company mainly focuses on maintaining their carbon footprints and
working towards attainment of the objectives of the organisation. FCA generally aims at production
of low emission, fuel efficient and sustainable vehicles for their prospective customers.These
factors can be identified as an opportunity for the car industry.
LEGAL FACTORS
Legal term defines the laws and legal rules and regulations which are implemented on
the company by the government officials. The company always try to abide the rules to get legal
advantage and government support in compare to its competitors. The Fiat Chrysler Automobiles
focuses on maintaining health and safety at their workplace and producing clean cars which achieve
success in near future for the company (Brickley, Zimmerman and Willett, 2020). Workers are
also an important and efficient tool for the companies and there are many laws which protect their
rights. These factor can be identified as a threat for the company as the employees can take
advantage of these rights against the companies.
Hence, the Fiat Chrysler Automobiles analyse all the factors of the macro environment to maintain
high quality and productivity standards to achieve the competitive edge over its competitors. Also,
the company focuses on the effective use of technology to produce value added products for its
customers.
Porter’s Five Force Model