Applied Corporate Strategy Assessment Strategic Analysis Report

This report provides a strategic analysis of Fiat Chrysler Automobiles, focusing on industry definition, PESTLE analysis, Porter's 5 forces analysis, internal analysis, value chain analysis, VRIO analysis, core capabilities, and strategy evaluation.

Applied Corporate Strategy Assessment Strategic
Analysis Report

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................3
QUESTION 1........................................................................................................................................3
Industry definition.............................................................................................................................3
PESTLE analysis...............................................................................................................................3
Porters 5 force analysis......................................................................................................................5
Question 2.............................................................................................................................................6
Internal analysis (Resources)............................................................................................................6
VALUE CHAIN................................................................................................................................7
VRIO analysis (Competencies).........................................................................................................8
Core capabilities................................................................................................................................9
Question 3.............................................................................................................................................9
Strategy evaluation............................................................................................................................9
Suitability factor:...............................................................................................................................9
TWOS evaluation............................................................................................................................10
Acceptance factor:...........................................................................................................................11
Feasibility factor:.............................................................................................................................12
CONCLUSION...................................................................................................................................13
REFRENCES......................................................................................................................................14

INTRODUCTION
Corporate strategy assessment can be understood as one of the highest functional
paradigm focusing the vivid importance onto how to pertain wider synergy of innovation
within competitive business world where Automobile industry are undergoing high
transformational phase globally. Strategic analysis report can be understood as highly
important component where the business fundamentals are analyzed for gaining stronger
paradigms, of internal and external factors through which strong synergy of effective
technical abilities are constructed. Fiat Chrsysler Automobiles is an Italian American
multinational corporation company within UK and is worlds eight largest auto maker
established in 2014. Report explains how various external factors and internal factors which
define various paradigms onto how business is undergoing rapid evolution, along with
analysis of various resources which compose the various functional strength and core
capabilities for framing higher success avenues. Report further analyzes TWOS analysis and
various factors such as sustainability, acceptance and feasibility parameters which pertain
onto rapid development for longer future to build on wider metrics for gaining stronger
competitive business value (Pröllochs and Feuerriegel, 2020)
QUESTION 1
Industry definition
Automobile industry comprises of wide range of number of companies and various
brands who are widely involved in designing, development, manufacturing and selling of
motor vehicles where there are various new innovative programming coming on. It is widely
known as the world largest economic sector as per revenue for gaining strong force with
wider dynamic goals coming on among operations and for gaining stronger synergy and
advancement among automobiles. Fiat Chrysler is one of the most popular brand globally
known for its wide strong quality factors where the brand has been producing strong
innovation and continuous manufacturing among all best machinery with best quality
parameters, new working enhancement and also yields onto new innovation class.
PESTLE analysis
The external factor holds wide importance for long term effectiveness within global business
scenario for gaining strong position into industry through which wide end goals are strongly

focused to yield onto wider new arenas Fiat Chrysler pestle analysis can be analysed as
follows:
 Political factors: The impact of Brexit has been widely hitting Automobile industry
business where it has become highly complicated for business companies operating in
UK to transport the various automobiles to European countries with higher increased
tax rates and various tariff barriers. Fiat Chrysler has also working on lately to
improve its strong metrics of various political paradigms for keeping sable functional
levels for expanding onto international countries as the political factors should not
impact brand extended goodwill and profitability factors for longer time frame (T)
 Economic factors: Strong global industry outlook along with various major factors
for entering into emerging economies have been profoundly impacting various
paradigms and new end goals for Fiat Chrysler for building new end goals for higher
profitable working outputs within business scenario (Vishwanathan, van Oosterhout
and Van Essen,2020). Economic factors do not only imply the fact that brand needs to
focus onto various parameters of economic factors such as price range increase, tax
rates and wider expansion onto consumer market through which keen synergy and
automation advancement can be undertaken (O) Social factors: Demographic shifts are lately impacting strong paradigms within
automobile industry where consumer social factors are gaining new levels of
advancement, with higher demand and evolution among keen factors there is rapid
new levels of yielding synergy for gaining new end goals. Fiat Chrysler has been
socially strong where company uses various innovative marketing techniques for
gaining preferences analysed and work onto with continuous development (O)
 Technology factors: Autonomous driving technologies and strong advanced security
concerns with new innovation coming on within business avenues have widely
impacting new end targets within technology framework, which is becoming one of
the strength for brand, Fiat Chrysler (O) The company has been showing continuous
higher innovation within technology framework with new use of various machinery
and consumer preference services.
 Legal factors: The legal factors which are comprised of various factors such as
workplace health and safety factors, government regulations and wider regulatory
framework through which company builds strong developed goodwill. Fiat Chrysler
is known for strong compliance of legal factors which is strength (O)of brand. There

are various new brands coming up which shows competitively company has to legally
frame strong legal rules furthermore for bringing up higher revenue (Kools and
George, 2020).
 Environmental factors: The company has built various environmental protection
initiatives by bringing up vehicles and automobiles with smart technology factors
which also keeps goodwill and CSR factors strong within competitive business word
(O) The environmental factors have lately gaining wide scope among various brands
where business development is highly correlated with responsibility and management
within environment policies.
Porters 5 force analysis Competitive rivalry: Fiat Chrysler within the automobile industry faces various
factors of competitive rivalry where there are various new brands, companies coming
up within industry lately for bringing on new innovative class and wider technology
investment (High).
 Bargaining power of suppliers: The company has low risk from the external
bargaining power of suppliers where brand has own suppliers and the cost dependent
factor is missing onto various levels (low)
 Bargaining power of customers and buyers: Fiat Chrysler also do not face any high
risk from the customers and buyers where customers have been built with high
factor of goodwill and strong synergy of continuous innovation (low) (YEĞİN ,2019).
 Substitute threats: Fiat Chrysler has medium risk for substitutes where it can be
analyzed that brand do not only promises best quality factors among all machinery
and engineering factors within cars but also there are various paradigms known for
merging new end goals (moderate)
 Threat of new entrants: The Fiat Chrysler has high risk for new entrants coming up
within automobile industry where brand shows that there are various components
such as new end political factors, new economic goals for keeping up various
metrics onto how new resources shall be undertaken for gaining new end profits.
(high)

Question 2
Internal analysis (Resources)
Internal analysis is highly important for gaining strong development and new end
goals framed for technical advancement among cooperative business structure where
company shall focus widely for gaining strong goals and profits for longer working
development. Fiat Chrysler internal analysis will be showing how much strong advancement
and new strengths are possessed and works as assets for gaining higher innovation within its
automobile products and services.
 Physical resource: The Fiat Chrysler brand has various number of stores and various
expansion built up among international and national countries where company has
various strong resources present physically. Technology and automation resources are
highly strong within Fiat Chrysler company where it can be analyzed that company
maintains strong development goals for gaining strong place among business
positions. Physical resources are effectively programmed to bring on keen factors of
growth, wider expanded reach and relative advancement among all services.
 Human resource: The Company has various skilled and talented human resources
where they are not only professionally experienced engineers but management is also
widely gaining new paradigms and strong effective paradigms to bring on new goals
(Abutabenjeh, 2020). The human resources are strength of brand where it can be
analyzed that Fiat Chrysler works with best competent human resources which are not
only widely skilled and effective to bring on new range services among consumers
market share but also there are wide development coming upon by their productive
expansion.
 Financial resources: The Fiat Chrysler brand has strong financial resources available
within company business management where brand has promising growth with
expansion into various new development parameters and wider technology
innovation. Finance resources also enable to enter into untapped business segments
and technically enter effectively among various potential market arena, which also
specifically shows wide innovation programmed within synergy of market paradigms
and also gain new end goals for wider tangible and building new intangible resources
which enhances goodwill.

 Intangible resources: Fiat Chrysler has various intangible resources such as wide
consumer goodwill and high reputation of brand established within automobile
industry where brand serves various new expansion into untapped countries segments
and wider technical advancement. The brand aims to potentially enhance further new
end goals and wider mechanical innovation among its various automobiles by
utilizing various intangible resources which speaks up of growth and advancement
within competitive levels
VALUE CHAIN.
The value chain analysis is strategic tool to analyse internal firm competencies within
business segments and also recognize wider valuable for gaining strong competitive edge and
provide constructional framework. Fiat Chrysler will be able to develop strong place by
analyzing present internal resources where the technical advancement among resources
working parameters shall be focused (Certo,Busenbark and LePine, 2020). Primary
operations and activities are discussed below within the functional paradigm of how much
value is developing among company productive development along with futuristic goals for
gaining new end profits along with wider goodwill within consume market share.
Inbound
logistics
Outbound
logistics
Operations Marketing and
sales
Services
In house
mechanic
production
Innovated and
widely automated
Innovative Web Based
services
Warranty policies
Numerous
suppliers
Best stores
facilities
Stationary
multistorage
purpose
High quality
video content
advertising
Various
customisation
available among
automobiles.
High quality
raw materials in
used
Owns stores
worldwide
Multifunctional
robots
Partnership with
celebrities and
campaigns
Best use of new
innovation tools
among
machinery
Best services Customers can Operations are Best metrics of The services

and techniques
used among
cars and
automobiles
purchase from
online and from
various stores
vividly
innovative
new innovation
used within
promotional
factors
work as onw of
the biggest
strength factor
for goodwill.
VRIO analysis (Competencies)
VRIO is one of the most innovative business analysis framework which forms strong
strategic plans and business procedures where firm effectively can reach onto wider heights
of vision statement, continuous innovation within objectives and where external and internal
analysis are focus. Fiat Chrysler strategic choices and wider implementation targets with
objective to reach onto higher level can be analysed by the VRIO analysis where research
factors and effective development of various new resources shall be focused for gaining new
level of innovation.
VALUE RARE DIFFICULT
TO
IMMITATE
ORGANISATION
EXPLOAITAION
Automobile
production
YES YES YES YES
High quality
raw materials
YES YES YES YES
Customer
satisfaction
service
YES NO NO YES
Use of
mechanical up
gradation
Techniques
YES YES YES YES
Innovation YES YES YES YES
It can be further understood that with VRIO analysis that automobile production,
integration of various high quality materials, use of various mechanical up gradation
techniques along with innovation parameters are vividly the strengths where Fiat Chrysler
brand aims to be one of the best brand. However there is weakness within customer

satisfaction services where wide changes are still to be undertake by analysing various new
paradigms and constructive goals (Bitencourt, de Oliveira Santini and Teixeira, 2020).
Core capabilities
The Fiat Chrysler company portfolio includes various automobile products and
services which are Abarth, Alfa Romeo, Dodge, Fiat professional and Jeep and Ferrari where
various functional patterns are gaining new advance levels of higher technical advancement
with continuous growth and evolution of new ideas. Core capabilities are widely focused to
pertain onto wider parameters of continuous innovation and functional efficiency for gaining
on new synergy of competitive strength within products. The core capabilities also can be
known from the fact that wider innovation generation of new goals of strong synergy of
innovation can be developed as per functional efficiency which further enhances new goals of
higher advancement. The brand core capabilities also promises new end goals for expansion
into various untapped business segments, where there are new factors of innovation focused
for building on wider partnerships and competitive goals for gaining strong place within
world business scenario (Imran. and Abbas, 2020).
Question 3
Strategy evaluation
The Fiat Chrysler strategy evaluation where brand merger with Peugeot owner, PSA
group has been lately the most dynamic and developed synergy of continuous innovation
where business i yet to be combined market reaching onto share of 50 billion$. The brand
been one of widely most known and goodwill attained automobile company with its wide
market share of best automobile innovation gaining wide scope and leveraging new scope of
stronger rational determinants where merger shall be gaining long term technical
advancement. The merger strategy will be looked upon company succession by analysing
various factors such as suitability, feasibility and acceptance where focus shall be pertained
onto how new assets can be brought upon for gaining business development (Isac, 2019).
Suitability factor:
In this the suitability of various internal factors which are widely important for
gaining strong decisions within business shall be analysed through which Chrysler is able to
built strong synergy of autonomous innovation, greater functional efficiency among all
paradigms. Swot analysis is an important technique through which best resources andtheir

utilization factors within company shall be effectively analyzed by developing wider
paradigms to improvise functional horizons further (Certo, Busenbark and LePine, 2020).
STRENGTHS
 High goodwill among consumers
worldwide
 Wide capital investment for
expansion into new countries business
market
 New market exploration
fundamentals for gaining wider
profits
 New innovation coming on within
automobiles
WEAKNESS
 High competition coming up within
automobile industry
 Wide factors of competitive dynamic
consumer demands
 New increased raw materials pricing
factors
OPPORTUNITIES
 Entering into untapped countries
market
 Entering within various new
industries with various levels of
investments
 Training human resources for various
new customer services and marketing
innovation (Figueiredo, Campos and
Pujatti,2020).
 Use of strong technology innovation
for using up wider marketing
practises present within digital media.
THREATS
 Weak customers satisfaction
 Increased competitive levels within
automobile industry.
 Higher development with increased
competitive price factors coming up
among automobile companies
TWOS evaluation
Fiat Chrysler is perfectly capable of supporting its strategies and carry out a TOWS
matrix analysis (below) to take into account the advantages and look for ways to minimise
weakness while avoiding any threats.
SO (Strengths- opportunities) WO(Weakness- opportunities)

 Using new capital investment tools
for entering into untapped countries
segments
 Using strength of already established
goodwill for gaining new segments
of customers
 Using strength of new innovation
tools among automobiles for gaining
wider extended tools of machines and
automobile engines
 Using capital investment for entering
new parameters of digital marketing
through which wider goals can be
built on.
 Using new innovation to gain
efficiency among competitive
paradigms within various
 Using opportunity to expand into
international countries for reducing
weakness of competitive market
within automobile industry
(Bitencourt, de Oliveira Santini and
Teixeira,2020).
 Use of cost effective technology
within machinery and automobile
mechanism.
ST (Strength-threats)
 Use of capital to train all employees
within management into company
levels for producing new developed
machinery levels
 Use of goodwill for bringing on
various metrics of new innovation for
gaining wider functional strength
(Imran and Abbas,2020).
WT(Weakness- threats)
 The weakness and threats of various
competitive levels within company
shall be developed further with focus
to use various new functional
innovation.
Acceptance factor:
The strategy shall be acceptable to all stakeholders with wide influence on how
customers, employees, government, supply distributors and various stakeholders who are part
of company functional levels among various paradigms to bring on wider advancement and
strong acceptance. Fiat Chrysler has to focus on various factors of strategies for developing
wider functional advancement, new technical advancement and innovation among services
for gaining consumer goodwill and wider profits within merger with another brand. The

largest interest of shareholders and power that hold wide functional interest for bringing
strong cooperative development are investors, shareholders and suppliers which are involved
in making business work for long term time period. The power Interest Grid is one of the
most innovative tool which helps to categorize various stakeholder with various levels of
interest, power within projects which further enable to develop new end potential
acceptability factor among various stakeholders. Shareholders hold high power and factors
for bringing on best metrics of functional efficiency among company strategic regulations for
bringing on developed synergy of continuous innoavatin through which Fiat Chrysler shall be
able to build stronger merger.
HIGH
Keep satisfied
Investors
Customers
Shareholders
HIGH
KEY STAKEHOLDERS
Customers
Suppliers
Government
Emplyees
LOW
MINIMUM EFFORT
Distributors
LOW
KEEP INFORMED
Competitors
P
O
W
E
R

INTREST
Feasibility factor:
The feasibility factor within the strategy for merger of Fiat Chrysler with PSA
automobile company can be understood as one of the most important and highly important
for exploring wide business opportunities and rapid cost factors which will be highly
impacted by bringing on various new goals (Lu, Chang, Rong, and Yu,2020).The stronger
innovation and exploration actors shall be connected to goal for developing in depth analysis
onto how much feasible is the business option for developing further which shall be further
used onto wider goals. The feasibility factor is widely important for bringing on strong
functional metrics and for analyzing various paradigms for how much investment within
capital factors shall be undergone along with various resources which are also widely
important for gaining new strengths among new paradigms. Automobile industry is widely
transforming with wide competitive levels and new advancement coming up among various
factors where brand shall be focusing to build on new levels progression.
CONCLUSION
The report can be concluded with explanation that various factors within internal and
external analysis are widely important for gaining new rational expansion where there are
various factors such as goodwill capital formulation which also enhances new gaols for
gaining strong synergy of market facts. Automobile industry is widely going under high
transformation factor where there are various factors for developing new end goals where
Fiat Chrysler shall be focused for developing new end marketing paradigms for bringing on
effective development, functional role for bringing on keen synergy of factors where brands
are focused for gaining new range services. The report concludes various new parameters
within VRIO analysis, twos matrix and various goals such as feasibility factors, acceptability
and various factors through which new end profits can be further built on among consumer
market strength. Report concludes various paradigms onto how various factors where
various new technology is highly demanded among various determinants where Fiat Chrysler
shall be focusing further (Akimkina,2020).

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