Applied Corporate Strategy

Applied Corporate
Strategy

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1) Conduct external analysis of business environment and industry in order to identify a different
opportunities and threats and assess industry attractiveness....................................................................3
2) Analyze an organization’s resources and key competences as well as identify its core competences
(key factors which gives a company competitive advantage)..................................................................6
3) Select one strategy that the company implemented recently and evaluate it using SAFe criteria......10
CONCLUSION.........................................................................................................................................12
REFRENCES............................................................................................................................................13

INTRODUCTION
Corporate strategy is determined as a strong systematic strategic plan for an organization.
Corporate is considered as the goal and direction that a company needed for the attainment of
desire aim by developing proper plan and strategy related to business operations and practices.
This is also determined as a long term vision that a company needs to attain for achieving the
desire goal (Ben-Amar, Boujenoui and Zéghal, 2014). Organization case selected for respective
is based on merger of Fiat Chrysler and Peugeot owner. Fiat Chrysler Automobiles (FCA) is
operating in automotive industry and they offer their products and services at the worldwide
level. Respective company is introduced in 2014, now they are announcing merger with its
United State Italian rival Fiat Chrysler but this merger will face political as well as financial
hurdles. The merger is consider that they come up with new idea and become world’s number
one automation industry. Respective report include several topics through numbers of models
such as PESTEL analysis, VRIO model analysis, Porter’s five force, value chain analysis as well
as resource analysis. This report will also include weaknesses and strengths of merger conducted
among Fiat Chrysler Automobiles and Fiat Chrysler.
MAIN BODY
1) Conduct external analysis of business environment and industry in order to identify a different
opportunities and threats and assess industry attractiveness.
PESTEL Analysis
 Political factor: It will include government policy, political stability, tax policy, tax
policy and so on. Political factor impact high impact on the business so it is essential for
firm to develop strategies according (Bereskin and Hsu, 2016). In respect of merger
among the Fiat Chrysler Automobiles and Peugeot owner, political impact is high. In
respect of both the companies it is essential to consider political factors like government
policy, tax policy, and political stability and so on while developing decision. It is so
because that will provide opportunity conduct business successfully in the world.

o Threat – In the merger of Fiat Chrysler Automobiles and Peugeot owner political
parties are highly involved due to which it is seem as the barriers as well as there
is also few office where there is hidden corruption which impact on business plan
related to merger.
 Economical factor: This factor will include economic condition of the nation and their
people as company need to develop strategies accordingly so that they can sustain in the
market successfully for long time. In respect of merger between the Fiat Chrysler
Automobiles and Peugeot owner they planning to become one of the largest automobile
company as well as they also want to offer number of brands vehicle under one roof such
as Alfa Romeo, Citroen, Jeep, Opel, Peugeot and Vauxhall (Churet and Eccles, 2014).
While this they need to consider economic condition of population. Merged companies
need to consider economic condition of the population in order to gain opportunities as
that will help them in more and more customers as well as they also able to increase sell
of their electronic vehicles successfully.
o Threat – Economic condition of the nations get fluctuate which impact on the
company business because buying power of people also get imbalanced. In
respect of merger among Fiat Chrysler Automobiles and Peugeot owner is that
when economy fluctuate their sales directly get impacted.
 Social factor: It is necessary for every firm to consider social factor developing decision
related to products and services. It is so because need, demand and expectation of society
get change according to time. In respect of this merged companies i.e. Fiat Chrysler
Automobiles and Peugeot owner are introduce electric and autonomous vehicles while
this they need to consider social aspects too.
o Opportunity – The opportunity for Fiat Chrysler Automobiles and Peugeot owner
through introduction of new electric and autonomous vehicle is that they able to
attract more and more customer around the world. Moreover it will also help
society in minimizing rate of increasing pollution around the surrounding.
 Technological factor: it is determined as one of the necessary factor which helps a
company in adopting new as well as advance technology so that they can develop more
innovative as well as creative products as that will help in increasing sales (Feizabadi,
Singh and Motlagh, 2014). In respect of merged firm Fiat Chrysler Automobiles and