Corporate Strategy of Fiat Chrysler: Opportunities, Threats, and Competences

APPLIED
CORPORATE
STRATAEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
External analysis in order to examine Opportunities as well as Threats & assess the industry
attractiveness..........................................................................................................................1
Analysis of Resources aswell as key competences of the business entity to examine core
competences...........................................................................................................................4
SAFe criteria implemented to the strategy executed by the business organisation................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy defines as the direction and scope of actions taken by the companies
so that their goals and objectives will be accomplished. It has been said that each and every
business organisation has its unique and innovative corporate strategy applied by them at the
organizational premises in order to gain competitive advantage eat the marketplace. It is mainly
linked with the management of risk, resources as well as return commonly done by a business
organisation which gives the opportunity to the company in order to become leader at the
competitive marketplace within a particular sector. In the current report, Fiat Chrysler is chosen
as the base organization. It has also been said that popularly it is known as FCA, which is an
Italian-American multinational corporation established in the year 2014 by merging two
companies Fiat & Chrysler and turn into new holding company. The discussion about the merger
takes place between two automobile companies named as Fiat Chrysler and PSA group.
In addition to this, the present report includes analysis about external business
surroundings as well as industry analysis with the help of PESTLE & Porter Five Force
framework. Apart from this, it consists of resources along with key competences so that they can
develop their business strategies in an effective manner. At last, it includes SAFe criteria which
are applied to the strategy implemented by the business entity at the marketplace.
MAIN BODY
External analysis in order to examine Opportunities as well as Threats & assess the industry
attractiveness
It is important for an organisation to constantly analyse the business environment within
which it operates. This provides due assistance to the business entity in identifying the potential
factors of the environment that may place a significant impact over the operations of the
company. In this regard, not every factor will act as the opportunity for the entity. Some factors
will even serve as threats to the sustainability as well as financial performance of the corporation.
Fiat Chrysler has been functioning as a top notch firm within the bounds of automotive sector of
United Kingdom. The high quality and hi tech offerings of this entity has provided an edge to
this organisation over the rival firms operating within the confines of same business sector. Thus,
PESTLE analysis for Fiat Chrysler is presented as follows:-
PESTEL Analysis
Political:
1

The strong political conditions of UK tend to create opportunity for Fiat Chrysler
providing assistance to it in effectively carrying out its business operations within the bounds of
automotive sector. By gaining knowledge of the diverse political regulations, entity can ensure
its sustainability in market for a considerably longer time period.
Economic:
The economic conditions of UK have worsened over the course of time because of the
onset of BREXIT in the country. This has resulted into the steep decline of value of pound
causing severe consequences for the sales and profit figures of Fiat Chrysler in market place. The
opportunity related to this factor is that the country is equipped with well versed infrastructure
that can be used by the automaker to gain a high position in market.
Social:
The changing needs and preferences of the population hold equal chances of acting as an
opportunity or threat for the companies. In this relation, it is required by Fiat Chrysler to carry
out constant market research to identify the latest trends or it will be out powered by rival firms
functioning within automotive sector.
Technological:
Constant upgradation is taking place in the technological domain of UK. Thus, it
becomes quite crucial for Fiat Chrysler to take into due account the opportunities and threats
linked to the employment of different technologies so that the management team of the firm can
implement the most effective ones in the long run and earn extensive profits and revenues.
Environmental:
Acting in the favour of environment is the primary responsibility of a business as it
accounts to its CSR. In this relation, it is identified that the management of Fiat Chrysler takes
several environmental initiatives to ensure it operates in eco friendly manner. The company
makes use of sustainable practices and also pledges to reduce its carbon footprints by a fair
margin to ensure least harm being caused to the environment.
Legal:
Every entity is expected to function in the interest of statute. This makes it important for
Fiat Chrysler to gain comprehensive knowledge about the laws and legislation pertinent to
concerned industry. The management of this company provides thorough knowledge about the
2