Applied Corporate Strategy

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1) Carry out external analysis (business environment and industry) to identify a set of
Opportunities and Threats and assess industry attractiveness.....................................................1
2) Analyse the resources and key competences of the organisation to identify a set of Strengths
and Weaknesses and identify core competences (key factors that may give the company its
competitive advantage.................................................................................................................5
3) Evaluate the given strategy (as per chosen case) using SAFe criteria.....................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate strategy is the hierarchically process that covers highest strategic plans in
relation to business that can help to increase the business performance and profitability. If
organisation is having good planning and activities then it become easy to compete with other
company and attain the competitive advantages (Arbogast and Kumar, 2018). If organisation is
running their business then it has to analyse the competition then should be formulate plans
which can help to manage the functions and increase brand image. To understand about
strategies Fiat Chrysler and Peugeot Automobiles has been selected that is American
multinational corporation which is world's eighth largest auto maker. This organisation was
founded in October 2014 by merging Fiat and Chrysler. Fiat Chrysler Automobiles' corporate
headquarters is domiciled in Amsterdam, and the financial headquarters are in London. This
report covers external analysis to identify opportunities, analyses the resources and key
competencies of organisation and strategies by using SAFe criteria.
MAIN BODY
1) Carry out external analysis (business environment and industry) to identify a set of
Opportunities and Threats and assess industry attractiveness
In business environment, number of businesses are established where it is important to
analyse the environment and take corrective steps which can help to increase the sales and
performance. If organisation is able to compete with others then it will be an easy task to attain
the competitive advantages.
External environmental analysis: This is an objective assessment of the changing world
where number of businesses are operated. This tell how environment affected the business and
what changes needs to bring so that they can operate their business effectively. Therefore,
PESTLE analysis of food industry like Fiat Chrysler and Peugeot are as defined:
Political factor: This factor is consider various elements in relation to political such as
government policy, political stability, foreign trade policy, and labour laws that need to focus
while in operation (Cappa, Cetrini and Oriani, 2020).
Opportunity: In UK and U.S., government is stable that favour the Fiat Chrysler and
Peugeot to run their business and expand it in other country by manufacturing number of car
models. Herein, such organisation is understand the demand of customers and make efforts to
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bring new model that can help to increase the brand image. This can be opportunity for
organisation to increase the sales and maintain profitability.
Threat: Oppositely, Increases in tax rate and Vat can be challenge for Fiat Chrysler and
Peugeot to pay higher charges and amount by selling the different products in other country. As
it has to spend money on buying raw material and selling the products.
Economical factor: The relation of economical factor is with economic growth, interest
rate, unemployment rates, inflation rates, and others that need to consider while operation. This
is important for organisation to focus on such factors and increase the performance.
Opportunity: After Brexit the inflation rate of US is stable that supports the Fiat
Chrysler and Peugeot to sale their products and increase profitability. As having stability in
economy of country it become an opportunity for selected organisation to buy raw material and
manufacture the different model of cars. This can help to increase the organisational productivity
and profitability (Dahl and Fløttum, 2019).
Threat: On the other side, happening of pandemic (Covid-19) in all over the world has
created the challenges for Fiat Chrysler and Peugeot to manufacture the products as all
businesses are closed & stopped for certain time that might be affected the profitability due to
reducing sales.
Social factor: This factor involves population growth rate, safety emphasis, lifestyle
attitudes, cultural barrier etc. that are important to consider in case of running business (Doherty
and Smith, 2020).
Opportunity: The population growth rate of London and American country is increasing
continuously that become opportunity for Fiat Chrysler and Peugeot as people started to buy cars
in high number. The management of selected organisation understand the demand of their
customers and targeted all class of people which become opportunity for business to increase the
activities.
Threat: Oppositely, Due to COVID-19, needs and wants of people totally changed that
has impacted negatively on auto mobile sector as production and selling process are reduced.
Technological factor: This factor is showing the new technology, innovation, resources
and automation and other activities that are required in business and increase the performance
(Minár, 2016).
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