Applied Corporate Strategy

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1) External Analysis....................................................................................................................3
Pestle Analysis.........................................................................................................................3
Porter’s Five Forces.................................................................................................................5
2) Resources and Key Competencies..........................................................................................6
SWOT Analysis.......................................................................................................................6
VRIO Framework....................................................................................................................6
3) Evaluation of strategy..............................................................................................................6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Corporate strategy can be defined as strategy or planning with help of which
organisations achieve their strategic objectives. Corporate strategy involves several analyses and
environment analysis is key element of corporate strategy. This report will contextualise Fiat
Chrysler Automobiles it is an Italian/American multinational corporation. Fiat Chrysler is
world’s eighth largest automaker. Founded in 2014 company has multiple headquarters legal
office and headquartered in Amsterdam, Netherlands and fiscal office and headquartered in
London, United Kingdom. Company was created by merger of Fiat and Chrysler into a new
holding company. Company operates worldwide and in order to operate company and carry out
all operations and activities of the company it has employed around 198,545 employees. This
report will discuss about external and internal analysis of the company and later will discuss and
evaluate strategy on the basis of SAFE criteria. For the purpose of external and internal analysis
Pestle and SWOT analysis will be used along with Porter’s five forces model and VRIO
framework.
MAIN BODY
1) External Analysis
Pestle Analysis
Political Factor
This factor plays significant role in successful operations of the organisation. This factor
is becomes more important for multinational companies. Opportunities and threats in this factor
are involved in political stability, political relations of home countries with other countries
(Rastogi and Trivedi, 2016). Level of corruption and attitude of government towards
multinational organisations are certain other factors that are involved in opportunities and threats
of Fiat Chrysler’s political environment. Other than this, Fiat Chrysler’s political environment
also involves different environment protection rules of countries, this create difficulty as
production process becomes complex due to such factors.

Economical Factor
This involves factors involve elements that influence and impact cost, profit and financial
position of the company. This involves GDP, per capita income, interest rate, cost of operations,
taxation rates and policies. This is because income per capita has direct impact on purchasing
capacity of the people and this affect business success of Fiat Chrysler in a country. High
taxation and interest rates also increase cost of Fiat Chrysler and it is a threat for Fiat Chrysler.
Along with this economic recession is also an important threat to influence Fiat Chrysler.
Economic condition of the country is also important as this allows knowing what type of
automobiles will be successful in a country, this may be luxury products or mid-range products.
Social Factor
This is concerned with those who are customers of the company. Frequently changing customer
trends is a threat for Fiat Chrysler (Vallati and Grassi, 2019). But increasing middle class in
developing and emerging economy is an opportunity for Fiat Chrysler. But opportunity and
threat of the Fiat Chrysler in a certain country also get influenced by perception and attitude of
people towards automobile products.
Technological Factor
This is concerned with technological development of the company and in automotive industry
where Fiat Chrysler operates it is highly important. This means that people are looking for
vehicles with latest technologies and this is both opportunity as well as threat. This gets
determined by level of technological development of Fiat Chrysler and its capacity for further
technological development.
Legal Factor
Legal factor involve those elements that regulates and govern operations and functioning of a
company in a country. This involves employment regulations, intellectual property law, health
and safety law, data protection laws etc. increasing complexity in production laws is a threat for
Fiat Chrysler. Differentiated regulations for business functioning in different countries increase
complexity for Fiat Chrysler and also are a threat for Fiat Chrysler.