Factors affecting sales decline of Fiat Chrysler Automobiles

Case Study

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Title........................................................................................................................................4
1.2 Abstract..................................................................................................................................4
1.3 Rationale of the research .......................................................................................................4
1.4 Research problems from the case..........................................................................................4
1.5 Research Questions................................................................................................................5
1.6 Aim and objectives of the project..........................................................................................5
1.7 Background of the study........................................................................................................6
1.8 Structure of the work.............................................................................................................7
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
2.1 Introduction............................................................................................................................8
2.2 Literature review on automobile industry..............................................................................8
2.3 Industry size.........................................................................................................................10
2.4 Growth rate..........................................................................................................................12
2.5 Major players or competitor’s analysis................................................................................13
2.6 Situation Analysis................................................................................................................14
2.7 Proposed plan for analysis...................................................................................................15
2.8 Literature review..................................................................................................................15
2.9 Conclusion...........................................................................................................................16
CHAPTER 3: METHODOLOGY FOR STUDY..........................................................................17
3.1 Introduction..........................................................................................................................17
3.2 Explanation to research philosophy, design, approach methods.........................................17
3.3 Secondary market research..................................................................................................19
3.4 Reliability.............................................................................................................................19
3.5 Validity................................................................................................................................20
3.6 Ethical issues........................................................................................................................20
3.7 Conclusion...........................................................................................................................21
CHAPTER 4: RESULTS AND DISCUSSIONS..........................................................................21
4.1 Introduction..........................................................................................................................21
4.2 Strategic analysis.................................................................................................................21

4.3 Assessment of current position ...........................................................................................24
4.4 Integrated assessment of analysis by generating ideas and giving alternative solutions.....25
4.5 Selection of strategies for success........................................................................................27
4.6 Findings from data collected ...............................................................................................28
4.7 Solutions to research problems............................................................................................29
4.8 Conclusion...........................................................................................................................30
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................30
5.1 Introduction..........................................................................................................................30
5.2 Conclusion...........................................................................................................................30
5.3 Recommendations................................................................................................................31
5.4 Decision on action plan........................................................................................................31
5.5 Conclusion...........................................................................................................................32
REFERENCES..............................................................................................................................33

CHAPTER 1: INTRODUCTION
1.1 Title
“To study various factors due to which sales level get decline of Fiat Chrysler Auto-mobiles.”
1.2 Abstract
Sales is an important aspect of any organization and hence all appropriate steps are taken
by the management of the company to increase up to maximum possibility. The present research
is based upon a case study that has been chosen on Fiat Chrysler Automobiles. It is a company
which deals in automobiles. It has been able to compete with top organization of UK. A
secondary research has been conducted on the company where its success and growth factors
have been analysed. Rigorous literature review has been conducted with the aim to concentrate
on key factors of sales. In the end, it is recommended to the organization that it must improve the
quality of its products and services so as to be counted in top notch brands of UK. Moreover, it
has also been recommended that improvement in market research strategies can help the
company in tapping large number of customers towards it.
1.3 Rationale of the research
While conducting any research, it is important that the researcher understand its relevance.
The study must hold some worth so that specific purpose through it can be served. It is important
to understand its practical and academically aspect by diligently analysing its relevance. The
researcher does not hold adequate amount of knowledge regarding various factors that are
responsible for declination in sales level of Fiat Chrysler Auto mobiles. Further, increasing
fluctuations in the automobile industry have attracted the researcher to further study this topic in
detailed manner. The project will help in understanding various aspects whose direct dependence
can be assessed on company’s sales. The study will be helpful in improving the current
knowledge aspect that is being possessed by the researcher related to the stated subject matter.
1.4 Research problems from the case
The case that has been chosen for the research is related to the study of Fiat Chrysler
Automobiles. It is one of the most important section of the research where the problem related to
the organization will be identified.
The main objective of every company is to become successful and gain the highest amount
of market share. Moreover, attracting large number of customer towards it is the another aim of
the company as it can have strong and direct impact on success and growth of the organization.

Moreover, it also helps in dealing with the competitors present in the market as well. However,
there are various issues that are faced by the company. These issues will be discussed in the
research in detail.
The scenario of current drop down in sales of Fiat Crysler Automobiles have been
discussed in the case scenario being chosen to serve the purpose of the study. A decrease in sales
can have strong impact on the profitability of the company (Shao, Taisch and Ortega-Mier,
2016). Moreover, it is considered to be a loss situation as well. The main concern of every
organization is to maintain effective relationship with its customers. It is an easy approach to
satisfy the customer to its best. Hence, it is important for Fait Crysler Automobile to understand
the reason behind decreasing sales.
Another issue that has been addressed in the article is related to technological aspects and
innovation. Company is required to constantly upgrade its technological aspects as people
always prefer to get modern technology for their automobiles. Moreover, it certainly helps the
company to generate higher revenue and ultimately higher profits. The availability of
competitors is quite higher in case of automobiles in the market. Different tools and techniques
are used by Fiat so that the best product quality can be delivered to the customers. However, the
issue is due to its high-end products, customers are switching to other brand over Fiat Crysler
Automobiles.
1.5 Research Questions
Research questions for the present research are:
 What are the major factors that affect the sales of firm?
 Which kind of issues are faced by the Fiat Chrysler Auto-mobile in their strategic
management?
 How to analyse the market position of Fiat Chrysler Auto-mobile?
 What are the major recommendation for improving the growth and success of firm?
1.6 Aim and objectives of the project
The aim of present research is “To evaluate various factors which are responsible for
decline in the sales of organisation. A case study on Fiat Chrysler Auto-mobile.”
Based on above stated aim, following objectives for the research can be framed:
 To identify the various factors that affect the sales of company.

 To access the major issues that are faced by Fiat Chrysler auto-mobile in their strategic
management.
 To analyse the actual market position of Fiat Chrysler Auto-mobile.
 To recommended most appropriate strategies that helps in future growth of company.
1.7 Background of the study
Fiat Chrysler Automobiles is an Italian American company and is considered as eighth
largest auto maker in the world. The group was able to be established after merger of Fiat and
Chrysler in the late 2014. It has been headquartered in London. The holding company is listed
with New York Stock exchange and Borsa Italiana in Milan. Exor S.p.A. is an Italian investment
group that is controlled by Angelli family, is owning 29.19% of Fiat Chrysler and is controlling
44.31% with the help of loyalty voting mechanism (Hashmi and Biesebroeck, 2016). It is
involved in designing, engineering, manufacturing and selling vehicles and other parts related to
it. It has been able to provide 162 manufacturing sites worldwide with 87 research and
development centres. It has dealers and distributers in more than 150 countries worldwide. Other
services are also provided by its subsidiaries and financial partners. These services include,
leasing, rental services, dealer financing, retail financing etc.
The portfolio of the company includes different automotive brands such as, Abarth, Dodge,
Fiat, Jeep, Fiat professional, Lancia, Ferrari and Alfa Romeo etc. Ferrari came to this group in
2016. The company tends to own different industrial subsidiaries as well, which includes,
Magneti Marelli, Teksid, Mopar and Comau. The manufacturing design and facilities of
engineering are set up in United States, Italy, Turin, Michigan, Auburn hills and other location
situated at different parts of the world, including, Mexico, Brazil, Canada, Argentina, India,
China and Poland.
5 yean business plan was announced by Fiat Chrysler on May 2014 which has helped to
define the functioning of the company. Moreover, it also helped in giving an insight regarding
mission and vision of the company as well. As per the expectations of the company, there will an
increase in its sales up to 7 million units. It will help in increasing the revenue up to 132 billion
with the net income of 5 billion to the organization. The industrial debt of Fiat will peak at 11
billion in 2015. However, it will then reduce to 0.5 to 1 billion by the end of 2018 ( Booming
British car manufacturing helps drive economy and production could break records by 2017,
2017).

The company is currently focussing on the global growth of Jeep due to increase in its
visibility worldwide. Moreover, it is also focussing on the sales of SUV market in some of the
developing countries as well. Fiat has been repositioned as a main stream brand of North
America which is competing with top notch automobile brands such as Volkswagen, Toyota,
Ford and Chevrolet.
Currently, the company is mainly focussing on providing high quality products and
services to its customers with the aim to gain advantage over the other automobile companies in
the market. The objective is to constantly innovate its functions by changing with the dynamic
circumstances. It is involved in giving intense focus on creating better future for the company
with the help of their communities and stakeholders sitting inside or outside the company
(Booming British car manufacturing helps drive economy and production could break records by
2017, 2017).
However, it has been assessed that there is constant decline in the sales of the company
since last year. There can be various factors that can be related to decreasing sales. In the present
study of Fiat Chrysler Automobiles, the main motive is to evaluate various factors which are
responsible for decline in the sales of the company. The research will help in understanding
major strategic issues that are currently faced by Fiat Chrysler automobiles in its strategic
management. Further, the present research will also be responsible to understand different
aspects that can affect the sales revenue of the company. The scholar will also be analysing
current market position of Fiat Chrysler Automobiles. In the end, the research will be responsible
to give certain recommendations which can further help in future growth of the organization.
1.8 Structure of the work
It is important that a research work flows in a manner that can help a reader to understand its
various aspects in detailed manner. To serve this purpose, it is important to decide initially the
chapter wise distribution of the research. Hence, in the present research, the chapter will flow in
the following manner:
Chapter 1: Introduction: It is the first and foremost chapter of the research which helps in
giving overview to the topic. Moreover, it also helps in giving overall background of problem
statement based on which whole research will be prepared, the current introduction chapter deals
in assessing aim and objective of the research and stating quick brief to Fiat Chrysler
Automobiles.

Chapter 2: Literature review: It is another important chapter of the research. It helps in
collecting secondary data regarding the subject matter chosen by the research scholar. In the
present case scenario, the main aim of the research is to evaluate the various factors which are
responsible for decline the sales of Fiat Chrysler Automobiles. Hence, secondary data will be
collected related to the subject matter that is aligned to the framed objectives for the research.
Chapter 3: Research Methodology: It is another important aspect of the research where
methodologies regarding the research are decided by the scholar. The researcher states research
approach, philosophy and design used in the research. Moreover, method of data collection in
detail will also be discussed in the research.
Chapter 4: Results and discussion: It is results and discussed part of the research where results
are stated which have been derived by the researcher after extensive research. Moreover, it will
also be discussed that how the results can help the company in better delivery of services and
achieve its objectives to the core.
Chapter 5: Conclusion and recommendation: This is the last and most important chapter of
the research. Where all the research done is bound together so as to reach to a perfect and
meaningful conclusion. The section will also discuss recommendations that can be given to Fiat
Chrysler Automobiles.
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In the present case study, literature review is the second chapter where the researcher will
set the theoretical framework. In this chapter the researcher will analyse the reviews of various
authors and scholars and provide a robust framework to the study. By doing that, the researcher
will able to accomplish the aim and objectives of the case study.
2.2 Literature review on automobile industry
According to Rawlinson and Wells (2016), automobile industry is considered to be ever
evolving industry which is able to experience rapid growth in the revenue and unforeseen decline
in the sales as well. The industry principally belongs to an oligopolistic market and hence the key
players in the industry are able to gain the advantage. Based on data being collected, the current
major players of automobile industry of UK are, General Motors, Toyota, Volkswagen and Ford.
Apart from these big four automotive companies, there are companies which belongs to