External and Internal Analysis of Fiat Chrysler and Peugeot

Report

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. External Analysis.....................................................................................................................1
2. Internal Analysis......................................................................................................................4
3. Evaluation................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term corporate strategy is delineated to hierarchically strategic plan that is prepared by
managers of company to define overall objectives, direction and goals along with the ways to
attain strategic management activities (Cardoni, Kiseleva and Lombardi, 2020). In an
establishment, it assists in extracting wider sustained aspects to build and capture values within
particular product market. For the report, Fiat Chrysler and Peugeot are selected which are
automobile manufacturer that operates within automobile industry. The PSA and FCA are
specialised in designing, engineering, manufacturing, promoting and selling vehicles addition to
their associated parts with production system globally.
The report highlights external analysis through PESTLE and Porters Five Force analysis.
Further, it covers internal analysis to analyse resources and competences. At last, it evaluates
strategy on the basis of suitability, acceptability and feasibility.
MAIN BODY
1. External Analysis
Business environment is aggregation of various factors that are not controlled by
business. External analysis can be represented to investigation of industrial environment in
which an organisation operates. Major purpose to conduct external analysis is for ascertain
opportunities and threats within the industry that drives volatility, expansion, development and
profitability of the venture. For Fiat Chrysler and Peugeot, external analysis is conducted through
mentioned frameworks:
PESTEL Analysis
PESTLE analysis is termed to the framework that is applied by company to analyse key
macro factors which influences business from outside. In association to Fiat Chrysler and
Peugeot, external factors that impacts the businesses as well as create opportunities or leads to
threats are as analysed:
Political: There are various number of political factors including defined regulations by
government, stability or instability of political system, taxation policy, trade barriers and so on
(Köhler and Zerfass, 2019). In case with Fiat Chrysler and Peugeot, government have laid down
various trade barriers for automotive makers that creates complexities to trade across global
borders that acts as threat as it impacts drastically on their sales volume and profits.
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Economic: Within external environment, the factors gauge economic situation via
studying elements within macro economy. In case with Fiat Chrysler and Peugeot, economic
factors comprising consumer disposable income, business cycle and foreign exchange rates. As a
common trend, people around the globe are earning huge every year that reflects that they are
spending money on luxury items including automobile and so on. It is an opportunity for Fiat
Chrysler and Peugeot to offer the vehicles at relatively lower prices to enhance sales and
building image in the industry.
Social: The factor covers study of target customers along with demographic variables. It
assist in gauging potential market size. In Fiat Chrysler and Peugeot, elements of social factor
that are impacting the businesses includes buying habits, family structure, attitudes, population
density and hence forth. Among people, popularity for driving is increasing due to which
families across the globe are owning one or more vehicles which is a threat for Fiat Chrysler and
Peugeot as there are various auto-makers offering vehicles to customers which creates intense
competition for the ventures.
Technological: It involves issues related with emerging technologies, scientific advances
and R&D practices (Helmold, 2020). In automotive industry, technology is changing rapidly that
provides opportunity to Fiat Chrysler and Peugeot for expanding market with adoption of
collaboration through technological analytics. At same time, advancements in technologies in
analytics comprises Artificial Intelligence, Big Data usage, etc which assist businesses to gain
knowledge about operations so that they are able to carry out activities across the world in easier
and convenient ways.
Legal: It states the ways legislations impacts operations of company and behaviour of
customers. In relevance to Fiat Chrysler and Peugeot, copyright act is one of issue that impacts
the working of businesses in automotive industry. There are certain characteristics of vehicle that
can be protected through trademark, patent laws and copyright which is an opportunity for the
businesses to protect its designs from others and sustaining positions to design and attractive
vehicles.
Environmental: There are multiple environmental factors which causes issues for
running a successful business venture. In this, carbon emission is one of serious issue that causes
threats for Fiat Chrysler and Peugeot when their vehicles create huge pollutions or lack to meet
desired standards which trapped the atmosphere by causing global warming, rising sea levels and
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