Strategic Analysis Report

Strategic Analysis Report
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1) External analysis to identified set opportunities and threat and assessment of industry
attractiveness................................................................................................................................3
2) Analysis of key competence of organisation that helped in retained differentiate positioning
in the market................................................................................................................................6
3) Evaluate the given strategy using SAFE criteria....................................................................9
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategic management is an ongoing process in which manager continuously planned,
monitor and control action with an motivate to attain higher end goals or competitive advantages
in external environment. There are numerous changes in external environment that adversely
impact on growth and profitability of business so manager needs to effectively adapt to them for
benefit of firm. Fiat Chrylser is public automobile company that was initially founded on 12
October, 2014, 6 year ago having operation across worldwide with employees ranging 1,98,545
that are ready to work for expansion of firm. This report is about Fiat Chrylser that contained
information related to external analysis in order to identified set opportunities and threat of
business. It has also included information related to strength, weakness or core competences of
company that helped in gaining competitive advantages in automobile industry. At last strategy
of firm is evaluated using SAFE criteria.
1) External analysis to identified set opportunities and threat and assessment of industry
attractiveness
Pestle Analysis: It is one of the effective strategy management tools that help in identifying
several external factors that act as threat and opportunities for business. Like policies of
government, economic condition of country, change in taste and preferences of people,
technological development and environment factor. Therefore, several factors that acts as
opportunity and threat for Fiat Chrylser can be illustrated as follows:
Political factor: It can be stated that political factors has contributed in effective development of
market of Fiat Chrylser in context of technology, human advancement and establishing of
institute of modern technology. Moreover, in 1990 government has made five year strategy for
development of submicron modern technologies that helps in development of research
laboratories and growth of business operation (Balashova and et.al., 2018). Therefore, political
factors act as an opportunity for company to develop its market share and earn maximum
profitability. Brexit is one such policies that act as threat on business as most of the trade of
country is with European Union.
Economic condition: There are several changes in economies like unemployment rate,
disposable income of customers, interest rate etc that directly and indirectly impact on business
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functions. Globally there is high rice coming on the situation of recession due to impact of Brexit
and covid-19 that resulted in threat on sales volume and profitability of Fiat Chrylser in near
future (Weinrich, 2017). As less number of people are interested to have more expensive, luxury
products in order to satisfy their needs due to loss disposable income and less employment
opportunities across UK. So, company in 2019 has announced to merge with groupe PSA on 50-
50 stock basis thus both agreed to the term of binding $50 billion merger.
Social factor: Taste and preferences of individual’s changes continuously so company in order
to meet expectancy or needs of customers has to find new or innovative ways thereby they are
motivated to be part of organisation. Popularity of driving cars has increased among several
individuals or younger generation thus they want more innovative, better technologies car in
order to move from one place to another. Thereby social factors has contributed in providing
opportunities to Fiat Chrylser to find more better and qualitative way to satisfied growing
demand of customers for growth of organisation. Due to decrease in disposable income of people
there are less likely to make purchase of car that resulted in somewhat reduction in sales of
company.
Technology factor: There are numerous developments in technology that has forced company to
make use of them while delivering services to customers in order to retained them for longer
time frame. So, Fiat Chrylser has opportunities to grow its business operation by making use of
new technologies like artificial intelligence, digital marketing to provide excellent services to
wide range of customers. Company by enhancing its market share in online platform can easily
attract millions of people and earn more profitability (El Namaki, 2016). While key issue is that
company have limited financial resources to adapt with changing technologies.
Environmental factor: Due to increasing wastage of resources, limited amount of material and
threat to environment and life of future individuals. Government and customer started forcing
companies to take steps towards sustainable management of resources so that they can be
available for existing as well as future generation that has increased cost of company. While Fiat
Chrylser has also opportunities to launch electric car in order to add more and more customers in
the organisation.
Porter value chain: It is another model that helps in identifies factors that shape industry by
studying several elements such as existing competition level, threat of substitute products, and
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