Corporate Strategy Analysis: Fiat Chrysler and Peugeot Merger

This report provides a detailed analysis of the corporate strategy employed by Fiat Chrysler and Peugeot, focusing on their merger. The report begins with an introduction to corporate strategy, followed by an external analysis using PESTLE, exploring political, economic, social, technological, environmental, and legal factors. The main body delves into the opportunities and threats presented by the external environment. It also includes an internal analysis using VRIO to assess the company's core competencies. Furthermore, the report evaluates a recent strategy implemented by the merged company using SAFe criteria. The conclusion summarizes the key findings and strategic recommendations, supported by a comprehensive list of references.

Applied Corporate Strategy

Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................3
External analysis and various opportunities and threats provided by them to business........3
Analysis of internal components providing core competency to organisation......................6
Select one strategy that the company implemented recently and evaluate it using SAFe
criteria....................................................................................................................................7
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
Corporate strategy is a systematic system of strategic planning in an organisation. The
corporate is aiming at various goals and directions for an organisation in order to make sure
that they can achieve all their aim is properly through help of some strategies for business
operations. They are usually determined in long-run vision that is needed to be attained by
organisation for their goals and objectives. The following report is based on a merger which
was taken place between Fiat Chrysler and Peugeot Owner (Cardoni, Kiseleva and Lombardi,
2020).Fiat Chrysler auto mobile is running in automotive industry while offering a number of
different products and services to its customers throughout the world. The company was
introduced in the year 2014 and now they have announced a merger with Italian rival Fiat
Chrysler but the merger was facing political issues along with some financial issues. Merger
was supposed to come up with various new ideas so that both these companies can lead the
automation industry throughout the world. The report consists of internal and external
analysis through a number of different frameworks which will help the organisations in their
merger along with strategizing their future steps.
Main body
External analysis and various opportunities and threats provided by them to business
PESTLE analysis
Political factors: Political factors usually include different government policies, tax
policies, and stability of political parties and soon in a nation. Political factors can highly
impact a business so it is necessary for the organisations to develop strategies taking these
factors into mind. In context to the merger of Fiat Chrysler automobiles and Peugeot owner,
the impact of political factor is high. This is because firm has to deal with both local and
merger challenges where it can use government norms in positive way, this helps firm in
meeting needs and performing task in appropriate way. in current time, this can also see that
there are number of clients which are helping business firm in meeting needs. It is seen that
the government, tax policies and stability which both these companies have to face is very
high risk oriented.
Opportunity: In the merger of Fiat Chrysler automobiles and Peugeot owner the political
parties will affect the working in both of these organisations. Under this, essay norms of

government are useful for firm as business firms are approaching other organisations in
accordance with needs and performing task in appropriate way.
Economic factors: The following factor includes a number of different economic
conditions that are faced by different nations and the people in the company. It is required by
the organisation to make sure that they are developing a number of different strategies so that
they can successfully sustain in the market and bringing in profit successfully. When taking
in consideration the merger between fat Crystal auto mobiles and Peugeot owner they are
successfully planning to achieve highest position in automobile market. They will
successfully offer a number of different vehicles under same roof that includes jeep, Opel,
Alfa Romeo, Citroen and so on (Dahl and Fløttum, 2019). Is also required by the merged
company to make sure that they are focusing upon population and a number of economic
conditions which will help them to gain opportunities when they are merging together and
serving a number of different markets.
Threats: There are a number of different economic conditions of a nation that can fluctuate
and affect the merger in both the organisations. It is necessary for the organisations to make
sure that they are successfully understanding various factors such as GDP of the economy
and foreign exchange it in order to carry on the merger successfully.
Social factors: It is required by the organisation is to make sure that they are
successfully studying different social factors that can affect their operations. The social
factors are related to cultural and social values of the people who are consumer for the
organisation. The changing trends in the market and expectation of consumers are also
included in social factor. When taking the merger of Fiat Chrysler and Peugeot Owner
automobile into consideration it is seen that they can successfully introduced a number of
different variety in their vehicle including electric vehicle that will help to meet the social
aspect successfully.
Opportunities: Different opportunities can be provided to the organisation when taking
social factors into consideration. They can introduce new electric vehicles which will help to
provide value to their consumers. They can also make sure that they are reducing pollution
through which consumers can be attracted to them and societies can live in a pollution free
environment.
Technological factors: It is one of the major factors which is helping organisations to
make sure that they are adopting new and advanced technology in order to develop their
products and services. This is a great way to bring innovations in order to increase profit and
sales for the organisation (Rauw, 2019). In respect of a merger between Fiat Chrysler

automobiles and Peugeot owner it is required by them to make sure that they can become
biggest car manufacturer throughout the world. In order to fulfil this need of the organisation
technology is one of the major aspect.
Opportunities: One of the major opportunity that is present by the company after merging
together is that they can adopt a number of new technologies successfully which will help
them to introduce various new products and services in the market. It will help them in
enhancing their consumer base and bringing profits for the organisation successfully.
Environmental factor: There are a number of different environmental factors which
are affecting the functioning of a business. It is required by business to make sure that they
are not contributing negatively to any environmental issue and making sure that they do not
pollute environment in anyway. When taking the following measures into respect it is
necessary by the organisation to develop technology-based cars which will help in reducing
the pollutants they are releasing in the environment and also help them to develop
sustainably.
Threat: The major threat due to environmental factor is that it can be a costly affair for the
organisation to develop such products and services which are environmental friendly. This
will also increase the budget of operations in the organisation along with the price of vehicles
they are providing.
Legal factors: Legal factors conclude of all those factors that are affecting business
legally. It is required by business to develop strategies and plans which will help them in
following all the rules and regulations that are devised by government. It will help the
organisation to avoid any legal proceedings against them. When taking the merger between
Fiat Chrysler automobiles and Peugeot into context they are conducting various business in
different countries. It is required by them to take care of legal factors in all those different
nations.
Threats: Major threat to the organisation due to legal factor is that if they do not follow a
number of different rules and regulations effectively they can face legal proceedings which
may also affect their productivity and profitability.
Porter’s five forces model
Bargaining power of buyers: When considering the bargaining power of customers
Fiat Chrysler automobiles and Peugeot owner have reduced it as by joining hands they can
successfully offer quality vehicle which any of their competitors cannot. Along with this they
are also introducing a number of new vehicles which are not present with any of their

competitors and the buyers are losing their bargaining power. It can be analysed form the
above that there bargaining power of customer in market is low.
Bargaining power of suppliers: Bargaining power for the supplier can be considered
to be moderate as both the company need to develop good relations with their supplier
(Soares and Martens, 2018). Also the supplier for both of these can be same due to which
they cannot ask for high amount of supply from their suppliers at sometimes.
Competitive rivalry: When considering the competitive rivalry for the organisation it
is very high because both the organisations are successfully working in international as well
as national market. Due to this they have to face competition from a number of different
companies working throughout the world. This factor is relation to the chosen form as and
normal factor where company can formulate effective strategies in relation to this.
Threat from substitutes: Both of these organisations are working in automotive
industry due to this there is a number of different same type of products provided by various
companies. After, the merger however the organisation can enhance the quality of their
products which will help them in reducing the threat from substitute as they are providing
differentiated products and services to their consumers. This factor act as a strength of
business firm and helps in meeting needs. this act as low treat to business firm.
Threat from new entrants: After the merger the company will not have any threat
from new entrants in the market as they will successfully cover huge market area. Also they
are introducing a number of different new products which will help them to grab major
market share. Any new entrant will require huge investment in business if they want to
provide a competition to these companies. This factor act has an ad for business firm as both
the companies are implementing huge amount in the firm which improve their market size
and minimise the thereat.
Analysis of internal components providing core competency to organisation
VRIO analysis can be define as an approach which is used by business firm in order
to scan internal resources which are useful in meeting needs. It acts as a valuable analysis as
it states and the needed resources and classify them, according to needs of business firm.
Basis Valuable Rare Imitable Organised
Manufacturing
process
Yes No No No
Technology Yes Yes No No
Presence local Yes Yes Yes No

and
internationally
Employability Yes Yes Yes Yes
VRIO analysis
Valuable- These are all the factors for the organisation which are valuable enough for the
business. They are necessary for the business in order to make sure that all the objectives of
business are successfully achieved (Barker and Kasim, 2016). They also help business in
providing competition to competitors in the market environment. When taking the Fiat
Chrysler auto mobile and Peugeot owner into context below mentioned are different
resources which are valuable for the organisation:
 The manufacturing process used by the organisation are very valuable for them as
they are helping them to provide customers with quality products. This will also
successfully provide the organisation with a competitive advantage in market place.
 When taking technology as a resource into consideration the organisation will
successfully introduce new products in the market with the help of technology. This is
very valuable for the organisation as they can achieve competitive advantage with the
help of this resource.
 Both of the organisations which are getting into merger are proving their strong
presence local and internationally. This will help them to bring advantage and makes
it a valuable resource.
 The employees of the organisation are skilled and experienced. This knowledge of the
employees are working as an effective resource for the organisation which will
provide them a number of benefits.
Rare- These are the resources which are rare for the company and is not easily available to
the competitors of the organisation. When taking the merging companies Fiat Chrysler
automobiles and Peugeot owner into context there are some of the resources which can be
rare (Glushakova, Chernikova and Strekalova, 2020). The manufacturing processes are not
rare for the organisation as some of the other automobile company are also using the same
process for manufacturing.
B42390

 Technology is a rare resource present with company as there are not many other
organisations who have huge funds to invest on research and development as these
companies.
 The brand popularity with both of these companies is very high which is helping them
to make sure that they are attracting huge number of consumers throughout the world
and increasing their sales.
 Employees are also a real resource for the organisation as they are providing training
to their employees in order to make sure that they are bringing profits for the
organisation.
Imitable- These are the resources which cannot be copied by any of the competitors of the
organisation. When taking Fiat Chrysler automobiles and pizza and order into context there
are a number of resources which cannot be copied by their competitors as mentioned below:
 The brand popularity of both the organisations is a great advantage for them. It cannot
be copied by any of their competitors as the company have generated over the time.
 It is also difficult for the competitors of organisation to copy the hard work that their
employees are putting in work. Human resources cannot be copied which is a great
profit for the organisation.
Organised- It is required by the organisation to make sure that they are successfully
organising the resources in the organisation from time to time. This will help the
organisations to make sure that they are bringing maximum profit from the utilisation of these
resources. When taking the companies into merger into context it is seen that organising
manufacturing processes, technology and brand popularity is not possible (Pidun, 2019). Also
some of these are not required by the organisation. However the resources which are
organised for the business are mentioned below
 Employees of Fiat Chrysler Automobiles and Peugeot owner are skilled and trained
from time to time. This is successful in providing organisation to keep them up-to-
date with the changing technologies in the market.
Select one strategy that the company implemented recently and evaluate it using SAFe
criteria.
TOWS analysis
Internal factors
Strengths Weaknesses

External factors
Opportunities
The merger between
Fiat Chrysler
automobiles and
Peugeot owner is
providing them with
various strengths as
now the technologies
of the organisation
will be one. Along
with this the
employees and
various resources of
both the organisation
will be one of the
major strength for
the organisation. The
brand value that both
of the organisation
have generated will
help them in
attracting more
people towards
them. This is the best
way in which
organisations can
successfully enhance
market and increase
the market share
influencing potential
customers.
When taking into
consideration all the
internal factors of
both the organisation
into context the
manufacturing
process is one of the
weak point in both of
these organisations.
It is necessary that
organisation is
developing
differential
manufacturing
processes. The
manufacturing
processes of both the
companies now is
same and it can be
easily copied by any
of the competitors.
Therefore the
organisation need to
develop various
technological factors
that can help them to
successfully attract
huge consumers
through their
developed
manufacturing
processes.

Threats
Various strengths of
Fiat Chrysler
automobiles and
Peugeot owner after
the merger is that the
technology that is
brought in by
organisation will
successfully help
them to bring in new
products and
services in the
market. These
products and
services will help the
organisation to
successfully fulfil
the required need of
consumers. The
organisations can
also take benefit
from the
environmental
factors by
developing electric
cars (Menghu,
Yongfang and
Guanglin, 2017). By
providing benefits to
the society they can
successfully enhance
their brand image in
the market along
with their
The merged
company which will
be formed after a
merger between Fiat
Chrysler
automobiles and
Peugeot owner needs
to make sure that
they are improving
their manufacturing
procedure. It is often
seen that the political
and economic factors
that are influencing
operations in
business can become
threats for
organisation. The
organisation is
required to make
sure that they are
successfully
analysing all these
factors. Political
instability in the
market can become a
threat for the
organisation. If they
do not follow all
these economic
conditions
successfully and the
company may face
losses. Also failing

productivity and
profitability.
to follow all the rules
and regulations
which are legally
guided by
government in a
nation will lead to
negative legal
proceedings against
the organisation.
SAFe Analysis
In order to correctly understand the effectiveness of different strategies it is required
to focus upon strength and weaknesses of management. Below mentioned are various
strategies which are to be adopted by Fiat Chrysler automobiles and Peugeot owner in order
to make sure that they can successfully create strategies which will help in bringing benefits
for them:
Sustainability: Under this factor the management of the organisation is required to evaluate
all the opportunities and benefits that can be taken by the organisation through development
of various strategies. The current situation is to be analysed correctly in order to do so. When
taking Fiat Chrysler automobiles and Peugeot order into context the merger is successfully
helping the organisation to generate a number of different opportunities. They can come up
with various technologies and new products and services which will help them to attain more
customers and bring profits for the organisation. This is a great way which will help the
organisation with sustainable development and long-term profits.
Acceptability: In order to make sure that organisation is managing various strategies
successfully they required to be accepted by the stakeholders of organisation. It is necessary
that stakeholders are successfully looking towards all the risks which are associated with
strategy. The study of all this risk will allow the organisation to differentiate between various
strategies and the benefits that are brought by the strategies. When taking the merged
companies Fiat Chrysler automobiles and Peugeot owner into context it is necessary that they
are successfully showing their plan to the stakeholders. It will help them to gain the ideas
from the stakeholders who are successfully investing their money and efforts in the
business.This will also help the organisation to enhance their brand value and make sure that
their strategies do not involve any kind of risk.

Feasibility: In the following analysis this is the last aspect which understands the practicality
of the strategy that is given by the management. It is necessary for the management of
organisation to make sure that they are developing a strategy which is possible by the
employs to conduct successfully. The strategies and goals cannot be an achievable as they
can demotivate the employs in organisation (Guan and Kim, 2018). When taking Fiat
Chrysler automobiles and Peugeot owner into context the organisations need to make sure
that the launching of the new car and autonomous vehicle which they are planning can be
provided to the consumer successfully. They need to focus upon the price they will be
charging from customers for the product along with availability of product in the market
successfully. They are also required to make a plan which can bring in benefits for the
organisation while they are executing it.
Conclusion
With the help of the above analysis it can be understood that there are a number of
different factors in internal and external environment which are affecting a business. It is
necessary for the business to make sure that they are successfully analysing all these factors
which can affect the merger which is taking place. It is also required by organisation to make
sure that they are differently focusing upon threats and opportunities which are brought in by
these factors so that the organisation can successfully use these factors in a positive manner.
Management of all the situations properly will help the organisation to make sure that they
are achieving all their goals and the merger can be successfully conducted within the
organisation.