Corporate Strategy Assessment Report: Fiat Chrysler Case Study

This report provides a comprehensive corporate strategy assessment of Fiat Chrysler Automobiles. It begins with an introduction to corporate strategy and its importance, followed by an external analysis using PESTEL and Porter's Five Forces models to evaluate the political, economic, social, technological, environmental, and legal factors influencing the company, as well as the competitive dynamics within the automotive industry. The internal analysis delves into Fiat Chrysler's value chain, examining primary and support activities, and concludes with a VRIO analysis to assess the company's resources and capabilities in terms of value, rarity, imitability, and organization. The report also includes SAFe criteria and concludes with a summary of findings and recommendations, supported by references to relevant academic literature and industry sources. This report is designed to provide insights into Fiat Chrysler's strategic positioning and future prospects within the global automotive market. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Corporate Strategy
Assessment

Contents
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................3
External analysis..........................................................................................................................3
Question 2........................................................................................................................................7
Internal analysis...........................................................................................................................7
VRIO analysis of Fiat Chrysler...................................................................................................8
PART 3..........................................................................................................................................11
SAFe Criteria.............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Corporate strategy is term as the main strategic plan of the management that offers the
perspective of the long term vision. It fixes the organisation function to get implement the terms
of values to encourage the personnel for their plan of actions to follows their continuous
procedure. It increases the company’s equity and the organisation manner to manage their
consumer values. It determines the strategic plan and the process to set up the required flow of
the policies and terms. The strategies at corporate sector that relate the different forms of the
business and the plan of actions that use the cost leadership and product method. The
management consider in this report is Fiat Chrysler (Haski-Leventhal, 2018). It concentrates on
evolving plan of action to achieve the funds of the business. Fiat Chrysler auto motor
organisation, situated in London, UK as it is the world’s seventh sizeable auto shaper. On 31
October, 2019 the FCA Company proclaimed its merger with Group PSA with the aim of
increasing the organisation and evaluating respective chances for attaining development in the
modest situation. The report includes the PESTEL analysis and SWOT analysis has been
performed. It has also enclosed the value chain framework and VRIO framework in the business.
Question 1
External analysis.
PESTEL Analysis
PESTEL analysis is the structure that silent by the organisation for the reasoning of the
external state factors that feeling the improvement of the management concern. The company
focuses all the cause that are not enclosed in the reasoning and keeps way of the variations in the
extrinsic situation of business. The analysis are as follows:
 POLITICAL FACTORS: Political factors includes the interference of the government
in the functions of the business and how the laws of the administration are get affect the
business. The supervision or government make definite laws and terms that are valuable
for the individuals but have an excessive influence on the business that will involves the
Brexit (Varyash, and et.al., 2020). In the context to, Fiat Chrysler Automobiles, the
Brexit policy have a major effect on the business’s functioning. The management have
also shaped various laws that will involves the tax laws and safety laws that will affect

the output of the automobile firm. The government executives are vibrant and their civil
principles will also have an impact on the firm’s development and surplus opportunities.
 Economic factors: This factors have large effect on the skill of the organization and it is
essential for the business to examine its economic surroundings as effectively to carry
through the stableness in the enterprise. The financial factors that affect the company
includes the change in fuel prices, tax rates and many more (( Celik, 2019). The change
in the economic strategies and situations that affects the business operation in the
negative manner. The business should analyse these factors to ignore the consumption of
the capitals. As according it requires of the current business situation and inflation rate
that act as the negative factor in the economic factor.
 Social factors: This factors are also famed as the social cultural cause that social event
figures the belief of the marked consumers of the business. Such factors will explain the
features, approaches and thought of the consumers in order to the company and their
brand merchandise. The consumers desire the appreciated goods with security and
relaxation that will drives from the businesses. The corporations should consider the
purchasing behaviour of the purchaser to ascertain what they actually want. These factors
can be acknowledged as prospect for the business to increase their actions.
 Technological factors: Technology termed as the dynamic energy for the development
and advancement of the business. It is an essential term of factors for accomplishing the
success in this viable source of period as across the world. In the context to, Fiat Chrysler
Automobiles, the organisation generally concentrates on several technological factors that
are planning situation approachable cars, upholding fuel competence and installation of
self driving knowledge in their cars and many more. The modern knowledge will draw
and gather various new consumes as towards their goods and encourage other also for
instant procurement.
 Environmental factors: Environment factor will involve the atmospheres in which the
business is set up and operational as the supportive commercial management for its
consumers (Calof, Meissner, and Vishnevskiy, 2020)(. As the factors begins from the
regular calamities to continue till the temperature variation. Such factors will get change
the business’s procedure and their manpower who is practical operating by persuasive

situational device as their main concern. In context to the, Fiat Chrysler Auto mobiles,
the firm mainly concentrates on preserving their paper routes and running as towards to
the accomplishment of the purpose of the administration. The company usually intentions
at manufacture of low discharge of fuel effectual and maintainable automobiles for their
potential consumers.
 Legal factors: It termed as the authorised manner that describes the guidelines and
permitted rules and regulations which are implemented on the company by the
administration executives (Bui, and et.al., 2020). The corporation will always try to
tolerate the instructions to get permitted benefits and administration provision to get
comparing with their competitors. The Fiat Chrysler Automobiles concentrates on
upholding the strength and security at their organisation and maintaining clean cars that
will attain the success in future for the business. Labours are also an essential and
effectual tool for the businesses and there are many rules that will protect their moralities.
Such factor can be get determined by the threat for the business as the staff can take
benefits of these rights as against to the companies.
Porter’s Five Force Model
These model is used to analyse the industry’s imperfection to form the business corporate
strategy. In context to the Fiat Chrysler Auto mobiles, the organization uses five factors to
measure its social event and raise the profitableness that can be explained as follows:
 Threat of New Entry: The auto motor manufacturing is the globally developed business
that has many arrival and departure hurdles. The business will require enormous amount
of the asset of capital and human resource that will be supportive in their functions. In
context to the, Fiat Chrysler Automobiles, the business has risk of new competitors but
with narrow probabilities as this industry involves the skilled understanding to
understand the auto motor division and not anyone can arrive in this sector as effortlessly
(Andrei, Panait, and Voica, 2018)
(Gul, and et.al.,2017). The organisation will concentrate on the consumer’s preservation and
after trade facility they will draw new consumers for their brand goods.
 Bargaining Power of Suppliers: Provider will help in the manufacturing and their
source of quality products to their go through that keep their feasible border. The

provider’s control that might affect the business as they are limited in amount that due to
which the demand high profit and their margin from the business (Shah, and Rahim,
2019). In context to the, Fiat Chrysler Automobiles, the firm concentrates on preserving
the good relations with their providers so that resource can supply the products to their
consumers and actions as the relation stays between to the business and the purchaser.
 Bargaining power of Buyer: Purchaser are the major target for the business concern and
they try to continue the flushed intercourse with them to clasp them for individual period
of time. In context to the, Fiat Chrysler Automobiles company, the features that will
operates in their favour for preventive the negotiating authority of the consumers and
their product quality, invention and research technique because they are important after
sales services. The business works on the basis of their consumer’s predilection that
delivers them the modest advantage over its contestants.
 Threat of Substitutes: Additional goods that act as a formal instrument to draw the
consumes who want high superiority but with inexpensive values. Every business has this
risk as this will minimise their consumer base and it will also affect their market share in
the business. In the context to the, Fiat Chrysler Automobiles business mostly
concentrates on informing its present goods that will introducing the advanced car models
to influence the prospective consumers. The company that has preserved their brand
image that helps them in motivating the transactions base and maximising the loyal
consumers.
 Competitive Rivalry: The sector of industry is facing strong competition by which the
present companies in the sector are get focused as towards preserving their consumer
base (Opilo, Mulili, and Kimani, 2018). By such the companies are demanding to cut
down their operative cost that will help them in operating their funds as towards the
enquiring on the consumer’s tendencies. In context to the, Fiat Chrysler Automobiles
Company, competition will help them in concentrating the consumer the acquisition
channel by working as towards to the attainment of objectives of the management.

Question 2
Internal analysis
Porter’s Value Chain Analysis
This analysis is the theoretical account that is utilised to consider that how the enterprise
is producing the belief for their visitors. It will also exercise to form small welfare that will help
in the improvement of the enterprise. This reasoning can be get explained that are as follows:
 Primary Activities: These are directly connected to the physical formation, sale,
preservation and funding of the invention (Murmura, and Bravi, 2020)It will involve the
factors that are as follows:
Inbound Logistics: In context to the, Fiat Chrysler Automobiles Company, the provider deals
with the key factors. It will involve the procedure that is connected to the keeping and circulation
of the goods as internally.
Operations: In context to the, Fiat Chrysler Automobiles, the management has the benefit of
operative structure that generates values for their consumers. It involves all the procedures that
transform the goods from inputs to outputs as effectively.
Outbound Logistics: As it involves the actions that will involves the procedure of distributing the
goods to consumers. In context to the, Fiat Chrysler Automobiles, the management have the
benefits of their circulation structure as internal and external in the management.
Marketing and Sales: It involves all the plan of actions that will help in the advertising and
transactions of the goods (Konovalova, and et.al., 2018). In context to the, Fiat Chrysler
Automobiles management has the benefit of consequently sales service that will creates the
viable authority for its participants.
Service: These are the actions that are connected to the upholding of the values for its consumers
by inventing and growth of goods. In context to the, Fiat Chrysler Automobiles, the management
that is famous for bringing the effectual transactions facility to its consumers.
 Support Activities: These activities will help the primary task of the value chain
analysis. As the act of the subordinate structure that will provides the term to help and
maintain to the principal one. These activities can be described that are as follows;

Purchasing or Procurement: In context to the Fiat Chrysler Automobiles, management mostly
purposes for defining the best contractors and sellers at possible values that will distribute their
price added goods to the consumers (Ortas, Burritt, and Christ, 2019)
Human Resource Management: It is how well the company appoints and encourages their staff.
In context to the, Fiat Chrysler Automobiles, the business appoints effective individuals with
virtuous HR practices.
Technological Development: These actions will phase the section to managing and treating the
source of data of the business to produce the strong consumer base. In context to the, Fiat
Chrysler Automobiles, the business concentrates on the merging the technology and invention
for accomplishment of the aims of the management.
Infrastructure: These are the business support the structure that assist in the presentation of the
functions of the business as effectively.
Hence, the business uses the value chain analysis for construct the sections of the valuable goods
for their consumers.
VRIO analysis of Fiat Chrysler
VRIO analysis is an implement that helps the management to protect the capitals and
estimate the volume that give them long term benefits from their oppositions. It is the strategic
instrument used by management to make effective choices ((Richards, and et.al., 2019) As there
is the explanation of this model in context to the Fiat Chrysler:
Resources Valuable Rare Inimitable Organised
Brand goodwill Yes No No No
Distribution
network
Yes Yes No No
Organisation
arrangement
Yes Yes Yes No
Manpower Yes Yes Yes Yes

 Value: It involves it for analysing those capitals that will distribute the cost to its
consumers. In context to the Fiat Chrysler Automobiles, the management has
accomplished the cost factor then the organisation that might move on the infrequency
constituent of this breakdown (Maduro,Fernandes, and Alves,, 2018) . The business
delivers their attained worldwide transactions and circulation of the network that will
adds the value of the products in their contributions. It is an essential term to constantly
consider the price of the capitals to maximise the consumer’s perceived terms. Rare: It involves the construction of the rare goods for the consumers to attain brand
worth for the business. In context to the, Fiat Chrysler Automobiles, the corporation goals
are to builds the modest superiority by delivering fuel efficient and self driven cars to
accomplish scarcity of the component for its management. Likewise, rare and value
capitals are grant provisional modest benefit to the business. The management plans
those products that are not formal to create in the future.
 Imitability: An enterprise is exacting to carry through this sectors by considering their
asset of the quality. In context to the, Fiat Chrysler Automobiles, the social control to get
offers the tremendous sales service to get advanced the part. It is sticky and deluxe to
same the share of Fiat Chrysler Automobiles like the other business. Due to this the
consumers become reliable for their brands that do not change to other brand. The
company might develop those capitals that are hard to replicate by emerging the
multifaceted advanced sections to their consumers (Lai, and Liu, 2018). It will help in
increasing the efficiency of the management.
 Organisation: It consider the reasoning of the terms of the values in the management that
understand how well they are organising their capitals for the benefit of their faculty. In
context to the Fiat Chrysler Automobiles, the concern identify the activity of their point is
being performed ineffectively or not. The company also concentrates on preserving the
healthy relations with their workforces to avoid the issues in the employed surrounding.
The business has the organisational culture that are well accomplished in their operational
term and have clear opinions in respect to their effort and objectives for the achievement.
TOWS

This instrument is valuable to ascertain the strengths and weaknesses and to take advantage from
chances and will save the business from risk (Velte, 2020). After this study the business might
take suitable approaches and make proper plan of action that will support the business to get
advantages in future by achieving more consumers and by opposing in the marketplace.
TOWS MATRIX Opportunities Threats
Strengths  Brand image of Fiat Chrysler is very
high that is one of the major strength
for Fiat Chrysler as their many
consumers use their facilities because
of their brand name. By utilising the
broad and progressive technique that
is not except the secrecy of
consumers because varied of
consumer can complain about their
leakage of private data.
 Fiat Chrysler is
known for providing
very high standard of
services to their
consumers.
 Managers of Fiat
Chrysler are not
happy with the
condition and
situation that are
present in their
sections (Watts,
2020). By such bad
appearance of
business that is
formed in
marketplace that will
limit the other new
individuals to connect
the business.
Weaknesses  The employees of Fiat Chrysler are
unproductive to executive of the
company as appropriately. There is
no good connection in between the
management team and staff of
 Customer loyalty is
less in case of Fiat
Chrysler as because a
little mistake from
management can

business. Fiat Chrysler must start
their facilities in outlying the areas.
variate the consumer
loyalty and consumer
can switch to other
companies.
PART 3
SAFe Criteria
This framework is planned to assess the deliberate of the opportunity of the business in
future. It is recycled the tool to identify the planned potentials for the business as according to
their present growing views which that will support in accomplishment of aims of the business.
In the context to the, Fiat Chrysler Automobiles, there are three standards of this framework that
are discussed below:
 Suitability: It will evaluate the suitability of the prospect as per to present content and
needs of the organisation. The management mainly focus on the addressed chances and
pressures in the tenanted condition and develop the formulation as their manner (Di
Cesare, and et.al., 2018). The Fiat Chrysler Automobiles consider the chances as
according to their values, working style and the abilities of their staff. The plan of action
might take benefit of the strength to get decrease the weaknesses and to take benefit of
the opportunities and report the threats of the management. Suitability of the strategy will
also depend on the principles of the management and desired objectives of the
management.

 Acceptability: It can be diverse as the function that is utilised by management in respect
to achieve task as in effective way and utilising the methods as according to desires of the
management as these are also connected to practise the function that will support
approval of the business and their purpose and execution of the task in an acceptable
manner. In context of management, it can be seen that there are genuinely getting of
products and facilities that mention it to perform the effective and easy in business
situation and meet wants as according to purposes.
It concentrates on the opinions of the shareholders that plays an essential manner in this
process. The factor will also analyse the threat and arrival to get related with the plan of
action and growth for the business (Lee, Chang,and Lee, 2017)(. In context to the, Fiat
Chrysler Automobiles, the present plan of action that must lighten the outlooks of the
shareholders that will reduce the section of the risk that are associated with it. It will also
help in considering the earnings of the plan of actions and the reactions of the
shareholders.

 Feasibility: In this context that can also realise that their amount of viable decisions that
might be utilised by management in respect to targets and complete the task in a suitable
manner. As these are valuable in consultation of the needs and executing the business
operations. It is important to use the key factor that will consider the management and
their ability of performing the plan of actions and formulated it for the management. The
business must have the economic and human resources for the application of the plan. In
context to the, Fiat Chrysler Automobiles, the business scan for the individuals who have
the services and information for the plan implementation. Also, the corporation might
develop a planned sections and instrument as according to the construction of the
administration. It depends on the present economic and effectiveness of the conditions of
the company.

CONCLUSION
Corporate strategy is visibly expressed the formulation that is practical with the content of
inspiring the faculty to achieve the user satisfaction. This report discussed about the reasoning
and outcome of its section on the at work external difficulty. Also the report justify the five force
model that helps in change the various commercial enterprise who stand diverse sections of
productivity ratio. Additionally, the report has discussed about the work of the intragroup state of
the business concern with the assist the important term of the strength, opportunities and
reducing the imperfection and threats of the corporation. Also, there is account of the VRIO
possibility that will presents the value, rarity, imitability and organised word form of the goods
of the authorities. There is a SAFe model that are explained as above to analyze the quality,
acceptability and the feasibility of the firm plan of action of the organisation.

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