Strategic Analysis Report on Fait Chrysler and Peugeot Merger (Module)

This report provides a comprehensive strategic analysis of the Fait Chrysler and Peugeot merger, examining the company's corporate strategy. The report begins with an introduction to corporate strategy and its importance, followed by an external analysis using PESTLE and Porter's Five Forces models to identify opportunities and threats within the automotive industry. It then delves into an internal analysis, employing TOWS and VRIO models to assess the company's strengths, weaknesses, and core competencies. Finally, the report evaluates the merger strategy using the SAF criteria, assessing its suitability, acceptability, and feasibility. The analysis is supported by relevant data and aims to provide a clear understanding of the strategic implications of the merger.

Applied Corporate
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
EXTERNAL ANALYSIS................................................................................................................3
PESTLE Analysis...................................................................................................................3
Porter's Five Forces Model.....................................................................................................5
INTERNAL ANALYSIS.................................................................................................................7
TOWS Analysis......................................................................................................................7
VRIO Analysis.......................................................................................................................8
SAF CRITERIA.............................................................................................................................10
Suitability.............................................................................................................................10
Acceptability.........................................................................................................................10
Feasibility.............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
Books and Journals...............................................................................................................13

INTRODUCTION
Corporate strategy is a term which reflects upon all the processes and procedures that are
associated with increasing and improving the value of an entity. Corporate strategy not only
offers the organisation improve the competitive advantage but also enable it to succeed within
the market place (Kozmal and El-Monem, 2018). Therefore the concept of corporate strategy
becomes very important and necessary for entity to analyse for fully understanding its
application and executing all plans effectively. The present report is based on Fait Chrysler an
auto-mobile organisation which is an Italian / American multinational corporation and a leading
company in the industry in the whole world. The discussion is conducted between two
companies Fait Chrysler and Peugeot and about their merger. The merger between these two
organisations is a strong area to discuss in regards to corporate strategy. The company Fait
Chrysler was founded in 2014 and holds its fiscal headquarters in London, United Kingdom. In
this project effective external environmental analysis of Fait Chrysler is conducted for
identifying its opportunities and strengths available in internal and external environment of the
entity. Moreover internal analysis is also conducted of the organisation with the help of VRIO
model for identifying the capabilities of the firm and its major competencies. Lastly, the SAF
model or criteria is utilised to analyse the merger strategy of the entity.
EXTERNAL ANALYSIS
PESTLE Analysis
Fait Chrysler is a brand dealing in auto-mobile industry which makes it very essential and
important that the organisational external analysis should be conducted and performed for
understanding the external influence on organisational working and strategies. Political Factors: The political factor revolves around the notion where political stability
of the region and reforms that shape of the working of a company within the industry and
the country is involved. Fait Chrysler is a firm which huge market share in United
Kingdom as well as around world. The company holds the responsibility to align its
operations with the political requirements and position. United Kingdom is known for its
political stability but currently the country is suffering because of certain factors like
Brexit and coronavirus pandemic. This is can create a threat for the firm as the instability
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will be bringing inefficiency in existing plans and strategies which will be causing chaos
and unpredictable environment for the firm. Economical Factors: The economic actor focuses on the economic performances of the
country and the elements involved are employment, population, inflation etc. Fait
Chrysler is organisation with the highest market share and United Kingdom in the auto-
mobile sector. Automatically evidence the fact that country as stable economic
environment and the economic performance in the region are prominent. But in recent
years the whole country is facing economic downfall and instability because of Brexit
which is a great influence on Fait Chrysler. This is a threat for the firm as lower economy
will result in several disadvantages for the organisation to make their merger with
Peugeot a strong move. Social Factors: The social factors associated with the element that are the current trends
flourishing in the market, preferences of people and the likelihood to make purchase
according to their needs and requirements. A key concern which have evidently placed
change in the auto-mobile industry as per the social environment and concern is that
increasing technological advancement, leading change in preferences of people in regards
to products and services and modern technologies. Now people are more concerned,
attracted and focused towards finding the best technologies in their cars and other
vehicles (Jin and et. al., 2018). Also, now people are more concerned with having
digitalisation and services that are sustainable and developed through sustainable means.
This is a change which needs to be addressed by the auto-mobile sector and the whole
industry and addressed as an opportunity Fait Chrysler in relation to innovate and keep
the existing customers attached as well as develop new customer base. Technological Factors: The technological factor is inclusive of all the digital
transformation and advancement taking place in technological industry which is also
affecting other respective industries. Revolutionary changes taking place in technological
sector and industry which is also imposing major influences and impacts on the auto-
mobile sector of UK and even in the whole world. Technological advancement and
evolution introduced artificial intelligence, robotics and better tools for production and
conducting other related operation of Fait Chrysler helping the firm in developing
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products more productively as well as creating a chance for the entity to elaborate on
their actions in sustainable manner. Legal Factors: This factors is somewhat related and similar to political factor. In legal
aspect all the regulations and policies that essential for entities to comply and comply
with the highlighted. Fait Chrysler is surrounded by the legal environment of United
Kingdom and it is becoming complicated for the company to comply with the policies
and regulations of the country. This is because the complications are increasing as Brexit
causing a threat for Fait Chrysler took place and the policies of United Kingdom and EU
have evolved. Fait Chrysler have to be focused on both the legal requirements of UK and
EU which is getting a little bit complicated and chaotic.
 Environmental Factors: The environmental factors have been recently introduced in the
external analysis of organisations. The factor revolves around and considered as the
major impact placed by the operations and functions of the organisation on the society
and natural environment of the country as well as the world. The government of United
Kingdom is highly dedicated towards protecting the environment reading awareness and
making strict efforts to do so. Therefore it is highly beneficial opportunity for Fait
Chrysler to effectively and efficiently align it operations with the environmental policies
and reduce carbon footprint by imposing sustainable plans with the focus of complying
with the demands of the industry and matching with the successive objectives.
Porter's Five Forces Model
Fait Chrysler is a leading organisation of the auto-mobile sector which is recently being
developed and reached towards success rapidly. It is critical to dissect its modern attractiveness
to evaluate its present situation inside the competitive and business environment. For this,
Porter's Five Forces Analysis is being utilized, which is a device to evaluate a few power inside
the business and their effect on the organization. Suppliers Bargaining Power: These are people or firms s which give raw materials to
companies in setting of advancement of their contributions to the society with their
offerings. There are countless providers and suppliers inside the auto-mobile business of
the UK, furthermore entity like Fait Chrysler have different inventory chains and
requirements as they are needed to bargain in a huge variety of items. This makes their
capacity high in setting with the organization (Godos-Díez, Cabeza-García and
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Fernández-González, 2018). Nonetheless, organizations after its consolidation with
Peugeot, could viably appreciate control over the provider network and it can be an
opportunity for the firm, through sharing their restrictive organizations which will help
people learn in future. Customers' Bargaining Power: There is an immense amount of clients in auto-mobile
industry every one of which are a lot of faithful to the organization they purchase their
products from. In any case, the exchanging cost is low for clients, alongside presence of a
few substitute items as industry is evolving and developing. This upgrades their dealing
intensity of the company. However, to manage this, selective reach should be created by
the organization alongside Peugeot, which would urge clients to purchase quality items at
moderate costs, that would let down their bargaining power in result and enable a upper
hand to the brand in the industry and with wide opening opportunities and chances to
develop. Threat of New Entrants: Entering inside the auto-mobile area requires significant
opinion and immense amount of extra money to support in the market comprehensive of
a few major players, for example, Fait Chrysler. Moreover, because of the uncertainty of
the market due to Brexit, the simplicity of working together inside the UK has gotten
more complex. Subsequently, this decreases the danger of new participation in the
industry as of Fait Chrysler market. In future, its consolidation with Peugeot would be
more worthwhile and opportunistic for the organization, because of a selectiveness
picked up by them that would bring down this danger much further. Threat of Substitutes: Substitutes are the administrations and items that could be used
instead of a contribution of an organization. This danger is moderate for the organization
as the industry is highly dynamic making changes and development in areas and working
innovatively. Hence the threat of substitutions is relatively low in regards to the industry
(Lawton, 2017).
 Competitive Rivalry: Rivalry inside the area is exceptionally high with firms Fait
Chrysler receiving unmistakable procedures which are needed to pick up a serious edge
more than each other. The power of existing rivals in increased because of increasing
uncertainties in the industry causing stress in industry and making it critical for
businesses to survive. Hence, the competitors are developing huge and highly
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competitive environment for businesses to survive and so as Fait Chrysler and becoming
sever challenges and threats for it.
INTERNAL ANALYSIS
TOWS Analysis
There are a few assets and abilities related with an firms that could be a fitting strength
or shortcoming of the organization. In any case, to properly examine the capacities of the firm, it
is basic to viably break down these abilities in setting with the chances and dangers that are
controlled by the outside climate examination. Subsequently, TOWS investigation is applied
beneath to evaluate the Companies assets and centre capacities: Strength / Opportunities: The prominent asset inside the firms is its innovative
capacities as it utilizes robotics innovation within the production. Hence, this could help
the firm in stopping openings later on related with headways on the mechanical front.
Besides, the firm has suitable labour force, which would help in setting up the way of life
of embracing new innovations at the same time. Strength / Threats: One noticeable danger present as for the company is identified with
Political weakness inside the UK. However, in spite of this factor its image keep the
Companies dependable clients flawless regardless of changes in a few approaches in the
nation and would assist the firm in guaranteeing consistence with its providers inside he
EU countries too (Fernandes and et. al., 2017). Weaknesses / Opportunities: There are sure shortcomings related with the organization,
for example, expensive contributions. This could in all likelihood be changed over into
strength in future, as there is a clear measure of swelling inside the nation. This would
require the organization to sell its contributions at a lower cost and consequently upgrade
the extent of more income age.
 Weaknesses / Threats: As per threats, there has been a financial ruin inside the nation,
which requires the organizations to improve their activities in manners which they could
procure more income. Nonetheless, the firm has a high tendency towards its disconnected
activities, which requires the organization to move onto online internet business channels
as well, to guarantee viability and higher productivity later on. Moreover, the guidelines
inside the UK are definitely changing, requiring the organizations to be adaptable in
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setting of arrangement of their items. Fait Chrysler offers its items at an extremely
exorbitant cost, because of its image picture, which could be undermining for the
organization because of such changes in modern evaluating guidelines. Subsequently, the
firm should receive adaptable estimating for its contributions to upgrade the extent of
progress in this regard and to adapt well to the adjustments in guidelines.
VRIO Analysis
The VRIO model helps organisations and researchers to effectively identifying the
resources and capabilities associated with the company and perform an essential task of linking
the resources towards assisting the company in context of gaining effective competitive
advantage and performing in the best manner possible. Therefore, VRIO model is applied below
in regards to Fait Chrysler (Gomez-Trujillo, Velez-Ocampo and Gonzalez-Perez, 2020).
CAPABILITIES VALUABLE
(V) RARE (R) INIMITABLE
(I)
ORGANISED
(O)
COMPETITIVE
ADVANTAGES
Brand Image Brand Image - - - Partially
Competitive
Diversity in
Product
Range
Diversity in
Product Range
Diversity in
Product Range - -
Temporary
Competitive
Advantage
Automation
Technology
Automation
Technology
Automation
Technology
Automation
Technology -
Temporary
Competitive
Advantage
Effective
Workforce
Effective
Workforce
Effective
Workforce
Effective
Workforce
Effective
Workforce
Sustainable
Competitive
Advantage
Valuable: Brand Image is valuable as it requires huge amount of time patients and resources for an
organisation like Fait Chrysler to develop such an appropriate image within the market.
This is an Intangible Resource of the brand and it bring competitiveness for the brand by
valued customer base and market standing.
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 Diversity in Product Range is a key factor which led Fait Chrysler towards success as it
is one of the basic element which help Organisation in enhancing its customer base with
diverse range of products and services. Thus, is a valuable resource for the organisation
which is another Intangible resource for the organisation as the company serves and
attracts larger market through with better competency. Automation Technology is a valuable source too as it helps it in having access to
appropriate technologies and enable the organisation to conduct operations in effective
manner (Baumgartner and Rauter, 2017). These technologies are tangible sources of
entity and enable it to work rapidly and productively developing a unique competitive
position.
 Effective Workforce is a valuable source which is reflected by it the strong day-to-day
operations running in increasing performances of Fait Chrysler in the market. This is a
tangible resource of the brand and make their influence over the competitiveness of the
organisation by developing the best and valuable human resource.
Rare: Diversity in Product Range is a rare resource as it is complex process for Fait Chrysler to
involve vast range of products and services in operations. This resource is rare as the
company is unique and its working practices are different too which offers a rare working
actions and competitiveness. Automation Technology is rare for Fait Chrysler as not much organisation have involved
it in their operations or have access to it.
 Effective Workforce Fait Chrysler holding exceptional skills and talents which is
impossible for others to copy or imitate brings rarity in the picture.
Inimitable: Automation Technology which is used by Fait Chrysler unique and inimitable as the
organisation make sure to patent its technological resources making it impossible for
others to copy.
 Effective Workforce as imitation of employees is quite a impossible task because a
separate mindsets, experiences and backgrounds of individuals (Whittle and Myrick,
2016).
Organised:
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 Effective Workforce of sincerity is organised by providing staff members of regular
training and development sessions to showcase them the respective manner in which they
need to perform and operate according to the company’s requirement.
SAF CRITERIA
Suitability
Every methodology of the company is needed to be viably assessed against its suitability,
which incorporates degree to which it could help the firm in picking up upper hand (Ganzarain
and Errasti, 2016). In this manner, consolidation of Fait Chrysler with Peugeot is one such
system which would be assessed close by Strength/Opportunity quadrant from VRIO
examination above. Presently, digitalisation and technologies are overpowering the auto-mobile
industry, which requires the firms to embrace a few new advances and digitalisation sources all
through their reality. Hence, the merger between these firms would give improved advantages in
setting of sharing their image picture, specialized and monetary assets, alongside aptitudes and
gifts of workers. This angle and sharing of assets makes it very viable for the organizations to get
to the headways in innovation and gain more extensive serious edge over the market and
improve its efficiency and benefit. Subsequently, this methodology is very reasonable for the
organizations,.
Acceptability
It is fundamental that agreeableness inside the firms is investigated, which would permit
in dissecting that whether the necessary procedure is acknowledged by the partners or not. The
following is the Power/Interest Matrix which would help in evaluating the adequacy of the
merger (Sharabati, 2018).
LEVEL OF INTEREST
LEVEL OF
POWER
HIGH LOW
HIGH Shareholders, Workforce, Government
LOW Consumers Suppliers
 Workforce: A noticeable partner for Fait Chrysler is its representatives or labour force.
They are the structure squares of an organization and purpose behind its supportability.
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Consolidation of Fait Chrysler with Peugeot would affect the labour force in a somewhat
negative manner as such a stage would be changing the hierarchical structure.
Subsequently, the agreeableness of the system among these partners may be trying for the
organization and consequently, requires the firm in conveying and convincing workers by
giving them data identified with future advantages to them by the merger (Litfin and et.
al., 2017). Consumers: These are the people for which the firms exists. There are a few clients with
both Peugeot and Fait Chrysler which require more viable help and items. Subsequently,
both the organizations consolidating would have better and successful acknowledgement
inside client cluster as they would appreciate advantages excellent help and items in
moderate value range.
 Shareholders: These are the people who put resources into the organization and
anticipate better yields. Consolidation of these firms s would permit the investors to gain
more returns because of pay from their joint clients alongside obtaining of expected
purchasers. Consequently, the adequacy range is high among these partners.
Feasibility
The last perspective related with the attainability of the procedure. This would be
performed inside three angles, monetary, human and mechanical asset (Kurpjuweit and Wagner,
2020). For blending, the firm would require extra cash, for which it could move toward banks for
advance or crowd funding choices, which would be possible in gaining higher assets. Further,
newcomers and extra staff are needed by the firm to merge with Peugeot, which should be
possible by embracing time period and determination techniques, for example, aptitude tests and
individual meetings. Thirdly, alongside computerization, the firm could without much of a
stretch receive Artificial Intelligence also, which would need to deal with the tasks after the
consolidation in a serious way (Kanbach and Stubner, 2016).
CONCLUSION
From mission conducted in above section and the report it can be concluded that applied
corporate strategy is very much effective and necessary process for a company to understand.
India assignment external analysis is conducted which allows in answering understanding in
relation to the factors and components that are affecting the organisation from the outside.
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Moving along, internal analysis of the organisation have also conducted which enables in
identifying to core values, resources and capabilities of entity that offered it its competitive edge
or position within the market. Lastly, Indian different strategies are required to be adopted by the
company for enhancing their scope to be acceptable, sustainable and feasible environment for
getting better results and outcomes.
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