Fiat Chrysler Automobiles: Issues in Managing Across Borders

This report provides a comprehensive analysis of the merger and subsequent takeover of Chrysler by Fiat, examining the complexities of their strategic alliance and the challenges faced in managing across borders. It delves into the intricacies of the merger, highlighting issues related to product styles, marketing strategies, resource utilization, and employee retention. The report explores the anticipatory areas for growth within Fiat Chrysler Automobiles (FCA) and offers recommendations for improving the company's performance in international markets. It covers the evolution of FCA, its global operations, and its strategies for attracting and retaining customers in a competitive environment. The analysis includes financial aspects, supply chain management, and the impact of the merger on the companies' overall business identities and the future growth prospects.

Running head: MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
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1MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
EXECUTIVE SUMMARY
The following paper discussed the issues that were highlighted in the merger followed by the
complete takeover of the American automobile manufacturer, Chrysler by the Italian automobile
company Fiat. The paper opened with a discussion on the various intricacies and issues that are
observed in the strategic alliances between the companies. The paper further proceeded to
discuss the issues in the merger activities as had been undertaken by Fiat and Chrysler. This
section was followed by the anticipatory areas for growth within the newly formed Fiat Chrysler
Automobiles. The paper finally reached the conclusion with several recommended measures that
have been suggested in order to help in the development of the overall performance of Fiat
Chrysler Automobiles in the international markets.

2MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
Table of Contents
Introduction..........................................................................................................................3
Intricacies in strategic alliances.......................................................................................4
Intricacies in mergers.......................................................................................................6
Anticipation regarding growth.........................................................................................8
Recommendations..............................................................................................................10
Conclusion.........................................................................................................................11
References..........................................................................................................................13

3MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
Introduction
Fiat Chrysler Automobiles has been known to have come into existence in the year 2014
after the Italian automobile company, Fiat had finally achieved the holding of the 100% of the
shares of the American automobile company Chrysler (Fcagroup.com 2019). The companies had
been following the merger situations since the year 2009. Fiat Chrysler Automobile had been
born due to the merger of the Italian and American automobile companies thereby leading to the
formation of a multinational automobile company as well. The company is known to be holding
the eighth position in the list of the largest automobile manufacturers that are present within the
organization (Fcagroup.com 2019). The company holds its headquarters at Netherlands however
in order to deal with the taxes levied on the organization, the company has also been operating
from the city of London. The company majorly operates in four large global markets and is
known to have earned a revenue of 110.41 billion euros in the fiscal year of 2018 (Fcagroup.com
2019). The company employs nearly 198545 employees all over the world (Fcagroup.com 2019).
The following paper attempts a discussion on the issues that were highlighted in the
merger followed by the complete takeover of the American automobile manufacturer, Chrysler
by the Italian automobile company Fiat. The paper opens with a discussion on the various
intricacies and issues that are observed in the strategic alliances between the companies. The
paper further proceeds to discuss the issues in the merger activities as had been undertaken by
Fiat and Chrysler followed by the anticipatory areas for growth within the newly formed Fiat
Chrysler Automobiles. The paper finally reaches the conclusion with several recommended
measures that have been suggested in order to help in the development of the overall
performance of Fiat Chrysler Automobiles in the international markets.

4MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
Intricacies in strategic alliances
The strategic alliance within the companies of Fiat and Chrysler had faced a huge number
of issues in the overall development of the companies due to the merger. The major issues that
were highlighted within the case referred to those that deal in the issues of the quality and the
quantity of the products that are provided by the organization towards the clients of the
organization (Caputo 2019). The majority of the issues that were highlighted in this strategic
merger refer to the fact that the companies that had merged provided the clientele with different
styles of products. This in turn resulted in the clashes regarding the focus on the marketing
strategy of the products as well. The company of Fiat had completely taken over the automobile
company of Chrysler in the year 2014 (Spekman and Fritz 2017). The company of the Fiat
Chrysler Automobile had been born due to the merger of the Italian and American automobile
companies thereby leading to the formation of a multinational automobile company as well. The
complete takeover of the automobile company of Chrysler had helped the Italian automobile
company of Fiat to deal with the issues that are highlighted in dealing with the clientele of
Chrysler as well as cater to the demands of the clientele of Fiat. The other issues that have been
highlighted in the proper maintenance of the organizational development highlights the fact that
there had been a cross-border alliance among the companies. This had further led to the issues
that are highlighted in terms of the factors that are relevant in the overall development of the
concerned organizations as well (Cillo and Pradella 2019). The Italian automobile company in
discussion, Fiat had faced the issues regarding the implementation and the retention of the
various strategies that were implemented by Chrysler in order to deal with the issues that are
highlighted within the American markets as well as helped the company to thrive in the given

5MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
markets. The takeover of the company of Chrysler further helped Fiat to acquire a major part of
American automobile industry as well.
The takeover of the companies further faced issues in the matters that are related to the
utilization of the resources within both the companies. The utilization of the resources tends to
pose issues in cases of the mergers of the companies across the borders. The resource utilization
among the companies tend to deal in the proper interaction among the supply chain within the
given markets. This is known to have been affecting the organizational performance within the
markets in terms of the financial factors as well as the resources that are used by the company as
well. The implementation of the takeover within the companies has helped Fiat Chrysler
Automobiles in the acquisition of the markets wherein the American company, Chrysler had
been operational (Bertoldi et al. 2015). The company has also faced issues in terms of the overall
transactions that are faced by the organization while dealing with the stakeholders of the
organization as well. The merger that had taken place around the middle of 2009 had helped both
the companies in various ways. The merger with the Italian automobile company of Fiat had
helped the American automobile company Chrysler to gain a better position within the American
automobile industry in terms of the financial factors as have been faced by the company. The
company had further faced issues in the management of the various manufacturing footprints that
were adopted by both the companies that were presented within the given markets wherein the
company had been operational (Gale 2017). The companies had also been observed to develop a
proper global supply chain in the times of their merger. This in turn has helped in the overall
development of both the companies in terms of their overall performances within the given
international markets wherein the companies had been functional (Maran and Parker 2019). The
major issues that were faced by the company in terms of the resource usages had helped in the

6MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
overall development of the issues that are highlighted in the financial performance of the
companies in the given markets as well. The takeover of Chrysler by Fiat in the year 2014 had
led to the creation of a new business identity as well.
Intricacies in mergers
The company in discussion had faced issues in terms of the retention of the employees of
the organization as well as the inclusion of the other members within the company as well. The
company in discussion, Fiat Chrysler Automobiles has been known to have come into existence
in the year 2014 after the Italian automobile company, Fiat had finally achieved the holding of
the 100% of the shares of the American automobile company Chrysler. The companies had been
following the merger situations since the year 2009 (Pernazza 2017). The major issues within the
merger conditions as have been observed among the companies referred to the various factors
that were highlighted among the employees of the organizations. The companies were observed
to have been facing issues in the management of the employees of the organization. This is due
to the fact that the merger between the two companies dealt with the issues that are related to the
employee retention and the cost reduction within the international markets as well. This is known
to have been affecting the organizational performance within the markets in terms of the
financial factors as well as the resources that are used by the company as well (Caputo 2019).
The implementation of the takeover within the companies has helped Fiat Chrysler Automobiles
in the acquisition of the markets wherein the American company, Chrysler had been operational.
The company has also faced issues in terms of the overall transactions that are faced by the
organization while dealing with the stakeholders of the organization as well. The merger that had
taken place around the middle of 2009 had helped both the companies in various ways (Deal
2015). The merger with the Italian automobile company of Fiat had helped the American

7MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
automobile company Chrysler to gain a better position within the American automobile industry
in terms of the financial factors as have been faced by the company. The proper merger of the
companies led to the conditions wherein the unproductive employees within the concern were
eliminated from the workforce of the organizations (Kumar 2019). This in turn led to the overall
reduction of the costs that were incurred by the companies due to the employment of the
unproductive employees of the organization.
The merger of the companies had also helped the company in the overall discussion on
the achievement of the economies of scales as are maintained within the company in discussion,
Fiat Chrysler Automobiles, with the help of the various product strategies that are maintained
within the organization. The company of Fiat had completely taken over the automobile
company of Chrysler in the year 2014 (Williams 2018). The company of the Fiat Chrysler
Automobile had been born due to the merger of the Italian and American automobile companies
thereby leading to the formation of a multinational automobile company as well. The complete
takeover of the automobile company of Chrysler had helped the Italian automobile company of
Fiat to deal with the issues that are highlighted in dealing with the clientele of Chrysler as well as
cater to the demands of the clientele of Fiat. The company is known to have been marketing
various products that are helpful in meeting the demands of the wide range of the target clients
who have been associated with the company as well (Hurta et al. 2017). The company is known
to have targeted the increase in the sales of the various products with the help of the
implementation of the concepts of the transcendent customer experiences as demonstrated by the
concerned clients of the organization. The company had gained a proper amount of the sales of
the products all over the various international markets with the help of highlighting the feelings
on the part of the clientele and the feelings that were attached to the cars that were manufactured

8MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
by the company. The company is known to have divided the manufacture of the cars that are
presented to the clients on the basis of the size of the cars (Henson 2016). The cars that are
smaller in size were manufactured by the Italian automobile company, Fiat. On the other hand,
the cars that are larger in size are known to be manufactured by the American automobile
company, Chrysler (Russi 2016). This in turn helps in the attraction and the retention of the
clients of both the companies as well.
Anticipation regarding growth
The major areas within the company that might lead to the development of the issues due
to the takeover of the company in the international markets refer to the issues within the cultural
factors that are evident within the given workforce within the area. The company in discussion,
Fiat Chrysler Automobiles has been known to have come into existence in the year 2014 after the
Italian automobile company, Fiat had finally achieved the holding of the 100% of the shares of
the American automobile company Chrysler (Kurtulan 2017). The companies had been
following the merger situations since the year 2009. The company of the Fiat Chrysler
Automobile had been born due to the merger of the Italian and American automobile companies
thereby leading to the formation of a multinational automobile company as well. The complete
takeover of the automobile company of Chrysler had helped the Italian automobile company of
Fiat to deal with the issues that are highlighted in dealing with the clientele of Chrysler as well as
cater to the demands of the clientele of Fiat (Warter and Warter 2017). The merger of the
companies had further helped in the development of the cultural factors within the organization
as well as helped in the development of the diversity within the organization as well. The
complete takeover of the automobile company of Chrysler had helped the Italian automobile
company of Fiat to deal with the issues that are highlighted in dealing with the employees of

9MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
Chrysler as well as the employees of Fiat (Ward 2016). The other issues that have been
highlighted in the proper maintenance of the organizational development highlights the fact that
there had been a cross-border alliance among the companies. This had further led to the issues
that are highlighted in terms of the factors that are relevant in the overall development of the
concerned organizations as well (Goolsbee and Krueger 2015). This in turn has helped in the
overall development of the ways in which the company would be able to address the issues that
are faced within the workplace as well.
The company might further face a proper growth due to the wide range of the products
that they have been providing to the concerned clientele of the organization. The company is
known to have been marketing various products that are helpful in meeting the demands of the
wide range of the target clients who have been associated with the company as well. The
company is known to have targeted the increase in the sales of the various products with the help
of the implementation of the concepts of the transcendent customer experiences as demonstrated
by the concerned clients of the organization (Canis, Jones and Villarreal 2017). The company
had gained a proper amount of the sales of the products all over the various international markets
with the help of highlighting the feelings on the part of the clientele and the feelings that were
attached to the cars that were manufactured by the company. The company is known to have
divided the manufacture of the cars that are presented to the clients on the basis of the size of the
cars. The cars that are smaller in size were manufactured by the Italian automobile company,
Fiat. On the other hand, the cars that are larger in size are known to be manufactured by the
American automobile company, Chrysler (Luescher and Shetty 2018). This in turn helps in the
attraction and the retention of the clients of both the companies as well. The company of the Fiat
Chrysler Automobile had been born due to the merger of the Italian and American automobile

10MANAGING ACROSS BORDERS – FIAT CHRYSLER AUTOMOBILES N.V.
companies thereby leading to the formation of a multinational automobile company as well. The
complete takeover of the automobile company of Chrysler had helped the Italian automobile
company of Fiat to deal with the issues that are highlighted in dealing with the clientele of
Chrysler as well as cater to the demands of the clientele of Fiat (Hogan-Berisha and Merritt
2018). The implementation of the transcendent customer experiences within the company helped
in the overall improvement of the issues that are faced by the company in terms of the revenue
that is earned within the company (Caputo 2015). Since its inception in the year 2014, the
company has majorly focused on the various innovative measures that would help in the overall
development of the organization as well as develop the client base of the organization as well.
Recommendations
The given company in discussion, Fiat Chrysler Automobiles, might be advised to look
into the following measures in order to put forth an improvement in the overall performance of
the organization in the various markets wherein the company has been functional.
 Training and development of employees
The company is advised to implement the proper training among the employees within
the organization. This in turn would help in the maintenance of the diversity that has been
highlighted within the given organization. This in turn might help in the reduction in the
attrition rates within the given organization. The proper training and the development of
the staff also helps in the overall development of the organizational performance in the
given markets as well. Proper strategic implementations
The Italian automobile company in discussion, Fiat had faced the issues regarding the
implementation and the retention of the various strategies that were implemented by

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Chrysler in order to deal with the issues that are highlighted within the American markets
as well as helped the company to thrive in the given markets. The proper implementation
of the strategies would help in the improvement of the competitive advantage of the
company as well. Development of products
The company is known to have targeted the increase in the sales of the various products
with the help of the implementation of the concepts of the transcendent customer
experiences as demonstrated by the concerned clients of the organization. The company
had gained a proper amount of the sales of the products all over the various international
markets with the help of highlighting the feelings on the part of the clientele and the
feelings that were attached to the cars that were manufactured by the company.
Conclusion
In conclusion it might be stated that the company in discussion, Fiat Chrysler
Automobiles had faced a huge amount of issues during the formative years of the company. Fiat
Chrysler Automobile had been born due to the merger of the Italian and American automobile
companies thereby leading to the formation of a multinational automobile company as well. The
complete takeover of the automobile company of Chrysler had helped the Italian automobile
company of Fiat to deal with the issues that are highlighted in dealing with the clientele of
Chrysler as well as cater to the demands of the clientele of Fiat. The Italian automobile company
in discussion, Fiat had faced the issues regarding the implementation and the retention of the
various strategies that were implemented by Chrysler in order to deal with the issues that are
highlighted within the American markets as well as helped the company to thrive in the given
markets. The companies, Fiat and Chrysler, had also been observed to develop a proper global