Analyzing the Sales Decline of Fiat Chrysler Automobiles: A Case Study

This document presents a case study proposal focused on investigating the factors behind the sales decline of Fiat Chrysler Automobiles (FCA). The introduction highlights the importance of sales for business growth and competitive advantage, setting the stage for an analysis of FCA's challenges in the automotive market. The research objectives aim to identify factors affecting sales, assess strategic management issues, analyze FCA's market position, and recommend growth strategies. The research questions explore these factors, management issues, market position, and recommendations for improvement. The overview of the organization provides background on FCA's structure, brands, and global operations, highlighting its position as a major player in the automotive industry. The problem statement identifies the issues impacting FCA's sales, including customer buying behavior, technological advancements, and competition. The case brief summarizes the context of FCA's sales decline, emphasizing its historical challenges and current market position. The literature review examines factors influencing sales, such as marketing strategies, promotions, and product features, as well as issues faced by FCA, including competition and technological advancements. The proposal outlines a plan for analysis, data sources, a project plan, and potential unforeseen problems. The study aims to provide a comprehensive analysis of the issues contributing to FCA's sales decline and recommend strategies for future growth.

CASE STUDY
PROPOSAL

Table of Contents
TITLE .............................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
Research objectives................................................................................................................1
Research Question..................................................................................................................1
OVER VIEW OF ORGANISATION..............................................................................................2
PROBLEM STATEMENT .............................................................................................................3
CASE BRIEF ..................................................................................................................................3
LITERATURE REVIEW ...............................................................................................................4
PROPSED PLAN FOR ANALYSIS ..............................................................................................7
SOURCES OF DATA ...................................................................................................................9
PROJECT PLAN AND TIME SCALE ........................................................................................10
UNFORESEEN PROBLEMS ......................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

TITLE
To study various factors due to which sales level is get decline of Fiat Chrysler Auto-
mobiles.
INTRODUCTION
Every business organisation is focused on providing high quality services to their
customers in order top attaining growth and success. In today's market scenario there is large
number of competitors available at market place. It is required for each company to adopt most
suitable strategy through which profit and growth for company get increases. So many factors
are there which has direct impact on decreasing the sales of company (Clark, 2011). Fiat
Chrysler is the most famous Auto-mobile industry who deals in luxury cars ans SUV s. The
major purpose of business organisation is to increasing sales of company in order to attaining
competitive advantage at market place. Company adopt various marketing strategies just for
increasing their sales and it has direct impact of companies marketing position. This also helps in
developing the brand image of company, so that large number of customers and clients are easily
attract towards the offered goods and services. Company needs to focus on their sales because it
is required for maintaining the position of firm at market place. Firm faces so many issues
through which there sales get decline and their performance got affected.
Research Aim:
To evaluate the various factors which are responsible for decline the sales of
organisation. A case study on Fiat Chrysler Auto-mobile.
Research objectives
 To identify the various factors that affect the sales of company.
 To access the major issues that are faced by Fiat Chrysler auto-mobile in their strategic
management.
 To analyse the actual market position of Fiat Chrysler Auto-mobile.
 To recommended most appropriate strategies that helps in future growth of company.
Research Question
 What are the major factors that affect the sales of firm?
 Which kind of issues are faced by the Fiat Chrysler Auto-mobile in their strategic
management?
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 How to analyse the market position of Fiat Chrysler Auto-mobile?
 What are the major recommendation for improving the growth and success of firm?
OVER VIEW OF ORGANISATION
Fiat Chrysler Auto-mobile is a multinational automotive group which is handled by
Italian multinational corporation. Its incorporated in Netherlands and it is the seventh largest auto
maker company which provide luxury goods and services across the globe. Its headquarter is in
England, UK and London. Fiat Chrysler Auto-mobile which is placed in US is one of the most
popular American auto-mobile manufacturers (Ciravegna, 2012). FCA has its main office in
Auburn Hills, Michigan and it deals in under its flagship brand and sell vehicles across the
world. For the purpose of tax this group was implemented in end of 2014 through merging Fiat
S.p.A. As a new holding industry. Exor is a famous Italian investment group which is controlled
by Agnelli family that handle 44.31% by a procedure of loyalty voting and owns approximate
29.19 percent of Fiat Chrysler Auto-mobile (Bertoldi and et. al., 2015). This company is operates
by the two major subsidiaries which are describes as FCA US and FCA Italy. The organisational
portfolio has includes various automotive brands like Abarth, Chrysler, Doge, Alfa Romeo, Fiat
professional, Fiat, Lancia, Maserati, Ram trucks, Jeep and SRT. FCA currently operates in
different regions such as LATAM, NAFTA, APAC and EMEA. As a well known brand large
number of customers are easily attract towards the offered goods and services of firm. Company
faces so many issues and conflicts for attaining competitive advantage at market place. The
essential division of company includes Mopar, the division of auto-mobile which is based on
performance and division in automotive parts and accessories. The founder of company is Walter
Chrysler he founded Chrysler corporation in the year of 1925 from the object of the Maxwell
Motor Company (Pisano, Andrews and Di Fiore, 2011). The company is mainly focused on
providing high quality services to their buyers who are willing to taking the advantage of offered
services of company. Walter expanded the firm in the year of 1928 through merging of Dodge
Brothers and Fargo Trucks or the implementation of Desoto and Plymouth brands. He used the
strategy of hierarchy and brand diversification of General motors (Jullien and Pardi, 2013).
Company faces various issues that are related with market share, profitability and productivity.
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PROBLEM STATEMENT
This is the most essential section of research, in which an effective detailed discussion
has to be done upon the issues and problems that are arises at the time of conducting research
activities. The major aims of every business organisation is to become more successful and
famous at the market place, so that customers can easily attract towards the brand and this may
have direct impact on growth and success of company (Caputo, 2012). The profit of firm can be
measured by evaluating the sales of company, if in any situation sales got increases than it will
show that company is on profitability condition and if sales goes down than it shows the loss
situation for firm. Company faces various issues which may impacted on the overall sales of
firm.
The buying behaviour of customers are impacted on sales of growth of company. If
customers buying behaviour is good towards company and its products than the organisation get
more profit and revenue. Organisation is mainly concern on establishing an effective relationship
with customers so that they can easily approach the particular company for satisfying their needs
and wants. If customers are dissatisfied with the offered services of firm than in this situation
company will face loss (Tomlin, 2014). In this present scenario Fiat-Chrysler faces the issue of
decreasing sales.
Another problem that is related with technology and innovation. Company is focused on
adopting various new and modern practises in order to developing their performance, for
attracting large number of customers towards the company. There are lots of competitors
available at market place and they are also focused on adopting most effective strategy for
improving their performance. Fiat use various new tools and techniques in respect of developing
their product quality, but as per their high range of products customers are switching with other
brands.
CASE BRIEF
The present case is based on the issues and conflicts that are faced by the Fiat Chrysler
Auto-mobile in decreasing their sales.
Fiat Chrysler is a well known brand who deals in automotive goods and services, the major
purpose of this company is to provide high quality luxury products to their customers as [per
their requirements (Maxcy, 2013). They focused on adopting new marketing tools and
techniques in order to satisfying the needs and wants of customers. It is the worlds most popular
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car making company and provide high range of luxury cars and SUVs with more advance
features. Fiat Chrysler Auto-mobile was founded by Walter Chrysler on June 6 1925, at the time
when Maxwell motor company was rearranged in to the Chrysler corporation. In the troubled
operations of company he was hired. In the end of 1923 operation of Chalmers auto-mobile was
near to ended, in starting of 1924 the founder of Fiat Walter Chrysler introduced the well gained
Chrysler auto-mobile. They designed a 6 cylinder auto-mobile in respect of providing advanced
and effective services to their customers. They offered well designed, engineered car in most
affordable prices than customers might expect for the company. The original 1924 Fiat Chrysler
involved an effective high compression engine, a carburettor air filter, oil filter and full pressure
lubrication. After one hundred years of car making in 2004, the company was facing the issue of
bankruptcy which may cause a loss situation for the brand. They hadn't change their design of
panda model in past twenty years, the market share and profitability was being worn with the
help of Japanese and European models. The company faced the losses approximate 12 billion
dollar which is very much high and impacted on marketing position of firm. In order to sell the
cars general motors to business all elements have to be stalled, the general manager has bought
overall 10% of Fiat stock and the buying option is opened for remaining 90 percent in abeyance.
In this situation general manager of company faced the issue of falling sales. Chrysler group of
company spend approximate a billion dollars among the Michigan manufacturing plant for
production and Sterling heights of all new Chrysler in the year of 2015. Therefore, the preset
case is taken into proper action in order to identifying the issues that are faced by the company
for increasing their sales.
LITERATURE REVIEW
The major focused area of every business organisation is to increasing sales and revenue
in order to developing their performance at market place. Literature review is the most important
part of the research which helps in describing the various factors in significant manner with the
helps of various view points of authors.
The factors that affects the sales of company
According to the Clark sales has huge impact of organisational image in their targeted market,
because it attracts to the customers towards the organisation. So it is essential that company has
to make a positive image among their customers which c an help to them to improve their sales.
Marketing is a major factor which impacts on the sales of firm, it is essential for the organisation
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to use appropriate marketing strategies which can help to them to improve their sales. Most of
the companies has got failure in their targeted market due to use of inappropriate strategy
according to their targeted market so it is essential for the company to make a proper analysis of
their market which can help to them to draft a market strategy which can improve their sales
(Lutsey, 2012). Promotions is an another factor which impacts on the companies sales, different
types of promotional platforms are available and it is essential that appropriate platform to use in
promotions which can help to promote products in their target market. Electronic, print and
social media sites are three platforms which can be used in to making promotions of business in
targeted market. Product features is factor which can help to attract customers, most of the
organisation promote their product feature in their targeted market which helps to them to
improve their sales in their targeted market. Needs and demands of targeted market is last key
factors which leads ion sales because many companies failed which are not providing an
appropriate product according to market needs.
The major issues faced by the Fiat Chrysler Auto-mobile
As per the view point of Jason Siu so many issues are there which are faced by the Fiat
Chrysler Auto-mobile, some are described as under:
 Don't want to merge: currently FCA CEO Sergio Marchioness thought to merge with
general motor but General Motors executive don't want to merge.
 Behind the competitors: FCA is running behind to its competitors in all categories
including profit,design, economy,technology and many more.
 Used Outsold model by competitors : All the models provided by FCA is outsold by its
competitors. There is only 3 models of FCA’s is the Jeep Wrangler, grand Cherokee and
Cherokee which is glowing part of the company (Siu, 2015).
 used old methods by FCA: FCA use old platform for their car that is tha main reason
behind its downward scale in sale .In technology the FCA running behind from its
competitions competitors use high technology in vehicles.
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 Manufacturing cost is very expensive: FCA spend large cost while doing
manufacturing because of which the cost of car increased.
 No improvement in autonomous driving: Improvement in something which is good
can attract anyone but FCA is only company which does have any progess in vechicle to
attract more customers.
Marketing position of Fiat Chrysler Auto-mobile.
(Source: Marketing position of Fiat Chrysler Auto mobile )
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Illustration 1: Marketing position

Fiat is the most popular car maker brand who deals in wide range of luxury cars and
SUVs, before discussing about the market position of Fiat Chrysler Auto mobile, it is required to
focused on FCA'S market share through the help of continent region. The sales of company in
various countries are different from each other, some are not profitable condition and some are
on loss condition. In the region of NEFTA the sales of Fiat got increase, in Brazil sales of Fiat
were economical there were no ups and down in sales ratio, China was achieving growth as there
sales were constantly increasing.
Appropriate recommendation for increasing growth of company
It is essential for manufacture companies to produce those types of products which can
accomplish the needs and demands of people. Fiat has to convert their fuel based cars in to
electronic and hybrid concept because most of the car customers demands efficient cars which a
lesser cost per kilometre. This is an effective solution for the company to improve their sales
which can help to them to improve their profits as well. They have to promote hybrid and
electronic cars which can help to accomplish the needs of customers and make more profits by
them.
PROPSED PLAN FOR ANALYSIS
This is the most important part of dissertation, it highly concerned upon providing a way
in order to achieve the outcome and result in most significant manner. This session helps
investigator in developing a path through which result can be attained and researcher may not
distract from their objectives and goals. In general environment condition there is substantial
influences on success and growth of firm the higher authorities must monitor and keep an check
on all their events which can be affected by the external environment (Rymkevich, 2013). For
analysing the external situation PESTEL analysis is the most essential tool that higher authority
can rely on the firms factors in between the general environment and to measure how these
factors impacted firms overall performance.
P stands for Political: This is the essential element of external factor which affects the sales of
company, this segment centres on the different roles of governments in providing shape to
business organisation. Tax policies, tariffs and changes in trade restriction. The stability of
government is very essential fir this section.
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E stand for Economic: This is a condition on which organisational activities are operates. In this
all activities related with economy are included such as gross domestic products, inflation rates,
interest rates, unemployment rates, general growth, level of disposable and decline of economy.
These all factors are critically evaluated in this segment in order to increasing the sales of Fiat
Chrysler Auto-mobile.
S Stands for Social: A while ago ketchup was the most important aspect of each American
pantry. There are so many unknown products are available at market place and in between them
salsa was most unknown good. In this segment size, age, income and various factors are
involved. In this the new trend and demand of customers are mainly affect the sales of company,
so it is required for company to adopt various innovation and new tools for satisfying the needs
of customers.
T stands for Technological: The products should be manufactured according to the advancement
of technologies. This helps in easily fulfilling demands of customers as the products are offered
according to customer choices. This helps in producing cars according to customer choices.
E stands for Environmental: It is related with the physical conditions where firms are operating
their activities in effective ways. There are various factors included under this aspect like
pollution level in economy, natural disaster conditions and changes in weather conditions.
L stands for legal: It is linked with those factors in which courts are having influences on
overall business operations. Example of legal factors include laws related with employment,
rules related with health and safety, discrimination acts and laws related with arbitration.
Growth Strategy Matrix
Growth strategic matrix is a strategic marketing planning tool used to determine the
market growth strategy.
Existing Product New Product
Market Penetration Product Development
Existing
Market
Fiat has increased its sales by
introducing new vehicles back to
back by adding new features in
them.
They have become the only auto
Fiat has planned to introduce their new
inventions in the coming years which are:-
 Jeep:- Introducing new Jeep wrangler
in 2017
 Dodge/SRT:- Its re-entering the market
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mobile company with the gaining
market share in minivan segment.
with new features and superb texture.
 Chrysler:- a much hyped mini van will
be introduced soon in the market.
Market Development Diversification
New Market Fiat after merging with Chrysler
started its sale in Netherlands also.
They have entered new markets
with their existing products and
achieving great results also. They
are the leading minivan seller all
over UK.
Fiat is having a distinctive brand portfolio that
are meeting the needs and expectation of the
costumers all over the world.
They have products like Maserati, Magnet
marelli, Lancia and many more.
They are operating a Fiat finance S.P.A and
FCA north America holding LLC also.
SOURCES OF DATA
In order to attain target huge data has been collect through different data which is
beneficial for researcher to gather relevant information. The effective information of present data
has been collected with the help of qualitative data for the purpose of meet desired results.
Furthermore, different sources of data are as aligned below-
 Data collection- For the purpose of collection of data secondary research method has
been used. In which data must be gather from several books and journals, online articles
and much more. Such research considered as authenticate research.
 Data analysis- In this process, qualitative data analysis has been used which is helpful for
researcher to collect relevant data. Through this they can receive fruitful result.
 Reliability- While opted different research methods investigator receive reliable data
which is considered as same at different times. These are trust worthy in nature.
 Validity- Gathered data must be authenticate which is helpful for researchers. With the
help of this they collect information which is actually relevant their with their topic.
 Ethical issues- In present report, certain ethical issues needs to be focused for the purpose
to conduct research in effective manner. But they have to maintain privacy as well as
confidentiality.
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RESEARCH METHODOLOGHY
This is the most essential part of research which helps in carry out the research activities
at right direction. Qualitative and quantitative methods are use by researcher because these are
helpful in gathering proper and relevant data and information for completion of research
activities in most effective manner. These both methods are helpful in identifying various factors
through which sales of company get decline at the market place.
Quantitative analysis: This method of analysis is very much effective for analysing data and
information through financial tools and techniques. In this method data has to be gathered
through secondary sources such as books, journals and magazines. With the help of primary data
collection method statistical analysis is also done by the researcher. This analysis is done through
selecting appropriate sample techniques and size.
Qualitative data analysis: This kind of data is based on the quality of collected data and
information, in this method data has to be gathered through primary and secondary methods of
data collection. It is the most essential part of research in which data has to be analysed through
descriptive approach.
In this research work researcher used mic data analysis procedure, in order to analysing present
collected data research will prepare graphs, tables and charts a per the requirements of report.
These two methods are very much effective in carry out the research activities in right direction.
Primary and secondary data analysis
The whole research work is based on primary and secondary means of data, primary data
can be considered as the data which are collected for the first time by researcher in order to
provide significant direction to a new research topic. On the other hand secondary data can be
describes as the data which are gathered by the previous researcher for conducting all research
activities in right manner. Secondary data are collected through published journals, books,
newspapers, magazines and old case study that are related with given research topic.
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PROJECT PLAN AND TIME SCALE
UNFORESEEN PROBLEMS
The major issue of company is that their resale value of products are low as compared to
their competitors. In today's market scenario there is large number of competitors are available at
market place, and they all are focused on attaining high range of competitive advantage in order
to providing effective competition to their competitors (Baird, 2012). Cited firm use various
innovative strategies that helps in increasing the sales and goodwill of firm. Fiat Chrysler Auto-
mobile currently concerned on improving their marketing and sales activities in respect of
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developing their marketing performance so that firm can recover their losses and maintain high
level market position with high range of profit and revenue.
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REFERENCES
Books and Journals
Clark, J., 2011. Mondo Agnelli: Fiat, Chrysler, and the power of a dynasty. John Wiley & Sons.
Ciravegna, L. ed., 2012. Sustaining industrial competitiveness after the crisis: Lessons from the
automotive industry. Springer.
Maxcy, G., 2013. The Multinational Motor Industry (RLE International Business). Routledge.
Lutsey, N., 2012. Regulatory and technology lead-time: The case of US automobile greenhouse
gas emission standards. Transport Policy. 21. pp.179-190.
Rymkevich, O., 2013. International Trade Union Solidarity in the Automobile Sector: The Case
of Fiat-Chrysler. European Labour Law Journal. 4(4). pp.272-291.
Baird, D. G., 2012. Lessons from the Automobile Reorganizations. Journal of Legal Analysis.
4(1). pp.271-300.
Bertoldi, B., and et. al., 2015. Fiat-Chrysler deal: looking for a good returns from M & A.
Journal of Business Strategy. 36(4). pp.23-33.
Pisano, G. P., Andrews, P. and Di Fiore, A., 2011. Fiat-Chrysler Alliance: Launching the
Cinquecento in North America.
Jullien, B. and Pardi, T., 2013. Structuring new automotive industries, restructuring old
automotive industries and the new geopolitics of the global automotive sector.
International Journal of Automotive Technology and Management 20. 13(2). pp.96-113.
Caputo, A., 2012. Integrative agreements in multilateral negotiations: the case of Fiat and
Chrysler. International Journal of Business and Social Science. 3(12).
Tomlin, B., 2014. Managing supply-demand risk in global production: Creating cost-effective
flexible networks. Business Horizons. 57(4). pp.509-519.
Online
Siu, J., 2015. Major issues faced by issues. [Online]. Available through: <http://kalyan-
city.blogspot.in/2011/08/importance-of-decision-making-in.html>. [Accessed on 21
September 2017].
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