Case Study: Analyzing Sales Decline and Strategies for Fiat Chrysler

This case study examines the factors contributing to the sales decline of Fiat Chrysler Automobiles. It begins with an introduction outlining the research's rationale, problems, questions, and objectives, followed by a literature review on the automobile industry, including industry size, growth rate, and competitor analysis. The methodology section details the research philosophy, design, and methods used, including secondary market research. The results and discussion chapter presents a strategic analysis, assessing the company's current position, generating alternative solutions, and selecting strategies for success. The findings are presented, along with solutions to the research problems. The study concludes with recommendations for future growth and further research, offering a comprehensive analysis of the challenges faced by Fiat Chrysler Automobiles and potential strategies for improvement. The study also includes an abstract, table of contents, figures, and references.

Case Study

ACKNOWLEDGEMENT
I would like to extend heartily thanks to my teacher _______ who gave me this
opportunity to work upon this interesting topic as a project assignment. Further, a heartfelt
thanks to the principal of the college who always encouraged me to work upon this project and
complete it successfully.
A big thanks to my parents without whose support, the project could not have been
finished. Many thanks to my friends who always supported me guided me so that each and every
important aspect is covered in the project. In the end, I would I like to than my senior ______,
for introducing me to automobile industry in practical manner and helping me in making this
project a successful one.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Title........................................................................................................................................4
1.2 Abstract..................................................................................................................................4
1.3 Rationale of the research .......................................................................................................4
1.4 Research problems from the case..........................................................................................4
1.5 Research Questions................................................................................................................5
1.6 Aim and objectives of the project..........................................................................................5
1.7 Background of the study........................................................................................................6
1.8 Structure of the work.............................................................................................................7
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
2.1 Introduction............................................................................................................................8
2.2 Literature review on automobile industry..............................................................................8
2.3 Industry size.........................................................................................................................10
2.4 Growth rate..........................................................................................................................12
2.5 Major players or competitor’s analysis................................................................................13
2.6 Situation Analysis................................................................................................................14
2.7 Proposed plan for analysis...................................................................................................15
2.8 Literature review..................................................................................................................15
2.9 Conclusion...........................................................................................................................16
CHAPTER 3: METHODOLOGY FOR STUDY..........................................................................17
3.1 Introduction..........................................................................................................................17
3.2 Explanation to research philosophy, design, approach methods.........................................17
3.3 Secondary market research..................................................................................................19
3.4 Reliability.............................................................................................................................19
3.5 Validity................................................................................................................................20
3.6 Ethical issues........................................................................................................................20
3.7 Conclusion...........................................................................................................................21
CHAPTER 4: RESULTS AND DISCUSSIONS..........................................................................21
4.1 Introduction..........................................................................................................................21
4.2 Strategic analysis.................................................................................................................21

4.3 Assessment of current position ...........................................................................................24
4.4 Integrated assessment of analysis by generating ideas and giving alternative solutions.....25
4.5 Selection of strategies for success........................................................................................27
4.6 Findings from data collected ...............................................................................................28
4.7 Solutions to research problems............................................................................................29
4.8 Conclusion...........................................................................................................................30
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................30
5.1 Introduction..........................................................................................................................30
5.2 Conclusion...........................................................................................................................30
5.3 Recommendations................................................................................................................31
5.4 Decision on action plan........................................................................................................32
5.5 Need for further research.....................................................................................................32
REFERENCES..............................................................................................................................34

Table of Figures
Figure 1Output statistics of UK Automobile industry...................................................................11
Figure 2 Presence of various centres of Ford................................................................................12
Figure 3SWOT and PESTLE Framework.....................................................................................22

CHAPTER 1: INTRODUCTION
1.1 Title
“To study various factors due to which sales level get decline of Fiat Chrysler Auto-mobiles.”
1.2 Abstract
Sales is an important aspect of any organization and hence all appropriate steps are taken
by the management of the company to increase up to maximum possibility. The present research
is based upon a case study that has been chosen on Fiat Chrysler Automobiles. It is a company
which deals in automobiles. It has been able to compete with top organization of UK. A
secondary research has been conducted on the company where its success and growth factors
have been analysed. Rigorous literature review has been conducted with the aim to concentrate
on key factors of sales. In the end, it is recommended to the organization that it must improve the
quality of its products and services so as to be counted in top notch brands of UK. Moreover, it
has also been recommended that improvement in market research strategies can help the
company in tapping large number of customers towards it.
1.3 Rationale of the research
While conducting any research, it is important that the researcher understand its relevance.
The study must hold some worth so that specific purpose through it can be served. It is important
to understand its practical and academically aspect by diligently analysing its relevance. The
researcher does not hold adequate amount of knowledge regarding various factors that are
responsible for declination in sales level of Fiat Chrysler Auto mobiles. Further, increasing
fluctuations in the automobile industry have attracted the researcher to further study this topic in
detailed manner. The project will help in understanding various aspects whose direct dependence
can be assessed on company’s sales. The study will be helpful in improving the current
knowledge aspect that is being possessed by the researcher related to the stated subject matter.
1.4 Research problems from the case
The case that has been chosen for the research is related to the study of Fiat Chrysler
Automobiles. It is one of the most important section of the research where the problem related to
the organization will be identified.
The main objective of every company is to become successful and gain the highest amount
of market share. Moreover, attracting large number of customer towards it is the another aim of
the company as it can have strong and direct impact on success and growth of the organization.

Moreover, it also helps in dealing with the competitors present in the market as well. However,
there are various issues that are faced by the company. These issues will be discussed in the
research in detail.
The scenario of current drop down in sales of Fiat Crysler Automobiles have been
discussed in the case scenario being chosen to serve the purpose of the study. A decrease in sales
can have strong impact on the profitability of the company (Shao, Taisch and Ortega-Mier,
2016). Moreover, it is considered to be a loss situation as well. The main concern of every
organization is to maintain effective relationship with its customers. It is an easy approach to
satisfy the customer to its best. Hence, it is important for Fait Crysler Automobile to understand
the reason behind decreasing sales.
Another issue that has been addressed in the article is related to technological aspects and
innovation. Company is required to constantly upgrade its technological aspects as people
always prefer to get modern technology for their automobiles. Moreover, it certainly helps the
company to generate higher revenue and ultimately higher profits. The availability of
competitors is quite higher in case of automobiles in the market. Different tools and techniques
are used by Fiat so that the best product quality can be delivered to the customers. However, the
issue is due to its high-end products, customers are switching to other brand over Fiat Crysler
Automobiles.
1.5 Research Questions
Research questions for the present research are:
 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?
 How to analyse the market position of Fiat Chrysler Auto-mobile?
 What are the major recommendation for improving the growth and success of firm?
1.6 Aim and objectives of the project
The aim of present research is “To evaluate various factors which are responsible for
decline in the sales of organisation. A case study on Fiat Chrysler Auto-mobile.”
Based on above stated aim, following objectives for the research can be framed:
 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.
1.7 Background of the study
Fiat Chrysler Automobiles is an Italian American company and is considered as eighth
largest auto maker in the world. The group was able to be established after merger of Fiat and
Chrysler in the late 2014 (Caputo, 2012). It has been headquartered in London. The holding
company is listed with New York Stock exchange and Borsa Italiana in Milan. Exor S.p.A. is an
Italian investment group that is controlled by Angelli family, is owning 29.19% of Fiat Chrysler
and is controlling 44.31% with the help of loyalty voting mechanism (Hashmi and Biesebroeck,
2016). It is involved in designing, engineering, manufacturing and selling vehicles and other
parts related to it. It has been able to provide 162 manufacturing sites worldwide with 87
research and development centres (Balcet, Commisso and Calabrese, 2013). It has dealers and
distributers in more than 150 countries worldwide. Other services are also provided by its
subsidiaries and financial partners. These services include, leasing, rental services, dealer
financing, retail financing etc.
The portfolio of the company includes different automotive brands such as, Abarth, Dodge,
Fiat, Jeep, Fiat professional, Lancia, Ferrari and Alfa Romeo etc. Ferrari came to this group in
2016. The company tends to own different industrial subsidiaries as well, which includes,
Magneti Marelli, Teksid, Mopar and Comau (Clark, 2011). The manufacturing design and
facilities of engineering are set up in United States, Italy, Turin, Michigan, Auburn hills and
other location situated at different parts of the world, including, Mexico, Brazil, Canada,
Argentina, India, China and Poland.
5 year business plan was announced by Fiat Chrysler on May 2014 which has helped to
define the functioning of the company. Moreover, it also helped in giving an insight regarding
mission and vision of the company as well (Rigotti and Palmieri, 2010). As per the expectations
of the company, there will an increase in its sales up to 7 million units. It will help in increasing
the revenue up to 132 billion with the net income of 5 billion to the organization. The industrial
debt of Fiat will peak at 11 billion in 2015. However, it will then reduce to 0.5 to 1 billion by the

end of 2018 (Booming British car manufacturing helps drive economy and production could
break records by 2017, 2017).
The company is currently focussing on the global growth of Jeep due to increase in its
visibility worldwide. Moreover, it is also focussing on the sales of SUV market in some of the
developing countries as well. Fiat has been repositioned as a main stream brand of North
America which is competing with top notch automobile brands such as Volkswagen, Toyota,
Ford and Chevrolet.
Currently, the company is mainly focussing on providing high quality products and
services to its customers with the aim to gain advantage over the other automobile companies in
the market (Pisano, Andrews and Di Fiore, 2011). The objective is to constantly innovate its
functions by changing with the dynamic circumstances. It is involved in giving intense focus on
creating better future for the company with the help of their communities and stakeholders sitting
inside or outside the company (Booming British car manufacturing helps drive economy and
production could break records by 2017, 2017).
However, it has been assessed that there is constant decline in the sales of the company
since last year. There can be various factors that can be related to decreasing sales. In the present
study of Fiat Chrysler Automobiles, the main motive is to evaluate various factors which are
responsible for decline in the sales of the company. The research will help in understanding
major strategic issues that are currently faced by Fiat Chrysler automobiles in its strategic
management (Ventoruzzo, 2015). Further, the present research will also be responsible to
understand different aspects that can affect the sales revenue of the company. The scholar will
also be analysing current market position of Fiat Chrysler Automobiles. In the end, the research
will be responsible to give certain recommendations which can further help in future growth of
the organization (Rymkevich, 2013).
1.8 Structure of the work
It is important that a research work flows in a manner that can help a reader to understand its
various aspects in detailed manner. To serve this purpose, it is important to decide initially the
chapter wise distribution of the research. Hence, in the present research, the chapter will flow in
the following manner:
Chapter 1: Introduction: It is the first and foremost chapter of the research which helps in
giving overview to the topic. Moreover, it also helps in giving overall background of problem

statement based on which whole research will be prepared, the current introduction chapter deals
in assessing aim and objective of the research and stating quick brief to Fiat Chrysler
Automobiles.
Chapter 2: Literature review: It is another important chapter of the research. It helps in
collecting secondary data regarding the subject matter chosen by the research scholar. In the
present case scenario, the main aim of the research is to evaluate the various factors which are
responsible for decline the sales of Fiat Chrysler Automobiles. Hence, secondary data will be
collected related to the subject matter that is aligned to the framed objectives for the research.
Chapter 3: Research Methodology: It is another important aspect of the research where
methodologies regarding the research are decided by the scholar. The researcher states research
approach, philosophy and design used in the research. Moreover, method of data collection in
detail will also be discussed in the research.
Chapter 4: Results and discussion: It is results and discussed part of the research where results
are stated which have been derived by the researcher after extensive research. Moreover, it will
also be discussed that how the results can help the company in better delivery of services and
achieve its objectives to the core.
Chapter 5: Conclusion and recommendation: This is the last and most important chapter of
the research. Where all the research done is bound together so as to reach to a perfect and
meaningful conclusion. The section will also discuss recommendations that can be given to Fiat
Chrysler Automobiles.
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In the present case study, literature review is the second chapter where the researcher will
set the theoretical framework. In this chapter the researcher will analyse the reviews of various
authors and scholars and provide a robust framework to the study. By doing that, the researcher
will able to accomplish the aim and objectives of the case study.
2.2 Literature review on automobile industry
According to Rawlinson and Wells (2016), automobile industry is considered to be ever
evolving industry which is able to experience rapid growth in the revenue and unforeseen decline
in the sales as well. The industry principally belongs to an oligopolistic market and hence the key

players in the industry are able to gain the advantage. Based on data being collected, the current
major players of automobile industry of UK are, General Motors, Toyota, Volkswagen and Ford.
Apart from these big four automotive companies, there are companies which belongs to
Germany, Japan and USA who dominates the UK market (Allahyari, Kochut and Janik, 2014).
The domination of these companies is through various mergers and acquisitions and other equity
based alliances. However, in comparison to this, as per the views of Dhingra and et.al. (2016),
automobile industry is largely homogeneous and hence a minute change in common trends of the
market can significantly affect the other companies dealing in it as well. A potential of growth
has been noticed in various markets, such as, Brazil, India and China due to availability of cheap
labour (Krug, Wright and Kroll, 2014). There are various macro-economic factors that can
directly affect this industry. Common factors include, bargaining power of supplier, integrations
in economics, economical and political aspects etc. A change in the attributes of supply chain
can affect technical dependence on the suppliers.
According to Law (2017), there are variety of different models that is launched by different
car companies. Majority of the models belong to city, mini or supermini segment. However,
some other models belong to luxurious and super luxurious category as well. The trend of higher
sales in automotive industry is represented by high sales of super mini segment of cars. A growth
rate of 44% have been noticed in this category (Hatton and van Genuchten, 2016). It has
stimulated the companies to invest and add new and more sophisticated features in the cars of
this segment. A struggle may be faced by new entrant to maintain its upkeep in the market.
However, technological advancements and new and innovative design come to rescue the
entrants in that case. However, in comparison to this, as per the views of Hashmi and
Biesebroeck (2016), companies who are already established in the market also require to
constantly innovate in their products and designs offered by them so that large number of
customers can be attracted towards it. It further helps in increasing the sales revenues as well.

Figure 1Output statistics of UK Automobile industry
(Source: Booming British car manufacturing helps drive economy and production could break
records by 2017. 2017)
The above graph shows that there is a constant increase in the output of automobile
industry in UK since 2007. Moreover, it is expected that the rise will also continue in the near
future as well (Al-Alawi and Bradley, 2014). It shows that a significant amount of concentration
on the strategic phase of the company can help in generating higher profits. Moreover,
companies in UK are investing in technological advancements so that they can gain higher
market shar in growing automobile industry (Biasi, 2015).
2.3 Industry size
According to Liu and Shankar (2015), Automobile industry in considered to be an
important part of UK economy. It has been accounted more than £77.5 billion turnover and £18.9
billion value added. There are more than 169000 people who are directly employed in
manufacturing units of cars. Other 8,14,000 people are employed in other units of the industry.
12% of the total exports of UK are dependent on this industry. Moreover, it invests around £4
billion each year in research and development department of automotive industry. Further, there
are around 30 manufacturers who build more than 70 models of vehicle in the country which