...1977).Over the years, these studies have contributed to the construction of the so-called negotiation theory, which has assumed the development of techniques and models designed to solve political problems as the primary target of investigation. Management studies relating to negotiations have mainly focused on negotiation processes between companies, customers, suppliers, and industrial relations. The negotiations involving two companies that design strategic paths of cooperation – or have to implement a designed one – are less investigated, especially those concerning the effect of the intervention of outside (third) parties. I intend to focus on the latter. Through the analysis of the case studies relating to the negotiation between Fiat and Chrysler to establish a strategic alliance in the automobile sector, the article would like to investigate how the entry of interested third parties can influence the dynamics of a negotiation process. In particular, this work shows how this input has allowed the management of a critical deadlock. The adopted analytical approach has been drawn from the deliberations of James K. Sebenius (1983, 1992). 167 The Special Issue on Contemporary Research in Arts and Social Science © Centre for Promoting Ideas, USA In terms of theory...
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...article is talking about how Fiat, such many other factories, is struggling in Europe’s actual crisis and how the crumbling European economy is affecting companies. Fiat is one of the companies that has been affected, and now has to make changes into how they are working to allow themselves to survive in this economy. That goes from moving their plants into other countries that have cheaper labor, or re-engineering their plants to minimize the steps in manufacturing a car. We see in this article that some plants are manufacturing almost the same number of cars with almost a fourth of the labor. Some changes have to be made, and CEO is using scare tactics towards unions to get more out the employees, or they would have to close the plant. A lot of people are insecure and unsure about their future, because Fiat is not very open in sharing the information on the future of the company. 2- Many concepts are being introduced in this article that I have learned in the first few chapters of the textbook. Te ones I was able to get are: - Outsourcing: Fiat is opening plants in different countries that are more efficient and where labor is less costing and cheaper, giving them opportunities to price differently or make more profit and have less cost - Productivity: fiat is reengineering plants so that they can minimize the number of steps a person needs to produce a car. - Joint venture: that is when fiat bought Chrysler and used the advanced technology that fiat has and that allowed Chrysler...
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...Fiat and Chrysler Merger: An Analysis of the alliance of Fiat and Chrysler Taneka Littlejohn Sonya Merrill August 29, 2011 1 Table of Contents Project Outline I. Executive Summary II. Introduction III. Company Profile and Environment (Context) IV. Strategic Issues and Reverence V. Stakeholder Impact VI. Conclusions and Recommendations VII. Bibliography 3-4 5-6 7 8-9 10-12 12-13 13-14 15 2 Project Outline I. Discuss history of Chrysler Group A. Discuss Chrysler’s start within the automotive industry B. Discuss some of the automobiles that Chrysler makes C. Discuss Chrysler’s position within the automotive market II. Discuss history of Fiat SPA A. Discuss Fiat’s start within the automotive industry B. Discuss some of the automobiles that Fiat makes C. Discuss Fiat’s position within the automotive industry III. Discuss how both automobile firms have had past reputations in America. A. Discuss when Fiat first came to the United States B. Discuss why Fiat suddenly left the United States C. Discuss Chrysler impact within the American market and how America’s past look on their automobiles shaped its future. IV. Discuss some of the competitors of Chrysler and Fiat A. Discuss how competition affected both firms B. Discuss how Chrysler and Fiat at one point were competition for one another V. Cultural Context A. Culture aspects of the Chrysler- Fiat alliance B. Discuss how society and positioning have affected both automobile firms C. Discuss some recent news about the...
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...Opportunities and Challenges Facing FIAT to Enter Ukraine Opportunities and Challenges Facing FIAT to Enter Ukraine Report Team: NO.10 Italy Class period: Tuesday 8, 9 Team Member Zhou Wen Duan Jiaqi Han qingxiu English Name Cookie Todd May Student Number 41006044 41032003 41029021 Contact Information 289192701@qq.com 917686559@qq.com 304593546@qq.com 1 Opportunities and Challenges Facing FIAT to Enter Ukraine Executive summary The report is going to analysis the opportunities and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter Ukraine Content Ⅰ...
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...CASO FIAT Durante toda la década de los 90 la compañía ha sufrido una pérdida de cuota de mercado, pasando de un 7% a un 3,5%, debido a que una competencia en precios bajos suponía una mala percepción de la marca por parte de los consumidores españoles. El producir coches pequeños y frágiles, una imagen genérica plasmada en su gama de productos. Coches de escaso diseño y calidad, que convenía por su precio. Fiat Stilo, suponía el viraje de acontecimientos necesarios para cambiar la imagen de la marca, con un modelo de gran equipamiento y tecnología superior a los competidores del tradicionales del segmento. Con relación al mercado, se observa una clara tendencia a aumentar el consumo en el segmento C siendo el de mayor volumen, aquí se consolida la imagen de marca, frente a una disminución en el A y B donde se encuentran los modelos de mayor peso en Fiat. Después de realizar una retrospectiva de los productos pasados, se entiende una mala utilización del marketing-mix: el producto no llegaba a los target deseados. El segmento C es el más competitivo, liderado por Citröen Xsara y Opel Astra en 3 puertas y Citröen Xsara y Renault Megane en 5 puertas. Siendo sus principales motivos de compra precio, diseño y equipamiento. El cliente de este segmento esta divido en tres sub-segmentos: Tres puertas: Joven, soltero y con nivel socioeconómico polar. Cuatro puertas: Mayoritariamente varón, mayor que el anterior, nivel medio-alto y con dos o más coches en la familia. Cinco...
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...Running head: TATA FIAT Tata Motors and the Fiat Auto: Joining Forces Tata Motors and the Fiat Auto: Joining Forces Tata Motors (TM) and Fiat Auto S.p.A (Fiat) are large auto manufacturers. It is described as the transformation of TM from a commercial vehicle manufacturing company to a leading passenger car company in India, and its forays into global markets. The case details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. It discusses the alliance between the two companies, and the benefits and costs from the alliance for each company. India The fiat Group’s association with the Indian automobile market began in 1905 when it appointed Bombay Motor Cars Agency as the sales agent for its cars in India. In the 1950s, the Fiat Group entered into a license agreement with India-based Premier Automobiles Ltd. (PAL) to manufacture its cars. Fiat Auto formally entered the Indian market in 1997 through a joint venture with PAL. The joint venture would benefit both parties; TM would gain in terms of better accessibility to technology, design, and global markets, while for Fiat Auto, it would mean a larger presence in India, one of the world‘s fastest growing auto markets, without heavy investments. Also, with Honda, Toyota, GM, Mitsubishi, M&M/Renault, Nissan, Skoda, etc., chalking out plans to enter the small car segment, especially the premium small car segment, it seemed likely that the TM-Fiat Auto joint venture...
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...Fiat Chrysler Automobiles Company Instructor name and presented to: Dr/ Amany Abdel Haleem Presented by: Nourhan Magdy 20120346 History and kinds of products. The first FIAT branded automobile rolled out the factory sometime in 1901. Engineered by talented Ceirano employee Faccioli, the coach-looking car was powered by a 2 cylinder archaic Boxer 3 hp engine. The investment group heads approached Faciolli on developing a front-engined vehicle. Faciolli's response was not the expected one: he resigned. Like any company would have done, a replacement was sought and found in the blink of an eye. Enrico took on the job and in a year's time he presented a new 1.2 liter four cylinder model, developed with technology borrowed from Mercedes. As time went by, the company gained in popularity and although it was becoming bigger by the day, it still hadn't exited its lengthy development and research stages. After many tryouts using 4 and 6 cylinder models, FIAT was ready to reveal its first mass-produced car, the 1912 “Tipo Zero”. Pre-war time was soon to be over and FIAT would plunge in boringly new production stages to cover for aircraft and tank demands. Post-war times however would bring Fiat lots of sales-figures related merriment – the 501 Cavalli designed model was built in over 45,000 units by 1926. After experimenting with some floppy luxurious big engined models, Fiat resumed the development of its highly popular...
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...1. While this was not the most ideal situation for Chrysler, I think the alliance with Fiat was a necessity. Chrysler had a tremendous loss in profits, had to lay off many workers, and was going to have to file for bankruptcy. This was a great option to help them stay afloat and get help from an outside source. Obviously for Fiat this was a good move. They did take a risk since Chrysler was going into bankruptcy, but they were able to acquire it for a reasonable price and also help themselves to re-enter into North America with a company that already had a solid market share. Fiat most recently purchased the 41% of Chrysler they did not own. The company is definitely on the upswing and will be able to better compete with GM and Ford. 2. Before 2009 strategic alliance: Chrysler – Strengths of Chrysler were they have a strong brand name and recognition within North America. In addition, their Jeep and minivan lines are very popular. They were one of the top three recognized auto brands in North America. Weaknesses were there was no presence in overseas in Europe, they were going into bankruptcy, and their de-merger with DaimlerChrysler hurt them financially. They also remained behind the other manufactures for quality and satisfaction with consumers and had little or no sub-compact cars. Fiat – Strengths of Fiat were they had reinvented themselves overseas in the European markets and are one of the most visible brands of small brand cars in Europe and quality is very...
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...The 2009 Chrysler-Fiat Strategic Alliance Part-I What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The strategic alliance between Chrysler and Fiat was a beneficial step for both the companies. Chrysler was facing problem of financial crisis of 2008-2009 and was not able to perform after de- merging with Daimler in the year 2007. In North-America Chrysler was facing challenges of its bankruptcy filing and global financial crisis, because of which the demand of its car decreased in the domestic market. In order to recover from this loss, Chrysler had no other option but to find a partner with whom it could serve the foreign market. Chrysler surveyed the possibilities of various big automakers like Nissan, TATA Motors, Ford, Volkswagen, GM and Fiat. Finally they decided to create a strategic alliance with Fiat. In this alliance Fiat agreed for 20% of Chrysler stake and increased to 35% within five years. With this Alliance, Fiat got the opportunity to enter the US Market and instead of paying for the 35% of Chrysler stake, they provided Chrysler access to their technology in automobiles. (Calabrese, 2012) Fiat announced publicly their intention to open a production center in North America for manufacturing of Alfa Romeo and Fiat brands. By doing so they gained 35% stake in Chrysler and gained access to the Chrysler production center in America. Similarly, Chrysler also benefitted by gaining...
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...Case Study 3 The 2009 Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? When it comes to dealing with worldwide economic recession, grave steps have to be taken in order to ensure the survival of businesses, as too many livelihoods depend on it. Also, due to the investments that shareholders make, and the wide array of other businesses that the company would affect, it puts a lot of pressure on the board or the people running the company to make sure that they survive the bad times and emerge victorious. For Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely very...
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...Fiat 695 Abarth Maserati Edition The Abarth 695 Maserati Edition, the new Limited Edition (499 vehicles) will make its society debut on the occasion of the thirtieth anniversary of the Mille Miglia, which Enzo Ferrari called "the most beautiful race in the world". Displayed at Piazza della Loggia in Brescia in the midst of the collectors' automotive jewels and "luxury cars" of today, this glamorous car represents the bond between Abarth and Maserati, based on a host of shared values, including attention to detail, elegance and a passion for performance and sport. Following the collaborative project three years ago with Ferrari and the creation of the Abarth 695 Tributo Ferrari, this is one more project that confirms the authoritative presence of Abarth in the luxury sports segment, this time flanked by a brand whose history of sporting achievements and elegant road cars is recognised worldwide. Karl Abarth and Alfieri Maserati: two legends, united by passion for mechanics and engines, who lent their names to two of the most prestigious companies to manufacture cars marked out by style and unmistakable performance. Just as the Abarth 695 Tributo Ferrari is the utmost expression of Abarth's sporty character and "racing spirit", this new Limited Edition epitomises sheer elegance united to the comfort of a "GranTurismo", but with the handling of a car fit to take to the road every day. The new Abarth 695 Maserati Edition is an exclusive convertible which blends the aggression and...
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...1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The alignment between Fiat and Chrysler does not exactly save Chrysler. It gives Fiat an entry into the U.S. In short, Fiat is to get 35% of Chrysler, will not pay any cash for the stake, and it will give Chrysler access to its technology. Fiat had publicly said it wanted a production base in North America for its Alfa Romeo brand--and presumably the Fiat brand, too. Through its35% interest that it is getting in Chrysler, it would presumably have access to a U.S. plant to build its cars. The case is intended to have students look at the 2009 Chrysler-Fiat strategic alliance, its current issues, and future viability in the global auto industry. The new landscape of the American auto industry and the role of Fiat is analyzed in the cross-border tie-up. After de-merging with Daimler in 2007, Chrysler did not do well because of the 2008-2009 global financial crises and its bankruptcy filing. Chrysler’s other problems included its financial constraints and heightened competition in North America. The company had no choice but to look for a partner. During this process, Chrysler explored the possibility of a tie-up with GM, Ford, Volkswagen, Tata Motors, Nissan and Fiat. Eventually Chrysler decided on creating a strategic alliance where Fiat agreed on taking a 20 percent stake in Chrysler. In the next five years, the tie-up may increase Fiat’s ownership of Chrysler to...
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...Case Study – Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? * According to me, the alliance is good both for Chrysler and fiat. Fiat can take care of the technology of Chrysler. It can have fiats well-developed distribution network in European market. Fiat will have the advantage of North American market. Combined production capacity will bring profits. * They also have problems in many aspects. Different corporate culture Mismatch of brands Regulatory issues 2. Analyze and evaluate Chrysler and Fiat’s strengths and weaknesses before and after their 2009 strategic alliance (see Table II and III). Fiat | Strengths | Weakness | Before Alliance | * Fiat acquires Lancia and 50% of Italian icon Ferrari. * Fiat became the largest automaker in Europe by acquiring Alfa Romeo from the Italian government. * Fiat hires Sergio Marchionne to become its CEO * Fiat was the largest automaker in Europe. | * Fiat had labor strikes and assembly line problems. * Took off jobs of many employees. | AfterAlliance | * Fiat have the advantage of getting new technology * Large distribution network in Europe and North America. | * Labor union problems * Ownership problems | Chrysler | Strengths | Weakness | Before Alliance | * Chrysler had a market share of 12.5% in U.S in 2008. * The company was a big player in North America in mini...
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...Travis Spaulding: 2.6 - Case Study: Sergio Marchionne On April 30, 2009, Chrysler filed for bankruptcy due to failure to generate sufficient profits. As a result, a new partnership ensued with the Italy based car company, Fiat (Roubini, 2009). Since then, Chrysler Group LLC Chief Executive, Sergio Marchionne, has taken measures to change the attitude and organizational culture of the company to recover from the bankruptcy, as well as being a leader among American car manufacturers (Muller, 2011). The Chrysler Group shows a number of observable artifacts, espoused values, and basic assumptions that are associated with the corporation. Among the observable artifacts is the website that outlines the cultural values of the company. Some of these values are innovation, which is a desire to put out a better, more technologically advanced product then their competitors (Chrysler Group, n.d.). One way the...
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...When the Fiat Research Center (CRF) changed it's mission, explain how the new mission led to an expansion into transaction costs? 1)In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange (restated: the cost of participating in a market). For example, most people, when buying or selling a stock, must pay a commission to their stockbroker; that commission is a transaction cost of doing the stock deal. To eliminate the price of transactions cost, companies are headed towards outsourcing and other methods to reduce costs. Throughout the 1990’s and early 2000’s it’s no question that the automobile industry was heading into economic chaos. Fiat is an Italian based manufacturer, who like most other companies, felt the hard times. For most car companies 20-30% of sales fell, and Fiat, having 12% of share in the European market, was hit hard. The CRF, Fiat’s research and development team, was very important to the Fiat Company, and sought to help it rise out of troubling economic times. CRF leader Gian Michellone aimed to radically innovate for the CRF, and lead Fiat as well as others out of economic hardships. In order to initiate is plans for innovation, the CRF greatly changed its mission statement. The new mission stated “Instead of simply selling research, CRF is dedicated to providing competitiveness to its customers as a matter of principal.” Michellone aimed towards “competitiveness for customers at competitive prices,” and...
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