Fabbrica Italiana Automobili Torino or FIAT was established in the year 1899, in Turin, Italy under the leadership of Giovianni Agnelli. At that time the workforce was easily available and market conditions and environment were favourable and the Company soon grew to become the largest corporate business in Italy…
Diversification is the process by which firms diversify their products or operation, administrative structure or managerial process or even their location for the purpose of growth and survival (Pearce, 1993). Most of the specialized firms are highly vulnerable to changes in the environment especially when these changes are fast and unforeseen by the firm. Under such circumstances, firms tend to diversify their products and diversification has been identified as a tool to tide over such situations towards the latter half of 20th century (Whittington and Mayer, 2000). It is considered as a device to minimize risk from any one investment (Goold, et. al., 1993). In the case of FIAT, the process of diversification started at the time of inception itself and it was the result of the keen interest they had given on innovations. Under the leadership of Giovianni Agnelli, the process went on smoothly and resulted in fast growth of the company for over 4 decades.
A firm takes a decision to diversify under certain circumstances. These include lesser chance to increase profit in the present business, when expecting a high increase in shareholder value by diversification, when the resources and intangible assets could be easily transferred, and when the management is strong enough to consider an extension to new business. ...
Cite this document
(“Fiat Auto: The Italian Giant in Trouble Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Retrieved from https://studentshare.net/business/362620-fiat-auto-the-italian-giant-in-trouble
(Fiat Auto: The Italian Giant in Trouble Essay Example | Topics and Well Written Essays - 2250 Words)
“Fiat Auto: The Italian Giant in Trouble Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.net/business/362620-fiat-auto-the-italian-giant-in-trouble.
Organizational culture can be viewed in the way leadership responds to important organizational decisions (Hunt, 2009), such as merging and acquisition (M&A). The obligations of the leader in M&A involve building a clear-cut perception of the organizational culture which is one of the major components that encourage cooperation or mutual relationships between the merging companies (Stahl & Mendenhall, 2005).
These changes negatively impacted Chrysler. After a year Chrysler has been trying to resolve its issues, thus Chrysler merged with Daimler. This alliance was unsuccessful and eventually the company broke the contract. Based on my analysis Daimler felt that Chrysler needed them, so Daimler treated Chrysler like a child.
The Italian economy is the fifth largest economy in terms of USD exchange rate and seventh largest in terms of purchasing power parity. Motor vehicles are counted as one of the significant industries in Italy. Italian GDP growth averaged 0.6% a year during the period 2001-2005 but recorded a 2% growth in 2007.Inflation is expected to remain steady at 2% in 2007.
The fact that the launch of the new Grande Punto Abarth will come with a racing and rally programme indicates that Fiat is serious in connecting to its market of stylish, practical and price-conscious car buyers by offering the Abarth tradition of competitiveness and sports performance.
The study below tries to analyse the human resource strategies adopted in Fiat. Fiat is one of the leading car makers in Europe and has a considerable market share worldwide. In order to gain a comprehensive knowledge of the HR strategies a primary research covering
Firstly, a brief overview of each company has been provided. Then the history of the company has been traced along with its strengths, weaknesses, opportunities and threats. It is followed by a study on the means with which each company
This paper shows that FIAT has worked to establish a brand identity that promotes sleek sophistication and femininity, and specifically targets past notions that the organization’s products were unreliable. While mixed results have been demonstrated, with some positive correlations emerging in the public relations positioning.