StudentShare solutions
Triangle menu

FIAT-CHRYSLER MERGER/ACQUISITION STRATEGIC ANALYSIS - Essay Example

Extract of sample
FIAT-CHRYSLER MERGER/ACQUISITION STRATEGIC ANALYSIS

Unfortunately, this has not always happened and the result has been struggling companies. For these companies the only solution is a complete overhaul or joining forces with a better placed company. The latter often comprise business acquisitions, or alliances. This study focuses on the former, with a specific look at Fiat’s acquisition of Chrysler. The basic goal is to strategically analyze the suitability of the acquisition on basis of the benefits derived by both companies as determined by the resulting synergies. The study also examines alternative ways through which Fiat would have joined the extensive American market. Table of Content Introduction……………………………………………………………………………………4 Automobile Industry Analysis-PESTEL Political factors………….………………………………………….….………………5 Economic factors……………………………………………………………………....6 Social factors………………………………………………….……….….…………...9 Technological factors…………………………………………………….……………9 Mergers & Acquisitions-Business model framework Four-box business model………………………………………………….………….10 Eclectic paradigm…………………………………………………………………….12 Potter’s competitive advantage diamond…………………………………..................15 Synergies………………………………………………………………………………………17 Market entry strategy………………………………………………………………..………...20 Summary…………………………………………………………………………………..…..22 Bibliography…………………………………………………………………….……………..24 In April 2009, Fiat commenced its efforts to acquire Chrysler an American automobile company faced with the threat of liquidation. At the time, it was largely perceived that Fiat was simply offering a ‘helping hand’. However, in a fiercely competitive industry it was most unlikely that a company would be willing to commit its resources to merely rescue a competitor. It was clear that Fiat had a strategic view of the acquisition. It is the position of this study that mergers and acquisitions are mutually beneficial to both parties. These benefits are not as elaborate and need to be strategically determined to understand whether indeed the alliances are bound to deliver value to shareholders and customers. This study seeks to carry out a thorough review on the Fiat-Chrysler acquisition, by doing this the study hope to look at the arising benefits for both companies and authenticate or fault Fiat’s decision to acquire Chrysler. In the same breath, the study also hopes to determine whether other market entry strategies would have delivered the resulting benefits and synergies. Ultimately, the study hopes to have brought to the fore the basis, importance, and benefits of acquisitions and mergers as well as cultivating in depth understanding of the Fiat-Chrysler acquisition. In April 2009, the U.S. president, Barrack Obama publicized the government’s reorganization plan for Chrysler paving way for an immediate, efficient, and controlled bankruptcy. As per the agreement, Fiat would acquire a 35% stake in Chrysler. Also, Chrysler would restructure to constitute a novel company with superior resources; technologies and a global network which would enable the company compete globally. As part of the alliance, Fiat would avail its technology, platforms, and certain products such as the power-trains ...Show more

Summary

Fiat-Chrysler Merger/Acquisition Strategic Analysis Name: Instructor: Course: Date: Abstract The business environment has become overly complex a factor that has required businesses to review their strategies in order to withstand the shifting market dynamics…
Author : bergegisselle
FIAT-CHRYSLER MERGER/ACQUISITION STRATEGIC ANALYSIS essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"FIAT-CHRYSLER MERGER/ACQUISITION STRATEGIC ANALYSIS"
with a personal 20% discount.
Grab the best paper

Related Essays

Merger and Acquisition
These activities usually, are functions of long term corporate strategy, need for diversification or expansion or merely some legal contractual obligations. Similarly, on June 14, 2012, Johnson & Johnson closed its deal of acquisition of Synthes Inc., a Swiss manufacturer of medical equipment used in providing artificial support structure to damaged human body parts.
9 pages (2250 words) Essay
Global Business Strategy
The evaluation of the current external environmental conditions facing the company was conducted. This is where the author analyzed PEST analysis including political, economic, social and environmental factors, as well as examined Porter’s Five Forces of analysis.
13 pages (3250 words) Essay
Merger, Acquisition and International Strategies
Merger and acquisition refers to mechanisms by which companies combine to promote their business interests to pursue a common market. A merger refers to the mechanisms by which a two or more companies consolidate their resources to form a new entity while acquisition refers to a situation where one company purchases another.
10 pages (2500 words) Essay
Chrysler&Fiat
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.
5 pages (1250 words) Essay
Case Study Assignment
A critical analysis of Daimler Chrysler's performance, using Porter's Five Forces, indicates that the company's deteriorating market performance is partially consequent to its failure to acknowledge the inherently global nature of the industry by globalizing its operations.
10 pages (2500 words) Essay
Strategic plans for American car manufacturer Chrysler
The Chrysler brand had a strong appeal to the international market. The company has had successful business decisions which included the acquisition of Jeep brands and Dodge. Chrysler employs over 55,000 workers across the world. The company sells over 2 million
11 pages (2750 words) Essay
FIAT-CHRYSLER MERGER/ACQUISITION STRATEGIC ANALYSIS
The latter often comprise business acquisitions, or alliances. This study focuses on the former, with a specific look at Fiat’s acquisition of Chrysler. The basic goal is to strategically
20 pages (5000 words) Essay
Merger, Acquisition, and International Strategies
Merger and acquisition have for long been exploited as an avenue for business growth and development and especially during takeoff to international market. In the US, mergers
7 pages (1750 words) Essay
Acquisition or Merger
al examinations between the sheets of the companies, emulated by formal transaction, a letter of expectation, due to tirelessness, a buy or merger understanding, lastly, the execution of the arrangement and the exchange of installment. One of the famous merges that have happened
3 pages (750 words) Essay
Merger and acquisition
Mergers are categorized into different categories including horizontal, vertical, conglomerate and concentric mergers depending on
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation