preview

Group Case Study: Chrysler Group

Decent Essays

The United Auto Workers trust exercised a right included in its government-financed bankruptcy to for an initial public offering (IPO) in 2010 and saw it as a triumphant return to financial markets. First aligned in 2009 with Italy-based Fiat, Chrysler survived its financial crisis with Fiat’s supply of technology and expertise for new products and for the next two years rendered Chrysler as stronger than Fiat. Chrysler’s sales and profits indicated a steady increase with sales in the United States while Fiat is in conflict with the economic conditions in the European market; and as the two companies have merged completely, the Chrysler operations is expected for the much needed growth indicator. The IPO ensued from a dispute over the complex …show more content…

Chrysler Group recognizes globalization and its effects on the industry and currently operates in transition guided by the vision of globalization and the achievement of such vision. Globalization has enabled Chrysler Group to build highly sophisticated supply chains which is a concept that has been continuously promoted by various industries as by building better long-term relations among producers, suppliers and distributors “more room for the development of suppliers and outsourcing will be created” (ECLAC, 2003). Chrysler's current U.S. structure is the result of acquisitions and a different marketing strategy that is Chrysler's branding strategy includes registrations which are spread evenly across five makes, but these “other brands will play important supporting roles as the automaker expands” (Vlasic, 2014). The current structure is based on price, but with Chrysler are other metrics on which its brand structure is established and that is through functionality in addition to price. This type of brand structure has the advantage of increasing brand awareness as the number of models marketed under one brand name increases; and that efficient marketing expenditures emerge with the decline in dollars spent per registration. New …show more content…

Chrysler Group's new organization is based on a global brand-focused structure with each of its brand aimed for full profit and loss accountability beginning with front-line employees who are empowered to handle complaint resolution more efficiently, boosting customer satisfaction and confidence. Open communication and collaboration encouraged members of the separate management structures for Fiat and Chrysler companies to be on a level playing field as more responsibility is placed upon each individual as “the Chrysler-Fiat Group Executive Council has 20 members who share decision making for the 2 automakers” (Vellequette & Ciferri, 2013). The Chrysler-Fiat Group Executive Council is scheduled for monthly meetings which are devoted for approving strategies and investments for both the automakers and associated operations. With almost half of the council made up of Chrysler executives, there are those who have multiple functions in the management

Get Access