Professional Documents
Culture Documents
ID 1030323 1020720
NUJHAT MORSHED
TAIYBUNNESSA WORTHI
1030458
1020690
Chryslerone
companies in U.S.
Acquired
Dodge Brotherssame
But
Chapter 11 bankruptcy
Societal Environment:
Task Environment:
American
companies facing competition from foreign car manufacturersHonda, Toyota.. going globalChrysler expanded into Europe and formed Chrysler Europe by acquiring the UK-based Rootes Group, Simca and Barreiros. went for better quality cars..
Industry
People
Corporate Structure:
Chrysler LLC started DeSoto and Plymouth divisions. After they merged with Daimler Benz AG in 1998became a division of DaimlerChryslerdid not have any representative on the DaimlerChrysler board of management. Significantly different cultures of the two companiesAmericans valued efficiency, empowerment, creativity.Germans followed more of a bureaucratic culture. Difference in pay packages.. way of working stylesboth the companies differed significantly.
Corporate Culture:
Corporate Resources:
Quality-related issues dented the brand image of their cars Company could not invest enough money in research and development Global financial crisis affected Chryslers sales badly Emphasized on manufacturing passenger cars..like the Dodge Caravan Suspended the incentive bonuses, merit increases, and eliminated retiree life insurance benefits. They did not have enough resources to stay competitive with the market
Managed to continue its existence all these yearswent throughundesirable situations 1970s financial crisisbankruptcy Existenceproveshas the strength to stay afloatfor their past performances(Chrysler Six, Firepower later became popular as HEMI engine, many other innovations)managed to get financial aids Hascapabilityto face challengesemerge from difficult situations
2010global corporate advertising campaignto restore its confidencead showed the strengthit is believedcampaign will deliver all the objectives
Lack of Innovation and Poor R&Dlateness in launching new designs and modelsdecline in salesdemandhigh debtcompetitors gained consumer attentionChrysler went downcould not invest enough money in R&D department.
Poor Quality and Global PositioningU.S Auto Task Force commentedChryslers products have historically underperformed in terms of qualitymoreoverthe low demandsalesdisadvantage to develop a new global product development processnegative impact on global positioning
Low
Demand and Lack of Financial Resourceslow demandcausing declining salesprofitabilityled to instability in the working capitalnot enough availability of funds for operations in the company
Alliance
with Fiatshown strategic and financial benefits to the stakeholdershelp develop Chryslers possibility planentrance to the competitive fuelefficient vehicle platformsdistribution capabilities in key growth marketssignificant cost-saving opportunitiessucceed in a global auto industrystatement from Chryslerhelp create or preserve more than 5000 manufacturing jobs
Government
Supportgiving financial aids to get out of bankruptcycondition of forming alliance with Fiatalso beneficial for Chrysler
Competitorsstrong
competitors in the automobile manufacturing companiesToyotaHondaetcstill holding significant grounds on the market Technologycompetition to get more intensecompetitors will continue to come up with innovative modelsconcepts
Advance
Financial
Strategy 1 Discontinue some Production of models. Reduce cost, employee benefits, human resource, suppliers and distributors. Reduce warranty facility. Sell non earning assets. Sell some assets to invest in R&D department and cover leverage.
Strategy 2 Discontinue the production of some models. Reduce cost, some employee benefits, human resource, suppliers and distributors. Sell non earning assets. Give factories or machineries for rent.
Recommendation Strategy 1 Strategy 1 would focus more on product development and bankruptcy risk, whereas, Strategy 2 concentrates more on liquidation.
Restructure the company new programs and budgets Take profitable decisions in low cost Create production efficiency
Set
Customer satisfaction
Reduce production cost and warranty cost Give more facilities in research and development
Managers
evaluate the process Resolve the problems Measuring employees performance Match with the company standard performance Need good communication with employees Evaluate working satisfaction