Use the information contained in the case study, text book, and what you have learned in class to complete this assignment.
- USA Today article about the Fiat-Chrysler merger: Will U.S.-revived Chrysler's headquarters move to Italy?
In 2008 the "Big Three" American car makers were in financial trouble and sought help from the US government, private sector investors, and even from their competitors. However, it will take more than an infusion of cash to solve their long term problems.
Fiat (Italy) bought a majority ownership in Chrysler (USA) in 2009. That helped save Chrysler and also gave Chrysler access to Fiat's product line and distribution network. Previously Chrysler teamed up with Daimler (Germany) in an international union that did not last and was largely seen as a costly failure. That failure contrasts with the strategic partnership between Nissan (Japan) and Renault (France) which has been viewed as successful.
The USA Today article discusses financial and political issues, but it does not pay much attention to the cross-cultural issues that will affect the new organization. Your task is to analyze the implications of combining two firms from different countries (USA and Italy) and create a strategy for the merged organization.
Task for Students
- Your goal: Long term profitability for the Fiat-Chrysler organization.
- Hint: Apply your knowledge of Hofstede to understand Italian and US cultures.
- Conduct a SWOT analysis of the situation facing the merged Fiat-Chrysler organization. Keep in mind Hofstede’s dimensions of Power Distance, Individualism, and Uncertainty Avoidance.
- Use the SWOT to determine the strategy for Fiat-Chrysler.
- Prepare a one-page memo for the CEO of Fiat-Chrysler. The memo includes:
1) A brief overview of the case (no more than 50 words).
2) Your SWOT analysis.
3) Your strategy for dealing with the problems and opportunities facing Fiat-Chrysler
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.This memo deals with the cultural implications of the Fiat-Chrysler deal. While Fiat is an Italian company, Chrysler is an American company. There are differences in work cultures and this deal can be successfully concluded only if the cultures are strategically...
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