Fiat

In: Business and Management

Submitted By hedge11
Words 369
Pages 2
When the Fiat Research Center (CRF) changed it's mission, explain how the new mission led to an expansion into transaction costs?
1)In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange (restated: the cost of participating in a market). For example, most people, when buying or selling a stock, must pay a commission to their stockbroker; that commission is a transaction cost of doing the stock deal. To eliminate the price of transactions cost, companies are headed towards outsourcing and other methods to reduce costs.
Throughout the 1990’s and early 2000’s it’s no question that the automobile industry was heading into economic chaos. Fiat is an Italian based manufacturer, who like most other companies, felt the hard times. For most car companies 20-30% of sales fell, and Fiat, having 12% of share in the European market, was hit hard. The CRF, Fiat’s research and development team, was very important to the Fiat Company, and sought to help it rise out of troubling economic times. CRF leader Gian Michellone aimed to radically innovate for the CRF, and lead Fiat as well as others out of economic hardships.
In order to initiate is plans for innovation, the CRF greatly changed its mission statement. The new mission stated “Instead of simply selling research, CRF is dedicated to providing competitiveness to its customers as a matter of principal.” Michellone aimed towards “competitiveness for customers at competitive prices,” and sought to understand specific needs of clients and customers. This new mission led into the world of transaction costs. According to the article, the CRF planned on reducing some costs through the form of outsourcing. The article states “CRF would open up to the external partners and clients in order to better exploit its technologies, and obtain significant financing from external…...

Similar Documents

Fiat Marketing

...Opportunities and Challenges Facing FIAT to Enter Ukraine Opportunities and Challenges Facing FIAT to Enter Ukraine Report Team: NO.10 Italy Class period: Tuesday 8, 9 Team Member Zhou Wen Duan Jiaqi Han qingxiu English Name Cookie Todd May Student Number 41006044 41032003 41029021 Contact Information 289192701@qq.com 917686559@qq.com 304593546@qq.com 1 Opportunities and Challenges Facing FIAT to Enter Ukraine Executive summary The report is going to analysis the opportunities and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter......

Words: 2831 - Pages: 12

Fiat Currency and Gold Standard

...Fiat Currency Vs. Gold Standard To understand the difference between Fiat Currency and Gold Standard you must first know what each of these terms mean. Fiat currency is a common typre of currency whose value is based on the issuing authority’s guarantee to pay the stated amount on demand, and not on any intrinsic worth or extrinsic backing. The Gold Standard is a monetary system in which a country’s government allows its currency unit to be freely converted into fixed amounts of gold and vice versa. The exchange rate under the gold standard monetary system is determined by the economic difference for an ounce of gold between two currencies. Gold has been used as a currency of choice throughout history. In fact, the earliest known use was in 643 in lydia, present day Turkey. As well as the gold, silver was also used for monetary currency. For example, during the Middle Ages, the Byzantine Empire used gold coins what are known as Bezant. This currency was used throughout Europe and the Mediterranean until the Byzantine Empire’s economic influence started to decline and most of Europe tended to see silver as the currency of choice instead of gold. The United States also used the Gold Standard 1900 to 1933 after Bimetallism fell through, with the passage of the Gold Standard Act, which provided that: “...the dollar consisting of twenty-five and eight-tenths grains (1.67 grams) of gold nine-tenths fine, as established by section thirty five hundred and eleven of the......

Words: 678 - Pages: 3

Tata Fiat

...Running head: TATA FIAT Tata Motors and the Fiat Auto: Joining Forces Tata Motors and the Fiat Auto: Joining Forces Tata Motors (TM) and Fiat Auto S.p.A (Fiat) are large auto manufacturers. It is described as the transformation of TM from a commercial vehicle manufacturing company to a leading passenger car company in India, and its forays into global markets. The case details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. It discusses the alliance between the two companies, and the benefits and costs from the alliance for each company. India The fiat Group’s association with the Indian automobile market began in 1905 when it appointed Bombay Motor Cars Agency as the sales agent for its cars in India. In the 1950s, the Fiat Group entered into a license agreement with India-based Premier Automobiles Ltd. (PAL) to manufacture its cars. Fiat Auto formally entered the Indian market in 1997 through a joint venture with PAL. The joint venture would benefit both parties; TM would gain in terms of better accessibility to technology, design, and global markets, while for Fiat Auto, it would mean a larger presence in India, one of the world‘s fastest growing auto markets, without heavy investments. Also, with Honda, Toyota, GM, Mitsubishi, M&M/Renault, Nissan, Skoda, etc., chalking out plans to enter the small car segment, especially the premium small car segment, it seemed likely that the TM-Fiat Auto joint......

Words: 1340 - Pages: 6

Akvizícia Fiat-Chrysler (Slovak)

...MANAŽMENTU FIAT - CHRYSLER Vypracovanie zadania na predmet Medzinárodný manažment a medzinárodné podnikanie Bratislava Jakub Karľa akademický rok 2011/2012 1. Stručná charakteristika spoločnosti Fiat – Chrysler Fúzia spoločností Fiat S.p.A. a Chrysler Group LLC sa oficiálne udiala v roku 2009. Prvé správy o tejto fúzii sa objavili 20. Januára 2009, kedy spoločnosť Fiat súhlasila s odkúpením 20% podielu vo firme Chrysler, ktorý bol v tom období v ohrození bankrotu. Obe spoločnosti sa zaviazali, že si budú navzájom poskytovať technológie, ktoré im pomôžu v boji s konkurenciou, hlavne s firmami Toyota, Volkswagen a alianciou Renault S.A. a Nissanu. Firma Fiat S.p.A. je talianska automobilová spoločnosť, ktorá bola založená v roku 1899. Zakladateľ spoločnosti bol Giovanni Agnelli. Sídlo spoločnosti je v Turíne, z čoho vychádza aj plný názov spoločnosti Fabbrica Italiana Automobili Torino plus skratka S.p.A., čo znamená Sozietà per Azioni, čo je v preklade akciová spoločnosť. Firma sa zaoberá výrobou automobilov, je to jedenásta najväčšia automobilka na svete a najväčšia automobilka Talianska. V roku 2010 predala spolu 2 410 021 automobilov. Do spoločnosti Fiat S.p.A. spolu patrí 7 automobiliek: Abarth, Alfa Romeo, Ferrari, Fiat, Fiat Proffesional, Lancia a Maserati. Fiat vyrába svoje automobily po celom svete. Mimo Talianska má najväčšiu výrobňu v Brazílii, kde je......

Words: 2759 - Pages: 12

Caso Fiat

...CASO FIAT Durante toda la década de los 90 la compañía ha sufrido una pérdida de cuota de mercado, pasando de un 7% a un 3,5%, debido a que una competencia en precios bajos suponía una mala percepción de la marca por parte de los consumidores españoles. El producir coches pequeños y frágiles, una imagen genérica plasmada en su gama de productos. Coches de escaso diseño y calidad, que convenía por su precio. Fiat Stilo, suponía el viraje de acontecimientos necesarios para cambiar la imagen de la marca, con un modelo de gran equipamiento y tecnología superior a los competidores del tradicionales del segmento. Con relación al mercado, se observa una clara tendencia a aumentar el consumo en el segmento C siendo el de mayor volumen, aquí se consolida la imagen de marca, frente a una disminución en el A y B donde se encuentran los modelos de mayor peso en Fiat. Después de realizar una retrospectiva de los productos pasados, se entiende una mala utilización del marketing-mix: el producto no llegaba a los target deseados. El segmento C es el más competitivo, liderado por Citröen Xsara y Opel Astra en 3 puertas y Citröen Xsara y Renault Megane en 5 puertas. Siendo sus principales motivos de compra precio, diseño y equipamiento. El cliente de este segmento esta divido en tres sub-segmentos: Tres puertas: Joven, soltero y con nivel socioeconómico polar. Cuatro puertas: Mayoritariamente varón, mayor que el anterior, nivel medio-alto y con dos o más coches en la......

Words: 633 - Pages: 3

Fiat

...The Fiat Group was founded in 1899 in Turin, Italy, and now consists of many diversified businesses such as automobile manufacturer, engine manufacturer, agricultural and construction equipments, trucks and commercial vehicles, components and production systems, publishing and communication as well as financial services (The Fiat Group 2010). Diversified businesses also mean less risk because the businesses are financially and operationally leveraged. However, The Fiat Group focuses mainly in automobile sector, and this is not to mention that the world’s famous brands like Alfa Romeo, Maserati and Ferrari are entirely owned and managed by The Fiat Group; this has exclusively enhanced Fiat’s automobile portfolio in terms of brand’s strength, value and equity. Fiat carries out its businesses through its subsidiary companies located in over 50 countries while majority of its plants, employees, and R&D is based in Italy and Europe (The Fiat Group 2010). In battling for market share against major global competitors, Fiat has recently entered into mutual strategic alliance with Chrysler, with Fiat holding 20% of the shares. This provides both sides many complementary advantages. For instance, Fiat immediately gains unlimited access to Chrysler’s extensive North American dealer network, and therefore can save huge production cost by using Chrysler’s plants to produce its models for North American market. Chrysler also gains Fiat’s global distribution network in reciprocal while also...

Words: 4022 - Pages: 17

Chrysler and Fiat

...Fiat and Chrysler Merger: An Analysis of the alliance of Fiat and Chrysler Taneka Littlejohn Sonya Merrill August 29, 2011 1 Table of Contents Project Outline I. Executive Summary II. Introduction III. Company Profile and Environment (Context) IV. Strategic Issues and Reverence V. Stakeholder Impact VI. Conclusions and Recommendations VII. Bibliography 3-4 5-6 7 8-9 10-12 12-13 13-14 15 2 Project Outline I. Discuss history of Chrysler Group A. Discuss Chrysler’s start within the automotive industry B. Discuss some of the automobiles that Chrysler makes C. Discuss Chrysler’s position within the automotive market II. Discuss history of Fiat SPA A. Discuss Fiat’s start within the automotive industry B. Discuss some of the automobiles that Fiat makes C. Discuss Fiat’s position within the automotive industry III. Discuss how both automobile firms have had past reputations in America. A. Discuss when Fiat first came to the United States B. Discuss why Fiat suddenly left the United States C. Discuss Chrysler impact within the American market and how America’s past look on their automobiles shaped its future. IV. Discuss some of the competitors of Chrysler and Fiat A. Discuss how competition affected both firms B. Discuss how Chrysler and Fiat at one point were competition for one another V. Cultural Context A. Culture aspects of the Chrysler- Fiat alliance B. Discuss how society and positioning have affected both automobile firms C. Discuss some recent news about......

Words: 3643 - Pages: 15

Fiat Chrysler Merger

...előtt sem volt hiány, azonban az egyre jobban erősödő technológiai fejlesztések és a már stagnáló piac még inkább megköveteli őket. A Fiat és a Chrysler 2009-ban kezdődő együttműködése kiváló példa egy jól működő kooperációra. Nem véletlen az évszám, a válsággal kezdődően, a Chryslernek hihetetlen nagy veszteségei voltak, csakúgy, mint a szintén amerikai vetélytársainak, a Fordnak és a GM-nek. A csődeljárás alatt lévő Chryslernek szüksége volt újabb modellekre és fejlesztésekre, ami persze lehetetlennek bizonyult akkori helyzetében, hiszen sem idő sem pénz nem állt rendelkezésükre. Ekkor jelentették be a Fiat Group és a Chrysler között létrejövő együttműködést, amely biztosította a Chlysler számára az összes műszaki fejlesztést az Olasz cégtől. Robert Nardelli az amerikai cég akkori CEO-ja egy körlevélben úgy fogalmazott, hogy legalább 5000 munkahelyet mentett meg, 10 milliárdnyi fejlesztést és 5 év fejlesztési időt spórolt a szerződés a Chryslernek. Pontosan a Fiat fejlesztéseire volt szüksége a Chryslernek a válság idején, hiszen ő tudott olyan kis- és közepes kategóriás alacsony fogyasztású modellekkel és újításokkal szolgálni, ami abban az időben értékesebb volt, mint az amerikai cég hatalmas benzinzabáló típusai, így nem csupán kilábaltak a válságból, de néhány évre a kritikus mélyponttól már újra hatalmas profitjuk van. Természetesen a Fiat szempontjából legalább ugyanennyire hasznos volt az együttműködés, nem csupán azért mert a Chrysler 35%-os tulajdonosa lett,......

Words: 1452 - Pages: 6

Fiat Case

...Student name: ________________________________ Student ID _______________________  York University  Faculty of Liberal Arts and Professional Studies  School of Administrative Studies    AP/ADMS 4250 Marketing Strategy, Fall 2013  Instructor: A. Rusetski, Ph.D.  EXAM 1: Case    AP/ADMS 4250 Marketing Strategy   Exam 1  Page 1 of 7  FIAT RETURNS TO CANADA1 A.RUSETSKI, PH.D  F IGURE  1:   A   2011   FIAT   500     On  March 18, 2011 two hundred strange looking  tiny cars lined up on  the streets around the  Quebec  Business Centre. FIAT, a major European car manufacturer, was celebrating its return to Canada after 28  years of absence. This comeback became possible  thanks  to a  partnership  with one of the Detroit Big  Three  car  manufacturers  –  Chrysler.  From  Montreal,  columns  of  FIAT  500  cars  paraded  to  designated  Chrysler  dealerships  where  FIAT  opened  its  “FIAT  Studios”.  A  number  of  important  and  at  times  sad  developments led to this celebratory moment.  Once  a  powerful  player  in  the  North  American  market,  in  early  2000s  Chrysler  Corporation  was  struggling  with  declining  demand  and  decreasing  market  share.  In  1998  the  company  “merged”  with  German Daimler Benz to form DaimlerChrysler AG. In fact, the German automotive giant took ownership  of Chrysler, but after nine years the new owner acknowledged that the “marriage” was not successful  and  it  could  not  improve  Chrysler’s ......

Words: 1817 - Pages: 8

Fiat-Chrysler

...Alleanza Fiat – Chrysler La crisi economica in atto porterà a una forte concentrazione nel mercato dell’auto, tanto che fra i costruttori di massa potrebbero anche sopravviverne solo sei. Sergio Marchionne L’alleanza tra i due colossi automobilistici Fiat e Chrysler è nata proprio in un momento particolare, caratterizzato da una forte crisi finanziaria. Gli shocks subiti dall’economia reale, la perdita del potere d’acquisto, la sovrapproduzione di beni, il calo dei consumi e le aspettative negative, per citare solo alcuni degli effetti negativi della recente crisi, hanno sconquassato l’economia mondiale, andando a colpire anche il settore automobilistico e portandolo quasi a un “collasso totale”. Il crollo delle vendite delle automobili non ha riguardato solamente il mercato europeo o statunitense, ma ha causato anche un rallentamento di mercati trainanti come l’India e la Cina. Produzione mondiale di automobili (variazioni percentuali) PAESE Germania Francia Spagna Gran Bretagna Italia West Europe East Europe North America South America Asia Total 2008 5532 2300 2025 1447 700 13185 4796 12593 3560 22849 57518 2007 5709 2551 2309 1535 911 14346 4493 15021 3210 22583 60420 Var. % -3 -10 -12 -6 -23 -8 -7 -16 +6,8 +1 -5 Fonte: OICA – Organizzazione Internazionale dei Costruttori di Automobili (2007-2008) La crisi ha colpito anche i titoli azionari dei principali produttori automobilistici; General Motors e Ford hanno fatto registrare pessimi risultati a......

Words: 5265 - Pages: 22

Fiat

...case studies relating to the negotiation between Fiat and Chrysler to establish a strategic alliance in the automobile sector, the article would like to investigate how the entry of interested third parties can influence the dynamics of a negotiation process. In particular, this work shows how this input has allowed the management of a critical deadlock. The adopted analytical approach has been drawn from the deliberations of James K. Sebenius (1983, 1992). 167 The Special Issue on Contemporary Research in Arts and Social Science © Centre for Promoting Ideas, USA In terms of theory and practice, the observations made from the analysis may be a convenient starting point for developing models of the government‟s dynamics of negotiations, focused on a strategic management of the parties and their interests. The work is developed with an initial critical review of the literature, aimed at deepening awareness about the research question. The research methodology adopted and the analysis of the case study will follow. The work is concluded with a discussion on the evidence provided from the analysis, with an underlying reflection on the most important implications for future research efforts. 2. The Fiat-Chrysler Negotiation The international strategy of Fiat has been characteristic of the Italian-based company since the early years of the twentieth century. Since 1908, when Giovanni Agnelli decided to open the U.S. market, Fiat has been facing the strategies of......

Words: 1633 - Pages: 7

Case Study - Fiat and Gm

...Case Study---Fiat and GM: the troubled alliance An overview As trend in big businesses, the nature of the business grows there is a need for expansion and mergers. Although some of the mergers are benefiting and dangerous, they are entered into to maximize profits. This case study looks at the merger between two auto manufacturers, Fiat and General Motors (GM) and the problems and prospects they had. In evaluating the general environment facing the alliance between Fiat and GM the opportunities were for cost saving and cross--sharing of automotive technologies. Fiat saw the alliance as a means to save its ailing auto division which had been experiencing losses since the 1990s. For GM, the alliance was necessity to keep pace with current trend of the auto industry where rapid mergers had been on the rise since the 1990s. With the declining trend in its European operations, GM saw the merger as a means to enhance its operations in Europe and Latin America. However, the threats was that Fiat looses began to increase, fiat sought recapitalization and GM refraining from participating in the recapitalization thereby reducing its stake in Fiat Auto from 20 percent to 10 percent. Using the porter Five Forces model to analyze the global Automobile industry one can conclude that it’s a very attractive industry. Giving the demand for Cars the world over the competitive nature of the industry, it’s an attractive industry. The two main competitors of Fiat and GM......

Words: 971 - Pages: 4

Fiat Automobiles Company

... Fiat Chrysler Automobiles Company Instructor name and presented to: Dr/ Amany Abdel Haleem Presented by: Nourhan Magdy 20120346 History and kinds of products. The first FIAT branded automobile rolled out the factory sometime in 1901. Engineered by talented Ceirano employee Faccioli, the coach-looking car was powered by a 2 cylinder archaic Boxer 3 hp engine. The investment group heads approached Faciolli on developing a front-engined vehicle. Faciolli's response was not the expected one: he resigned. Like any company would have done, a replacement was sought and found in the blink of an eye. Enrico took on the job and in a year's time he presented a new 1.2 liter four cylinder model, developed with technology borrowed from Mercedes. As time went by, the company gained in popularity and although it was becoming bigger by the day, it still hadn't exited its lengthy development and research stages. After many tryouts using 4 and 6 cylinder models, FIAT was ready to reveal its first mass-produced car, the 1912 “Tipo Zero”. Pre-war time was soon to be over and FIAT would plunge in boringly new production stages to cover for aircraft and tank demands. Post-war times however would bring Fiat lots of sales-figures related merriment – the 501 Cavalli designed model was built in over 45,000 units by 1926. After experimenting with some floppy luxurious big engined models, Fiat resumed the development of its highly......

Words: 3665 - Pages: 15

Fiat Money

...the basic concepts associated with the topic as well as the impact on the overall economy. Who is influencing or in charge of the macroeconomic topic and how does the topic contribute to achieving the goals of Macroeconomics (Which goals does the topic relate to)? Fiat Money Fiat money is the money that is declared legal tender by the government and is not backed by reserves or physical commodities such as gold or silver. The real value or intrinsic value is not equal to the monetary face value or the value that is declared on it. The monetary value of fiat money is a matter of public confidence in the political or economic stability of the government or issuer. In Canada, the issuer of fiat money is the Bank of Canada. The Bank of Canada declares our currency as legal tender. Fiat Money is important because it satisfies the characteristics that make our currency viable. First, it is generally and widely accepted by the people who use it. It is much more portable and easily divisible than precious metals such as gold. Security measures taken into account in currency design are important to avoid replication and counterfeiting. The other important characteristics in fiat money are durability and controllability. Fiat Money contributes to the goals of Macroeconomics by achieving consensus among the general population of its value and in the stability of the banking system. This allows creditors, investors and consumers to make good and rational decisions on the basis of......

Words: 295 - Pages: 2

Fiat

...article is talking about how Fiat, such many other factories, is struggling in Europe’s actual crisis and how the crumbling European economy is affecting companies. Fiat is one of the companies that has been affected, and now has to make changes into how they are working to allow themselves to survive in this economy. That goes from moving their plants into other countries that have cheaper labor, or re-engineering their plants to minimize the steps in manufacturing a car. We see in this article that some plants are manufacturing almost the same number of cars with almost a fourth of the labor. Some changes have to be made, and CEO is using scare tactics towards unions to get more out the employees, or they would have to close the plant. A lot of people are insecure and unsure about their future, because Fiat is not very open in sharing the information on the future of the company. 2- Many concepts are being introduced in this article that I have learned in the first few chapters of the textbook. Te ones I was able to get are: - Outsourcing: Fiat is opening plants in different countries that are more efficient and where labor is less costing and cheaper, giving them opportunities to price differently or make more profit and have less cost - Productivity: fiat is reengineering plants so that they can minimize the number of steps a person needs to produce a car. - Joint venture: that is when fiat bought Chrysler and used the advanced technology that fiat has and that......

Words: 297 - Pages: 2