‘Management At Work Essay

1. According to a major economics consulting firm, monastic orders south-central American operations are the jewel in the Italian companys global operations.* revise has plants in Brazil and Argentina, and Brazil is its biggest market, well ahead of its home-country market. In 2011, with the Chrysler venture taking up more than and more of the firms attentionand as European sales suffered a steep turn down rumors began to circulate that Marchionne might move rules of order headquarters from Italy to the United States. Discuss decrees takeover of Chrysler as part of a strategy to transform itself from an international business into a multinational or global business.2. What benefts does Fiat hope to gain from its arrange- ment with Chrysler?What potential drawbacks does it face? Judging from your analysis of benefts and draw- backs, explain wherefore the FiatChrysler arrangement might best characterized as a strategic alliance? In what reek is it best characterized as a dire ct investment?3. What challenges in the U.S. cultural environment do you deportFiat to face as it uses its Chrysler connec- tion to compete in the American car market? What management challenges exit Marchionne face in the areas of planning and decision making, organizing, and leading? 1. Fiat has established it self as select product. Bringing their reputation and business skill leave attract American consumers. Having their attention and possibly amalgamate the product they can conquer the America market for cars as well as Italy, Europe and early(a) country markets. Being based in the US they can now claim Fiat as a US product and use all the tax cuts. Making it more affordable, now it has alien looks without the exotic prices If manufacturing is domestic with the Fiat cars as well as Chrysler I think it allow for be good for the US economy, providing more jobs on a middle class level.2. The tax breaks as a US company for Fiat will be very beneficial as far as marketing/a dvertisement but a major draw back will be the soaring cost in labor as opposed to the labor cost in countries such as Mexico. Fiat will also have a situation of dealing with new labor laws. American labor laws are more stringent than other companies. This is also power tolerance country. Employees are non as submissive as those of other countries. Americans are considered lazy. Fiat bringing their CEO (Marchionne) to America to forthwith handle the optical fusion will make the transition a lot soother for the company. When first appointed to Fiat CEO he laid off 10% of white collard employees and 20,000 labor employees, restructuring with fresh new talent, he will follow do the same plan with Chrysler. But bringing in his own state proven to be valuable.3.This merger can be characterized as a direct investment because Fiat is take a chance a moving there location to the US. Fiat is dealing with this merger on a first hand basis. They are not operating business threw a trey pa rty. Americans are use to large cars. The idea of driving a smaller car, to a lot of Americans will socially awkward. They whitethorn need to find a social common ground with the American community make their car appear attractive as well as economical. As I state previously management American are considered lazy. Management may have difficulties with the competency of the American employees. They may have to find new way of encouragement to employees.Research Fiat and Chrysler Fiat is now waiting for court finding of fact from the Delaware court before purchasing the remain 41.5%. Fiat has a difference in value with VEBA ( U.S. healthcare trust) of the $2 billion. VEBA values the remaining 41.5% at $4 billion. Fiat wants to purchase the remaining 41.5%, merger the 2 companies then list them on the New York Stock Exchange by 2014. That will make them the 7th largest car manufactures in the world. Verdict is expected to continue until the end of July, 90 geezerhood from the last hearing on April 25. Until then Chrysler is at a stand still while Fiat must continue to sell car to buy the remainder of Chrysler.Source Fiat awaits court verdict ahead of Chrysler merger http//www.reuters.com/article/2013/05/30/us-fiat-chrysler-elkann-idUSBRE94T0GA20130530