'‘Management At Work Essay\r'

'1. According to a major economics consulting firm, parliamentary procedure’s â€Å" atomic number 16 American operations ar the jewel in the Italian company’s global operations.”* gild has proposets in Brazil and Argentina, and Brazil is its biggest grocery, intimately frontward of its home-country market. In 2011, with the Chrysler venture taking up more(prenominal) and more of the firm’s attentionâ€and as European sales suffered a steep declivity rumors began to circulate that Marchionne might move gild headquarter from Italy to the United States. Discuss purchase order’s coup of Chrysler as part of a strategy to vary itself from an international business into a multinational or global business.\r\n2. What benefts does Fiat hope to gain from its arrange- ment with Chrysler?\r\nWhat authorization drawbacks does it face? Judging from your analysis of benefts and draw- backs, explain wherefore the Fiatâ€Chrysler arrangement mi ght best characterized as a strategic entirelyiance? In what maven is it best characterized as a direct coronation?\r\n3. What challenges in the U.S. cultural environment do you hold\r\nFiat to face as it uses its Chrysler connec- tion to compete in the American car market? What management challenges exit Marchionne face in the aras of planning and decision making, organizing, and star? 1. Fiat has established it self as prime(prenominal) product. Bringing their reputation and business skill result attract American consumers. Having their attention and possibly intermingle the product they can conquer the America market for cars as well as Italy, Europe and opposite 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 foreign looks without the exotic prices! If manufacturing is domestic with the Fiat cars as well as Chrysler I think it lead be good for the US economy, providing more jobs on a middle class level.\r\n2. The tax breaks as a US company for Fiat will be very beneficial as far as marketing/advertisement but a major draw back will be the amply 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 separate 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 straightaway handle the merger will make the passageway 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 citizenry proven to be valuable.\r\n3.This merger can be characterized as a direct investment because Fiat is take a chance a piteous there location to the US. Fiat is dealing with this merger on a first hand basis. They are not operating business threw a tertiary party. Americans are use to large cars. The idea of campaign a smaller car, to a lot of Americans will socially awkward. They may need to find a social common ground with the American passel make their car appear attractive as well as economical. As I give tongue to previously management American are considered lazy. oversight may have difficulties with the competency of the American employees. They may have to find new way of boost to employees.\r\nResearch: Fiat and Chrysler Fiat is now hold for court finding of fact from the Delaware court before purchasing the be 41.5%. Fiat has a difference in value with VEBA ( U.S. healthcare trust) of the $2 billion. VEBA values the be 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 7t h largest car manufactures in the world. finding of fact is expected to continue until the end of July, 90 eld from the last hearing on April 25. Until then Chrysler is at a stand still while Fiat must continue to sell car to bargain for the remainder of Chrysler.\r\nSource: Fiat awaits court verdict ahead of Chrysler merger http://www.reuters.com/article/2013/05/30/us-fiat-chrysler-elkann-idUSBRE94T0GA20130530\r\n'