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ABHAY TYAGIKARTIK SOOD


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HISTORY The FIAT group (Fabbrica Italiana Automobili

Torino), establishment in the year 1899 was one of thefounders of the European Automobile Industry. It wasdeveloped under leadership of Giovanni Agnelli andmade a successful presence in the Italian market aswell as the international market. The FIAT group is

now managed by Serigo Marchionne, who is the CEO presently. The Agnelli Family still controls FIAT byowning 30% of the shares for the FIAT group.


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COMPANY BACKGROUND :

FIAT is a word wide operating Italian automobile manufacturer,engine manufacturer, financial and industrial group based in Turin

in the Piedmont region.All though the FIAT group is present in many countries around theglobe, its market position is especially strong in Europe and Latin

America.

USA:Moderate market shares in US (until) recent alliance with Chrysler

last year and Canada market.These two markets are currently considered as the biggest auto

market in the whole world.ASIA:

No significant market establishment of Fiat in this market. Somekey players in this market are Suzuki and Tata motors.

The Asian market is also an emerging market and is untappedmarket for Fiat.


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BSTR CT This report focus on the FIAT group and analysis of its

external business environment. It outlines thecompanys background in terms of its history and

product services, with major strategic milestones andkey competitors. The operations in some of the tools

used for the external analysis are the pestel and porters. As a result, strategic directions are proposed

that will assist the FIAT group in sustaining anddeveloping a successful performance in order to keepand improve its market positions globally. This report

is also concluded of list of recommendation for theFIAT group.


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External and InternalStrategic Analysis of Fiat

Group:

This part focuses on fiats performance by analysingboth the external and internal environment of the

company.


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Internal Environment

There are various components which particularlychange the behaviour of employees. Events,Conditions and factors within an organization are few

of them. Their activities and choices are underinfluence. Factors that are frequently considered part

of the internal environment includethe organization's mission statement, leadership styles,

and its organizational culture. Internal factor whichoccur inside the company are management, manpower,

row material, machine, money.


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External Environment

EXTERNAL ENVIRONMENT is factoressentially outside the control of

organizational members. Conditions,trends, and forces are few enlisted

factors. External environmental scansare conducted in operations to identify

and analyse important factors in theexternal environment. This analysis is

often a critical aspect in all business orstrategic plans.


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External environment are classifiedinto two major parts:

1. Micro-environment 2. Macro-environment


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MICROENVIRONMENT


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KEY COMPETITIONERS

Fiats key competitors are the Frenchcompanies Renault and PSA Peugeot Citroen,

and the German Volkswagen AG (Hoovers,2010).

Main competitors in UK are Ford and

Toyota.


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CUSTOMERS

Customers play an important role in business

environment. They are the key monitors on whosebasis an organisation acts upon. They are the relationin between different business enterprises who

purchase the services and products to theirsatisfaction


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SUPPLIERS

Affiliations with the companiesthat supply your business with

goods and services,(Grant, Scholes2007). As a growing company, Fiatgroup focus on one of their factor

of suppliers: price.


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PUBLIC

Public are the targeted market components

or individual who persuades interest in thebusiness or the products and services. They

capitalise shares in market. They may bedirectly or indirectly active to open market


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MACROENVIRONMENT


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Politicalinfluences

Government regulation: the UK and theEU have the strictest regulation

concerning emissions. Issues withemissions are highly volatile; as if themanufacturer does not abide by thestandards it will translate into higherrunning cost for the customers and

likely to discourage them from buying.


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Economic Influences

Recession resulted in increasedunemployment and lower

purchasing power of customers.

Increased interest rates in bankloans for consumers.

Rising prices of raw material,especially for steel.


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Social influences

Change in consumers buying patterndue to the recession: customers ofmore aware of the struggling carmarket and strive for better deals(e.g. Fiat 500 is priced with a high

premium above the industry averagefor such a car).


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Technological Influences

Innovative technology deriving fromthe Japanese and German car

market.Rapid, high-quality inventions anddevelopments from competitors,

especially from key players like BMW, Volkswagen , Mercedes, etc

Eclectic-car (e.g. from Renault-

Nissan) are not produced by Fiat yet.


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