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Chrysler LLC

By Leroy Rodriguez,2014-06-16 23:43
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Chrysler LLC ...

Chrysler LLC

    The Revival of a Dying American Car Brand Lauren Mary Gotimer, Graham Gottlieb, Brandon Millette &

    Adrian Wong

    MG 345

Chrysler LLC

    Table of Contents

    Industry Analysis - Automobiles ................................................................................................................... 3 Company Analysis Chrysler LLC .................................................................................................................. 4 Chrysler’s Culture ...................................................................................................................................... 8 Chrysler’s Stakeholders ............................................................................................................................. 9 Market effectiveness ................................................................................................................................ 9 Financial analysis ..................................................................................................................................... 10 Recommendations ...................................................................................................................................... 11 Appendix A .................................................................................................................................................. 13 Appendix B .................................................................................................................................................. 14 Appendix C .................................................................................................................................................. 15 Appendix D .................................................................................................................................................. 15 Appendix E .................................................................................................................................................. 15 Appendix F .................................................................................................................................................. 16 Appendix G .................................................................................................................................................. 16 Appendix H .................................................................................................................................................. 17 Endnotes …………………………………………………………………………………………………………………………………………… 17

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Chrysler LLC

    Industry Analysis - Automobiles

     The automotive industry is made up of car companies that manufacture vehicles ranging from

    compact vehicles to large trucks. The industry consists of domestic and foreign companies. The domestic

    companies are known as the “Big Three”; it consists of GM, Ford, and Chrysler. The foreign companies

    consist of Toyota, Honda, Daimler, BMW, etc. The current state of the industry is marked with

    uncertainty due to the slowing economy and shifting trends. Daft identifies two ways how the external

    environment influences the company; they are the need for information about the environment and the ineed for resources from the environment. With changes happening within the industry, Chrysler will

    need to incorporate boundary-spanning roles to be more fluid and adaptable with the industry and

    external environment. These boundary-spanning roles link and coordinate Chrysler; key elements are

    the exchange of information to detect and bring into Chrysler information about changes in the iienvironment and send information into the environment that presents Chrysler in a favorable light.

     The Big Three have continually dominated the U.S. markets for many years. GM once garnered a

    dominating 47.7% market share in 1978, only muster a mere 23.8% by year end of 2006. Ford and

    Chrysler followed suit as their market share dropped from 43% combined in the 1990s to 30.3% in 2006. iiiOverall, the Big Three retained only 54.9% of the US market in 2006 compared to 63% in 2002. The

    balance of car sales in the US has switched over to foreign car companies. However, the light truck

    division is still dominated by the Big Three as the Big Three account for more than 67% of sales.

    Consumers’ wants are ever-changing and currently focus on fuel efficiency and technology.

    Amidst gasoline prices soaring (as discussed later), Americans began to abandon their large SUVs and

    pick-up trucks for smaller, more gas efficient cars. One type of gas efficient vehicles is a hybrid, which is

    an engine that consists of two types of propulsion: electricity and gasoline. The Toyota Prius, remodeled

    in 2004, is considered to be one of the most successful hybrids due to its timing with record-high

    gasoline prices and ability to capitalize on being first to market. Since the vehicle’s redesign, the Prius

    has been a strong demand and at times inventory was backlogged. With the success of the Prius, many

    other car companies looked for other alternative fuel supplies: ethanol, biodiesel, and hydrogen but

    none that compete with a hybrid. However, J.D. Power and Associates reports that there will be a 247% ivincrease in volume throughout the US between 2007-2011, resulting in other automakers either

    pushing for more R&D for hybrid technology or acquiring licensing from Toyota.

     Other trends involve the technology and safety of vehicles. Consumers now value vehicles for

    their technological capabilities. Consumers want more airbags standard in each car. In addition,

    consumers also want electronic damping controls that adjust shocks to increase stability for a

    comfortable ride and electronic stability programs mainly for SUVs to prevent them from rollovers. In

    the interior of the car, consumers are wooed with or by more information and entertainment systems,

    from navigation systems to satellite radio to DVD players.