菲亚特遭受了巨大损失

菲亚特遭受了巨大损失
Suffered huge losses

执行摘要——Executive Summary

菲亚特,近年来遭受了巨大损失,主要是由于全球竞争环境较弱和竞争的加剧。它直接的财富依赖于旧品牌,如Punto,熊猫和克罗玛,主要依赖欧洲市场。为了提高竞争力,公司需要考虑外部市场力量的影响,使其优势和机会相结合。一些战略选择已经为了汽车部门而被推广，导致未来发展的建议。

介绍

菲亚特集团是意大利最大的工业集团之一，在西欧和其他国家的世界，它有广泛的操作。集团拥有超过一百的历史(1899年成立于都灵)和在汽车领域,生产和销售汽车、设计、卡车、拖拉机、农业设备、建筑设备、发动机部件和生产系统等领域专门擅长。在1990年代末,该公司发现自己在非常困难的情况下,致使威胁其生存。尽管如此,该公司的菲亚特集团业务占40%。所以这将是让公司破产巨大的错误。因此,这份报告的目的是阐明菲亚特汽车的堕落的根源,给一些建议来改善这种情况。

宏观环境分析

有很多的外部力量对组织性能产生一定的影响。一般的力量和影响在每个组织操作在一个市场的主题PESTEL分析(宏观环境)。更多的公司特有的力量(主要是与竞争环境)是微观环境分析的主题(Dibb, Simkin, Pride & Ferrell, 2001).

•主要政治因素之一是消除政治，根据新欧盟竞争法律的保护主义政策。

Fiat, has suffered huge losses in recent years, primarily due to the weaker economic global environment and increased competition. Its immediate fortunes are dependent on old brands such as Punto, Panda, and Croma, and relies mainly on European markets. To improve competitiveness, the company needs to consider the affect of the external market forces and align them to its strengths and opportunities given. Some strategic options have been derived for the Auto division resulting in recommendation for future development.

介绍——Introduction

Fiat Group is one of the largest industrial groups in Italy which has also extensive operations in Western Europe and other countries of the World. The group has more than one hundred history (was set up in Turin in 1899) and specialized in the automotive field, manufacturing and marketing cars, designing, trucks, tractors, agricultural equipment, construction equipment, engines, components and production systems.In the late 1990s the company found itself in a very difficult situation, which threatens its very survival. Still, the company accounts for 40 per cent of the Fiat Group business. So it would be a huge mistake just to let the company go bust. Thus, the aim of the report is to clarify the roots of the Fiat Auto' fall from grace and to give some recommendations to improve the situation.

宏观环境分析——Macro-Environmental analysis

There are a lot of external forces which impact on organization's performance. The forces which are general and impact on every organization operating in a market are the subject of PESTEL (macro-environmental) analysis. More company-specific forces (mostly related to competitive environment) are the subject of micro-environmental analysis (Dibb, Simkin, Pride & Ferrell, 2001).

Political and legal factors:
?One of the main political factors is removal of political protectionist policy in accordance with new EU competitive laws. During the decades Italian government has been protecting automotive industry and, especially, Fiat as the icon of it. But as a member of EU, Italy should follow the Competition Laws and the government is blocked from giving state aid to Fiat without approval from the EU. Thus, this situation is not favourable for Fiat because it leaves the company uncompetitive in comparison with other global market players (cheaper Korean and Japanese car manufactures);
?On the other hand, realising the significance if the Fiat Group for the national economy as well inevitable lay-offs as the consequence of critical company's situation, Italian government is keen to help the company through some legal methods ( to provide a rescue of Fiat via Finmeccanica, an industrial conglomerate in which the state has a 32% stake through its participation in Fiat's industrial and financial plan or to take stake in Fiat Auto); This also means the threat of losing independence from state and governments ' possible interference with company's management which causes worries on the part of the investors;
?Company's lay-offs as the part of its restructuring cost-cutting plan lead to deterioration of relations with trade unions and work stoppages, blocking railways and motorways held by them to protest against the job cut.
?Increased car taxes.

Economical factors:
?Economic problems in some key overseas markets (Brazil, Poland, Turkey) lead to reduction in export sales and incur the company in huge losses;
?Differences in exchange rates (for example, Fiat Auto has its costs in euro and sells its cars in some markets in other currencies (for instance, in USA -in dollars). Thus, it leads to some losses ;
?Unfavourable economic situation in Italy during recent years. "After recovering throughout 2004, the economy fell into recession early in 2005 with high unit labour cost growth, euro appreciation and other negative moments"
?Rising steel Prices

Social factors:
?Resistance on the part of trade unions to Fiat's cost-cutting strategy involving reducing workforce;
?Italian nationalism: Italians do not want to "the former icon of Italian industry" to be sold to GM - American conglomerate.

Technological factors:

Other car manufactures' high expenditure on R&D (the company cannot keep pace with its main competitors' in this field);

As the result of the above mentioned factor-lack of innovations.

Environmental factors:

Ecological pollution leads to increase in peoples' ecological awareness so the customers prefer buying small environmentally friendly cars which are less harmful for the atmosphere. At the same time customers start buying cars with methane engines so this again makes the company spend more on innovation not to be left back its main competitors.

SWOT分析——SWOT Analysis

Strengths:

?reputation of the Fiat Automotive Car branch as the icon of Italian industry;
?Italian government protectionist policy and back-up;
?experience gained during decades of company's presence on the Italian domestic as well as global market;
?success with the rejuvenation of the Alfa Romeo brand ( successful situation with Alfa Romeo made some of the Fiat's investors believe that Fiat Auto may overcome its difficulties);

Weaknesses:
?damaged reputation of some Fiat brands as having bad quality;
?huge losses and debts;
?poor budget for research and development;
?ineffective corporate structure : useless management reshuffles during recent years, too many layers, death of Agnelli, disputes between his inhabitants over whom is going to take control over the empire);
?in competitiveness in terms of price
?undifferentiated product: company is not able to present the product which would have the advantage over the competitors' products;

Threats:
?low-cost competition on the part of Korean and Japanese car producers;
?withdrawal of Italian government protection in accordance with EU competition laws;
?company's overreliance on the domestic Italian market.

Opportunities:
?increase in the synergies effect from alliance with GM;
?expansion of dealership network;
?Italian customers' loyalty to Fiats' brands;
?strategic alliances with other car industry conglomerates which means new sources of capital for the company;
?new attractive growing markets like China which can enable the company to boost its sales;
?more appropriated and defined segmentation of the company's customers, maybe switch from mid-size hatchback market to concentration on more lucrative segments (high margin segments of young wealthy people );
?preference for environmentally friendly cars (methane engines).

产业分析——Industry Analysis (Porter's Five Forces)

Considering with the macro-environmental analysis Porter's Five Forces will provide us more aspects while reviewing industrial factors which influence Fiat's strategies:

I. Competitive Rivalry:

The level of rivalry in the industry is high. There are a lot of firms in car automotive industry, aside from Fiat Group. Main actors are BMW Group, Daimler Chrysler, Ford Motor Company, General Motors, Fuji Heavy Industries, Honda Motor Company, Volkswagen, Renault, Toyota Motor Corporation and many others.

II. The Threat of Entry:

The barriers for the potential entrants of the automotive industry are quite high and there are some reasons for this. First of all, the product standards are high and tend to increase, the technology and know-how in the automotive industry are protected by patents and not easily copied which is a clear barrier Of Entry for other carmakers. It is also obvious that the industry requires highly specialized technology. Finally, High fixed costs in the automotive industry result in an economy of scale effect that increases rivalry and elevates the barriers of entry for new incumbents.

III. The Power of Buyers:

Buyers of Fiat Auto are not powerful. Company distributes its automobiles through wide network of dealers in Italy, the rest of Western Europe, Brazil and Poland. At December 31, 2002 the Group's worldwide network consisted of 3195 dealer. Thus, such a significant number of Fiat's Auto Division buyers means that they are not concentrated and have no particular influence on price. Switching costs for buyers are significant (they cannot easily switch to another product) which also means that buyers are relatively weak. Furthermore, buyers are not influential enough to threaten to purchase Fiat Company. On the other hand, Fiat Company has the resources to buy out its buyers.