Executive summary of corporations Fiat and Peugeot

The aim of this paper is to provide deep insights regarding the recent decision taken by the corporations. The two corporations Fiat and Peugeot have decided to merge. After the merger the organization will become one of the largest automobile manufacturers in the world. The merger and acquisition shows the sign of growth of the organization and the investors prefer such corporations for investment who are experiencing growth. The organizations who experience growth also experience higher revenues and high profitability as a result. The corporations who experience high profitability provides high dividend or return to the investors. Therefore, it can be said that after merger of Fiat and Peugeot the firm will get in the position to attract significant amount of investment. The investment is required in the organization because the corporation needs to finance its assets through investment. Without investment operating routine operation are not possible. When the organization merge with each other the choices which are available to the customers decline as a result. Before merger the customers have choice two purchase products from two organizations. But after merger they will have only one choice. The decline in choice might cause inconvenience to the customer. When the customers have choice they know that they can buy different products from different companies in different prices but when there will be less firms in the market than they will have to purchase from limit companies which might charge high prices.

Table of Contents

Executive summary. 1

Introduction. 2

The business/case environment and the associated change. 3

Positive changes. 3

More investment 3

Economies of Scale. 3

Monopoly Regulation. 3

Research & Development 4

Negative Changes. 4

Less choice for customers. 4

High product price. 5

Unemployment 5

Unable to meet customer needs. 5

Access to Public Data. 6

Interrogation of data. 6

Data collection technique. 6

Data validity. 6

Conclusion. 6

References. 7

 Introduction of corporations Fiat and Peugeot

The aim of this paper is to provide deep insights regarding the recent decision taken by the corporations. The two corporations Fiat and Peugeot have decided to merge. After the merger the organization will become one of the largest automobile manufacturers in the world. The paper has provided detail information about the associated change which this decision will bring in the organization. Along with associated change the paper has discussed and analyzed the data which is meaningful to this decision. In the end of the paper a brief conclusion is provided which has summarized all the major facts discussed in the paper.

The business/case environment and the associated change
Positive changes
More investment

The merger and acquisition shows the sign of growth of the organization and the investors prefer such corporations for investment who are experiencing growth. The organizations who experience growth also experience higher revenues and high profitability as a result. The corporations who experience high profitability provides high dividend or return to the investors. Therefore it can be said that after merger of Fiat and Peugeot the firm will get in the position to attract significant amount of investment. The investment is required in the organization because the corporation needs to finance its assets through investment. Without investment operating routine operation are not possible.

Economies of Scale of corporations Fiat and Peugeot

When Fiat and Peugeot will merge than the average cost of the organization will decline.  After the merger the organization will in the position to purchase raw material in bulk which will reduce their costs up to lot of extent. After the merger the corporation can take benefit from each other’s expertise.

Monopoly Regulation of corporations Fiat and Peugeot

The organization after the merger might become in the position to gain monopoly power. However the organization might unable to charge high prices from the customer due to regulation of monopoly. The governments creates such rules and regulations which does not allow the corporations to increase prices even they are in the position of monopoly. The governments control prices so that customer don’t have to purchase products on high prices. The organization after merger will be in the position to take benefit from economies of scale but if government control monopoly than process might not increase.

Research & Development of corporations Fiat and Peugeot

One of the major benefit of merger is that the organization will become in the position to spend significant amount of funds for research and development purpose. The R&D in the organization is essential for the success of the business. The organizations who spend more on research and development not only able to reduce their costs up to lot of extent but also provide such product/services to their customers which other organization have not provided. In other it can be said that the research and development is important to gain competitive edge over the competitors. Through R&D the business will able to differentiate itself in the market (Campbel, Edgar, & Stonehouse, 2011).

Negative Changes

Less choice for customers of corporations Fiat and Peugeot

When the organization merge with each other the choices which are available to the customers decline as a result. Before merger the customers have choice two purchase products from two organizations. But after merger they will have only one choice. The decline in choice might cause inconvenience to the customer. When the customers have choice they know that they can buy different products from different companies in different prices but when there will be less firms in the market than they will have to purchase from limit companies which might charge high prices (Campbel, Edgar, & Stonehouse, 2011).

High product price of corporations Fiat and Peugeot

One of the major drawback of merger is the high prices of products in the market. When two major corporations merge they become in the position to create monopoly. When the firms create monopoly in the market they know that there are not many firms in the industry and they can charge high price from customers. Due to high prices the customers have to face inconvenience. The less competition in the market is a major reason for high prices. However this is not always the case because sometimes the government regulates the prices and does not allow big firms to charge high prices (Kourdi, 2015).

Unemployment: When the organization merge with each other than various decisions are taken by the management. One of the decision is layoff. The corporations after merger shut down those departments which are not generating profit or are no longer useful for the organization. The employees who are working in those department gets unemployed. Another reason for decreases the number of employees in the company is the implementation of new technology. Sometimes after merger the organization implement new technologies and procedures which does not require any employee. So as a result number of employees have to experience unemployment.

Unable to meet customer needs

The organizations have to focus on the needs and preferences of the customers. After merger the organizations sometimes come up with new ideas and designs which some customers does not like. The customers sometimes get loyal to the old products and services which the corporation provides prior to the merger. Therefore it is highly important for the company to understand the needs and preferences of the customers so that it can sustain in the long run. The company can take feedback from its customers to know whether they ate satisfied with their products and services or not (Spender, 2014).

Access to Public Data: Each proceeding in the business is involved in the major transaction that contains all the links to the major documents. In addition, the data is open to public access through the commission electronic comment filing system (ECFS) to obtain all the documents that are filled with the commission. Several of the databases can be obtained electronically when searched. The two companies had signed the binding combination agreement of the deal. The data accessed in the analysis shows that for each group of shareholders there is 50% of the new entity with the calculated revenues of 170 billion euros. The combined workforce is about 400,000 and require ability to invest in the new technologies. The data is accessed by annual reports of the company and the contract details mentioned in the contract of Fiat and Peugeot. There are five major tools of decision making are used to support the dataset and conclusion. The tie up between Fiat and Peugeot were ended in the earlier year due to the issues with the French government. The bank ownership is one of the litanies of obstacles that is facing deal issues, the deal issues are lowering the potential benefits for the two automakers combining. The data analytics are from the Global data. 

Interrogation of data: The information about the contract are gathered by Electronic Comment Filing System, International Bureau Application Filing and Reporting System, and universal licensing system.  The source of data includes detailed information on the purchases of market merger and acquisition (M and A). The interrogation of the data is referred to the manual process of querying the source data and in this process the investigation measure the anomalies and confirm the relationship between the source entities. The similar data profiling is used by data modelers, QA analysis and ETL designers. Database interrogation select the database entry for the collected data and analyzed it after storing in different categories of input, operate able, and other fields.

Data collection technique: There are number of methods that can be used for the data collection such as data envelopment analysis and balances. Different analytical tools for merger and acquisition are developed with the sophisticated platforms by use of advanced analytical techniques. The quantitative methods are used for the collection of abundant data and analysis of premise define the outcomes of merger and acquisition of Fiat and Peugeot.

Data validity: For the validity of data, very often it is compared with other reports and analysis define percentage errors. The deregulation of the industry has contributed to the growth of activities and digital transformation in the industries is capable to improve the competition. The data validity plays a crucial role in the decision making. The emerging technologies have coupled the advanced data collection and analytical tools together to make the profitable insights. There is a strive for the increase of tool scales with capabilities and economics. The data validity can also be measured by comparing the collected data from the statistical reports of both companies. In this way, the impact of merger is measured in terms of future revenue streams, purchasing power, disruptive technologies, capabilities of the company, and definitive competitive advantage.

Conclusion of corporations Fiat and Peugeot:

It is concluded that one of the major benefit of merger is that the organization will become in the position to spend significant amount of funds for research and development purpose. The R&D in the organization is essential for the success of the business. The organizations who spend more on research and development not only able to reduce their costs up to lot of extent but also provide such product/services to their customers which other organization have not provided. In other it can be said that the research and development is important to gain competitive edge over the competitors. Through R&D the business will able to differentiate itself in the market. When the organization merge with each other than various decisions are taken by the management. One of the decision is layoff. The corporations after merger shut down those departments which are not generating profit or are no longer useful for the organization. The employees who are working in those department gets unemployed. Another reason for decreases the number of employees in the company is the implementation of new technology.

 References of corporations Fiat and Peugeot

Campbel, D., Edgar, D., & Stonehouse, G. (2011). Business Strategy: An Introduction. Macmillan International Higher Education.

GOVINDARAJAN, M. (2007). MARKETING MANAGEMENT. PHI Learning Pvt. Ltd.

International Organizations. (2018). Retrieved from http://internationalrelations.org/international-organizations/

Kourdi, J. (2015). The Economist: Business Strategy 3rd edition: A guide to effective decision-making. Profile Books.

Nytimes. (2019). Say Hello to a New Auto Giant. Retrieved from https://www.nytimes.com/2019/10/31/business/dealbook/fiat-chrysler-peugeot.html

Simons, R. (Ed.). (2011). Human Resource Management: Issues, Challenges and Opportunities. CRC Press.

Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.

Wang, F.-J., Chich-Jen, S., & Mei-Ling, T. (2010). Effect of leadership style on organizational performance as viewed from human resource management strategy. African Journal of Business Management, 4(18), 3924-3936.