A Surprising Strategic Leader

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• A Surprising Strategic Leader

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What is Fiat?
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Fiat
Frugal Engineering
Export Growth
Economies of Scale
Technical Expertise
Emerging Market Focus
Harnessing Core Competencies
Price Sensitivity
Relevant Diversification
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Fiat Management Through the Years

• Giovanni Agnelli (Early Years)
• Vittorio Valletta (Post War)

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Fiat Management Through the Years
Gianni Agnelli (1966 1996) Paolo Fresco (1996
2004) Sergio Marchionne (2004 Present)
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Corporate Governance

• Corporate governance can be defined as the
  economic, legal, and institutional framework in
  which corporate control and cash flow rights are
  distributed among shareholders, managers, and
  other stakeholders of the company (International
  Financial Management, 4th edition, Eun and
  Resnick)

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Corporate Governance

• Description of the governance structure
• Information on the ownership structure
• Analysis of the implementation of the Code
• Summary tables and corporate governance related
  documents

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Following is a list of the members of the Board
of Directors at 31 December 2008 and their
respective classifications

• Luca Cordero di Montezemolo Chairman, Executive
• John Elkann Vice Chairman, Executive
• Sergio Marchionne Chief Executive Officer,
  Executive
• Andrea Agnelli Director, Non-executive
• Tiberto Brandolini DAdda Director,
  Non-executive
• Virgilio Marrone Director, Non-executive
• Carlo Barel di SantAlbano Director,
  Non-executive
• René Carron Director, Non-executive, Independent
• Luca Garavoglia Director, Non-executive,
  Independent
• Gian Maria Gros-Pietro Director, Non-executive,
  Independent
• Roland Berger Director, Non-executive,
  Independent
• Vittorio Mincato Director, Non-executive,
  Independent
• Pasquale Pistorio Director, Non-executive,
  Independent
• Ratan Tata Director, Non-executive, Independent
• Mario Zibetti Director, Non-executive,
  Independent

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Industry PESTLE Analysis

• Political
• Economic
• Social
• Technological
• Legal
• Environmental

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Public Transport
Demand
Design Fashion
BRICs
Bailouts
Protectionism
Emerging Markets
Environmentalism
Political Populism
Credit Crunch
Management
Efficient Engines
Consolidation
Industrial Relations
Social Pressures
Recession
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Bargaining Power of Customers

• High Bargaining Power
• Second Hand Market
• Large Number of Substitutes

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Rivalry Among Competitors

• Mature Markets
• Industry Overcapacity
• Price Wars
• Slump in Automotive Sales
• Emerging Markets
• Price Sensitivity
• Indigenous Rivals
• Scramble for Market Share

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Bargaining Power of Suppliers

• Manufacturers have multiple suppliers
• Suppliers rely on few customers
• Power rests with manufacturers
• Economic Difficulties
• Very Specialist

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Threat of New Entrants

• Threat of Emerging Market firms in Western
  Markets
• Threat of Western Firms entering New Markets
• Diversification (Market Sector)

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Substitutes

• Cars
• Public Transport
• Motor Cycles/Bicycles
• Trucks
• Trains, Ships
• Pipelines
• Construction/Agricultural Equipment
• Manual Labour
• Animal Labour