Operation Management at Fiat Case Study Example | Topics and Well Written Essays - 1000 words

Operation Management at Fiat - Case Study ExampleFiat was founded On 11 July 1899 at Palazzo Bricherasio, the company betroth of Societ Anonima Fabbrica Italiana Automobili Torino was signed. Among the members of the Board of Directors, Giovanni Agnelli stood out in the group of investors and won recognition for his determination and strategic vision. The Fabbrica Italiana Automobili Torino company was founded in Turin, The first milling machinery was opened in 1900 in Corso Dante. 150 workers were employed there and produced 24 cars. afterward that Fiat started a factory on s green field site at Melfi in southern Italy. At that clock the competition was too high in the automobile industry. Fiat and all in all its competitors were facing a problem of poor quality products and productivity. The flora was the outcome of a major re-engineering thrust undertaken by the company related to quality, productivity and endemic industrial conflict. For over a decade the plant was conside red by Fiat and its competitor to be the leading example of productivity. But after the factory was started to do a better performance, it started fell down in productivity because of a strike in its takings and supply area, by workers. From the very beginning the toil system of Fiats is a customer driven production system. But as the production was fallen due to the strike, the grocery storeing department has to take steps to campaign its market share, which was decreased as well. But as its the problem of internal environment and related to gentle resource where alone selling department cant do much. Marketing department can do a research LE PEST C analysis (stands for Legal, Economical, Political, Ecological, Social, Technological and Cultural analysis)1 along with HR department on its internal environment to find out the problem. At same time Fiat have to do another research on its customer to understand their late(a) behavior, involve and also on market to understand the recent market situation and future trends. All the decisions give depends up to these research result and some measurement. Such as recent consumer behavior, situation of sales and recent market share, recent market trends- after conflict was covered and published by media.After media coverage, if the market and consumer behavior remain same marketing department need no to go for increase marketing activities such as advertisement but other promotional tools must be in functional mode such as public relation, direct marketing, sales promotion2 etc. To gaining control the market share and get a competitive advantage they will use Flank contend strategy3. If the market trends shows that the future market may boom and the consumer behavior are in changing pattern as they want to spend more money for having a car, and if the demographical segment shows that the income level is change magnitude and will booster the sales, only then Fiat should start to build a new factory that will be worthy to Fiat in long run. If Fiat decide to start a new plant based on positive research