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

Operation Management at Fiat - Case prove ExampleFiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter 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. After that Fiat started a factory on s green field site at Melfi in southern Italy. At that time the competition was too high in the move industry. Fiat and all its competitors were facing a problem of poor quality products and productivity. The plant was the outcome of a major re-engineering effort under gather upn by the company associate to quality, productivity and endemic industrial conflict. For over a decade the plant was considered by Fiat a nd its competitor to be the leading example of productivity. But after(prenominal) the factory was started to do a better performance, it started fell down in productivity beca economic consumption of a strike in its production and supply area, by workers. From the truly beginning the production system of Fiats is a customer driven production system. But as the production was fallen due to the strike, the grocery store department has to take steps to defend its market share, which was decreased as well. But as its the problem of internal environment and related to human resource where alone marketing 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 recent behavior, needs and also on market to understand the recent market situation and emerging trends. All the decisions will 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 working mode such as public relation, direct marketing, sales promotion2 etc. To capture the market share and get a competitive advantage they will use Flank Attacking strategy3. If the market trends shows that the future market may boom and the consumer behavior are in changing pattern as they postulate to spend more money for having a car, and if the demographical segment shows that the income level is increasing and will booster the sales, only then Fiat should start to build a new factory th at will be worthy to Fiat in long run. If Fiat decide to start a new plant base on positive research