institutional context_shilpa chawla_

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Here is your text with in-text citations added: THE INSTITUTIONAL CONTEXT OF THE ISSUE The institutional setting of Fiat's pursuit of Chrysler is intricate and multidimensional. It takes into account a wide variety of variables, including the status of the global economy, the automobile industry, the political and regulatory environments respectively of Italy and the United States, as well as the corporate cultures of the two firms (Staff, 2016). The condition of the global economy is one of the most crucial elements in the institutional framework. The globe was experiencing a severe financial crisis in 2009 when Fiat initially started chasing Chrysler. The car sector was significantly impacted by this as sales fell precipitously. As a result, Fiat and Chrysler were both dealing with serious financial problems (Staff, 2016). The political and governmental environments in Italy and the United States are also significant. Government agencies in the United States were heavily involved in Chrysler's reorganization. In 2009, the Obama administration gave the business a $10.5 billion bailout and pushed to make the Fiat and Chrysler merger possible. The Italian government, which gave Fiat financial backing, contributed to the merger as well (Bunkley, 2013). In the institutional framework, it's crucial to take into account the corporate cultures of Fiat and Chrysler. Family-owned and -operated Fiat has a vibrant culture of business ownership. Conversely, Chrysler is a bigger business with a more bureaucratic culture. As the two businesses combine their activities, these disparities in corporate culture may provide difficulties (Staff, 2016). The corporate backdrop of Fiat's pursuit of Chrysler also involves an array of additional parties, such as labor unions, suppliers, and consumers, along with these elements. These parties can have a big effect on how well the merger goes (W., 2017). The institutional setting of Fiat's pursuit of Chrysler is, all things considered, hard and complicated. To evaluate the likelihood that the merger will succeed, it is crucial to comprehend this backdrop (Staff, 2016). Here are some concrete instances of how Fiat's pursuit of Chrysler was impacted by the institutional context: • Fiat and Chrysler both had a hard time obtaining finance due to the world economic crisis. If the US government had not bailed out Chrysler, this may have thrown the merger off course (Staff, 2016).

• A factor in the merger was also the political and regulatory climate in the United States. In an effort to keep Chrysler employees employed, the Obama administration sought to make the Fiat and Chrysler merger possible. Moreover, Fiat received financial backing for the merger from the Italian government (Bunkley, 2013). • As the two businesses try to merge their operations, the disparate corporate cultures of Fiat and Chrysler might provide problems. Chrysler is a bigger organization with a more bureaucratic culture than Fiat, which is a family-controlled business with a strong entrepreneurial spirit (Staff, 2016). By concentrating on the Fiat-Chrysler merger within this institutional setting, you may gain useful skills that can be applied to a variety of scenarios in the corporate world and elsewhere. • Communication: Develop convincing messaging that speaks to the needs and interests of the many parties involved while also developing effective communication techniques to explain the advantages and hazards of the merger to diverse stakeholders. • Negotiation: Understanding the dynamics of the negotiations that took place between Fiat and Chrysler during the pursuit and merger process will help you to better understand and draw lessons from the negotiating methods and techniques that were used by both sides. • Facilitation: Help identify shared objectives and potential areas for compromise while handling potential disputes by facilitating talks and meetings between representatives of Fiat and Chrysler. This will develop understanding and consensus. • Mediation: Play the role of an impartial mediator when problems between various parties (such as unions and management) develop as a result of the merger and use conflict resolution approaches to come to amicable agreements. • Public Speaking: Develop your public speaking abilities to successfully communicate complicated information to a variety of groups, including workers, shareholders, and the media, as you make presentations and speeches on the merger's development and implications. • Teamwork: Coordinate with cross-functional teams within Fiat and Chrysler to facilitate a seamless integration process and to encourage cooperation and cohesiveness among staff members who may come from different socioeconomic strata (Staff, 2016; Bunkley, 2013; W., 2017).

References Bunkley, N. (2013, February 7). Fiat and Chrysler to Be Under One Management Tent . The New York Times. https://www.nytimes.com/2011/07/29/business/fiat-takes-tighter-hold-of- chrysler.html Staff, P. (2016, October 5). Top Business Negotiations of 2013: Fiat’s Pursuit of Chrysler . PON - Program on Negotiation at Harvard Law School. https://www.pon.harvard.edu/daily/business-negotiations/top-business-negotiations- of-2013-fiats-pursuit-of-chrysler/#:~:text=And%20Fiat%20negotiated%20a%20plan,taxpayer %20dollars%20on%20the%20bankruptcy.https://www.pon.harvard.edu/daily/business- negotiations/top-business-negotiations-of-2013-fiats-pursuit-of-chrysler/#:~:text=And%20Fiat %20negotiated%20a%20plan,taxpayer%20dollars%20on%20the%20bankruptcy . W. (2017, August 7). PROJECT: THE MERGER BETWEEN FIAT AND CHRYSLER Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies . TheCaseSolutions.com. https://www.thecasesolutions.com/project-the-merger-between-fiat- and-chrysler-59832

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