External and Internal Environments

Topics: Automotive industry, Chrysler, General Motors / Pages: 13 (3135 words) / Published: Feb 18th, 2013
Assignment 2: External and Internal Environments
Business 499
Zavier Pyles
Professor May
January 30th, 2013

Vroom Vroom! This is the welcomed sound that automobile owners and manufacturers like to hear. It is the sound of completion, success, and satisfaction. But what happens when this sound is drowned out by weakened profits, customer dissatisfaction, and industry weakness? In comes the government bailout of the automobile industry. In recent years, 2008-2010, Ford, GM, and Chrysler had to be saved from self-destruction and bankruptcy through government incentives, loans, and emergency funding. In December of 2008 these 3 automakers asked the government for monetary assistance that totaled approximately 34 billion dollars (About, 2013). Ford, GM, and Chrysler asked for these funds to avoid impending job layoffs in the millions and also to avoid further financial trouble for the economy during the recession (About, 2013). All three of the car companies that had to be bailed out were American based and had for years been facing stiff competition from foreign car makers especially Honda, Hyundai, and Toyota. During this time there was quite a bit of finger pointing and blame being placed surrounding the reason for the failure of the American car industry. Was the failure based on external factors such technology, political/legal parties and organizations, or economic issues (Hitt, Ireland, Hoskisson, 2013)? Or was the failure of this industry based on internal factors such as marketing, physical facilities, and organization capabilities (Hitt, Ireland, and Hoskisson, 2013)? This paper will focus on Chrysler before the bailout and the reasons why the bailout was necessary for this corporation. Again, please remember that this paper is based on Chrysler pre-bailout and pre-merger.
Founded in 1925, Chrysler began as a company known for its sturdy and reliable cars. As the 3rd largest auto company in Detroit, MI Chrysler has seen its share of peaks

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