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Approaches to Building and Strengthening Capabilities: What are some examples of companies that have used some...

Approaches to Building and Strengthening Capabilities: What are some examples of companies that have used some of these methods? explain.

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An example of the company that has built/strengthened capabilities is the acquisition of Chrysler by Fiat.

The acquisition or integration between the two companies took place when Chrysler got bankrupt due to its financial crisis. The Ex-CEO Sergio Marchionne saved the company through workers’ pension fund of Fiat. Originally, the principal owners of the company were the governments of the U.S and Canada and Fiat. Fiat had a 20% stake in Chrysler’s stocks but later obtained about 50 % of the stock and finally, Chrysler became the wholly-owned subsidiary of Fiat.

The CEO was able to make Chrysler a profitable company by interchanging the skills, knowledge, expertise, and technology between Chrysler and Fiat. Fiat is an Italian automobile manufacturing company and Chrysler also but based in the United States. Chrysler was able to strengthen its capabilities through the collaborative partnership with Fiat. Also, the company shared its knowledge with Fiat to sustain its profitability and design. Thus, Fiat Chrysler became a leading automobile company through this successful merger.

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