Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 15.07.2003
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https://casecent.re/p/11478
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Abstract
This is the third of a four-case series (IMD-3-0644 to IMD-3-0647). The SEVELNORD case series present the evolution of the relationship between two major European car manufacturers, Fiat and Peugeot, in their attempt to enter the growing market segment of the ''monospace'' (passenger minivans) in the early 1990s. The first case (A) describes a joint venture set up between Fiat and Peugeot in 1978 to manufacture commercial vans called SEVEL. It discusses the purpose, management structure and decision making processes as well as the performance over time. The case also presents the same type of information regarding the new joint venture SEVELNORD due to start operations in 1994. Students are thus able to draw some lessons from the first joint venture and speculate about the possible threats and opportunities affecting the second joint venture. This discussion offers a good background for further decisions concerning SEVELNORD. Note: It is also possible to use only the (A) and (C) cases, skipping the negotiation exercise.
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Abstract
This is the third of a four-case series (IMD-3-0644 to IMD-3-0647). The SEVELNORD case series present the evolution of the relationship between two major European car manufacturers, Fiat and Peugeot, in their attempt to enter the growing market segment of the ''monospace'' (passenger minivans) in the early 1990s. The first case (A) describes a joint venture set up between Fiat and Peugeot in 1978 to manufacture commercial vans called SEVEL. It discusses the purpose, management structure and decision making processes as well as the performance over time. The case also presents the same type of information regarding the new joint venture SEVELNORD due to start operations in 1994. Students are thus able to draw some lessons from the first joint venture and speculate about the possible threats and opportunities affecting the second joint venture. This discussion offers a good background for further decisions concerning SEVELNORD. Note: It is also possible to use only the (A) and (C) cases, skipping the negotiation exercise.