SHIPPING FINANCE , MANAGEMENT AND LAW Essay Example | Topics and Well Written Essays - 1500 words

SHIPPING FINANCE , MANAGEMENT AND LAW - Essay Example 126). The company ignores the fact that clients prefer fuel-efficient vehicles. The problem relates closely with lack of innovation in the company. The management does not have structures in place to encourage and embrace innovation form from employees (Eichhorn, 1997, p. 28). The situation remains unique considering the fact that other competitors give special attention to innovation. 5 Gas and oil remain expensive with no signs of prices coming down because of the increasing stability in the producing zone in Asia and other parts of North Africa. Consumers now prefer smaller cars, yet Chrysler does not major in their production. In addition, Chrysler does not have an established international network to sell its products abroad. The biggest market is domestic (Mullaney, 2007, p. 4). 9 Statistics shows that sales continue to decline from 2008 where the company recorded a 22 percent drop in auto sales. Furthermore, the price of steel continues to rise steeply. Reports from the consumer survey agencies ranked Chrysler one of the fifteen countries with the worst quality. The other threat emanated from the decision by Daimler-Benz, a German automobile company acquiring Chrysler in 1998 developing a new company dubbed DaimlerChrysler (Silva-Risso, 2008, 19). The aim was to develop a new plan of action that focuses on improved product quality, better design, and higher productivity. The two companies wanted to achieve these through sharing parts and design models (Ebling, 2001, p. 72). By the end of the 2006 trading period, the performance of the company disappointed shareholders with the shares falling to ten percent. The fall generated from a threat developed by the company by choosing on a manager without the qualities of managing the company in the current contempor ary market. Poor and obsolete shape of the factory adds to the poor quality of the products and lack of innovation at the company. The CEO failed to bring together a