Once Chrysler fell into a rut and had to file bankruptcy, they started to make decisions with the intent to restore the business, which just did not work. The managers started using strategies to increase sales, like giving incentives for purchasing a Chrysler, which ended up causing them to lose profit. Some of the observable artifacts were instead of Chief Executive Sergio, having his office in the executive suites, his office was located in the middle of engineering, where he can be in the middle of everything. Sergio was also spending a great amount of his time working, just to ensure that people were making decisions that will help the company, and not hinder the company anymore. Mr. Marchionne had to get rid of some of his direct reports …show more content…
Marchionne used a reorganization strategy which resulted in him having 23 direct reports, some were seasoned veterans to the company. He used this strategy to shock the culture at Chrysler, hoping to recover the business. At this point Chrysler appears to be an organization who is operating in the bottom right quadrant, which is the market culture, because they were trying to do anything to sustain sales and compete with the market. This was not working for them, because while they were selling, the incentives were so aggressive that it did not increase profit. After reading Chryslers vision statement, I agree with my observation of the company and labeling them an organization that is driven by a market culture. Their vision is geared toward what the consumers want and how to tailor the business to provide them just that. They are a company that is interested in safety and they try to continue the heritage that started in 1920. Chrysler focuses a great amount of time and resources on engineering because they want to stay competitive and continue to own their piece in the market. As far as culture change, Mr. Marchionne used the design of physical space, work environments, and buildings. He used this approach to drive out the individuals that were not susceptible to