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M.H.R.D.M
1. How does the purchase of AMC help Chrysler to manage its environment?
After purchasing AMC, Chrysler managed its environment by using the following technologies.
a. Cost cutting.
Chrysler closed down AMCs 86 year old Kenosha, Wisconsin plant which eliminated 5500
jobs and total capacity of 2, 30,000 vehicles.
Reducing steel inventories and stamping plants by 80% and eliminating duplication in the
production of parts.
b. Close monitoring.
Iacocca kept every minute count during the six months after purchase of AMC, for example to
boost jeep production fast at AMCs well known Toledo plant.
c. Increasing production by paying overtime.
Iacocca got workers to work overtime on Saturdays in return for a promise to keep the factory
running through 1992.
2. If you had been Iacocca in August 1987, what actions would you have taken to reduce
resistance among AMC personnel to changes caused by Chryslers acquisition?
If I would have been in place of Iacocca in August 1987, I would had taken following
a.
J. B. I. M. S.
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M.H.R.D.M
No, it does not indicate an organisation in decline. Chrysler and AMC had merged
and since it was overstaffed there was reduction in labour to increase efficiency.
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J. B. I. M. S.
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