Marelli’s blow

: the strategies implemented to survive the LBO of Magneti Marelli and the chip crunch

Abstract

In this dissertation it will be presented the business case study of the decisive internal and macroeconomic events that brought Magneti Marelli, a large automotive components manufacturer who was merged with another Japanese firm to become Marelli, to the point of showing highly leveraged financial condition at the end of 2020. After an introductive presentation of the industry and the firm, in the case study, written from an historical point of view throughout the use of in-dept interviews with Marelli’s Senior Manager and secondary data, it will be illustrated what adaptive strategies and financial measures the management implemented to face the challenges brought in the last years to Marelli. The analysis of the sources shows that Marelli suffered from the LBO procedure to purchase Magneti Marelli and that the semiconductors crisis was a bad timed hard hit for the company. It will be reported the decisive factors that helped Marelli gain higher negotiating abilities and the company’s management Long-term Strategic Plan designated at the beginning of 2022 to relieve the leverage and reorganize the firm’s Positioning. In the Research note are presented empirical and theoretical knowledge with regards to the Strategic Management topics included in the case study. Whereas the teaching objectives, audience and approach for the case study, will be covered for a pedagogical purpose to focus the case’s learning on the topics of Porter’s Bargaining Power of Buyers and the Ansoff’s Matrix.

Date of Award	25 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)