Italian Firms in America, Issues and Possible Solutions Essay

Many people have heard about Italy through the success of some of its famous luxurious brands such as Gucci and Ferrari. Behind this eminent success there is a culture of combining tradition, heritage and innovation. In what follows I will present some examples of such combination. And I will also discuss some of the problems that Italian firms face and propose some element of solutions to these issues. Italian firms are renowned for being small and family-owned. Yet some of them have managed to tackle and be successful on the global market. One such firm is Fiat which specializes in vehicles manufacturing. The company was founded by Giovanni Agnelli in 1899. An interesting example of how Fiat has used heritage and tradition is the fact†¦show more content†¦Another major problem that Italian firms face is that of low-productivity. One way to tackle this problem is to increase the size of the firms or create an environment where it easy to set up large firms. As written by R.A. in an article published in the Economist: â€Å"The productivity of European firms with fewer than 20 workers is on average little more than half that of firms with 250 or more workers†. And finally Italian firms face a lack of competitiveness issues. A great example of this is the case of Gaggia. Gaggia is the company that created the revolutionary espresso machines. However, it did not capit alize on this to take control of the growing markets of home coffee makers. As a result of this lack of competitiveness, it is now mostly owned by a Dutch electronics company called Philips. I think this is clearly due to a lack of vision which is in turn due to the problem of family-owned model of companies in Italy. Therefore, as a way to solve this problem I would again suggest that key leadership positions in those companies be occupied by people who are not necessarily related to the owner. But instead by those who have the right skills and vision to lead the company. In summary, some Italian firms have combined heritage, tradition and innovation to create their unique recipe for success. However, some of themShow MoreRelatedEssay on Parmalat Case Study1261 Words   |  6 Pages1. How was it possible for Parmalat managers to â€Å"cook the books† and hide it for so long? Solution Parmalat was able to cook the books mainly due to the fact that Italy has a low level of accounting transparency. The story began in 1997, when Parmalat decided to become a global player and started a campaign of international acquisitions, especially in North and South America, financed through debt. Soon, Parmalat became the third largest cookie-maker in the United States. But such acquisitionsRead MoreClayton Industries: Rethinking Strategies in Europe1679 Words   |  7 PagesClayton Industries: Rethinking Strategies in Europe Clayton Industries has been around since 1938 when they began as a residential and light commercial air conditioner manufacturer and distributor. 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