Chrysler and Bmw: Tritec Engine Joint Venture

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Santiago Alvarado 11/23/13 EM 220 1 NEW PRODUCT DEVELOPMENT AND MARKETING Read Chrysler and BMW: Tritec Engine Joint Venture, HBS, 2004, and answer the following question: 1. As Program Manager, what did Jack Smith do that was effective? What should he have done differently? After a careful reviewing of the article on the joint venture between BMW and Chrysler, one can get many conclusions and lessons to learn. In the first part one can dimension how large companies seek solutions to their problems. When a business needs some new technology, or if there is a common need, to do a joint venture can generate many positive outcomes. In the study case, the need for a new engine with good quality but low cost, combined two industry giants and their best skills. BMW is known for its quality products and high performance. German technology is always at the forefront of their competitors and their standards are very high. In the other hand, Chrysler engines are known for being low cost but sometimes are not as reliable after a certain number of miles. These failures have been justified by Chrysler over time by the engines economic prices. By identifying that the future of the industry would be in emerging markets, their needs became a priority. Hence the idea of a small, economical engine is born, so the joint venture between BMW and Chrysler sounded very reasonable. The know-how of each will develop the perfect match between quality and price. Jack Smith was named as project manager. From the beginning he made some movements towards the correct path for the project. Initially because when he was nominated for the position, he had the honesty to recognize that he did not feel qualified for the job. This shows his humility and selfawareness of his knowledge. He received the encouragement and support from the board of directors, and he kept his calm. This support allowed

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