Conflict Management Methods to Enhance

Conflict Management Methods to Enhance Group and Team Performance

Ferrari in conflict

When we talk about the Ferrari brand, we indirectly think of powerful cars, of a brand which became a legend and of course of Michael Schumacher. Still, Ferrari is more that that: it is an Italian sports car manufacturer with a very long history. It was founded by Enzo Ferrari in 1929, being named Scuderia Ferrari, with the intention of sponsoring drivers and manufactured race cars. Later on, in 1947, it started producing legal cars, under the name of Ferrari S.p.A.

Ferrari's cars are among the most desirable of vehicles to own and drive, and are one of the ultimate status symbols of wealth in the world. Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it has largely enjoyed great success, especially during the 1950s, 1960s, 1970s, late 1990s, and 2000s."

There have also been some black periods in the history of the brand, such as the few years of financial struggles, which determined Enzo Ferrari to sell his company to the Fiat group in 1969 in order to help ensure continued financial backing for the future. However, the owner managed to remain in control of the racing division until 1988, when he died. It should also be kept in mind that Ferrari is not only about cars: it also owns a distribution line which trades eyewear, pens, perfumes, clothing, high tech bicycles and even laptop computers.

However, there has many times been argued that the company's international position would have been different that the present one if the conflicts in the 1960s would not have existed. Since the very beginning, Enzo Ferrari wanted his company to produce race cars and not roar cars. Still, Ferrari has produced its first road car model in 1947, because that was the only way in which the company could have survived, in the conditions in which Alfa Romeo, after expressing its wish to incorporate Ferrari, tried to eliminate it from the market. Moreover, the road Ferrari cars din not reach the expected success due to a huge marketing mistake within the company: Enzo Ferrari did not draw his company's resources towards ths new project, as he did not understand that it was the only way for his firm to survive; he instead accused the Ferrari clients that the only reason for which they bought his cars was the fame of the brand. This malefic behavior has caused later stagnation on sales and, consequently, great financial struggles, which have determined the Italian owner to sell the company to the Fiat Group in 1969. Therefore, this marketing conflict has lead to the disaster, which could have been avoided, in my opinion, if the owner would have understood the commercial laws of the market and would have promoted the road cars' line.

Moreover, the crisis has been amplified by another event: "In November 1961 a dispute between Enzo Ferrari and his sales manager, Girolamo Gardini, turned into a crisis. Girolamo Gardini threatened to leave the company. Enzo Ferrari responded to the threat by throwing out Girolamo Gardini, and several employees who agreed with Girolamo Gardini were also ousted." Therefore, the professional relationships were not based on consensus and negotiations.

It is sure that the history of Ferrari form the 1970s onwards would have been different if the above mentioned conflicts, especially the latter one, would have been solved through negotiations. For example, the staff of the company could have been divided in 2 teams, one of Enzo and one of Gardini, each side trying to "blindside the other side and to railroad through its choices." In this way, consensus might have been reached at a certain moment and Ferrari would have continued to exist as a self-statutory company.