Lee Iacocca made a name for himself by rescuing the Chrysler Corporation from the brink of bankruptcy in the late 1970s and transforming it into a powerful, profitable company in a short time. The management and manufacturing changes implemented by Iacocca led to a dramatic increase in Chrysler's stock price and Iacocca's ego. However, with the influx of cash in the early to mid-1980s, Iacocca lost focus on what made the company successful and changed Chrysler's growth strategy by investing large amounts of capital in non-profit businesses. related to the automotive industry. In the early 1990s, Chrysler once again found itself in a precarious situation with its market share and stock price steadily declining. In early 1993, Robert Eaton was expected to succeed Iacocca as CEO at a crucial time for Chrysler. Through an analysis of the strategic alignment framework, we have developed an action plan for Eaton as he assumes leadership of Chrysler Corporation. Context of Chrysler Corporation In the second half of the 1970s and early 1980s, the automotive industry has struggled to overcome economic weakness caused by a combination of stagflation, rising fuel costs, regulatory pressure from Capitol Hill and intense competition from Japanese and German automakers. Although these events negatively impacted each of the Big Three American automakers, Chrysler suffered the most due to its formal organizational structure, the attitude of senior management, the lack of culture within the organization, and the emphasis on tasks focused on financial management rather than automotive design. Chrysler's formal organizational structure prior to Iacocca's tenure had each business line operating in separate silos; the 35 operational units did not communicate with each other. There was no formal structure to oversee the cross-pollination of information and ideas between business units. The lack of cohesion and idea generation impeded management's ability to react quickly to external forces that endangered Chrysler's financial health. In addition to an inadequate organizational structure, Chrysler suffered from ineffective leadership. Before Iacocca, senior management was saturated with people who didn't understand the auto industry. Management was made up of financial experts focused solely on tasks such as monitoring short-term results and Chrysler's stock price instead of a long-term vision and effective growth strategies. This has led to a shortage of capital to invest in the design and engineering of new products critical to Chrysler's future.