This website uses cookies to ensure you have the best experience. Learn more

Daimler Chrysler Essay

1192 words - 5 pages

Intercultural Business Case Study
Introduction
The internationalization of the business markets has given rise to fierce competition raising the pressure for the players in the market both big and small. The pressures make it necessary for the automobile players to adapt business at the multinational level. This gives rise to more cross-border acquisitions and mergers. Such demanding and continuous challenging market supported the slogan ‘what we cannot accomplish alone, we will then accomplish it together’, the German luxury car maker Daimler-Benz signed a merger with the North American passenger car giant Chrysler in the late 90s. Inspite of the wide differences they experience, they merged to gain competitive advantage in the tough global market and to reach the top position in the global car market which were in the hands of their rivals GM and Ford and also to strengthen their position to keep themselves well-grounded even during the low economic times. With the merger the DaimlerChrysler which they called it as ‘merger of equals’ were able to make to the 3rd position in the world car industry, the merger was later dubbed as ‘marriage made in Hell’ when the companies fell apart and lost the market. Though there was a promising look from the merger, the wide differences in organizational behaviour, culture, style of working, regulations and lifestyle increases the risk for such cross-border culture mergers. This is an attempt to support the previous works to show how these differences can dissolve the mergers and ground the company.

Problem Analysis
Experts and analysts had mixed opinion about the merger in 1998. Though the companies sounded positive with their synergies at the time of merge, the cross cultural working and attitudes posed a lot of risk for the merger (CaseStudyInc, 2008) Daimler-Benz worked it the German way and the Chrysler wanted it the American way and hence at the end both the companies had to get away with each other. The merger proved to be a very costly mistake for both the companies. The merged firms admitted a loss of €20 million. All the reason owing to the wide cultural differences both the companies were rooted from. They had differences in their working methods, culture, and organisation behaviour. Daimler worked with systematic decision making, whereas the US company encouraged creativity. Chrysler encourages taking risks and they did everything through trial-and-error-method and they were well known as ‘risk-taking underdog’ (Katpul, 2012), with Daimler focus on methodical way of working with minimal risks. They had the process of planning then organizing it and then the top executives had the controlling authority. Chrysler showed employee empowerment with equal precedence and valued efficiency, the American way of setting goals and monitoring the implementation by the employees but Daimler believed more on hierarchical and centralized decision making process with more of traditional respect (CaseStudyInc,...

Find Another Essay On Daimler Chrysler

Daimler and Chrysler Merger Essay

1170 words - 5 pages the time of the merger with Daimler Benz, the company was faced with increasing competition from the Japanese automakers, Chrysler was seeing substantial decrease in sales and was not in a dominate position in the merger. (Waller David, 2001)DaimlerDaimler Benz was incorporated in 1926 after the merger of Daimler and Benz companies. They are currently the 13th largest auto manufacturer in the world and hold the position for being the largest truck

Daimler-Chrysler merger Essay

3251 words - 13 pages Table of ContentsIntroduction3Organizational Size, Life-cycle and Control3Organizational Structure7Cross-functional teams9Recent Product Innovations10Innovation Process11Conclusion14References15IntroductionIn 1998, the merger between US-based Chrysler German-based Daimler Mercedes formed the company known today as DaimlerChrysler. The merger caused rapid growth as well as numerous challenges that the company still needs to overcome. Currently

The Core Competencies Of Daimler Chrysler

3296 words - 13 pages MARKETING PLANNING & STRATEGY RESEARCH ESSAY DAIMLER CHRYSLER Lecturer: Bronwyn Higgs INTRODUCTION: Theory and Principles In 2002 companies will continue to grow and become market leaders only if there ability to examine the companies core competencies by identifying, cultivating, and exploiting these competencies continues now and beyond into the future. Failure to do so could be catastrophic for even the most powerful of companies, not in

Merger of Daimler-Benz and Chrysler Corp

2434 words - 10 pages OverviewIntroductionLegendary German car producer Mercedes-Benz a member of Daimler-Benz married with its US American colleague Chrysler Corp. These two "boys" want to become together the most profitable carmaker worldwide. After some "illnesses" of the American brother, the company Daimler-Chrysler is on the way to make it. However, on the way to become the leader they must influence others. They must influence the global market as well as be

Daimler-Chrysler: Merger of Equals or Global Fender Bender?

1111 words - 4 pages What prevented Daimler-Chrysler from achieving the promised synergies?Daimler-Chrysler had two different people with two different management philosophies operating the same company. The fundamental differences in management, operational and decision making styles caused a significant discord between the Germans and the Americans. As with any merging of companies, there were going to be different corporate cultures, and in particular different

Strategic Change: The case study of Daimler Chrysler

6544 words - 26 pages merger between Daimler-Benz and Chrysler made DaimlerChrysler be fifth largest automaker in the word automaker in the world and it seem to be the biggest of combination of car-making firms in 1990s (Neubauer et al., 2000). This paper will discuss why the merging of these two companies is related to strategic change by using Porter's Five forces model which is suit for analyse external environment in the industry, afterward, using value chain to

Daimler Chrysler and GM -Problem Definition; Justification for Problem Definition; Alternatives and Evaluations

764 words - 3 pages stakeholders such as suppliers. Due to this effort, Chrysler had improved in productivity and efficiency, but quality and productivity was not enough to compete with oversea competitors like Japanese automakers.Also Chrysler merged with Daimler Benz which is a German high-end automobile maker. Daimler Chrysler is now facing the challenge of combining two different cultures to use the information system to benefit both companies.Justification for Problem

Merger of Daimler-Benz and Chrysler Corp. How a merger of two companies affect and is affected by the global market

1297 words - 5 pages Legendary German car producer Mercedes-Benz a member of Daimler-Benz married with its US American colleague Chrysler Corp. These two "boys" want to become together the most profitable carmaker worldwide. After some "illnesses" of the American brother the company Daimler-Chrysler is on the way to make it. But on the way to become the leader they must influence others. They must also influence the global market and will be influenced by the global

The merger of Diamler - Chrysler

608 words - 2 pages As with everything there are good things that come out of everything and bad things and it all depends on who and what you want to compare the two with. Immediately when Daimler took Chrysler it announced a package to reduce the work force by 20% so if you asked the people that work there they would tell you that the merger was not a good thing. If you asked the Senior CEO representatives they would tell you that it was a great thing to execute

Daimler Chrysler's market strategy

689 words - 3 pages Introduction: Daimler and Chrysler which have recently merged to form the company Daimler Chrysler resulted in the company becoming the fifth largest auto maker in the world with an estimated annual revenue of $130 billion. This merger resulted in a workforce of 421, 000 employees worldwide.Mission: Our companies share a common culture and mission. We are both clearly focused on serving the customers by building world class cars and trucks. Task

Sucesses and Damages of Mergers in the Motor Industry

1818 words - 8 pages equals." Both companies' stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created. Faced with challenges on the car market and according to the slogan “what we do not accomplish alone, we will then accomplish together”, Daimler-Benz and the Chrysler Corporation decided to merge in 1998, with the

Similar Essays

Daimler Chrysler Essay

3781 words - 15 pages ECONOMICS ISSUES PROJECT ? DAIMLER CHRYSLER INTRODUCTION The big three automakers have all had their ups and downs over the years, when it comes to money and market conditions. None have been harder hit than Daimler Chrysler, during the past several months. Much of their distress is being caused by the slowdown in the U.S. economy, which happens to be one of the largest importers of vehicles from Canada. Almost 90% of Canada?s automotive

Daimler Chrysler Essay

1342 words - 6 pages Daimler Chrysler Cars – A Cross-Border Merge Introduction The ever demanding innovation in automobile market with increase in global trade and the competition from home and overseas market are identified as major elements in improving their global distribution systems which forces many automobile giants for location decision and merger which provides them the platform to operate efficiently in the global market. With such mergers and

Daimler Chrysler Merger Essay

1101 words - 4 pages Daimler Chrysler Merger Daimler Chrysler is the result of merging Daimler-Benz and the Chrysler Corporation in late 1998. The merger was to be one of the largest on record, and the beginning of a new wave of mergers sweeping through the automotive industry. Although the companies were manufacturing generally similar products, the differences between those products could not be wider. Chrysler was known for a product line

Daimler Chrysler Case Essay

607 words - 2 pages Daimler-Chrysler CaseBackgroundIn 1998, German Daimler-Benz and American Chrysler Corporation merged into what was referred to (by Business Week) as "a marriage made in automotive heaven... (that) is set to transform the way the auto industry operates worldwide.". The two companies announced it as a "merger of equals".This fusion of two of the world's most profitable auto manufacturers was the largest industrial merger in history. The new