The DaimlerChrysler Merger - An Analysis of the Cultural Problems PDF Download

Author: Martin Lüthge
Publisher: GRIN Verlag
ISBN: 365699613X
Category : Business & Economics
Languages : en
Pages : 23

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Book Description
Seminar paper from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1, , language: English, abstract: Introduction (English) On 6 May 1998, Daimler-Benz of Germany signed a merger agreement with Chrysler Corporation of the United States. The merger marked the beginning of the ambitious goal of merging two styles of auto-making, two approaches to busine

Author: Svenja Stellmann
Publisher: GRIN Verlag
ISBN: 3640771230
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
Research Paper (undergraduate) from the year 2010 in the subject Organisation and Administration, grade: 1,7, Northumbria University, language: English, abstract: The Merger of DaimlerChrysler in 1998 is regarded to be the biggest merger in the automotive industry. In academic literature there is consensus about the fact that cultural issues had a major impact on the merger's failure. Bearing in mind the importance of organisational culture on the success of M&A, this study aims to provide an in-depth analysis of the famous DaimlerChrysler merger. The researcher will reveal the organisations' cultural issues which arose during and after the merger and she will explain the impact of these issues on different organisational levels. The analysis will be conducted with the help of the theoretical frameworks of Schein (1984) and Hofstede (2001). Findings show that cultural differences have had an impact throughout all organisational levels. Due to this finding it is concluded that the merger was about to fail from the beginning on.

Author: Ralph Johann
Publisher: GRIN Verlag
ISBN: 3640158717
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, California State University, Fullerton, course: International Management, language: English, abstract: On 6 May 1998, Daimler-Benz of Germany signed a merger agreement with Chrysler Corporation of the United States. The merger marked the beginning of the ambitious goal of merging two styles of auto-making, two approaches to business and the proud, but distinct cultures of two nations. The opportunities for significant synergies afforded by a combination based on factors such as shared technologies, distribution, purchasing and know-how. Daimler’s engineering skill and technological advances could be complemented by Chrysler’s skills for innovation, speed in product development and bold marketing style. Juergen Schrempp, CEO of DaimlerChrysler, said, that the new company will reach an eminent strategic position in the global marketplace by combining and utilizing each other’s strengths. It seems that Germans and Americans in the enterprise have not become closer since the merger. This paper explores the reasons for DaimlerChrysler's failure to realize the synergies identified prior to the merger. It examines the different culture and management styles of the companies that were primarily responsible for this failure. The focus will be on the cultural issues and on the different theories that try to explain cultural differences between nations – the US and Germany - and how values in the workplace are influenced by those cultures. First of all it describes the overall circumstances that led to the merger. Both companies and their conditions prior to the merger are introduced as well as the general objectives that led to the merger and the goals of it are highlighted. After that, some of the theories that try to explain cultural differences such as the Cultural Dimensions of Hofstede are introduced with a special focus on the differences between the two cultures in play, the German and the US. It will proceed with an analysis of the different corporate cultures and the accompanying communication difficulties and mistakes that have been done in this context. The paper will conclude with recent developments, the current situation of DaimlerChrysler and some recommendations to work on the existing cultural issues and other problems within the merged company.

Author: Mark E. Mendenhall
Publisher: Stanford University Press
ISBN: 9780804746618
Category : Business & Economics
Languages : en
Pages : 472

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Book Description
This book examines the dynamics of the sociocultural processes inherent in mergers and acquisitions, and draws implications for post-merger integration management.

Author: Romy Trajanov
Publisher: diplom.de
ISBN: 3832492526
Category : Business & Economics
Languages : en
Pages : 145

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Book Description
Inhaltsangabe:Abstract: In the last decade many companies on a global basis are going international in order to become global players. The opening of global markets (e.g. the establishment of the Single European Market and the ratification of the Maastricht Treaty in 1992) was a key driver for international mergers and acquisitions. Companies form international mergers and acquisitions to achieve the competitive position of global advantage and local responsiveness as well as to grow rapidly. Mergers create synergies for all involved companies as various tangible and intangible assets will be combined whose value is greater than the sum of their individual worth. Additional factors of production offering competitive advantage can be found. Employees play an essential role for the success of merging companies, therefore it is crucial already to deal with cultural aspects as a component of the due diligence process. This creates an understanding of different national and organizational cultures for all involved cross-border merging companies. The national culture is an integral part of the overall corporate culture of the firm, which is applicable for all merging partners. The merger of DaimlerChrysler in 1998 which created one of the biggest car companies is used as an example in this study to underline cultural implications within the merging process of global players. Cultural difficulties occurred between the more easy-going and more flexible style of Chrysler and the well structured and bureaucratic style of Daimler-Benz. This was the basis of different working styles, decision making and communication processes within the company. This incompatibility of the two different cultural aspects was realized too late and became very difficult to be overcome. That is why at the end it was no merger of equals but one company dominating over the other. The complexity of the DaimlerChrysler merger shows the different aspects of cultural difference awareness. The reader of this study will get a deeper insight into the issues of culture and its importance to be considered in cross-border merger processes. In this context further different national culture models will be analysed as well as the cultural implementation into organisations in general. Furthermore after presenting the merger process of DaimlerChrysler and its reasons, failures in management and cultural implementation by both companies will be discovered which caused the cultural [...]

Author: Tobias Wolf
Publisher: GRIN Verlag
ISBN: 3638790215
Category : Business & Economics
Languages : en
Pages : 41

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Book Description
Research Paper (undergraduate) from the year 2005 in the subject Business economics - Miscellaneous, grade: A, Northeastern University of Boston, course: Cultural Aspects of International Business, 12 entries in the bibliography, language: English, abstract: In May 1998 the German car maker Daimler-Benz AG and America's third largest automobile company, Chrysler Corporation, signed a merger agreement to build the world's No. 5 automaker. Juergen Schrempp, CEO of Daimler-Benz, and Robert Eaton, Chrysler's then boss, saw a logical fit between the European luxury-car producer and the American maker of sport-utility vehicles, minivans and medium-sized vehicles. The complementing product and geographical match seemed to prepare the merged DaimlerChrysler AG for the future competition in the automobile industry. ...]

Author: Ralph Johann
Publisher: GRIN Verlag
ISBN: 3640159756
Category : Business & Economics
Languages : en
Pages : 62

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Book Description
Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, California State University, Fullerton, course: International Management, 25 entries in the bibliography, language: English, abstract: On 6 May 1998, Daimler-Benz of Germany signed a merger agreement with Chrysler Corporation of the United States. The merger marked the beginning of the ambitious goal of merging two styles of auto-making, two approaches to business and the proud, but distinct cultures of two nations. The opportunities for significant synergies afforded by a combination based on factors such as shared technologies, distribution, purchasing and know-how. Daimler's engineering skill and technological advances could be complemented by Chrysler's skills for innovation, speed in product development and bold marketing style. Juergen Schrempp, CEO of DaimlerChrysler, said, that the new company will reach an eminent strategic position in the global marketplace by combining and utilizing each other's strengths. It seems that Germans and Americans in the enterprise have not become closer since the merger. This paper explores the reasons for DaimlerChrysler's failure to realize the synergies identified prior to the merger. It examines the different culture and management styles of the companies that were primarily responsible for this failure. The focus will be on the cultural issues and on the different theories that try to explain cultural differences between nations - the US and Germany - and how values in the workplace are influenced by those cultures. First of all it describes the overall circumstances that led to the merger. Both companies and their conditions prior to the merger are introduced as well as the general objectives that led to the merger and the goals of it are highlighted. After that, some of the theories that try to explain cultural differences such as the Cultural Dimensions of Hofstede are introduced with a special fo

Author: Iris I. Varner
Publisher: McGraw-Hill Higher Education
ISBN: 0077476778
Category : Business communication
Languages : en
Pages : 530

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Book Description
Intercultural Communication in the Global Workplace, 5e by Beamer and Varner addresses the issues of culture and communication within the context of international business. The text provides examples of how cultural values and practices impact business communication. The authors explore the relationships among the cultural environments of the firm and the structure of the firm. They examine how companies and individuals communicate, and concentrate on the underlying cultural reasons for behavior.

Author: Geert Hofstede
Publisher: SAGE
ISBN: 9780803913066
Category : Business & Economics
Languages : en
Pages : 332

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Book Description
In his bestselling book Culture's Consequences, Geert Hofstede proposed four dimensions on which the differences among national cultures can be understood: Individualism, Power Distance, Uncertainty Avoidance and Masculinity. This volume comprises the first in-depth discussion of the masculinity dimension and how it can help us to understand differences among cultures. The book begins with a general explanation of the masculinity dimension, and discusses how it illuminates broad features of different cultures. The following parts apply the dimension more specifically to gender (and gender identity), sexuality (and sexual behaviour) and religion, probably the most influential variable of all. Hofstede closes the book

Author: Dipak Kumar Bhattacharyya
Publisher: PHI Learning Pvt. Ltd.
ISBN: 8120340094
Category : Business & Economics
Languages : en
Pages : 354

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Book Description
And, as multinational corporations (MNCs) and Transnational Corporations (TNCs) spread their wings across nations with numerous employees of different nationalities, with their different cultures, different mores and different behaviours, organizations have to reconcile these differences and have to forge a unified organizational culture to achieve their mission, vision and objectives. This book eminently suits as a text to address these goals. Divided into 14 chapters, this comprehensive and well-organized text discusses in detail the many cultural issues facing organizations. Professor Bhattacharyya, with his expertise and wealth of experience, provides a masterly analysis of the subject, harmoniously blending the theory and practice of cross-cultural management, making it a unified whole. Not only does the text give a thorough understanding of culture, showing that it is an amalgam of shared values and behaviours of groups as well as a phenomenon applicable to individuals, it also delineates the many facets of corporate culture. The text discusses the entire gamut of organizational culture, cultural differences, diversity management, cross-cultural management, globalization, impact of culture on globalization, and the impact of technology and culture on organization. In addition, it focuses on cross-cultural communication, cultural issues in mergers and acquisitions, resource management, cross-cultural decision making, and ways and means of managing cross-cultural teams.