Daimler Chrysler Merger Case Study

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Daimler Benz and Chrysler In the mid-1990s, Chrysler Corporation was the most profitable automotive producer in the World, and the world owner Mercedes revealed that it was merging with Chrysler, the smallest but most efficient of America’s Big car producers. The three car producers and Mercedes embarked on a cross-border deal. The cross-border mergers are usually very tricky. For the Daimler Chrysler to succeed requires not only to unit its headquarters, but also between the host offices and their factories with different national and corporate cultures. The company to overcome these differences between the companies took an unusual approach. Daimler in its pre-merger planning they thought it would be a cross-border merger but apparently it thought that they would not face any such problems. Mr.Cordes one of the managers who was a part in the discussions of the cross-border merger, says the big issues that they faced were that the two companies had two distinctive heritages, so how could they go about it? The other issue was whether the merger is feasible in its activities and other operations, and the other major issue was Daimler and Chrysler bold enough to manage the post-merger integration successfully? These issues would not have occurred if there were two German or American companies merged. Chrysler’s middle level managers were…show more content…
The diversity between each country’s or company’s culture will have effect in the working attitude, quality; system of authority etc. and hence makes difficult to create the business culture. Cultural clash is nothing but the misunderstandings or disagreements between the cultures. In Daimler-Benz and Chrysler merger, are from two different cultures i.e. from Eastern culture of Germany are Daimler Benz and from Western is the Chrysler. These companies are different in terms of the organizational structure, working style and

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