Case Study Of Renault-Nissan And Daimler Chrysler Mitsubishi

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Renault-Nissan succeeded and Daimler Chrysler-Mitsubishi failed Here, comparison and contrasts is presented for the Renault-Nissan and DaimlerChrysler-Mitsubishi mergers to consider the relative and combined effects of national and organizational culture on the performance of Nissan and Mitsubishi. Japanese national culture influenced organizational culture and HRM practices, which created organizations, had no sense of urgency, profit orientation, or accountability and led to poor market and financial performance. Also leadership was a major factor impacting on the success of the turnaround efforts of these two organizations. There is substantial evidence indicating that culture is important to organization performance: A strong organizational culture can reduce employee effort and lead to competitive advantage. Organizational culture is important to organizational change which is frequent necessity in modern organisations. Lack of attention to organisational culture is often cited as important reason for change failure. Organizational culture is also useful during mergers and acquisitions with the inability to extract expected value being attributed to cultural factors. KPMG (2009) study that inter-viewed over 100 senior executives involved in 700 deals from 1996 to 1998 found that 83 percent of all mergers and acquisitions failed to produce any benefit for the shareholders, and over half actually destroyed value. The overwhelming cause for failure was people and cultural

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