Daimlerchrysler Case Study Solution

The used change model

The deal to a merger between two of the giants are remarkable achievement. There are no cultural differences. "Although the integration of the team spent after the merger of DaimlerChrysler, several million dollars has work on cultural sensitivity seminars for their staff on topics such as sexual harassment in the American and German restaurants etiquette, larger errors in business practice and management settings remain unchanged. So both brands could contain preserved different cultural class:

• James Holden, the President of Chrysler from September 1999 to November 2000 described what he saw as "married up, marry down" phenomenon. "Mercedes, perceived as a fantasy, a particular brand, and Chrysler, Dodge, Plymouth and

The merger was a "merger among equal" and should be Very much successful. But in less than two years, it has become clear that acquisition, do not merge.

The most significant issue was organizational culture. Germans and American styles of management differed sharply. DaimlerChrysler underestimated the influence of culture. Following the merger, the stock price fell, its share value had slipped below $40 from a high of $108. Since the merger, Chrysler’s market share fell from 16.2% to 13.5% .

The Chrysler Division, which was profitable prior to the merger, soon began to lose money, and expected that continue for several years. In addition, there are significant layoffs at Chrysler after the merger, which was not provided prior to the merger. The differences in culture between the two organizations were largely responsible for the failure.

Operation and management were not successfully integrated as "equal" because of the Very much different types of Germans and Americans work: Daimler-Benz culture emphasizes the leadership style is formal and structured, Chrysler advocated a relaxed style (to which they a large part of the financial success of her prior to the merger owed). Also Instead of two unit’s traditionally quite different views about important things like the scales of salaries and travel expenses (Baums,

Daimler-Benz tried States operations Chrysler United as it runs its German operations. Daimler-Benz was characterized by methodological decisions. On the other hand, the United States on the basis of Chrysler creativity calls. While Chrysler American adaptability and value the efficiency and equity of Daimler-Benz will cost more than traditional respect has represented hierarchy and centralized decision making (Nguyen, 2003).

The Germans and Americans have different work styles. The Germans were used to long reports and extensive discussions. On the other hand the Americans made little papers and liked to hold short meetings. Chrysler believed in spotting opportunities and are for them. However, said after the merger in the German-style plan, all the time what to do.

Analysts felt that after the merger Chrysler would no longer exist as an entity. In fact Chrysler was reduced to a mere operating division of DCX. The Daimler-Benz management presence permeated every important function at Chrysler USA. There was no Chrysler presence on the DCX supervisory board or the board of management. Chrysler employees still working in the US operations, were all anxious and demoralized. Daimler-Chrysler has combined nothing beyond some administrative departments, such as finance and public relations (Van Dick,