The Failure Of Daimlerchrysler

The Failure Behind DaimlerChrysler
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LDR531
July 18, 2011
Kevin Harris

The failure behind DaimlerChrysler
In 1998, Chrysler pile and German owned Daimler-Benz, made a business last to merge. The dickens entities believed the deal to be a amalgamation of equals, so creating DaimlerChrysler. The merger proved to be nonhing more than a failed marriage. Often referred to as a German takeover, Daimler-Benz needed an American partner to help capture American market sales. Chrysler was routine huge American profits at the time exclusively was looking for an increase in European sales, so the merger seemed like a good fit for some(prenominal) organizations. after(prenominal) closing the deal though, the organizational structure suddenly became unsteady, proving that DaimlerChrysler was non prepared to manage the change. Hence, the second reason for the unsuccessful marriage, DaimlerChryslers failure to manage the organizational cross-cultural issues that resulted because of the merger.
Prior to the merger, both companies held individual visions of what their brands would bring to the auto industry. Chryslers image was one of American excess, and its brand value existed within in its assertiveness and risk-taking cowman aura, all produced within a cost-controlled atmosphere.



Mercedes-Benz, in contrast, exuded disciplined German engineering coupled with uncompromising quality (Tuck School of Business, 2002, p.5). When two organizations such as these come together, the typical reason is synergy, or potentially higher profits that can result from a merger. The partnership strategically planned to obtain growth and international presence in the auto industry. In theory, this concept was an coarse sell to the shareholders, but sharing of automotive platforms meant the companies would loose their brands inherent value. Initial failure occurred because the partnership was based only on financial and economic information or hard data, and did not involve data to support...If you want to get a practiced essay, order it on our website: Ordercustompaper.com



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