Case Analysis: DaimlerChrysler
In the case “DaimlerChrysler: Post-Merger News”, DaimlerChrysler is facing the strategic issue of figuring out how to bring together the two cultural differences between Daimler-Benz AG and the Chrysler Corporation that would create a positive and profitable synergy for DaimlerChrysler as a whole, while regaining stockholders trust. As the post-merger integration process accelerates, they need to identify opportunities to increase sales, reduce purchasing costs, and create new markets for DaimlerChrysler.
DaimlerChrysler internal environment, the company went through many changes post-merger. Starting with the creation of the “Dream Team” in 1998, resignations of key members of the dream team led to a two-tiered board system: the supervisory board and the board of management. There was apparent unrest among top executives and a growing chasm between the Americans and Germans due to differences in management styles, processes, cultures and work styles. DaimlerChrysler implemented a variety of exchange programs designed to help the two companies meld an understanding of the cultural differences between the two and their respective countries. They created the Automotive Council, which allowed the sharing of innovation, knowledge, technologies and ideas between the two companies to drive future product integration. They also created the Executive Automotive Committee (EAC) which worked towards corporate integration and the analyzing of products, powertrains and components to find commonalities between Daimler-Benz and Chrysler. Finally, I believe the DaimlerChrysler organization has a sustainable competitive advantage in their utilization of the Graz facility which deflected the need to build new facilities, saving DaimlerChrysler millions of dollars.
DaimlerChrysler external environment, there was a continued decline of North American automotive sales. The economy as a whole...
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