The analysis of the merger of two different companies, Daimler-Benz and Chrysler Corporation
- Background of case
- The Integration of Organizational Cultures
- The Clash of Culture
- Organizational Models and Hofstede's Dimensions theory
- Was the merger a ?merger of equals??
In this case, the analysis of the merger of two different companies, Daimler-Benz and Chrysler Corporation, believed to share the same goals was made. The analysis revealed perhaps the most important experiences in the case, that is, the ?post-merger-integration? and the phenomenon of ?clash culture?.
Today, businesses are more affected by the effects of globalization and companies have no option but to reduce their costs, maintain their margins and adapt their business to a more international level. To strengthen their position in the market and to gain competitive advantages over their competitors, a merger appears to be an intelligent solution for companies. Yet, one question is that, how successful a merger can be when two companies do not have the same business spirit, the same culture?
In the case of Daimler Chrysler merger, what are the main differences between the American model and the Germany one corporately and nationally speaking? First of all we began by looking at the background information in which the analysis was based, then, the integration of organizational culture and the integration stage parts. We also analyzed the role of the employees and the failure of the merger, thereafter, the ?clash of culture? and the comparison between the two models (America vs. Germany).The analysis dwelt much on Hofstede's model of power distance. Finally some far reaching recommendations were made.