Daimer Chrysler combination of Gain

The owners of the two firms can continue as co-owners of the merger and use resources of their separate companies to support the new entity Daimler motives

* To become a global player with interest outside its traditional west European base. Chrysler motives* To gain competence in product technology and quality* Expand beyond North American marketThe combination of Daimler and Chrysler would create potential of gaining high volumes, participation in all segments, innovation, adaptability, technology and quality excellence Corporate culture

The main problem in the DaimlerChrysler post-merger integration was that of corporate culture clash. The problem began with the vision of the new company which was a broad strategic intent and did not drive behaviour or a new corporate culture which was important in this cross border integration. Integration process

The abrupt change of direction from preservation mode to absorption because of the disappointment of the first 6 month earnings raised a lot of questions on whether the merger was actually a merger of equals. Communication

There was no clear communication in what was happening in Chrysler which resulted in the departure of many key talents that had contributed to Chrysler’s success in the 1990. Shremp’s confession about the merger being more of a takeover in the financial times put the company into a major credibility setback in the USA. This intensified the uncertainties at Chrysler and this ignited outrage in American media. Geographic

Language barriersThe difference in economies meant that employees in Germany and The USA were paid differently with the USA counterparts getting sometimes as much as 6 times more than what their German subordinates were getting Recession

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SuccessThe excellent concord of the two chairmen played part in the success of the integration teams although Shremp played a more active role. Leadership within the company was organised earlier on in the integration process resulting in integration benefits of $1.6 billion which is 200 million more than what had originally been forecasted

The combination of Daimler and Chrysler would create potential of gaining high volumes,participation in all segements,innovation, adaptability,technology and quality excellence http://www.studymode.com/essays/Daimler-Chrysler-Merger-838247.html