College Papers

The manner because of the cultural variances in

The merger concludes that of Daimler-Chrysler was know to be an equal right of merger where everything had to be shared for the success of the new company formed. but it didn’t work out in that manner because of the cultural variances in the organization. both the car productions could not focus on one’s strength to overcome other gaps. Rather, German company Daimler-Benz tried to win over the Chrysler part of a role by applying German policies in America. In which the Daimler president lost as they had an absence of data and information which would require to understand the U.S market and business culture of the American corporation. As stated by (Miles, 2013) one company instantly trying to swap other always lead to some issues same was the scenario in the case. Both the company’s employees and higher officials co-operated together, nor did they were amenable to go with the new variations for the merger they always wanted to be in their pleasure zones. when (demographic organizational behavior, 2009) book says u need to take some harsh decision to save the losses. To avoid failure, the organization should have planned in the pre-merger period where the case took 12 months which could have been less or sufficient to understand the culture integration the daily tasks, the common issues which could occur, a professional team could have been appointed for few years till the company’s role were smooth. The solution regarding language barriers, leadership, working style should have been applied. The roadmap should have been given to achieve the common goals of the company. The organization always failed to take advantage of the synergy strategy from the business. The merger was one of the best settlement as the technology and innovation were mutually involved for $36 billion, but was a failure because of the differences in cultures and the mismanagement of the higher authorities which were mostly self-interested. If the things were pre-planned and worked in a proper manner it would have been one of the successful mergers as the strengths and the reach of the customer of these companies was the best. After studying these case, one should say that understanding culture is crucial for merging of the companies this case will also give guidance to the organizations who are looking forward with such strategies.