The case involves the two

The case involves the two world leading companies Daimler-Benz and Chrysler in the car industry.

which is taken from the Financial Times media. Whose objectives, targets and goals were almost similar. So, they decided to come together to achieve their objectives and strengthen their position and become the top leaders in the world market by outraging their competitors and maintain a stability at the time of inflation and financial crises. The merger of these companies took place in the year 1998.

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Daimler is a German manufacturer which focuses on the high-quality production of luxury cars. While the Chrysler Corporation, which focused on its creativity and new ideas with innovations for the customers in the car market. (Stuttgart, 1999) further, the merger was reported as a failure due to the differences occurred in the business cultures which later lead to the failure and selling of the shares of Chrysler in the year 2007 where they paid $650 million to Cerberus Capital Management to take Chrysler under its hands. (TIME, 2009)It was a failure due to the cultural issues occurred within the organization of American and German companies.

To avoid such cultural issues both the companies practiced their style and culture which later became one of the important issues for the failure of the business. The case further talks about the reasons behind failure in depth which was leadership, the board, the executive officer and the managers could not lead the new business formed. working style, of the western world and Europe, were far different from each other for example one used to be more precise and detail where other was opposite many similar issues raised. (TIME, 2010)communication gaps with no proper guidelines which could have resolved by appointing a team of professional who could not only monitor activities closely but also give training to the employees. Proper management and cultural integration are two important aspects which were missing in the Daimler-Chrysler merger which are been recommended. The overall merger included $36 billion.

(Gibney, 2000)


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