Daimler-Chrysler: Merger of Equals or Global Fender Bender?

What prevented Daimler-Chrysler from achieving the promised synergies?

Daimler-Chrysler had both variant people with devil different guidance philosophies operating the same company. The fundamental differences in management, operational and purpose making styles caused a significant discord between the Germans and the Americans. As with any merging of companies, there were going to be different corporate cultures, and in useicular different national cultures, into the sweet corporation. The national culture of a company is an integral part of a companys overall corporate culture.

The corporate culture clangour prevented Daimler-Chrysler from achieving the promised synergies. Cultural differences created great tension; 1. The Germans wanted to put less-traveled issues on the t able from the beginning; thereby expediting the integration of the devil companies. The Americans wanted to ease into changes, 2. Differences in pay scales, and travel and outgo policies added fuel to the situation, 3. Differences in management, financial, operational and decision making styles and staffing briefly became apparent.

Distance and different time zones added to the unease between the entities because the Germans always seemed to be functioning at a higher, more efficient aim due to their early time zone advantage apiece business day.



Furthermore, synergy can only occurs when two companies unneurotic can make and market products more efficiently than they were able to do apart.

Why would Eaton and Schrempp agree to share the top position of the corporate entity?

Schrempp and Eaton agreed to share the top positions in order to run into that both companies interests were represented. Also the merger of these two corporations both had two different cultures and business techniques; in order to make a smoother transition, it made sense to keep two the two top executives who had the know how and the knowledge to see these companies through the merger. With the two...

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