...When the merger between Daimler and Chrysler was first conceived it was called “a merge made in heaven”. It was combining of forces that was supposed to take the automobile industry in storm and it would turn off work customers the best luxury and affordable cars under one company name. However, why is it that simple Google search of DaimlerChrysler produced such results that have the world failed merger and merger problems. Why is it that just eight short years after the merge became final that this match made in heaven resulted in a divorce made in hell. To understand the organizational culture clash the Daimler&Chrysler face to times the merger we must first step back and look how these two companies shape their cultures. In 1886 the Gottlieb Daimler was faced with the unique challenge of revolutionizing the current form of transportation which at that time was horses and wagons. Daimler’s original focus was on the quality of the automobile as shown to German engineering. To prove this to weary customers he created the motto “The best or nothing”. By the mid 1990’s the Daimler midnames were synonymous with wealth, luxury, quality performance. Daimler was able to achieve this in part mainly because they are highly renowned research and development teams. In 1996 they spent a total of 8.8 billions of dollars on research and development alone. Chrysler had a relative more humble upbringing the net of Daimler. From young age Walter Chrysler was fascinated machinery and...
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...The used change model The deal to a merger between two of the giants are remarkable achievement. There are no cultural differences. "Although the integration of the team spent after the merger of DaimlerChrysler, several million dollars has work on cultural sensitivity seminars for their staff on topics such as sexual harassment in the American and German restaurants etiquette, larger errors in business practice and management settings remain unchanged. So both brands could contain preserved different cultural class: • James Holden, the President of Chrysler from September 1999 to November 2000 described what he saw as "married up, marry down" phenomenon. "Mercedes, perceived as a fantasy, a particular brand, and Chrysler, Dodge, Plymouth and...
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...Case of DaimlerChrysler merger Introduction The case is about merger and demerger of the two automotive companies which have dedicated and skilled workforces and successful products, but in different markets and in different regions of the world, i.e. Daimler Benz of Germany and other company is Chrysler Corporation of US which take place merger in 1998 and demerged in year of 2007. This study analyses the potential sources of value creation and destruction, and evidence on how this process has affected the valuation of the Daimler Chrysler merger. We also discuss some of the important issues that must be taken into account in cross-border mergers and acquisitions. Differences in corporate culture, compensation policies, ownership structure, and the legal environment may pose significant challenges to international business combinations. This is the historic merger that will change the face of the automotive industry. Context In a Modigliani-Miller framework, if mergers do create value, they do so by changing tax liabilities, changing contracting costs, or changing investment incentives. If the size, timing, and riskiness of the combined future cash flows of the merged firms exceed the cash flows of the separate firms (“synergy”), the merger will be a positive net present-value project. They include:- Tax motivation Mispricing inspiration Market power high price hypothesis motivation Earning diversification stimulation In the case of Daimler Chrysler merger...
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...Travis McPhail MGMT 4390 Spring 2015 Dr. Jones Case Analysis: DaimlerChrysler In the case “DaimlerChrysler: Post-Merger News”, DaimlerChrysler is facing the strategic issue of figuring out how to bring together the two cultural differences between Daimler-Benz AG and the Chrysler Corporation that would create a positive and profitable synergy for DaimlerChrysler as a whole, while regaining stockholders trust. As the post-merger integration process accelerates, they need to identify opportunities to increase sales, reduce purchasing costs, and create new markets for DaimlerChrysler. DaimlerChrysler internal environment, the company went through many changes post-merger. Starting with the creation of the “Dream Team” in 1998, resignations of key members of the dream team led to a two-tiered board system: the supervisory board and the board of management. There was apparent unrest among top executives and a growing chasm between the Americans and Germans due to differences in management styles, processes, cultures and work styles. DaimlerChrysler implemented a variety of exchange programs designed to help the two companies meld an understanding of the cultural differences between the two and their respective countries. They created the Automotive Council, which allowed the sharing of innovation, knowledge, technologies and ideas between the two companies to drive future product integration. They also created the Executive Automotive Committee (EAC) which worked towards...
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...Term project Operation Management CHRYSLER: [pic] Total Quality Management Submitted to Dr. Chafik Abid CONTENTS -Introduction…………………………………………………. -Chrysler Total Quality management………………………. -Chrysler SWOT Analysis…………………………………… -Chrysler service Quality…………………………………….. -Chrysler service and dealership Problems (Middle East)… -Chrysler Service solution……………………………………. -Conclusion……………………………………………………. -Work Cited…………………………………………………… INTRODUCTION: DaimlerChrysler AG with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. As it can be seen above that the integration of the two different companies with similar line of production makes the company stronger, reliable, and caters the best for its customer needs and satisfactions. As a result, we chose this company to discuss further on its Total Quality Management and other related issues. Total Quality Management is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge...
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...DaimlerChrysler I. Vision and strategy of Jurgen Schrempp for conducting merger: a. To create a company that would combine the Mercedes’ engineering with Chrysler’s marketing and design savvy to develop a vehicle to be sold anywhere in the world b. Increase market share (diminished by competitors increase in quality, technology, and innovation): i. Daimler – felt pressure to merge, ranked 15th largest automaker (only above Volvo & Porsche) ii. Chrysler – lack management depth, new products, and has small oversee market penetration c. Avoid consolidation due to global overcapacity d. Cope with changing marketplace and technology, such as the Internet e. Remain competitively priced by reducing cost (implementing “platform” design across DaimlerChrysler) f. Was it really “a merger of equals”? What went wrong? (see table and reference #2 – Muller, 2001) Issues faced by DaimlerChrysler after 1998 merger: a. How to leverage “soft” assets, such as Intellectual Capital in the form of Knowledge Management? b. How to resolve cultural differences between Daimler and Chrysler c. How to convince executives, managers, and staff to be open and remain loyal d. How can knowledge management be used to smooth the merger process * See reference #4 (Robb, 2003) for similarities between related KM acquisitions and mergers e. Is there enough resources or reason to adopt Knowledge Management * See Table A for comparison of companies that adopted KM Transfer of resources and capabilities: a. Economies...
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...INTRODUCTION The Mercedes – Benz Company began with the merger of Daimler Motor Company and Benz & Company in 1926. Since the merger, Mercedes – Benz has created and sustained a reputation for innovation and excellence by producing high-quality automobiles. An analysis of Mercedes – Benz would not be complete without an examination of the DaimlerChrysler Automotive Group, as the two industry leaders merged in 1998. The Mercedes – Benz Company is now owned and operated as part of the DaimlerChrysler Automotive Group. Throughout the paper, the guiding principles of DaimlerChrysler will be referred to, as their management decisions directly dictate those of their subsidiary, Mercedes – Benz. PART A: KEY MANAGEMENT ACTIVITIES There are several key management activities that the DaimlerChrysler group executives take part in that contribute to the company being considered a leader in their industry. One such activity is when the CEO and other board members meet with the European Works Council (EWC) and with the World Employee Committee (WEC) each year (.eurofound.europa.eu). These two committees are dedicated to building and fostering strong relations between employees and management. During committee meetings, concerned employees are encouraged to present their thoughts, ideas and suggestions for change to the management board (.eurofound.europa.eu). Through this interaction, a direct link is created between management and employees. DiamlerChrysler created the World Employee...
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...Glavin Center for Global Entrepreneurial Leadership DaimlerChrysler Merger: The Quest to Create “One Company” Tom Stallkamp, Chrysler president and executive in charge of accelerating integration of the recently merged Daimler and Chrysler companies, was feeling great frustration. Why couldn’t he move the integration process along more rapidly? He could see clearly the amazing potential for payoffs, but it just wasn’t happening. He wasn’t used to being unable to move the organization, and he hated the feeling of being able to visualize great things without being able to mobilize people to action. What else could he do? Maybe it was time to let the two cultures duke it out, and allow the stronger one to win. That would be one kind of integration, though not quite what he had been working for. Background At 4:00pm on November 12, 1998 as the final bell rang on the New York Stock Exchange, U.S. automaker Chrysler Corporation and German automaker Daimler-Benz ceased to exist. They emerged the next day as a new global conglomerate named DaimlerChrysler AG. With combined revenues of $130 billion and a market capitalization of $92 billion, DaimlerChrysler became the fifth largest automaker in the world in number of vehicles sold and third largest in sales. The $40 billion stock deal was the largest ever in the industrial world. Upon completion of the transaction Daimler stockholders owned 57 percent of the new DaimlerChrysler and Chrysler stockholders the remaining 43 percent. After...
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...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in December...
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...Beijing Jeep Co. and The WTO 1 In May 2000, the Beijing Jeep Corporation, Ltd. (BJC) faced one of the most challenging periods of its relatively short. China is going to entry into the World Trade Organization (WTO) In order to join the WTO, China had to agree to liberalize its financial markets. It also had to allow for more foreign investment in firms engaged in electronic commerce, entertainment, travel and tourism and other industries. In addition, trade tariffs had to be reduced on a wide range of agricultural and manufactured products – including a reduction in the tariffs on imported automobiles from one hundred per cent to twenty-five per cent by 2006 that would lower the entry barriers to Chinese automotive industry. The company had also spent many years cultivating relationships with senior government officials–what the Chinese refer to as guanxi–to help it achieve its objectives. And since over forty per cent of its product’s content was produced in China, BJC had operated as a local manufacturer under heavy protection from imports for all of its short life. The political and economic climate in China was still undergoing a major transformation begun in 1978. China planned to achieve ‘socialist modernization’ through economic reform and opening up to the outside world. Jeep was the second most recognizable foreign brand name in China, The situation was particularly attractive for Jeep as China was perhaps the world's...
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...automobile industry in the 1990s, identify and evaluate Daimler-Benz and Chrysler’s objectives in the merger. How well was the pre-acquisition planning handled? Daimler-Benz was a German car corporation founded by Gottlieb Daimler and Carl Benz, when both engaged in a merger in 1926. Daimler-Benz started off manufacturing automobiles, motor vehicles and internal combustion engines, agreeing that all factories would use the brand name ‘Mercedes Benz’. Daimler-Benz was later recognised for producing luxury cars. Chrysler on the other hand was the third largest US based car maker and was founded by Walter Chrysler in 1925. Chrysler manufactured cars, minivans, sport-utility vehicles and trucks. Daimler-Benz and Chrysler merged in 1998 forming DaimlerChrysler. This was the biggest merger in history. The Strategic environment is referred to the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations (Johnson and Scholes). Competitive environment is the immediate competitive context in which an organisation or enterprise operates in (www.palgrave.com). The automobile industry in the 1990’s had accelerated during the last half of the decade due to the construction of important overseas facilities. The advancements in industrialisation led to significant increases in the growth and production of Japanese...
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...Strategic Management 313 Unit Index Number 3522 Semester 1, 2006 BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising...
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...Workplace Violence Case Study Walaa Essam, Group 52F ESLSCA Business School Workplace Violence Case Study Introduction This case study addresses the problem of workplace violence by analyzing two actual incidents which took place at two renowned multinational firms, which are “DaimlerChrysler’s Toledo, Ohio, assembly plant” and “Lockheed Martin”. The purpose of this study is to help finding a useful managerial tool to decrease the potential for future workplace violence that may lead to loss of life and unnecessary monetary loss. Managers are not necessarily equipped to develop appropriate measures to effectively deal with violent issues. Given the proper tool, managers can often work wonders. But we first need to look at how we define the problem of workplace violence. Generally, people think of workplace violence solely in the context of physical assaults or homicides. Many mental health professionals consider such a definition too narrow, and instead define workplace violence more broadly, such as "any verbal or physical assault or any violence that occurs in the workplace even if its source is not related to the work environment or any abusive, threatening, intimidating, or assaulting conduct against a co-worker whether physical or verbal. Such conduct can be seen in the form of shaking fists, throwing objects, destroying company property, written or verbal threats, swearing, insults, condescending language, hitting, shoving, pushing, kicking...
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...Touro University International ACC403 Principles of Accounting Module 1 Case Assignment Dr. Paul Watkins Introduction, Review of Accounting Process and Financial Statements According to about.com (http://about.com), Generally Accepted Accounting Principles (GAAP) refers to a set of extensively customary bookkeeping principles, established by the Financial Accounting Standards Board (FASB) (http://www.fasb.org/), and used to regulate fiscal accounting of public corporations. The FASB was formed in 1973, replacing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certified Public Accountants before it. The FASB is a private body whose operation is to “institute and advance values of economic accounting and reporting for the supervision and instruction of the public, the FASB circulate GAAP. GAAP is important in accounting because it is the set standard for companies to follow. In its simplest terms, current assets are what you own and liabilities are what you owe. Current assets are those assets that can readily be converted to cash. Bank accounts are of course most readily convertible, but any assets that can be converted to cash within a short time are current assets. Current liabilities are those liabilities which have to be paid off within a short time. Equity is what is left over. It is your net worth. Non-current items are broken down into two categories non current assets and non-current...
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...CASE STUDY Luxury cars use Reinz’s sealing and shielding products Edited by Simon Atkinson Reinz-Dichtungs-GmbH’s sealing technology has earned the German company a strong position across the board in the luxury car sector. Its sealing and shielding products are being used in the new Audi A8 and the DaimlerChrysler Maybach. Sealing products from Reinz-Dichtungs-GmbH & Co KG have been used in a number of luxury cars. Its successful contribution to the MercedesBenz S-Class, the BMW 7-Series, the Porsche Cayenne and the VW Phaeton is the main reason why its seals, gaskets and shielding systems are now being used in the new Audi A8 and in the DaimlerChrysler Maybach luxury saloon. Partial coatings ensure improved heat transfer between the engine block, gaskets and cylinder heads. This allows component temperatures to equalize faster to help prevent the parts from warping. The manufacturing process is also more efficient. Easily recyclable waste and up to 70% less coating material makes these products more environmentally friendly. High-torque power plant The heart of the new DaimlerChrysler Maybach luxury saloon is its high-torque power plant. On this car, Reinz was chosen to supply all sealing and shielding components used in the car’s 550horsepower, 12-cylinder engine. This engine’s extremely light design (which has a total weight of about 270 kg), coupled with demands for a long service life, low noise levels, and smooth power delivery, meant that the performance requirements...
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