Case Study: Daimlerchrysler's Merger

Satisfactory Essays

This essay is a case study of DaimlerChrysler’s merger and it will first introduce the various stages of the merger, and then summarize the reasons for the merger, finally Hofstede’s dimensions of national cultures will be used to analyze issues during the merger.

Stage of the merger progress
The DaimlerChrysler’s merger can be described as following four stages based on the timeline and different functions of each stage. Moreover, the third part which is the analysis of issues will based on these four stages.
The first stage is Pre-merger phase, two companies need to target the partner and know each other. During 1994 and 1995, a minivan contract in China gave two companies an opportunity to face each other and after that, a jointly owned …show more content…

After previous co-operations between two companies, their CEOs conducted several informal talks and conversation related to possible merger. Then in January of 1998, a formal negotiation named project Gamma had be conducted and the negotiation discussed some important issues of the merger including name, structure, location of the new company and the specific merger progress. Project Gamma decided that the new companied will be named as DaimlerChrysler and will be incorporated as a German joint stock Company (case study 0773; 4-5). The stage of negotiation helped two company decided several important issues related to the merger and prepared for the …show more content…

Since 1960, the number of car manufacturers decreased from 42 to 17 and the market has been controlled by several big brands (case study 0773; 15). In the competitive environment, small companies in automotive industry had may face risk of being takeover. In 1998, among the 17 manufactures, Mercedes-Benz was the 15th largest and Mercedes-Benz was the 15th largest (case study 0773; 3). Both of the companies’ sales volume was much smaller than the largest producer. Thus, with the situation of global consolidation, the merger should benefit both

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