Example of an Organizational Conflict

819 Words Jan 16th, 2018 3 Pages
Chrysler Corporation and the German Daimler Group. First of all, the combined product lines from each company complemented each other well and each would benefit from a more comprehensive product line. Chrysler focused on comparatively lower cost cars and sport utility vehicles while Daimler and Mercedes primarily operated in the luxury market. As a result of the combination of the products and the markets in which they were marketed, there were a large number of expected synergies that were expected to be gained through a merger. It was also believed that the two companies would share their specialized expertise. Chrysler budgeted comparatively little for their design costs while Daimler-Benz spent a whopping five percent of their total operating budget on R&D; this R&D represented roughly two thousand dollars per vehicle. Furthermore, Chrysler was able to offer a new product to market in much less time than its partner and it was thought that the German company could gain some from Chrysler perspective on R&D. This is one example of many in which it was predicted that the companies engineering teams would complement each other since they had different specializations. However, after the merger actually took place, the combining of the two companies was being called a "fiasco" in the news headlines (Jameison, 2000).…
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