Caselet Code : CLIM004
Publication date : 2005
Subject : International Marketing
Industry : Automobiles
Length :
 4 Pages
Price :  Rs. 100 (Detailed Pricing Info)

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Abstract

The caselet analyzes the consequences of the merger between the Daimler-Benz AG and Chrysler Corporation. It discusses how the merger proved to be a costly mistake for both the organizations and attempts to analyze the factors that led to the failure.

Issues:

» Do mergers always have a positive impact on companies?
» Role of human resource in the success of a merger
» How cultural factors make or mar mergers
» Is the Daimler-Chrysler merger a merger of equals?

 
Key words:

Chrysler Corporation, Daimler-Benz AG, Daimler-Chrysler, merger, cross-cultural merger, transnational merger, post-merger integration, cultural differences

Questions for Discussion:

1. What are the possible reasons for the failure of the Daimler-Chrysler merger?

2. What are the issues that should have been considered by both the companies before entering into a merger?