17.08.2019-136 views -Daimler The chrysler Post
The DaimlerChrysler Post-Merger Integration
The case ‘The ‘DaimlerChryler Post-Merger Integration' gives an overview of the combination between DaimlerBenz AG of Germany and Chrysler Company of the ALL OF US. The case focuses on the post-merger integration as well as the various challenges faced by merged enterprise. It also is exploring the enormous ethnic differences and management designs and the problems to realize the synergies discovered prior to the merger.
How come did that they decide to merge?
At the time of the merger both the companies had been hugely lucrative and the goal was to guarantee long-term abundance as well as take advantage of large potential synergies. The availability and marketplace concentration matched each other perfectly. Chrysler to date had did not establish higher geographical opportunity (90% of sales concentrated to North America) and expected to improve quality and technical functionality throughout this kind of merger. It also had become an attractive target for the take-over. DaimlerBenz was and had been for a long time very successful in its car section but was only with the quality markets and needed for permanent prosperity to increases their volume. To date it had not really been able to be given the booming US industry. Both corporations wanted to build a much larger, throughout the world based business to compete in major markets on the planet.
•World innovator in vehicles
•Savings caused by economies of scale in R& M and purchase •Revenue enlargement
•Complete variety of products (Jeep and SPORT UTILITY VEHICLE (SUV) segment for DaimlerBenz, extravagance end for Chrysler) •Higher productivity through better potential utilization •Exchange of technology
•Higher bargaining power, lack of capital restriction
Happenings during the integration period:
•Taxes and government problems were determined first
•Integration took place directly afterwards
•Decision for a back-end merger -> low the usage depth, synergies stem through the administrative level rather than...