Daimlerchrysler Case Analysis

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DaimierChrysler Case Study Introduction The merger between Chrysler Corporation and Daimler-Benz to form DaimlerChrysler was considered a cross-culture merger. The majority of mergers are unsuccessful. In DaimlerChrysler’s case, the clash of culture and horizontal and vertical integration was too much to handle. The prominent reason as to why the merger was unsuccessful was because the American and German approach to business differed immensely. Case Questions 1. In response to Schrempp, Stallkamp had two options. First, Stallkamp could have listened to Schrempp and circumvented Eaton in making the decisions. Stallkamp would have to consider the options of the negative effect that this would have on Stallkamp and Eaton’s relationship. Furthermore, Stallkamp would have to consider the negative effect that-that decision would have on the entire DaimlerChrysler Company as whole. The decision to circumvent Eaton would speak volumes about the integrity of the process especially among employees. Second, Stallkamp could have brought this to Eaton’s attention that Schrempp encouraged Stallkamp to go behind Eaton’s back. Stallkamp would have to consider the options that this backlash would have on the Daimler-Benz and Chrysler merger. According to the case, it can be assumed that Schrempp is a very volatile, and easily angered individual who takes offense to everything. Schrempp could become enraged and come to the conclusion that Stallkamp and Eaton we’re “ganging” on him. I recommend that Stallkamp take a completely different option and try to build a stronger, more integrated relationship between Schrempp, Stallkamp, and Eaton. It is clear that the underlying issue between these three leaders is the lack of communication. According to the case, Schrempp and Eaton have spent less than a few days together with face-to-face communication. All communication

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