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Case 11 DaimlerChrysler AG

Case 11 DaimlerChrysler AG. Agenda. Case Summary - Sergey Question 1 – Paul Question 2 – Batar Question 3 – Paul Question 4 – Yan Question 5 – Sergey Question 6 – Yan Question 7 – Sergey. Case Summary. Daimler-Benz and Chrysler Corporation signed merger agreement on May 6 th , 1998

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Case 11 DaimlerChrysler AG

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  1. Case 11 DaimlerChrysler AG

  2. Agenda • Case Summary - Sergey • Question 1 – Paul • Question 2 – Batar • Question 3 – Paul • Question 4 – Yan • Question 5 – Sergey • Question 6 – Yan • Question 7 – Sergey

  3. Case Summary • Daimler-Benz and Chrysler Corporation signed merger agreement on May 6th, 1998 • Post-merger developments • Strategic realignment and changes

  4. The Merger Was Welcomed by Auto Analysts and Consumers • The world’s third largest auto manufacturer (GM 1st, Ford 2nd) • Over $154 billion revenue, over $5.6 profit • Mercedes-Benz ranked as the most visible luxury brand • Chrysler’s success in low-end/sub-compact cars and trucks

  5. Concerns for the Merger • Reorganization of management formal and informal • The companies’ future growth potential • Changing global segments • Incompatible governance issues

  6. Daimler-Benz and Chrysler Corporation’s strengths in 1998 Daimler-Benz • Mercedes is the most popular luxury brand • A strong dealer network • Ranked #17 globally Chrysler Corporation • Low-end/sub-compact cars and trucks • Big auto manufacturer in North America • Mini-vans, Jeep and Dodge trucks • Ranked #25 globally

  7. Short-term Strategies • Cost Cutting • Worldwide integration • Rationalization • R&D savings • Value pricing strategy • Plant Closings

  8. Long-term Strategies • Global presence • Strong brands • Broad product range • Technology leadership

  9. What did you learn from DaimlerChrysler’s post merger problems and blunders?

  10. Question 4 • First, the importance of company culture integration. • Second, the importance of a clear and correct target. • Third, the importance of customers and demands. • Fourth, the importance of the association between theories and practice • Fifth, the importance of corporation especially the top executives • Sixth, the importance of knowing the market and the partner

  11. DaimlerChrysler’s Competitors • GM • Ford Motor • Volkswagen • Toyota

  12. Dieter Zetsche’s Strategies • Build a more cooperative and younger leading group to reach culture integration. • Make the company more competitive by saving money and using different ways to meet different customers’ needs.

  13. Breakup and Future Outlook • Incompatible cultures • No desire to adapt • Brands’ mismatch • Daimler AG and Chrysler LLC in 2008-2009

  14. Thank you!!

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