Daimler - Chrysler
Daimler - Chrysler
Power and
conflict:
win-win
situation.
Culture:
Cultural fit.
Operations:
Processes
Success is Difficult to
Achieve
Studies of M & A integration report 60-75% fail (Source: KPMG,
2008)
E.g., Employees in firms that are acquired or merged report lower overall
job satisfaction, lower trust in management, and diminished sense of
job security (Gantz-Wiley Research, 2004)
Daimler
Founded in the year 1886 by Gottlieb Daimler and
Carl Benz.
125 years later, in anniversary year 2011, Daimler
AG is one ofthe
worlds
most successful
automotive
With
its divisions
Mercedes-Benz
Cars,
companies. Daimler Trucks, Mercedes-Benz Vans,
Daimler Buses and Daimler Financial
Services.
The Daimler Group is one of the
biggest producers of premium cars
and the worlds biggest manufacturer
of commercial vehicles with a global
reach.
Daimler Financial Services provides its
customers with a full range of
Chrysler
Daimler Chrysler
third
1st, Ford
largest
2nd)
auto
Chrysler Corporation
Low-end/sub-compact cars and trucks
Big auto manufacturer in North America
Mini-vans, Jeep and Dodge trucks
Ranked #25 globally
Corporate Cultures
Daimler
Management processes of
planning, organizing and
controlling. More conservative,
efficient and safe.
Chrysler
Setting goals, directing and
monitoring implementation. Known
as the risk-taking underdog
Cultural challenges
Differences in working styles, leadership
approach
National culture differences
Behavioural differences
Customer proposition
Daimler
The driving image and
experience associated with
the highest quality available
in the market
Chrysler
Attractive, eye-catching
design at a very competitive
price
Value chain
Daimler
Emphasis on
engineering, design,
quality
and after
sales service
Chrysler
High volume, low cost
manufacturing and
distribution
People Issues
Key members of
management team
leaving
Employee moral and
motivation
Retention of key staff
Consultation with staff
and representative
bodies
Others issues
of
corporation
especially
the
top
Conclusion
Compelling business reasons need to drive mergers and acquisitions
Peoples concerns matter, addressing them is as important as other factors
in M & A activity
Meaningful involvement in the execution of the change has the most impact
on employee cooperation and commitment
Continually clarify direction, and communicate extensively, candidly, and on
ongoing basis
Treat people fairly, and design systems and processes that can flex with the
needs of the organization
OB practitioners have a clear role in guiding and supporting change
processes and change leaders in M & A activities
These pitfalls of mergers and acquisitions challenge today's leaders to a new
standard of managing change. The strategy is clear - accelerate, concentrate,
adapt, and in the case of international M&As, consider cultural differences. The
human and cultural issues that separate the 17% from the 83% are not about
some abstract values or the "soft stuff", but the concrete reality of productivity,
economic value and sustained growth.
http://oica.net/category/production-statistics/
Organisation Internationale des Constructeurs
dAutomobiles (OICA).
Date Source: KPMG