Essay About Study Of The Merger Failure Of Daimlerchrysler And Appendices        14Appendix A

Managing Organisational Behaviour Daimlerchrysler
Table of Contents1.0 Introduction        22.0 Organisational failures        22.1 Organisational culture clash        22.2 Employee turnover        33.0 Organisational behaviour issues        43.1 Organisational culture clash mismanagement        43.2 Poor communication in organisational change        63.3 SWOT analysis        94.0 Organisation crisis management strategies        104.1 DaimlerChrysler approaches        104.2 Recommendations        115.0 References        126.0 Appendices        14Appendix A – Share price history: Chrysler 1998-2002        14Appendix B – Comparison of Daimler and Chrysler culture        15Individual Case Study Report1.0 IntroductionThis report is going to carry out a study of the merger failure of DaimlerChrysler. Daimler is a Germany motor car company manufacturing luxury vehicles for high-class buyers. Chrysler Corporation is an American motor car company manufacturing cost-effective vehicles for middle to low-class buyers. Daimler’s former CEO Schrempp and Chrysler’s former CEO Eaton saw the benefits of combining their businesses. So they agreed to implement the merger project based on the consensus of “merger of equals” in year 1998. After the project started, several crucial organisational culture conflicts and communication issues aroused and caused the merger to fail. After the merger, Chrysler’s staff turnover increased and share value dropped. The merger did not bring competitive advantages to DaimlerChrysler, it also adversely affected the relationship between two companies.This report will study the merger failure of DaimlerChrysler, and then provide an analysis on the organisational issues that have caused the failure.  Specifically, this report will focus on the culture clash mismanagement issue and the poor communication issue in organisational change.  Theories will be used to justify how these organisational behaviour issues have led to the merger failure. Finally, some practical recommendations will be given.2.0 Organisational failuresThis section will describe two failures of DaimlerChrysler merger, they are organisational culture clash and employee turnover. It will also explain the consequences of the failures to illustrate how they have adversely influenced DaimlerChrysler.