The merger process of two companies can be divided into 3 stages. The first stage is the preparation phase. From 1994 to 1995, two companies started contacting each other through a minivan contract in China and established a joint-led company, Q-Star. This cooperation has left a good feeling for two companies, and the staff was highly appraised of the project. Since 1995 to 1996, the management board of two companies still had the intention to cooperate, but there was no fixed goal to work. Although there was no new plan of cooperation, two companies were more familiar with each other because negotiations on mergers have begun and they had more opportunities to understand each other. On March 2, there was a plan called Project Gamma, which …show more content…
The third stage is the reorganization phase of the new company. At the negotiating stage, the management of two companies has identified that two companies will quickly merge after the negotiations. Although two companies will face a big difference in corporate culture, management broad still decided to complete the merger within 3 years for the long-term development of the new company. The first task of the executive to the merged enterprise is to establish an organization which called post-merger integration. PMI is responsible for consolidation after the merger, the organization not only can monitor the entire merger process but also can help Chairmen’s Integration Council to design the company's basic regulations and establish development goals. The PMI team studied many cases of large-scale mergers in the past, and after combining the advantages and disadvantages of decentralized and centralized management systems, a new distributed leadership method was proposed. The new management board consists of 18 members, all from two companies, including two chairmen. The 8 members of the management board comprise the CIC, which oversees the consolidation …show more content…
First, the size of two companies is not too big, they will be in a weak position if they compete with large corporations in the international marketplace, so expand the size of enterprises can improve the competitiveness of enterprises in the international market. An analysis of a senior manager inside Daimler, the company's own high visibility, product quality is also excellent, it is easy to gain profits, but the size of the enterprise is small, so they will be in a weak position in the international market competition, to get rid of this adverse situation, they must expand the size of the enterprise. Chrysler, which ranks 6th in manufacturing, is smaller than some big companies such as Ford or General Motors, but it also faces pressure from the rapid development of its rivals. With the development of many manufacturing companies in Asia and Europe, Chrysler executives have realized that the company’s size is not big enough, so they want to quickly expand the size of enterprises, to use economies of scale to promote the development of enterprises. Second, mergers are fair to both companies, and the merger will not have much impact on two companies. First of all, the two companies are similar in size, are not a large-scale enterprise, but also belong to a good market prospects for the company, each year can obtain a considerable income, so the two companies can be in a parallel position, there is no case of a company