In the case of the Daimler and Chrysler merger, there is an agreement that cultural differences between the two companies were crucial factors responsible for the failure (Vlasic and Stertz, 2000). Despite the fact that there is no precise definition for the concept corporate culture; however, it can be defined as “ the collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another.” (Wheelen and Hunger, 2012). When Daimler Benz in Germany and Chrysler in United States of America decided to implement “ merger of equals” they were aiming to combine both of their cultures to generate a new shared one(Hollmann, Carpes and Beuron, 2010). In addition to benefiting from each other’s strengths and capabilities ( Weber, Camerer, 2003).
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On one hand, Daimler focuses on the quality and reliability of its automobiles, its motto is “the best or nothing”, Daimler can be described as “conservative, efficient and safe” (Appelbaum, Roberts and Shapiro, 2009). On the other hand, Chrysler’s mission was to provide people with well-engineered advanced and affordable cars. These differences in values made the two companies working in different direction, which had resulted in a conflict between Daimler and Chrysler.
“The two organizational cultures were too different to be integrated successfully. They were based on fundamentally different values and morals that came to light in the day-to day work” (Hollmann, Carpes and Beuron, 2010). These organizational cultural differences made it harder for employees in the merged company to view things in the same manner. The merger between Daimler and Chrysler is difficult to be called “merger of equals” due to the organizational cultural differences between the two companies. And the “merger of equals” was being called “fiasco” few years later(Jacobsen,
On one hand, Daimler focuses on the quality and reliability of its automobiles, its motto is “the best or nothing”, Daimler can be described as “conservative, efficient and safe” (Appelbaum, Roberts and Shapiro, 2009). On the other hand, Chrysler’s mission was to provide people with well-engineered advanced and affordable cars. These differences in values made the two companies working in different direction, which had resulted in a conflict between Daimler and Chrysler.
“The two organizational cultures were too different to be integrated successfully. They were based on fundamentally different values and morals that came to light in the day-to day work” (Hollmann, Carpes and Beuron, 2010). These organizational cultural differences made it harder for employees in the merged company to view things in the same manner. The merger between Daimler and Chrysler is difficult to be called “merger of equals” due to the organizational cultural differences between the two companies. And the “merger of equals” was being called “fiasco” few years later(Jacobsen,