TEESSIDE BUSINESS SCHOOL

MEDITERRANEAN UNIVERSITY
COLLEGE

Strategic and Change Management

Case study 4: Daimler Chrysler

Dr. A. R. Morden

George H. Papadakis, PhD

Daimler Chrysler merger:

Reasons for success:
Complimentarity:
complementary range of products
complementary skills (Daimlers high quality, international clout and
strong brands added to Chryslers skills in car design)
Speed of implementation of merger (just 10 months)
Reasons for worries:

Cultural dissimilarity makes converge difficult to manage:

different languages
different work traditions

different corporate governance style

Benefits of merger:
Synergies
Global reach (Europe and United States)
Superior value for customers
Stock price increase

Stretch and leverage of resources

Cost savings due to economies of scale ($1.4 billion save by exchanging
components, combining purchases and sharing distribution)
Size increase
Restructuring led to lean short of bureaucracy managerial patterns