What prevented Daimler-Chrysler from achieving the promised synergies?
Daimler-Chrysler had two different people with two different management philosophies operating the same company. The fundamental differences in management, operational and decision making styles caused a significant discord between the Germans and the Americans. As with any merging of companies, there were going to be different corporate cultures, and in particular different national cultures, into the new corporation. The national culture of a company is an integral part of a company's overall corporate culture.
The corporate culture clash prevented Daimler-Chrysler from achieving the promised synergies. Cultural differences created great tension; 1. The Germans wanted to put unpopular issues on the table from the beginning; thereby expediting the integration of the two companies. The Americans wanted to ease into changes, 2. Differences in pay scales, and travel and expense policies added fuel to the situation, 3. Differences in management, financial, operational and decision making styles and staffing soon became apparent.
Daimler
Chrysler HQ in Windsor, ON
200 UAW Daimler-Chrysler 400Distance and different time zones added to the unease between the entities because the Germans always seemed to be functioning at a higher, more efficient level due to their early time zone advantage each business day. Furthermore, synergy can only occurs when two companies together can make and market products more efficiently than they were able to do apart.
Why would Eaton and Schrempp agree to share the top position of the merged entity?
Schrempp and Eaton agreed to share the top positions in order to ensure that both companies' interests were represented. Also the merger of these two corporations both had two different cultures and business techniques; in order to make a smoother transition, it made sense to keep two the two top executives who had the know how and the knowledge to see these companies through the merger. With the two...