Merger of Daimler-Benz and Chrysler Corp.

Essay by davelong13University, Bachelor'sA, August 2007

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OverviewIntroductionLegendary German car producer Mercedes-Benz a member of Daimler-Benz married with its US American colleague Chrysler Corp. These two "boys" want to become together the most profitable carmaker worldwide. After some "illnesses" of the American brother, the company Daimler-Chrysler is on the way to make it. However, on the way to become the leader they must influence others. They must influence the global market as well as be influenced by the global market itself and they try it with many new models coming to the market every single year, huge investments all over the world. How is it possible that two companies can have such an affect on the global market?Pros and Cons of Mergers and AcquisitionsTwo separate companies coming together to form a single company have a great deal of pros and cons. The logistics of the merger are the biggest con that both organizations must deal with first.

Management must ensure that the logistics of the merger are well mapped out ahead of time and relayed to each employee clearly, so that each individual knows what is expected of them. Management must compare how each organization does everyday task and selecting which task is more efficient and relaying the change to all employees and repeating this process. Repeating this process until every task is mapped out from everyday task to much more in-depth task that the new company will have to handle. Questions such as how will the two companies merge. What will the roles and responsibilities of the senior management, management, and employees entail?Logistics is the biggest con but also opens the opportunity door. This opportunity door allows the new organization to evaluate everything that is done and select the most efficient method of getting work done. By becoming more efficient, the organization can grow beyond just...