Roles and Role Dynamics within the Daimler-Chrysler Corporation after Essay

Roles and Role Dynamics within the Daimler-Chrysler Corporation after Their Merger - Essay Example The paper tells that merger is one more important element of globalization. The phenomenon of a merger has been observed by the specialists of various sciences. One of the interesting aspects of the phenomenon is its influence on the corporate relations and the role dynamics after the process of merger. The case with Daimler-Chrysler Corporation is interesting to be examined as the example within the research as the case of the merger that appeared to be a takeover, with all its effects, influencing the relations within the corporation with its financial success. "In fact, up to 80 percent of corporate mergers and acquisitions fail to garner the expected financial gains, mainly because the deal-makers fail to anticipate the psychological and philosophical clashes that can undermine the alliance, industrial/organizational (I/O)". Before describing the circumstances of the merger it is important to describe the major events that happened just before the merger. The Chrysler company was a successful enterprise when it was headed by Lee Iacocca, its President. By the end of the 70s, he provided his company with $1.5 billion dollars as federal loan guarantees. These loan guarantees made Chrysler a profitable company until 1988 when innovations became necessary. The President of the company decided to risk and produced four kinds of new products - pickup trucks, sedans, minivan, and jeep. But at the beginning of the 90s Lee retired and it led the company to failure. After the merger, Chrysler began to lose money very quickly... The factors that led to such regress need careful consideration and the specialists are ambivalent as to determine the reason for the situation occurred. The company seemed to run well when the problems fell. When the problems revealed, the successor of Lee Iaccocoa, Robert Eaton, was fired and some other executives were fired with him. His place was occupied by Dieter Zetche, who found that the present market situation demands reorganization in the company structure. He created a team of specialists that replaced the executives that were fired with Robert Eaton. His innovations comprised changes in the improvement of the quality and as well as producing new products - a new model of pickup and jeep. This policy turned out to be successful and Chrysler received 788 million euros in 2002. In the merger of 1998, Daimler Benz and Chrysler Corporation created a new corporation of companies approximately of the same size but quite different in organizational culture and corporate relations. Chrysler was a company created in the USA, with the business strategy of the company dictated by the necessity of the flexible approaches and innovations. Daimler Benz was inspired by the features of the German culture - it is characterized by the strict hierarchical structure with high diversifications in corporate relations. The merger looked like it was the union of two partners with equal rights, and this was the information that had b een presented to the USA public by Daimler. But the fact was that the Chrysler Corporation had been sold. This led to numerous problems that occurred in the company itself, and these problems may partially influence the failure the company faced in 1998 - 2000.