1. In what ways did the cultures of the two companies differ? What do you think the terms 'innovation' and 'entrepreneurship' meant to Chrysler employees? What about to Daimler employees? In 1998 when German industrial giant Daimler-Benz AG merged with American automobile manufacturer, Chrysler Corporation, Daimler Chrysler came into existence. This merger didn't result for the big picture that was expected after this merge. It was thought that this merger would create a global economy not only between two of the world’s greatest economy but also capturing the market in various part of the world. Whereas, underneath this view there were many issues, which were involved in this merger of totally two different cultures. Daimler-Benz was an aggressive firm, which believed in hustling every possible way to make its company the number throughout the world. But, Chrysler was on the other hand an easy going and slow progress firm which believed in the production and flexibility of operation.
At DaimlerChrysler, differences in compensation systems and decision-making processes caused friction between senior management, while lower level employees fought over issues such as dress code, working hours and smoking on the job. Language also became an issue. While most managers on the Daimler side could speak some English, not all were able to do so with the fluency needed for effective working relationships. Also, only a few Chrysler managers had any knowledge of the German language. For Chrysler 'innovation' means to Look forward for new changes, converting ideas into profit, Passion of designing, developing and building greatest cars and For Daimler 'innovation' means more analytical, more long-term looking, more technology-minded.
2. Compare and contrast the two companies’ organizational structures. What challenges do you think these different structures created?
Structure of Daimler| Structure of Chrysler|