FINAL PROJECT – MERCEDES-BENZ USA
Mercedes-Benz USA and Organizational Behavior Concepts
Organizational behavior (OB) has a significant impact on a company’s operations and effectiveness. OB is essentially a roadmap for the company to follow. If the map is not carefully thought out, most likely the company will not arrive at its desired destination. If the OB is sound and well thought out, the chances of the company meeting or exceeding their set goal are greatly increased. In the case of Mercedes Benz USA and Chrysler LLC, it seems there is a history of both unfavorable OB and favorable OB. Mercedes Benz USA
Mercedes Benz USA, LLC is a Daimler Company, which is responsible for the distribution and marketing of Mercedes Benz and Maybach vehicles in the United States of America. Mercedes Benz USA was originally founded in 1965. Before that, Mercedes Benz cars were sold in the United States by Mercedes Benz Car sales, Inc. which was a subsidiary of the Studebaker-Packard corporation. Today Mercedes Benz USA has 348 retail dealerships with more than 1500 employees and 21,500 U.S. dealership employees. Mercedes Benz USA retails approximately 250,000 cars annually in the United States. Mercedes Benz USA and the Chrysler LLC merger
Chrysler Corporation’s downfall can be traced back to 1979. Chrysler Corporation was not producing the most reliable product and the emphasis was not on markets outside the United States. There was not much attention paid to the changing of the times such as smaller, more fuel efficient cars; the energy crisis of the 1970’s completely changed many people’s view of automobile production and purpose. Chrysler still relied upon the large, less fuel efficient automobile for profit margin instead of changing with the times. As a result of their lack of strategic vision, Chrysler found itself on the brink of bankruptcy. The United States government bailed Chrysler Corporation with guaranteed loans. Lee Iacocca became the president of Chrysler Corporation in 1979. He inherited a company that was failing miserably. John Riccardo left Lee Iacocca a broken organization. Mr. Iacocca turned the Chrysler Corporation around with such automobiles as the mini-van. In a sense he is credited with creating the ever popular sport utility vehicle class. Lee Iacocca had vision and awareness of the changing times; he essentially recreated Chrysler’s image. Lee Iacocca remained the president of the Chrysler Corporation until 1986.The Chrysler Corporation again found itself in financial trouble in 2000. Despite the merger with Daimler-Mercedes Benz in 1998, Chrysler experienced difficulties between the years of 2000-2002. Looking back at the root of the problem at this timeframe for Chrysler Corporation, the merger with Daimler-Mercedes Benz was never a true merger. It seems the attraction of Chrysler
to Daimler was the dream of a global car company. By all observations, there was very little sharing of processes or technology to actually improve Chrysler Corporation through the merger with Mercedes Benz. Daimler realized the need to market its newly attained product to the global market to ensure its survival. By the time the effort was made to push Chrysler product into the Japanese market, the major player being Honda, was not interested. Daimler-Chrysler was forced to attempt to align themselves with minority equity companies of the region in Hyundai and Mitsubishi. Daimler never planned a full blown integration with Chrysler, as it was set up as a limited partnership; the Chrysler Corporation could be run independently with Daimler-Mercedes Benz being the distant parent company. Even with the highly publicized merger with a successful car company like Daimler- Mercedes Benz, Chrysler was not successful. The combination of poor...
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