Daimler Chrysler Failure Analysis
Sandrine CATHALO
Elodie DUFOUR
Elodie GARBAN
Charles RATTANAVAN
Joffrey THELLIEZ
Fiat and Chrysler create an alliance
Toward to an eventual merger…
Executive Summary
Since 1990, we have seen a high wave of mergers. Many companies where merging in order to respond to their environment and there is a reason for this. Indeed, in a world of globalization where the key trend is to become bigger and bigger in order to survive, it is of the utmost importance to position your strategy and strategic stakes based on your other competitors and your environment.
According to that, as we have already studied some merger that were a success (AirfranceKLM) or a failure (DaimlerChrysler) and know what went well or wrong, we can apply what we have already learn on the Fiat Chrysler case that are at that time in an alliance and that will possibly merge in the next 2-3 years.
What we are going to study during this case are the factors that will push them to merge. It is important for this study to take in consideration some external factors (that will play on the decision to merge or not) as the survivor theory, the political influence, and that consolidation is unavoidable (see endgame theory) in a world of globalization.
If they want to make successful merger integration, Fiat and Chrysler will have to face some huge challenges. They will have to take great consideration of the cultural differences and for that we will study those two different cultures that will enable us to make some conclusions. Indeed, the American management style which is present in the two companies enables the possible merger not to face possible cultural mismatch, even if some cultural problem will still remain. This cultural point has been analyzed with some relevant theories like collaboration/subjugation, merger syndrome, strategy for post merger outcomes (best of both), The endgame theory and so on.
Previous studies on Airfrance/KLM and Daimler/Chrysler, have enable us to have some
Elodie DUFOUR
Elodie GARBAN
Charles RATTANAVAN
Joffrey THELLIEZ
Fiat and Chrysler create an alliance
Toward to an eventual merger…
Executive Summary
Since 1990, we have seen a high wave of mergers. Many companies where merging in order to respond to their environment and there is a reason for this. Indeed, in a world of globalization where the key trend is to become bigger and bigger in order to survive, it is of the utmost importance to position your strategy and strategic stakes based on your other competitors and your environment.
According to that, as we have already studied some merger that were a success (AirfranceKLM) or a failure (DaimlerChrysler) and know what went well or wrong, we can apply what we have already learn on the Fiat Chrysler case that are at that time in an alliance and that will possibly merge in the next 2-3 years.
What we are going to study during this case are the factors that will push them to merge. It is important for this study to take in consideration some external factors (that will play on the decision to merge or not) as the survivor theory, the political influence, and that consolidation is unavoidable (see endgame theory) in a world of globalization.
If they want to make successful merger integration, Fiat and Chrysler will have to face some huge challenges. They will have to take great consideration of the cultural differences and for that we will study those two different cultures that will enable us to make some conclusions. Indeed, the American management style which is present in the two companies enables the possible merger not to face possible cultural mismatch, even if some cultural problem will still remain. This cultural point has been analyzed with some relevant theories like collaboration/subjugation, merger syndrome, strategy for post merger outcomes (best of both), The endgame theory and so on.
Previous studies on Airfrance/KLM and Daimler/Chrysler, have enable us to have some