P R E P A R E D F O R
Mrs. Tahmina Akter
F-410 (Business Policy, Ethics and Strategy)
Department of Finance
University of Dhaka
P R E P A R E D B Y :
Group -16 SL. No. | Name | Roll No. | 01 | Reajul Karim | 15-039 | 02 | Sutapa Nath | 15-109 | 03 | S.M. Mudrahir Rahman | 15-113 | 04 | Shukla Saha | 15-121 | 05 | Md. Nuruzzaman Rashed | 15-157 |
BBA, 15th Batch Department of Finance University of Dhaka Date of submission: July 22, 2012
The best Laid Plans-Chrysler Hits the wall
In this case study it is shown that the German automobile company Daimler-Benz acquired an US automobile company named Chrysler. Though both were the car manufacturing company the Daimler-Benz was the producer of luxurious cars and the Chrysler was a mass-market manufacturer. So it took years to redesign Chrysler cars so that they could use Daimler parts and benefits from Daimler engineering. Moreover the acquiring company Daimler-Benz overestimated the value and competitiveness of Chrysler. After merger the German company Daimler-Benz found that. Chrysler’s factories were in the worse condition than they had though. The product quality of Chrysler was very poor. So the decision of merger was proved wrong because of those reasons. The company also made very optimistic forecast about their products and earnings without any judgment of the conditions of the acquired company which created light of hope to their shareholders. Lastly, the world’s automobile business changed dramatically after the raise of the fuel price. These mergers could not cope with the increasing price condition of fuel and loss its market share.
In this assignment the problems of the merger the solutions are seek &.some measures are taken to resolve the case study.
Case Discussion 1. The planned strategy at Daimler-Benz for Chrysler in 1988 was to emphasize bold design, better product quality, and higher