Daimler Chrysler Post Merger Integration

nolocreas
Mind Map by nolocreas, updated more than 1 year ago
nolocreas
Created by nolocreas about 5 years ago
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Description

the merger of Chrysler and DaimlerBenz has not ben a success. this is a quick analysis based on Clemens Hromatka's thesis (2007)

Resource summary

Daimler Chrysler Post Merger Integration
1 What went wrong in D/C's PMI?
1.1 Cultural dispersion US / GE
1.1.1 Daimler:titles, hierarchy, formal processes
1.1.2 Chrysler: informal, flat, direct approachable, can do,
1.2 Distrust @ Chrysler
1.2.1 "Daimler colleagues will be privileged"
1.2.2 "Daimler will impose its culture on us"
1.3 Daimler's financial managament
1.3.1 Daimler's US GAAP accounting not ready for US shareholders
1.3.2 D/C not listed on S&P500
1.3.3 vulnerability of currency fluctuations
1.4 Daimler's HR management
1.4.1 no dual headquarters, just one in GE
1.4.2 different position of labor unions > unequal treatment in case of layoffs
1.4.3 Different compensation policies for executives as well as for workers
1.4.4 unsufficient encouragment and support for face2face meetings
1.5 Daimler's Governance
1.5.1 Chaiman's Integration Council (CIC ): uncapable, stopped too early
1.5.2 no replacement of CIC
1.5.3 "Schrempp's Kitchen Kabinet": too small, too limited
1.5.4 PMI team caught up in competition
1.6 Daimler's Leadership
1.6.1 CEO Schremp makes presumptuous statements towards Chrysler
1.6.1.1 "We always saw Chrysler as a division, but we kept that silent silent"
1.6.1.2 "I will not bother trying to please immature MBA analysts"
1.6.2 No common corporate identity, no proper brand management : "stick to old brands"
1.6.3 Quickly start bidding on asian car firms
2 What science says re. PMI
2.1 ingredients of good PMI
2.1.1 Cultural differences associated with 90% of all acquisitions that fail their objectives [Norburn]
2.1.2 7 rules for successful PMI: vision, leadership, growth, early wins, culture, communication, risk management [Habeck]
2.1.3 Quickly build a new "social tissue" [Morosini]
2.2 impact of PMI on merger
2.2.1 PMI has greatest impact on sustainable long term value creation [Hromatka]
2.2.2 x
2.2.3 53% of CEOs: PMI bears the greatest failure risk for mergers [Kearney]
2.2.4 Mega mergers more prone to integrative problems due to a more complex integration process [Hromatka]
3 What seemed to be right in D/C's PMI
3.1 Integration program set-up
3.1.1 Chairman's Integration Council
3.1.2 PMI team
3.2 intention: NO closing down of plants or redundancies
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