Business - AQA - Buss 4
Business and management exam discussion - share revision tips in preparation for GCSE, A Level and other business and management exams and discuss how they went afterwards.
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Re: Business - AQA - Buss 4Ok first its a merger (when two companies join together) and it can be considered a failure is because by 2006 DaimlerChrysler reported losses of $1.5 billion. 2007 they announced 13,000 job losses. The most important evidence is that by 2007 they had DE-MERGERED i.e. they split, this is clearly quite a drastic measure and highlights the failure of the Merger. Hope that helped
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Re: Business - AQA - Buss 4(Original post by JVoller1)
Ok first its a merger (when two companies join together) and it can be considered a failure is because by 2006 DaimlerChrysler reported losses of $1.5 billion. 2007 they announced 13,000 job losses. The most important evidence is that by 2007 they had DE-MERGERED i.e. they split, this is clearly quite a drastic measure and highlights the failure of the Merger. Hope that helped
Let me know if you need any more help.
Ok Thanks i didnt know it was a merger
But Why did they Lose $1.5billion? What was the reason? Why was the reason why they failed? ! -
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Re: Business - AQA - Buss 4They lost the money due to falling market share and revenue, synergies didnt occur and they became uncompetitive. The merger failed due to cultural differences, mismanagement, different management views and poor due diligence- And something I like to call the Asian Challenge.
Culture- Different nationalities, organisation, working style and obviously culture. Chrysler was mass market, relaxed atmosphere and highly centralised. Whilst Daimler was more formal, bureacratic and premium products
Mismanagement- Chyrsler was looked down upon and the management of Daimler considered them inferior- leading to problems, de-motivation and all the problems associated with that
Lack of due diligence- Daimler didn't do any
Asian Challenge- when Toyota and Honda entered the US market Chrysler couldn't compete
Hope that helped
"We obviously overestimated the potential of synergies," Dieter Zetsche, the chief executive of DaimlerChrysler
Due diligence? Daimler-Benz never did due diligence before it bought Chrysler, never looked into the future to see whether Chrysler could afford to be competitive with the others in the industry," stressed George Peterson, the president of Global Insight. -
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Re: Business - AQA - Buss 4Sorry but that's too simplistic- failed due to language barrier- that's relatively easy to overcome compared to their other problems(Original post by idealized)
They failed because of a culture clash - they spoke different languages which made it difficult to communicate , sorry thats all i remember off the top of my head -
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Re: Business - AQA - Buss 4It was just one point, its not like i said its the main reason :l(Original post by JVoller1)
Sorry but that's too simplistic- failed due to language barrier- that's relatively easy to overcome compared to their other problems -
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Re: Business - AQA - Buss 4I didn't say you said that was the main reason, its just that the language barrier isn't really that significant, its more the impact of being in a different culture in that respect than the language aspect of it. Anyway I didn't mean to sound aggressive, so sorry about that.
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Re: Business - AQA - Buss 4Wow! Cheers for that! Your sure sound very smart and proberly are!(Original post by JVoller1)
I didn't say you said that was the main reason, its just that the language barrier isn't really that significant, its more the impact of being in a different culture in that respect than the language aspect of it. Anyway I didn't mean to sound aggressive, so sorry about that.
Any tips for Section B? Can I ask where did you get the infomation from? about the fail merger? what source or book ?Last edited by roberto111; 16-06-2012 at 08:47. -
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Re: Business - AQA - Buss 4Haha thanks, just make sure you have case studies for retrenchment, CSR and everything like that. I got the initial facts from a booklet then did a bit of internet research (5-10 minutes) and there you go(Original post by roberto111)
Wow! Cheers for that! Your sure sound very smart and proberly are!
Any tips for Section B? Can I ask where did you get the infomation from? about the fail merger? what source or book ?
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Re: Business - AQA - Buss 4Culture clash as a result of language barriers (German and English). Also, there was a pay discrepancy as the Americans from Chrysler were payed more - which was an outrage to the Germans because they made higher quality products (cars), and therefore viewed themselves as a more skilled workforce. Then there's the CEO Jurgen Schremp; there was some tensions caused regarding him, but most of these things you can find online really easily, just have a look.
