Preview

Daimler Chrysler and Gm

Good Essays
Open Document
Open Document
1002 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Daimler Chrysler and Gm
Problem Definition In this case, GM took the strategy called "shotgun" that implements a high information technology and had spent a lot of money on information technology, but it was not centralized and standardized to reach every department and employee of the company. In other words, the information system was not linked together and standardized, which kept information from the employeesso they were unable to make efficient and effective decisions. One of the symptoms that GM faced in the process of producing a product was that the employee was not educated with the system, which led them to make the same mistakes over and over. Also, the design engineer was not aware of the manufacturing environment, so they could not design a product properly to fit to the automated robot assembly system and reduce the work force to make product more efficiently and reduce the cost. Chrysler took the strategy call "rifle" approach, which saved the company from bankruptcy. Chrysler did not have the funds to implement the high technology through out the entire company, but they invested funds in high technology, which was where they were needed most, and created a fast return. It is clear that Chrysler's strategy is different than GM: Chrysler's information system is linked and centralized so it is utilized well by employees and other stakeholders such as suppliers. Due to this effort, Chrysler had improved in productivity and efficiency, but quality and productivity was not enough to compete with oversea competitors like Japanese automakers.
Also Chrysler merged with Daimler Benz which is a German high-end automobile maker. Daimler Chrysler is now facing the challenge of combining two different cultures to use the information system to benefit both companies.

Justification for Problem Definition GM is the biggest auto maker in the industry and has five different, separate operating groups and divisions (Chevrolet, Pontiac, Oldsmobile, Buick, and

You May Also Find These Documents Helpful

  • Powerful Essays

    Fiat Chrysler

    • 2013 Words
    • 6 Pages

    Before their merger, Fiat and Chrysler were two comparatively small regional companies overly reliant on just three auto markets—the U.S., Italy and Brazil.…

    • 2013 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Chrysler in Trouble

    • 1029 Words
    • 5 Pages

    Chrysler has a problem keeping up with the other foreign companies when the 1970’s fuel crisis were causing people to buy more fuel efficient cars. Chrysler should of put more work into creating cars that American’s would want to buy. They however focused on building more SUV’s and trucks which were not fuel efficient. By putting…

    • 1029 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    GM and Chrysler’s management also failed to anticipate the rise of energy prices. Gas prices skyrocketed to almost four dollars a gallon and with the fragile state of the economy, it made people very conservative about their driving. The rise of gas prices was almost like a death sentence to Chrysler and GM. They have relied on the sales of sport utility vehicles or SUVs as their main source of income. The sport utility vehicles carry an already high price tag and when you add the gas prices you get vehicles that nobody wants to purchase. People wanted to get rid of their SUVs because they just cost too…

    • 853 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The risk of entry by potential competitors in the automobile industry is weak because a substantial amount of capital is needed to begin an automobile company and to maintain it as well. Companies already in the automobile industry have an absolute cost advantage against potential new automobile producers. Toyota’s “lean production system” was an innovative process of producing vehicles in a cost effective manner without forgoing quality. The lean production system was imitated by America companies after 30 years of its existence. It is a superior production process that was not simple for an established company to imitate and would be exponentially harder for a new company to imitate.…

    • 1239 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Gm Term Paper

    • 3832 Words
    • 16 Pages

    General Motors is an automobile manufacturer that held the title of the largest American automobile company until 2008 and for 77 years held the title of the largest automobile manufacturer in the world (General Motors, 2012). The production of the company is established in 35 countries around the world and its automobiles are sold in 192 countries. The headquarters of the company is located in Detroit, USA. The automobiles manufactured by General Motors were marketed under many brands – most renowned among them were Buick, Cadillac, Chevrolet, GMC, Holden, Hummer (which was discontinued in 2010), Opel, Pontiac and Saturn. But in the context of the restructuring of the group, which officially began in June 2009, only six brands are kept by the company, and the rest are either sold or discontinued.…

    • 3832 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Chrysler - Case Study

    • 10402 Words
    • 42 Pages

    In January 1998, Jürgen Schrempp, CEO of Daimler-Benz A.G., approached Chrysler Corporation Chairman and CEO, Robert Eaton, about a possible merger, acquisition, or deep strategic alliance between their two firms. Schrempp argued that: The two companies are a perfect fit of two leaders in their respective markets. Both companies have dedicated and skilled work forces and successful products, but in different markets and different parts of the world. By combining and utilizing each other 's strengths, we will have a pre-eminent strategic position in the global marketplace for the benefit of our customers. We will be able to exploit new markets, and we will improve return and value for our shareholders. 1…

    • 10402 Words
    • 42 Pages
    Powerful Essays
  • Good Essays

    Daimler Chrysler Case

    • 385 Words
    • 2 Pages

    I think this merger happened to quickly. If Daimler did enough due diligence, they’ll see how bad Chrysler was. There were plenty of problems with Chrysler especially the infra structure of the company. To make thing worse, Daimler lied to them that this would be an equal merger, not a take over. As a result Chrysler top managements were gone, and replaced by the German management led by Deiter Zetsche. This had created the cultural problems. American was proud and national prides were high. To be taken over by the German did not assimilate well to the public and especially at Chrysler.…

    • 385 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    General Motors Company is an American car manufacturing company that sold 9 million vehicles, delivered USD 135M in revenue and USD 6.1 M profit in FY11. The company was founded in Flint, Michigan more than 100 years ago. Today, General Motors is the world’s largest automotive company with operations in more than 120 countries. It has a network of 4,500 dealers globally which deliver 70 percent of its sales from outside the U.S. mainly from four markets: China, Brazil, UK, and Germany. The auto manufacturer produces under the following brands: Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. They also have equity stakes in joint ventures in China including SAIC-GM, SAIC-GM-Wuling, FAW-GM and GM Korea.…

    • 3223 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    General Motors is and has been one of the world's largest automakers for over 100 years. GM goes back as far as 1908. GM’s headquarters is in Detroit; however, GM has over 209,000 employees in every core region of the world, and conducts business in over 120 countries. GM and all its associates produce both cars and trucks in 31 countries. “GM also sell and service many of these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling (NA, 2011).” GM's leading market nationally is China. After China is the United States, Brazil, the United Kingdom, Germany, Canada, and Russia. “GM's On Star subsidiary is the industry leader in vehicle safety, security and information services (NA, 2011).” It is because of good ethics compliance, financial filings, and GM’s care and concern to the public that keeps the company striving for perfection.…

    • 2093 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The automotive industry is a tremendous contributor to the comprehensive level of economic growth experienced throughout the twentieth century. With the peak of industrialization finally realized, there existed opportunity for development and modernization of societies around the world. With this in mind, opportunity was present for the production of automobiles for use around the world as well. This substantial demand created the economic opportunity for companies such as General Motors to begin building their empires. As one of the first companies to become a strong contributor in the industry, General Motors quickly placed itself…

    • 298 Words
    • 2 Pages
    Good Essays
  • Good Essays

    General Motors Case Study

    • 1959 Words
    • 8 Pages

    General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy.…

    • 1959 Words
    • 8 Pages
    Good Essays
  • Better Essays

    General Motors

    • 924 Words
    • 4 Pages

    If you were to read a story in the news that a government had assumed control of a private company, what country might come to your mind? Possibly Russia, Cuba, China, maybe even Vietnam? Probably the United States would be the furthest from your mind. Not everything the United States government does should be considered socialistic, but obtaining control of the private company General Motors was an act of socialistic behavior. As Lake Land students majoring in business and maybe future business owners, would you want the company that employed you or which you owned to be controlled by the government? Many government officials make the argument that this was the right decision, because it saved many jobs during tough economic time. This, however, is not a good enough reason to move toward socialism. The government should not have bought General Motors.…

    • 924 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Gm Competitive Exposure

    • 3141 Words
    • 13 Pages

    GM was the world’s largest automaker and, since 1931, the worlds sales leader. In 2001, GM had unit sales of 8.5 million vehicles and a 15.1% worldwide market share. Founded in 1908, GM had manufacturing operations in more than 30 countries, and its vehicles were sold in approximately 200 countries. In 2000, it generated earnings of $4.4 billion on sales of $184.6 billion.…

    • 3141 Words
    • 13 Pages
    Powerful Essays
  • Best Essays

    Chrysler-Fiat Merger

    • 1562 Words
    • 7 Pages

    Leadership is a dynamic, involved, and personal endeavor. The act of leadership encompasses many variables from personal interests of the leader to modeling what is right rather than what is wanted. There are Five Practices of exemplary leadership: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (Kouzes & Posner, 2007). The most successful leaders attempt to model what they are expecting of others; especially in a rapidly changing climate. Modeling can be one of the most effective ways leadership can encourage the outcome of change they wish for in a corporation.…

    • 1562 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    GM financial analysis

    • 5450 Words
    • 22 Pages

    General Motors (GM) is one of the biggest automotive manufacturers in the world, and the largest in the U.S. It’s headquarter is located in Detroit, MI. GM has total of 396 facilities in 6 continents and supplies more than 21000 dealers all around the world (almost 1/4th of it is in the U.S.). Its current CEO is Dan Akerson, and it has more than 212,000 employees worldwide. Its board of directors consists of 15 board members .…

    • 5450 Words
    • 22 Pages
    Powerful Essays