years ago‚ Daimler-Benz‚ Germany’s most profitable car company‚ and owner of the world-beating Mercedes marque‚ revealed that it was merging with Chrysler‚ the smallest but most efficient of America’s Big Three car producers‚ the two companies embarked on a cross-border deal based on what seemed to be impeccable industrial logic. Cross-border mergers are notoriously tricky. For DaimlerChrysler to succeed requires cohesion not just between two headquarters‚ in Stuttgart and Auburn Hills‚ Michigan
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two companies? The Daimler-Chrysler merger represent an example of poor partner selection when engaging in cross-border collaboration. Cultural and strategic differences between the two companies have significantly affected the outcome of the merger and should have been taken into consideration in the target choice phase. Strategic objectives of the two companies are opposite‚ with Daimler focusing on high-end‚ high-performance segment‚ and brand protection‚ and Chrysler focusing on more affordable
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CHRYSLER CORPORATION: NEGOTIATIONS BETWEEN DAIMLER AND CHRYSLER ∗ 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
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Case study: FIAT GROUP’S FIRST-TIME ADOPTION OF IFRS Question 1: What is Fiat’s key accounting policies? Which of Fiat’s key accounting policies are affected by the adoption of IFRS? a. Fiat’s key accounting policies: The Fiat Group has a tendency of engaging in financing accountings mechanism‚ selling a significant part of its finance‚ trade and tax receivables through either securitization programs or factoring transactions b. Fiat’s key accounting policies are affected by the adoption of
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Daimler Chrysler Introduction Globalization results in rapid and constant business environmental changes. As a result‚ most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic change by merger bring them
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|Fiat Stilo: Positioning | 1. Problem Statement: Since the mid 1990’s‚ and despite the economic boom in the Spanish market‚ Fiat’s market share has dropped from 7% to 3.5% (symptoms)‚ bringing it down from the leading car manufacturer to the seventh place by 2001. This was mainly due to fact that Fiat’s brand image was associated with cars that were of poor quality and unreliable (problem). Therefore‚ Fiat need
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Fiat Stilo: Positioning Problem Statement Fiat is doing poorly in the Spanish market due to poor customer perception. The company wishes to launch the new Fiat Stilo with hopes of obtaining profit in Spain. Fiat must choose in which way it should position the new model so that it can reshape the way Spanish consumers perceive their brand. Situation Analysis Customers: In Spain‚ the automobile sector is divided into segments depending on the specifics of the vehicle‚ mainly size and type
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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
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23: Mergers and Other Forms of Corporate Restructuring After studying Chapter 23‚ you should be able to: Chapter 23 Explain why a company might decide to engage in corporate restructuring. Understand and calculate the impact on earnings and on market value of companies involved in mergers. Describe what benefits‚ if any‚ accrue to acquiring company shareholders and to selling company shareholders. Analyze a proposed merger as a capital budgeting problem. Describe the merger process
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Crisis Management FIAT The Italian automobile company FIAT is synonomous with success‚ with brands such as Ferrari‚ Maseratti‚ Alfa Romeo and the FIAT brand‚ one usually thinks of class and success when the brand is mentioned. By and large the FIAT brand has been suuccesful for over one hundred years‚ the group’s activities were primarily focused on the industrial manufacturing of cars‚ industrial and agricultural machinery. With
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