daimlerchrysler diapos
Post on 08-Apr-2018
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DaimlerChrysler:
Corporate GovernanceDynamics in a GlobalCompany
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Background of the DaimlerChrysler AGMerger
In May1998
The German car maker Daimler-Benz AG andAmericas third largest automobile company,Chrysler Corporation, signed a mergeragreement to build the worlds No. 5automaker.Jergen Schrempp, CEO of Daimler-Benz, and
Robert Eaton, Chryslers then boss, saw alogical fit between the European luxury-carproducer and the American maker of sport-utility vehicles, minivans and medium-sizedvehicles. The complementing product and
geographical match seemed to prepare themerged DaimlerChrysler AG for the futurecompetition in the automobile industry.
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However
1999-2001
The Honda Odyssey came to rival theDodge Caravan, the Toyota Tundrathreatened the Dodge Ram, and SUVsfrom GM, Ford, Nissan and Toyotaattacked Jeep's market share.Chrysler responded with littleinnovations, and competitive pricereductions only began in Q2 2001. Itstraditional dominance in the SUV and
light truck market had beenchallenged, and it had not adequatelyresponded.While Chrysler's managementlanguished, the market continued tofunction, and the industry left Chrysler
in the dust.Owing to culture clash and a poorlyintegrated management structure,DaimlerChrysler was unable toaccomplish what its forbears took forgranted three years ago: profitable
automotive production.
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Labeling
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Synthesising
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Concluding
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Current Situation
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Corporate Governance
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External Environment
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Economical
Their geographical department, and theirshared visions of making money madethem believe that money wasnt going to
be a problem, that cars will sell bythemselves; but their economical problemswere bigger than what they thought.
Their dividends dropped from 2.35 to 1.00
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Industry Overall
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Internal Environment
Company Culture
Mission: To continuously increaseDaimlerChrysler's technological edgeover itscompetitors by leading innovation anddevelopment in chosen core competenceareas.
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Vision
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