Introduction & Aims:

The
aims of this assignment are to study a cross cultural management issue which
was reported in Financial TIME which was conducted by the researcher with
in-depth analysis by studying the case which occurred in the media and
submitted a case study on Daimler-Chrysler merger. Where the positive aim of
the companies, was called as merger of equal to share their designs,
technology, skill, knowledge, power and capture the world market. The research
is truly based on the literature review regarding the cultural differences,
communication strategies, management decisions and plan. The paper gives
learning outcomes regarding the cultural importance which can be applied in
practical world in future specially in country like New Zealand where there are
so many multi-culture people from all over the globe reside.

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Background:

The
issues are regarding the failure of merger of two car manufacturing companies
of Europe and America. Who planned to merge together to strengthen its business
and power by eliminating its competitors with outstanding luxury cars and
technology. The merger was initially a success, until its employees and higher
authorities didn’t want to work for the objectives of the newly formed merger.
Where Germans wanted to takeover American company by applying their strategies
and philosophy. Which did happen when their CEO’s were removed. The merger
didn’t work out as it was planned the cultural differences was one of the main
issue which lead to the failure of this merger. Its employees were left out of
job when Chrysler had a loss and year by year many employees had to lose their
jobs. The customers had lost faith in the company as it was not able to meet up
with their demands and requirements. For eg if Samsung company fail to come up
with better features in its mobile for the customers then the customers will start
moving towards other option like iPhone or Mi. similar situation did happen in
this case. Apart from that the stockholder also stop investing on the company’s
shares as they were going down. Even the mangers and higher authorities were
backing up from their responsibilities. These were the affect which happened on
the stakeholders of DAILMER-CHRYSLER. (TIME, 2009)