Cultural Crash between the Merger of Daimler-Benz and Chrysler: Applying Hofstede Analysis
Author : Choo Eern Yie, Ivana Constantia and Nicole Tham Seow Ping
Abstract :
This article explore the issue of management on crisis within the arena of cross-cultural management. One of the biggest merger failures that happened in automobile history is the cooperation between Daimler-Benz with Chrysler. The failure of this iconic merger is due to the clash of cultures between the two. Both companies initially planned to collaborate to tackle the 90s recession together by pooling in their respective strengths. In 1998, a new company, DaimlerChrysler was born following the merger. However, after only nine years, they finally de-merged, when Daimler-Benz chose to sell off its share away in 2007. The expected synergy never existed and the dream of becoming the world automobile leader vanished. From this article, readers are able to understand in depth of cultural dimensions based on Hofstede model. Readers could contrast and compare the differences between countries on cultural dimensions. With the help of the case study, readers could develop critical thinking and analytical skills on how these dimensions influence the organisation.
Keywords :
Cross-cultural management, decision-making, crisis management, organizational culture
