"Crafting a Vision at Daimler-Chrysler" Case Analysis

Mergers and Acquisitions (M&A) typically refers to a corporate fiscal and strategic set of strategies that deal with the purchasing, selling, and/or combining of different companies or pieces of companies that are able to help grow a company or experience rapid innovation with either creating another business entity or investing research and development from the ground up (Hennepopf, 2009). Modern organizations are so highly complex and competitive that the old paradigm improving efficiency and the bottom line improves, is no longer all it takes to be successful. Companies must continue to reinvent themselves, put Board egos aside and look at the marketplace, their expertise, and what they can do to retain market share. With technology changing so

Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.

Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.

New United Motor Manufacturing Incorporated, the 1984 joint venture between Toyota and General Motors, was by all accounts a manufacturing success. NUMMI’s effectiveness was evidenced by the drastic change in output quality, employee morale, and overall cost—but while these great outcomes were recognized by GM, they were hardly leveraged. What supported these results were exactly the factors that radically set NUMMI apart from the rest of the GM family. Ultimately, GM’s failure to adapt the plant’s success was the result of a prideful conglomerate embodying a competitive internal structure and divisive culture so strong that it was unable to fully recognize and adapt to the fundamentally different NUMMI model.

Recently there have been doubts concerning the survival of General Motors. These doubts stem in part from the firm’s unawareness of the automotive industry’s external business environment. This includes the consumer’s view of current events and economic trends. There are also key issues such as the emergence of technology that are related to the automobile industry that are covered by trade publications.[i] Doubts also stem from problems associated with G.M.’s internal business environment. These problems likely arose from the firm following the wrong generic strategy.

Firstly, the need for achievement is met by understanding that people strive to master difficult situations, endeavors or challenges. This idea works on both an organizational level, as well as an individual level. From an organizational level, it is well known that a merger of this magnitude had never been attempted. With that brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make

The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American symbols. They are credited for a significant percentage of all American jobs; they put numerous blue-collar families into the middle class, and helped America cultivate into the giant of the twentieth century. Unfortunately, the fabled automotive firms are not what they once were and are traveling

Unfortunately for Chrysler, a company that started with debt, by the late 1980s the company would again find itself in financial turmoil forcing a second company restructuring that would lead to the production of more “fuel-efficient vehicles like the Dodge Shadow and Plymouth Sundance (Wheelen & Hunger, 2012, p. 17-2). In 1998, the company would enter into a merger with Daimler-Benz. That merger would last until 2007 when Chrysler was sold to Cerbus Capital Management, which would produce “an 8% growth in sales” in 2007, but eventually fell back into a loss in profit (Wheelen &

Yet now, some say that the past is what troubles the automotive giant. In an interview with a former General Motors executive, GM 's sheer size as well as the sense of complacency developed after years of success was cited as the chief challenges GM would have to overcome (Interview, 2004). In a sense GM has been derailed, the strengths that once made it successful are the same forces that have led to its current flaws. (McCall, 1998) Thus, Wagoner is proposing to go against GM 's years of tradition and "Challenge the process." This is not the only step in the CIEME model that Wagoner has acted on. (Kouzes & Posner, 1995) He has already "Modeled the way" by cutting GM inefficiencies so that the company now competes directly against the streamlined Japanese automotives. Part of this streamlining includes Enabling the correct management to act. Furthermore, our interviewee attested to the fact that all GM employees were Inspired to share a number of Wagoner 's visions for the company. The remaining question is whether or not Wagoner will be able to Encourage the heart of General Motors.

Both Ford Motor Company and General Motors Corporation are in the midst of restructuring. The American auto industry is beginning to

Chapter 7: Merger and Acquisition Strategy --- The Acquisition and Restructuring of Kia Motors by Hyundai Motors (written by Seungwha Chung and Sunju Park)

Revival is a company I own for four years now. It’s been a family company since 1963, so it has a lot of sentimental value to me over the years. Basically what this company does restores old classic cars and rejuvenates them. The shop was owned by my grandpa, then pass on to my dad. Unfortunately, my dad passed away of cancer, so he inherited the company to me because he knew I would still continue to keep Revival functioning properly. I like to preserve my company the way it is, as how it was first step up back in 1963. It just reminds me of the old memories when I first used to give a hand around the shop. I remember learning skills from my dad, on how to make business agreements with customers. The day I knew I wanted to work in the car industry, was when I first bought an 1950 Aston Martin for $1600 because the guy was paying too much for parking space a month. As a matter of fact, I told him what does he prefer, continuing to pay for rent or get rid of the car for once. That’s the day when I first bought myself a car for an amazing deal. The market value for Aston Martins are significantly higher once it’s all refurbished. Ever since then, I noticed easy potential money in the car industry.

One of the world’s largest automakers, GMC has it’s roots traced back to 1908. Also known as GM, this company is a United States-based automaker with its headquarters in Detroit, Michigan. After the General Motors Company was founded, it soon became known as one of the largest car manufacturers in the world. In 1909, the Grabowsky Rapid Motor Vehicle Company (GMC) joined with GM. The trade name GMC Trucks was first exhibited in 1912 at the New York Auto Show and registered with the U.S. Patent Office eight months later. The

1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.

As it relates to the competitive structure, or the number and size distribution of companies within an industry, the automobile industry is considered a consolidated industry, where a small number of large companies dominate and are able to set prices. Traditionally, in America, these companies were called “The Big Three,” Chrysler, Ford, and GM, but Toyota, was also a major rival during the recession. “In consolidated industries, companies are interdependent, because one company’s competitive actions or moves (with regard to price, quality, and so on) directly affect the market share of its rivals, and thus their profitability” (Hill & Jones, 2012, p. 62). The relative power of consolidation on the automobile industry was high.