• Research Paper on:
    DaimlerChrysler; A Difficult Merger

    Number of Pages: 8

     

    Summary of the research paper:

    In 1998 Daimler-Benz acquired Chrysler. This 8 page paper examines the way that the acquisition took place and the failure to realize benefits. The paper starts with background and considers why the acquisition was attractive. A SWOT analysis is used to assess the strengths weaknesses, opportunities and threats; the paper then ends with the recommendation for Daimler to divest of Chrysler. The bibliography cites 7 sources.

    Name of Research Paper File: TS14_TEDCfail.rtf

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    Unformatted Sample Text from the Research Paper:
    greater market power that can be exerted over suppliers and a higher level of market dominance. This has driven many companies, along with the desire to gain extra market share  or acquire resources, to follow a strategy of acquisition or merger. These may realised the desired benefits, but the process is complex and the benefits can prove elusive. This  has been the problem faced by DaimlerChrysler, the potential may have been great, but realising the benefit has been very difficult which can lead to the ultimate failure of the  integration and success of the post acquisition company. The problem faced by DaimlerChrysler was how to create value in the post merged between two divergent companies operating in different market  segments and from different countries. To consider this we can look at the back at the history of the acquisition, look  at what happened and how and consider the way that value may have been created according to theory, this can be followed by a SWOT analysis to assess the strengths  weaknesses, opportunities and threats that the company faced and use these to format recommendations. 2. Background In 1998 the Chrysler group was acquired  by Daimler-Benz for $37 million (Ostle, 2001). In making this acquisition there were a range of potential benefits that could be gained by Daimler-Benz that reflect the general philosophy behind  mergers. The main idea is that the total of the combined entity will be greater than the sum of its parts that existed before the merger (Pilloff, 1996).  It is generally perceived that the main gain of many merger will be due to increase in the performance in the post merger, or 

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