The following paper deals with the topic “Cultural Due Diligence and Cultural Clash” using the example of Daimler and Chrysler’s merger in 1998.
The paper is therefore dealing with the corporate culture in a company and the importance of its consideration. It will define corporate culture and illustrate different views of measuring it and looking at it. Further a closer look on Daimler’s and Chrysler’s corporate culture will be given and the challenge of merging these two cultures will be clarified.
This paper is going to accentuate the need for a Cultural Due Diligence and familiarize the whole process of it. It will therefore prove that the analyses of a company’s cooperate culture with the Cultural Due Diligence is majorly important in order to successfully merge two companies. In detail the term paper therefore indicate tools that are being used to get to know the culture of a company and introduce theoretical as well as practical approaches. Whenever it is possible a connection to DaimlerChrysler and their Cultural Due Diligence is given.
An analyze why DaimlerChrysler’s merger failed to realize the synergies will be given in the last chapter and are being underlined with statements of personalities that have been involved in the merger process or that were engaged in the fusion.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Corporate Culture and Culture Differences
- 2.1 Culture in economics
- 2.2 Corporate Culture
- 2.3 Measurement of Culture
- 2.3.1 Deal and Kennedy
- 2.3.2 Charles Handy
- 2.4 Theories on country-specific cultural characteristics
- 2.5 Corporate Culture at Daimler before 1998
- 2.6 Corporate Structure of Chrysler before the merger
- 2.7 The challenge of creating DaimlerChrysler's Corporate Culture
- 3. Cultural Due Diligence
- 3.1 Due Diligence
- 3.2 The Cultural Due Diligence
- 3.2.1 Concept of Cultural Due Diligence
- 3.3 Tools of Cultural Due Diligence
- 3.3.1 Analyses of open data
- 3.3.2 Critical Event analyses
- 3.3.3 Observation
- 3.3.4 Single person interview
- 3.3.5 Group interview or group discussion
- 3.3.6 Simulation
- 3.3.7 Questionnaire
- 3.4 Theoretical approaches of Due Diligence procedures
- 3.4.1 Theoretical approach by Clarke (1987)
- 3.4.2 Theoretical approach by Carlton (1997)
- 3.4.3 Theoretical approach by Weidinger/Mündemann (1999)
- 3.4.4 Theoretical approach by Bouchard/Pellet (2000)
- 3.4.5 Theoretical approach by Scott (2001)
- 3.4.6 Theoretical approach by Zimmer (2001)
- 3.5 Practical Cultural Due Diligence processes and analyses
- 3.5.1 Bickmann & Collegen Consultancy
- 3.5.2 Accenture
- 3.5.3 Practical approach of A.T. Kearney
- 3.5.4 Comparison of all three models
- 4. DaimlerChrysler failed to realize the synergies
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the cultural clash and the importance of cultural due diligence in the context of the 1998 DaimlerChrysler merger. It aims to define corporate culture, explore different methods for measuring it, and analyze the specific cultures of Daimler and Chrysler before the merger. The paper will further highlight the necessity of cultural due diligence and detail the process, including various tools and theoretical and practical approaches. Finally, it will analyze why the merger failed to achieve its projected synergies.
- Defining and measuring corporate culture
- Analyzing the Daimler and Chrysler corporate cultures before the merger
- The process and importance of cultural due diligence
- Tools and approaches for conducting cultural due diligence
- Reasons for the failure of DaimlerChrysler to realize synergies
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: Introduction briefly introduces the topic of cultural clashes in mergers and acquisitions, using the DaimlerChrysler merger as a case study. It emphasizes the importance of successful integration for avoiding such clashes.
Chapter 2: Corporate Culture and Culture Differences defines corporate culture and explores various methods of measuring it, presenting different theoretical perspectives. It then provides an overview of the corporate cultures at Daimler and Chrysler prior to their merger, highlighting their differences.
Chapter 3: Cultural Due Diligence focuses on the concept and process of cultural due diligence in mergers and acquisitions. It outlines various tools and techniques used to assess cultural compatibility, and examines several theoretical and practical approaches to cultural due diligence, including case studies of consulting firms involved in this kind of assessment.
Chapter 4: DaimlerChrysler failed to realize the synergies This chapter analyzes the reasons behind the failure of the DaimlerChrysler merger to achieve its projected synergies. It will likely include insights and statements from individuals involved in the process.
Schlüsselwörter (Keywords)
Corporate culture, cultural due diligence, mergers and acquisitions, cultural clash, DaimlerChrysler, integration, synergy, organizational culture, cultural assessment, case study.
- Quote paper
- Dirk Hollank (Author), Sarah Walter (Author), 2008, Cultural Clash and Cultural Due Diligence at DaimlerChrysler, Munich, GRIN Verlag, https://www.grin.com/document/120286
