This dissertation is about strategic positioning and managing strategic change. The first
chapter makes clear the importance of clear defined strategy, mergers & acquisitions as
well as alliances resulting out of increasing globalisation and gives Daimler Chrysler as a
good example for analysing these managerial issues.
Chapter two shows different strategies Daimler Chrysler was/ is following, a diversified
one in the 80’s and a focused-orientated strategy in the 90’s. Increasing threats of saturated
markets, global competition, fluctuating economic influences and rising technological
standards had/ have to be coped with by Daimler Chrysler in using their strengths of wellknown
brand reputation, high quality standards and developed service culture. The result
was a strategic position emphasising the upper car segment in the 80’s as well as reliable
commercial vehicle and a completer range of products in the 90’s trying to serve nearly all
segments in the car market.
Chapter three deals with the management of strategic change and the process of becoming
a global player in the car manufacturing industry. Problems a merger causes concerning
differences in culture and management are considered and the act that concentration of
power (as it happened at Daimler Chrysler at the time while the merger took place) on
charismatic top management obviously paid off in the late 90’s.
The final chapter four demonstrates the difficulty of fostering successful change
management and the necessity of mergers and alliances when following a global concentric
growth strategy. It becomes obvious that, although the automobile industry is confronted
with severe competition, Daimler Chrysler has the potential of getting the major player in
this industry. When following consequently the chosen path of focussing on the car
manufacturing sector and implementing new technologies and customer demands fast
(faster than potential competitors), then Daimler Chrysler will be at the “top of the league”
in the future.
Table of Contents
1. INTRODUCTION
1.1. OBJECTIVES OF THE DISSERTATION
1.2. CHOOSING THE ANALYTICAL TOOLS
1.3. AREAS OF RESEARCH AND DATA COLLECTION
1.4. DEVELOPMENT OF THE EUROPEAN CAR MANUFACTURING INDUSTRY
1.5. READER’S MAP
2. EVALUATING THE STRATEGIC POSITION
2.1. ENVIRONMENTAL ANALYSIS
2.1.1. Macro Environment
2.1.1.1. Situation in the 80’s
2.1.1.2. Situation in the 90’s
2.1.2. Industries and sectors
2.1.2.1. Situation in the 80’s
2.1.2.2. Situation in the 90’s
2.1.3. Strategic groups (Porter, 1980)
2.1.3.1. Situation in the 80’s
2.1.3.2. Situation in the 90’s
2.1.4. The organisational field
2.1.4.1. Situation in the 80’s
2.1.4.2. Situation in the 90’s
2.1.5. Market Segments
2.1.5.1. Situation in the 80’s
2.1.5.2. Situation in the 90’s
2.1.6. Opportunities and threats as part of the SWOT analysis (Andrews, 1980)
2.1.6.1. (SW)OT-analysis for the 80’s
2.1.6.2. (SW)OT analysis for the mid 90’s
2.2. STRENGTHS AND WEAKNESSES AS PART OF THE SWOT ANALYSIS (ANDREWS, 1980)
2.2.1. SW(OT) analysis for the 80’s
2.2.2. SW(OT) analysis for the 90’s
3. MANAGING STRATEGIC CHANGE
3.1. ANALYSING STRATEGIC CHANGE
3.1.1. Types of strategic change
3.1.2. Strategic context
3.1.3. Organisational culture
3.1.4. Forcefield
3.2. MANAGEMENT STYLES AND ROLES
3.2.1. Management styles
3.2.2. Management roles
3.3. LEVERS FOR STRATEGIC CHANGE
3.3.1. Structure and Control Systems
3.3.2. Organisational routines
3.3.3. Symbolic processes
3.3.4. Political processes
3.3.5. Communication change
4. DISCUSSION AND CONCLUSION
4.1. IMPLICATIONS OF THE DAIMLER CHRYSLER CASE STUDY
4.2. PERSONAL OPINION ABOUT THE RESULTS OF THE CASE STUDY ANALYSIS
4.3. EXPLANATORY REMARK ABOUT THE CASE AND CHOSEN ANALYTICAL TOOLS
4.3. FUTURE OUTLOOK
4.3.1. The car manufacturing industry
4.3.2. Daimler Chrysler
Objectives and Research Themes
The primary objective of this dissertation is to analyze the effectiveness of strategic management at Daimler Chrysler, specifically focusing on how the company positioned itself in the European car manufacturing industry and managed strategic transitions over a 20-year period.
- Strategic management and market positioning within the automotive sector.
- The impact of mergers, acquisitions, and alliances on corporate structure.
- Evaluation of strategic change management processes and leadership styles.
- Comparative analysis of corporate strategies during the 1980s and 1990s.
- The influence of macro-environmental dynamics on business sustainability.
Excerpt from the Book
1.1. Objectives of the dissertation
This dissertation aims at analysing strategic management, in detail, the implementation of company’s strategies suitable for successful positioning in the market and managing strategic change effectively. As Porter defines strategy as a sustainable competitive advantage (Porter, 1980), establishing in the relevant market(s) and fitting management action to changing influential factors is crucial for creating a prosperous company. Due to the resulting importance of strategy, the focus of this dissertation lies on managerial issues and ways of coping with them.
I am concentrating on Europe and its car manufacturing industry which has like many other industries experienced significant competitive dynamics in the past when considering, for example, the creation of the European Single Market or the overall trend of globalisation. Daimler Chrysler is, next to General Motors, Ford, Toyota and VW, the fifth biggest global player in this industry (www. autozine.kyul.net, 02.08.2003 and Potter, 1999) and therefore an adequate example for demonstrating ways of managing strategic positioning and strategic change.
Daimler Chrysler experienced essential change in strategy and consequently a changing company portfolio over time. Portfolio means the mix of different businesses a company incorporates (Hill and Jones, 2001). I chose a time horizon of ca. 20 years which includes two important periods concerning Daimler-Benz (after 1998: Daimler Chrysler; in this dissertation whether it is written Daimler-Benz, Daimler Chrysler or DC, the same company is described) stamped by different strategic objectives resulting in a varying company structure and existing portfolios. That development is always necessarily to be seen in relation with the dynamic influential macro- and micro-environment.
Summary of Chapters
1. INTRODUCTION: This chapter outlines the research objectives, explains the analytical tools used (such as PESTEL and SWOT), and defines the scope of the study regarding the European car manufacturing industry.
2. EVALUATING THE STRATEGIC POSITION: This section conducts a comprehensive environmental and industrial analysis of Daimler Chrysler across two decades, utilizing frameworks like Porter’s Five Forces and SWOT to evaluate market competitiveness.
3. MANAGING STRATEGIC CHANGE: This chapter explores the theoretical and practical aspects of strategic change management, including organizational culture, leadership roles, and communication levers used during the Daimler-Chrysler merger.
4. DISCUSSION AND CONCLUSION: The final chapter synthesizes the analytical findings to assess the success of Daimler Chrysler’s strategic shifts and provides a future outlook for the company and the broader automotive industry.
Keywords
Strategic management, Daimler Chrysler, car manufacturing industry, market positioning, strategic change, mergers and acquisitions, SWOT analysis, PESTEL analysis, corporate culture, global competition, strategic leadership, organizational restructuring, business portfolio, competitive advantage, innovation.
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation focuses on analyzing the strategic positioning and the effectiveness of change management within the European car manufacturing industry, using Daimler Chrysler as the central case study.
What are the central thematic areas?
The core themes include the implementation of corporate strategy, the evolution of business portfolios, the impact of globalization, and the role of leadership in managing large-scale organizational transformations.
What is the primary research goal?
The primary goal is to evaluate how Daimler Chrysler managed strategic shifts, specifically the transition from a diversified conglomerate to a focused global automotive player, and to determine the success of these managerial actions.
Which scientific methods are applied?
The research employs established strategic management frameworks including PESTEL analysis, Porter’s Five Forces, SWOT analysis, and the Cultural Web to assess internal and external strategic factors.
What topics are discussed in the main body?
The main body examines macro-environmental influences, competitive rivalry in the 80s and 90s, strategic group identification, organizational culture, and the practical application of levers for strategic change such as structure and communication.
Which keywords define this work?
Key terms include strategic management, global competition, Daimler Chrysler, SWOT analysis, organizational culture, and business restructuring.
How did the merger impact the company structure?
The merger necessitated a transition toward a product-team structure to manage global complexity and synergy, significantly moving the company away from its previous, more decentralized model.
What role does the 'Cultural Web' play in this analysis?
The Cultural Web is utilized as a diagnostic tool to identify the paradigms, rituals, routines, and power structures within Daimler Chrysler, helping to explain the internal challenges faced during strategic reorientation.
- Quote paper
- Dennis Sander (Author), 2003, What was the strategic position of Daimler Chrysler in the European car manufacturing industry from 1980 until the beginning of the new century?, Munich, GRIN Verlag, https://www.grin.com/document/29894
