The automotive industry has been facing increasing problems over the last years and COVID-19 accelerated the situation. Changes in the industry are challenging the automotive manufacturers to defend their position and adapt to constantly changing conditions. Some manufacturers, such as PSA and FiatChrysler already announced mergers to be jointly successful in the future (European Commission, 2020). Since Chrysler was part of several M&A activities, it is interesting to take a look at past Chrysler mergers and consider which factors regarding cross-cultural management influenced the merger outcome.
The example of the DaimlerChrysler merger will be used for this purpose in order to analyse the merger towards cultural differences and behaviour of both parties under consideration of cross-cultural management theory which had an influence on the failure of the merger by means of Hofstede’s cultural dimensions.
Inhaltsverzeichnis (Table of Contents)
- LIST OF ABBREVIATIONS
- INTRODUCTION
- OBJECTIVES & DELIMITATIONS
- CASE STUDY: THE MERGER BETWEEN DAIMLER & CHRYSLER
- INSIGHTS ON NATIONAL CULTURES BASED ON HOFSTEDE'S CROSS-CULTURAL RESEARCH
- HOFSTEDE'S WORK & THE RELEVANCE OF HIS THEORY
- POWER DISTANCE
- UNCERTAINTY AVOIDANCE
- INDIVIDUALISM VS. COLLECTIVISM
- MASCULINITY VS. FEMININITY
- LONG-TERM VS. SHORT-TERM ORIENTATION
- INDULGENCE
- SUMMARY OF CULTURAL DIFFERENCES BETWEEN AMERICAN AND GERMAN CULTURE
- ANALYSIS OF CULTURAL DIFFERENCES INFLUENCING THE FAILURE OF THE MERGER
- GERMAN LONG-TERM ORIENTATION DURING THE NEGOTIATION AS A FIRST FRICTION POINT
- EXCURSE TO APPLIED NEGOTIATION TECHNIQUES AND ITS EFFECTS
- DIFFERENCES IN INDIVIDUALISM SHOW IN THE COMPENSATION SCHEME
- DIFFERENT PERSPECTIVES ON UNCERTAINTY AVOIDANCE AND INDULGENCE LEAD TO HARDENED FRONTS
- CRITIQUE & REFLECTION ON HOFSTEDE'S MODEL
- GENERAL CRITIQUE & USEFULNESS THE MODEL
- ALTERNATIVE MODELS IN THE DISCIPLINE OF CROSS-CULTURAL MANAGEMENT
- CONCLUSION
- REFERENCE LIST
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the DaimlerChrysler merger through the lens of cultural differences and behavior, specifically focusing on the impact of cross-cultural management theory on the merger's failure. The analysis utilizes Hofstede's cultural dimensions to examine the influence of national culture on the negotiation and implementation process. The research question explores how national and organizational culture affected the outcome of the merger between Daimler-Benz and Chrysler. The paper briefly considers applied negotiation techniques alongside cross-cultural management aspects and reflects on the usefulness of Hofstede's model and its critiques. It also provides examples of other cross-cultural models and theories.
- The impact of national culture on the negotiation and implementation success of the DaimlerChrysler merger.
- Analysis of the role of Hofstede's cultural dimensions in understanding the cultural differences between German and American cultures.
- Examination of the influence of specific cultural dimensions, such as power distance, uncertainty avoidance, and individualism, on the merger process.
- Evaluation of the effectiveness of applied negotiation techniques in mitigating cultural conflicts.
- Critique and reflection on the limitations and strengths of Hofstede's model in analyzing cross-cultural mergers.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction establishes the context of the automotive industry's challenges and highlights the relevance of analyzing cross-cultural management in mergers. The objectives and delimitations section outlines the research question and scope of the analysis, focusing on the DaimlerChrysler case and utilizing Hofstede's model. Chapter three introduces Hofstede's cultural dimensions and their relevance to cross-cultural management, providing a framework for analyzing the cultural differences between German and American cultures. Chapter four explores the specific cultural differences that influenced the failure of the DaimlerChrysler merger, including German long-term orientation during negotiations, differences in individualism reflected in compensation schemes, and divergent perspectives on uncertainty avoidance and indulgence.
Schlüsselwörter (Keywords)
The primary focus of this study lies on the intersection of national culture and organizational behavior in the context of mergers and acquisitions. Key concepts include Hofstede's cultural dimensions, power distance, uncertainty avoidance, individualism, masculinity/femininity, long-term/short-term orientation, and indulgence. The study examines the influence of these factors on the negotiation and implementation success of the DaimlerChrysler merger, emphasizing the impact of cultural differences on the outcome.
- Citar trabajo
- Anonym (Autor), 2020, Effects of Culture and Behaviour on Negotiation and Implementation Success. The Example of the DaimlerChrysler Merger, Múnich, GRIN Verlag, https://www.grin.com/document/942587
