CaseStudy 计分作业I

Assignment I- Case Study

This assignment requires every group to complete a paper report to answer the following questions:

o How would you describe the culture clash at DaimlerChrysler?

(60%)

o To what extent has it been resolved successfully? (35%)

o Fulfill all the requirements (5%)

Directions:

1.Answers for the above two questions should be given based on a comprehensive study

(Lecturing and Self-study) of different national cultures and their differences.

2.Reasonable analysis will be only considered to support your answers.

3.References are compulsory to refer to in order to give proper analysis.

4.The case study report should NOT be over 400 words.

5.Other requirements:

∙The 1st page of your report should be with your names, ID numbers and Class.

∙Fond: Times New Roman

∙Size: 12

∙Space: 1.5

∙Typed in A4 white paper

∙04/11/2011 (Friday) ~ 10/11/2008 (Thursday) [Before 12:00pm]

***For those late handing-in group, the report will NOT be accepted.

6.Hand-in Place: Teachers’ Room, 1st floor, YiFu Building

CASE STUDY I

Source: ‘DaimlerChrysler union challenges two cultures’, Detroit News, 14 Sept. 1998; ‘Lessons from a casualty of the culture wars’, Business Week, 29, Nov. 1999; Burt, T., ‘Colliding with Chrysler’, Financial Times, 10 Oct. 2000

A Culture Clash at DaimlerChrysler

The merger of Chrysler Corp. of the US and Daimler-Benz AG of Germany in 1998 created DaimlerChrysler AG, the world’s third largest manufacturer of motor vehicles. The aim expressed at the time was to blend their two very differen t corporate cultures into a new ‘super culture’ which drew from both sides: Chrysler had a reputation as a lean and flexible company leading the way in cost effectiveness, whereas Daimler was more structured and bureaucratic. In reality, the deal was a takeover of Chrysler by Daimler, rather than a merger of equals.

The differences of culture became apparent almost immediately and turned out to be more difficult to overcome than had been anticipated:

▪The official language became English, but the Americans found, not surprisingly, that their German colleagues were more comfortable in German, and often used German in Private conversations, which they found unsettling. They also found that, without German, they could not integrate well at the social level.

▪German managers were formal in their manner and dress, always wearing ties, and addressing colleagues by title and surname, while Americans were accustomed to dressing more casually and addressing each other by first names.

▪The American managers found the office environment very different in Stuttgart.

Although the summers could be hot, there was no air conditioning, which they took for granted at home. Offices and hallways were a ‘smokers’ paradise’, which shocked the Americans, who were accustomed to a smoke-free environment. Photos of topless models, common in the German workplace, would amount to a sexual harassment issue in America. Americans found they were always expected to use the company canteen, which even served beer after five o’clock, for those who were working late.

In the end, the incompatibility of management styles was recognized and German culture came to dominate. The key figures in the Chrysler management team had departed within 12 months, leaving Chrysler struggling to deal with a new management team (headed by a German former Mercedes executive) at a time when the competitive environment was particularly difficult. Under the chairmanship of Jurgen Schrempp, Daimler now views Chrysler as a stand-alone division, focusing wholly on the US market. Chrysler, meanwhile, has struggled to replace ageing models and risks losing out in its traditionally strong markets of light trucks and vans. Insiders attribute many of Chrysler’s troubles to the failure of the Germans to understand Chrysler culture.