Business Failure Papert

Examining a Business Failure Paper

Examining a Business Failure Paper
University of Phoenix

    LDR 531 Organizational Leadership
        Kevin Harris
    March 22, 2010

Examining a Business Failure Paper
The purpose of this paper is to describe how specific organizational behavior theories could have predicted or can explain the failure of Chrysler/Daimler-Benz Company. The attempt to compare and contrast the contributions of leadership, management, and organizational structures to the organizational failure is the results of why this partnership ended.

      Daimler-Benz attempted to run Chrysler USA operations in the same way as it would run its German operations. This approach was doomed to failure. In September, 2001, Business Week wrote, "The merger has so far fallen disastrously short of the goal. Distrust between Auburn Hills and Stuttgart has made cooperation on even the simplest of matters difficult.┬áComing to terms with issues like which parts Mercedes-Benz would share with Chrysler was almost impossible. The Germans and the Americans had been out of sync from the start. The two proud management teams resisted working together, were wary of change and weren't willing to compromise.
      Overall the merger made good business sense. But opposing cultures and management styles proved to be a barrier between both companies. However, the merger between the two companies raised several important issues needed to be addressed. The most significant of these was organizational culture. The styles of management differed amongst the German and Americans. A clash of culture would be a major hurdle to the realization of the synergies identified before the merger. Both groups were allowed to maintain their existing cultures. The former Chrysler group could continue to manufacture huge amounts of market cars and trucks, while the Germans would continue to build extravagance Mercedes. This may be reference to A form of indirect leadership involves...