Daimlerchrysler M&a

Examining the DaimlerChrysler M&A business failure
By understanding the impact that individuals, groups and structure have on behavior within organizations, and by applying such knowledge, managers will be able to make the organization work more effectively. Applying Organizational behavior (OB) theories in today’s changing working environment help organizations in dealing with innovation and change, and to mitigate the risk of failure. In order to explain the business failure of DaimlerChrysler M&A, this analysis will show how the Organizational behavior theories that were omitted could have resulted in an organizational culture that thrives on change and optimized outcomes.  
Background information
Chrysler had been experiencing problems for many decades. Starting in the 1950s, the company was hurt when Chairman K.T. Keller and its best group of engineers left the company to take over the U.S. missile program that put men on the moon, and could not recuperate until the early 1980s with new president and CEO Lee Iacocca. With Iacocca as CEO, Chrysler saw its golden era from 1983 to 1993. When the Merge of Daimler and Chrysler took place in 1998, many of the key upper managers left the company leaving Chrysler in a vulnerable position; In 2007, Chrysler was acquired by Cerberus capital management; the lack of experience and knowledge of the new owners in the auto industry lead them to hire an equally inexperienced CEO, Bob Nardelli, who failed to be the leader who could have restored the loyalty of the dealers, Cerberus failed to inspire faith “had those dealers recommitted to the company and gotten excited about their potential, they would have sold more cars, which Chrysler desperately needed” (Wallance, 2009).
The DaimlerChrysler Merge and acquisition
Daimler-Benz’s acquisition of Chrysler in 1998 for $36 billion is one example of M&A that failed because the acquiring company did not integrate the target properly, ignored negative effects of the merger on...