Case study - Daimler-Chrysler Merger: a Cultural Mismatch2
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1) Mergers and acquisitions take place to realise the synergies between the two or more companies involved. Using Cultural theories, explain why do you think the Daimler-Chrysler merger failed to realise the synergies that were expected from it?
2) Many cross-cultural mergers have failed because proper attention was not given to the difference in cultures between the two companies. What issues should be addressed to make cross-cultural merger a success? Include an Action Plan in your recommendation section.
In relation to the above Mini case study, answer All the following questions.
1. Examine the factors that influenced Renault's Decision to choose a joint venture entry mode as opposed to Green Field entry mode to enter the Indian market. Include in your answer an explanation of how have the characteristics of India affected this decision.
2. Discuss the main advantages and disadvantages for Renault of using a Joint Venture mode compared to a Green Field entry mode. In your answer, explain the main differences also between the two modes in terms of control, risk, and flexibility. Include an action plan in your recommendation section which includes some steps to portray Renault as a good corporate citizen and to reduce its political risk.
Overall, Support your answers with examples and statistical/evidence and arguments in your answers.
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