The Culture War at Daimler Chrysler Essay
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Culture can be defined as the certain features of the social environment are peculiar to a given group. Meaning, the it is the common characteristics or behavior in a group. For example, American children usually prefer to throw stones and not to and stub their toes similarly(Skinner, 1953; p. 424).
In what way are differences in culture contributing to the problems between Chrysler and Daimler?
The cultures described in the Daimler Benz case here can also be defined as the knowledge that members of a social organizations or race share the same ideas, values, beliefs and understandings that shape the behaviors, perceptions, and interpretation of the members of a particular body.
(Eitzen & Zinn, 2000;pp. 92)
From the data, the American and German Daimler Benz employees have different cultures. For example, Daimler Benz employees, flew first class, in keeping with the company`s luxury image. On the other hand, only the Chrysler top officers could fly first class. Daimler Benz executives, while working on the merger, spent lavishly on hotels, restaurants, and fine wines.
To reiterate, the Chrysler officials were much more frugal. Like many other seemingly ordinary issues, the travel and entertainment policy became a sore point and took more than six months to resolve in the cased. The following paragraphs explains the importance of culture to get the job done.
What advice can you offer top management at Daimler-Chrysler to work as a more unified company?
The best advice to offer the top management of Daimler Chrysler to work as a more unified company is to water down or soften Stallkamp’s argument that “a successful merger would require the two companies to abandon their own business cultures and create a new distinct one. Two such issues referred to the board were labor relation problems and emission-control policies which became disruptive and difficult-to-resolve disputes”.
Meaning, the issue is NOT choosing which is the better choice to implement but “How can the company maximize the cultures of both the German people and their American counterparts” to accomplish the company’s over all goal to increase the sales of the their car outputs. For, the understanding and harnessing of the power called ‘culture’ will surely increase car outputs. Consequently, an increase in car output will also increase sales with the automatic increase in profits(Churchill & Peter, 1995)
What advice can you offer Jurgen Schrempp to be a more effective executive?
The best advice to offer Jurgen Schrempp to be a more effective executive would be to water down or soften his stand. His culture -abusive stand is the belief that the U.S. managers were not good enough to serve on his board, or to hold the top position in the Chrysler division. For, Schrempp paid dealer when he fired Chrysler president James Holden, and brought in a Mercedes veteran, Dieter Zetsche.
Jurgen Schrempp’s penalty payment occurred when his U.S. automaker had lost $512 million in the third quarter. Further, outside analysts predicted a Chrysler loss of $2 billion for 2001. The losses, along with layoffs of 20,000 workers took place despite rosy forecasts by Holden. Erroneously, Zetsche fired three Chrysler executives, including the head of sales and marketing, his first day on the job. To bounce back to a profitable business situation, Jurgen must maximize the cultures of the two countries (Etzel, 2001).
Culture can be defined as the certain features of the social environment are peculiar to a given group. Thus, a person from outside the culture group would find it offensive if the their culture will be unceremoniously rammed down their throats with permission. To remedy this culture crisis that has caused the car sales to decline, the both Stallkamp and Jurgen should immediately implement a car company policy that cultures should be preserved and maximized in order to increase car sales and net profits.