Effects of Culture and Behaviour on Negotiation and Implementation Success. The Example of the DaimlerChrysler Merger

Essay , 2020 , 18 Pages , Grade: 75%

Business economics - Business Management, Corporate Governance

The automotive industry has been facing increasing problems over the last years and COVID-19 accelerated the situation. Changes in the industry are challenging the automotive manufacturers to defend their position and adapt to constantly changing conditions. Some manufacturers, such as PSA and FiatChrysler already announced mergers to be jointly successful in the future (European Commission, 2020). Since Chrysler was part of several M&A activities, it is interesting to take a look at past Chrysler mergers and consider which factors regarding cross-cultural management influenced the merger outcome.

The example of the DaimlerChrysler merger will be used for this purpose in order to analyse the merger towards cultural differences and behaviour of both parties under consideration of cross-cultural management theory which had an influence on the failure of the merger by means of Hofstede’s cultural dimensions.

TABLE OF CONTENTS

List of Abbreviations

Introduction
Objectives & Delimitations
Case Study: The Merger between Daimler & Chrysler

Insights on National Cultures Based on Hofstede’s cross-cultural Research
Hofstede’s Work & the Relevance of his Theory
Power Distance
Uncertainty Avoidance
Individualism vs. Collectivism
Masculinity vs. Femininity
Long-Term vs. Short-Term Orientation
Indulgence
Summary of Cultural Differences between American and German Culture

ANALYSIS OF CULTURAL DIFFERENCES Influencing THE FAILURE OF THE MERGER
German Long-Term Orientation During the Negotiation as a First Friction Point
Excurse to Applied Negotiation Techniques and its Effects
Differences in Individualism Show in the Compensation Scheme
Different Perspectives on Uncertainty Avoidance and Indulgence Lead to Hardened Fronts

Critique & Reflection on Hofstede’s Model
General Critique & Usefulness the Model
Alternative Models in the Discipline of Cross-Cultural Management

Conclusion

Reference List

• College: The University of York
• Course: Cross-Cultural Managemnet & Negotiation
• Grade: 75%
• Publication Year: 2020
• Pages: 18
• Catalog Number: V942587
• ISBN (eBook): 9783346278159
• ISBN (Book): 9783346278166
• Language: English
• Tags: cultural management, negotiation, interkulturelles management, management, international business, daimler, chrysler, daimlerchryser, merger, m&a, mergers, verhandlung