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Mergers and Acquisitions Analysis

   

Added on  2020-05-28

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Running head: STRATEGY IMPLEMENTATIONMergers and AcquisitionsName of the University:Name of the Student:Author Note:
Mergers and Acquisitions Analysis_1

1STRATEGY IMPLEMENTATIONAnswer 1Chrysler considered merging as the best practice for the automobile industry of US. Ithelped in reducing the cost of suppliers. Moreover, target costing allowed the companies toreduce significantly the research and development costs. In addition to this, the mergingprocedure benefitted by increasing the number of productive car makers, decreasing verticalintegration and increasing the platform sharing amongst brands. However, the company wastoo much focused on the market of North America, which resulted in less number ofdiversified workers, within the segment of automobiles. In the case of Daimler’s, merginghelped in increasing profitability through restructuring the efforts and refocusing on thesector of automobiles (Bouchikhi and Kimberly 2012). AttributesDaimler BenzChryslerEurope SalesPositiveNegativeNAFTA Sales0PositivePassenger CarsPositivePositiveSUVNegativePositiveMinivansNegativePositiveTrucksNegativePositive Asia and LATAMCollaboration opportunityCollaboration opportunityBoth the companies rushed into merging, due to the pressure of globalization. Inaddition to this, both of the companies had tax benefits. However, the shareholders did notunderstand the overall story of the investor, a shift from the investors of U.S. towards theEuropean investors. In the end, both the companies lost due to investors, employee credibilityand trust as well as market capitalization (Yamanoi and Sayama 2013). Answer 2The challenges are mainly their differences, which are listed as follows;
Mergers and Acquisitions Analysis_2

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