Christian Diaz

Shadab Saiyed
Yewande Okupe
Yingxiu Li
Assessment of CD mission and purpose
SMART Analysis
◦ Specific: It is very global, general and vague.
You have to look at the goals to comprehend the objectives and values.

◦ Measurable: most successful and respected automotive and transportation

products. The context and scope is not defined.

◦ Achievable: By 2001 the merger is possible

If they want to accomplish all the 6 goals by this time, they are attempting
too much.

◦ Relevant: They do have the resources. Financial, technological and personnel

◦ Timed: Lack of time in purpose. Time limit mentioned in the Mission.

Have DC co-chairmen established clear
goals?

Goals and mission were defined after criticism was

received.
◦ They had internal goals of executing merger in 2 years. These
goals are well defined and supervised.
◦ They have 6 external goals but is not clear how is going to be
quantified. They are aware of the areas they want to
concentrate upon which can be done by departmentalizing the
goals and assigning objectives and appraisals.
◦ Some of the goals may be measured as follows:
Superior profitability: Financial statement
Delighted customers: Surveys
Unique portfolio: Benchmarking
Assessment of management actions to
integrate the operations
According to the 5 phases of strategy making and execution:
They had a vision, mission and objectives
Crafting: Clear Market segmentation is evident from the creation
of 12 efficient clusters called IRTs, as the merger process was
successful. (Exhibit 5). Tackling the issue of speed beforehand and
raising issues before being asked.
Implementation: Clear organizational structure, effective
communication through co-ordinators/PMI team.
Monitoring: CIC and the use of modern information and
technology equipment.
Conclusion: Based on IMD Research, the merger process has been
admirable as a whole. As an exception, there was slight disregard
for change in the process of integrating as the dividend and salary
system was Americanized.
Implementation challenges
Combining a luxury brand with a mass volume producer-
Both companies have different brand perception.
Operations suffered because of excess focus on merger
activities.
The payment system was considered to be a move
towards the US model.(performance based pay)
Corporate Governance: The worker’s councils have to be
incorporated in decision making.
Media criticizing the merger by attempting to find signs
of takeover.
Company values and culture issues have to be considered
by top management
Performance evaluation during the
merger by management
The management efforts have been satisfactory.
Initially, the performance was measured by
statistics: 12% increase in sales and 19,000 new
employees.
The development of stock was considered as an
important criterion.(exhibit 2)
During the merger:The war room showed
weekly progress reports evaluated by co-
ordinators and CIC. A justification was to be
given for the delay.
Recommendations
TOWS
STRENGTHS
1. 1st year results (most
profitable)
2. Clearly crafted strategy.
i.e. Management in terms
of operations and
monitoring. The merger
has become a model for
future mergers!
WEEKNESSES
1. Chrysler doesn’t have right
product for the market.
2. Lack of focus on daily
operations due to intensive
merger activities
THREATS
1. Integration of processes
and brand separation for
two diverse companies
2. Meagre savings compared
to sales profits
ST
The clearly crafted strategy(2)
has a bible which outlines the
separation of the brand(1) but it
should not prohibit common
platform strategy. i.e. There
should be more focus on the
benefit from the merger.
WT
Chrysler should concentrate on
luxury brands as well(1) so the
difference in brand
perception/diversity is
minimised (1).
OPPORTUNITIES
1. Continue the improved
stock performance.
2. Remaining competitive in
the global automobile
industry
SO
Utilize the same management
style and strategy for a
continuous and improved
performance for at least 3 years
to establish the merged brand.
WO
Creating more focus on daily
operations (2), and culture, also
developing chrysler cars for the
Euro market (1) to remain
competitive in the global auto
industry (2)and improve stock
performance. (2)
ADDITIONAL ISSUES AND
INITIATIVES
Monitoring the excessive competition for
leading positions.
Should develop a risk management strategy
like an alternate plan if the strategy fails.
Adapting the Codetermination German
Model which the American anti union
system is not used to.
Strengthen communication channels,
concentrate on company values and cultural
issues.