...Case of DaimlerChrysler merger Introduction The case is about merger and demerger of the two automotive companies which have dedicated and skilled workforces and successful products, but in different markets and in different regions of the world, i.e. Daimler Benz of Germany and other company is Chrysler Corporation of US which take place merger in 1998 and demerged in year of 2007. This study analyses the potential sources of value creation and destruction, and evidence on how this process has affected the valuation of the Daimler Chrysler merger. We also discuss some of the important issues that must be taken into account in cross-border mergers and acquisitions. Differences in corporate culture, compensation policies, ownership structure, and the legal environment may pose significant challenges to international business combinations. This is the historic merger that will change the face of the automotive industry. Context In a Modigliani-Miller framework, if mergers do create value, they do so by changing tax liabilities, changing contracting costs, or changing investment incentives. If the size, timing, and riskiness of the combined future cash flows of the merged firms exceed the cash flows of the separate firms (“synergy”), the merger will be a positive net present-value project. They include:- Tax motivation Mispricing inspiration Market power high price hypothesis motivation Earning diversification stimulation In the case of Daimler Chrysler merger...
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...- Lessons in Post-Merger Integration - Jan Daniel Laufhütte 2304958 Individual Written Case Study Report in Strategic Management IHS-3-422 London South Bank University 17/12/2003 Table of Contents List of Figures................................................................................. i Introduction ................................................................................... 1 1. The changing world automobile industry .............................. 1 2. Reasons for mergers and acquisitions .................................. 3 2.1. 2.2. Daimler-Benzs’ motives..................................................................... 3 Chryslers’ motives ............................................................................. 5 3. The Post-Merger Integration Structure................................... 7 3.1. 3.2. 3.3. Preparations for the merger .............................................................. 7 Integration Structure of DaimlerChrysler......................................... 7 Expected Synergies ........................................................................... 8 4. Cultural Issues ......................................................................... 9 4.1. 4.2. 4.3. Daimler-Benz’s Culture...................................................................... 9 Chrysler’s Culture ............................................................................ 10 Key Integration Problems and Post-Merger Business Culture ....
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...Glavin Center for Global Entrepreneurial Leadership DaimlerChrysler Merger: The Quest to Create “One Company” Tom Stallkamp, Chrysler president and executive in charge of accelerating integration of the recently merged Daimler and Chrysler companies, was feeling great frustration. Why couldn’t he move the integration process along more rapidly? He could see clearly the amazing potential for payoffs, but it just wasn’t happening. He wasn’t used to being unable to move the organization, and he hated the feeling of being able to visualize great things without being able to mobilize people to action. What else could he do? Maybe it was time to let the two cultures duke it out, and allow the stronger one to win. That would be one kind of integration, though not quite what he had been working for. Background At 4:00pm on November 12, 1998 as the final bell rang on the New York Stock Exchange, U.S. automaker Chrysler Corporation and German automaker Daimler-Benz ceased to exist. They emerged the next day as a new global conglomerate named DaimlerChrysler AG. With combined revenues of $130 billion and a market capitalization of $92 billion, DaimlerChrysler became the fifth largest automaker in the world in number of vehicles sold and third largest in sales. The $40 billion stock deal was the largest ever in the industrial world. Upon completion of the transaction Daimler stockholders owned 57 percent of the new DaimlerChrysler and Chrysler stockholders the remaining 43 percent. After...
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...demand enterprises. Introduction Methodology The evolving automotive landscape The on demand challenge Brand management Customer relationship management 10 Core competency management 13 Software management 15 Quality management 17 Product development management 20 Expansion management 22 Strategic steps toward the on demand business 25 Conclusion 25 About the authors 26 About IBM Business Consulting Services 26 References Methodology The information, data and opinions presented in this paper are based on a series of interviews that IBM Business Consulting Services held with automotive industry experts, who gave us the benefit of their extensive knowledge. This information and data were complemented by our evaluation of industry studies and reports on various aspects and developments in the automotive industry. The evolving automotive landscape The global automotive industry is subject to a range of factors that are increasing complexity and influencing the...
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...SUVs, the Environment, Safety, and Stakeholders The Evolution and Devolution of the SUV Market In 1990, the SUV/Light truck market consisted of approximately 4 million units sold out of 14 million total vehicle sales in the United States. By 1999, the percentage of the total market had increased and total sales were higher. SUVs/light truck sales were 8.2 million of 16.4 million units sold.21 47.6 percent of Ford Motor Company's sales are of SUVs, primarily its Ford Explorer and larger Expedition, but also of its even larger Excursion. These vehicles took the place of the truck-like Bronco and smaller Bronco II. The largest players in the SUV market (with the number of units sold in 2000) are as follows: 22 [pic] In 1997, most auto manufacturers expanded their SUV offerings and entered the luxury SUV market. These SUVs, with prices around $50,000, featured in-vehicle televisions and VCRs, leather interiors, and all the amenities of luxury cars. The new market entrants are listed below: [pic] By 2000, the U.S. segment of the luxury SUV market was 80.5 percent.23 At that time, SUV purchases constituted one of every five auto sales in the United States and were the highest-margin products in all the automakers' lineups .24 Profits per SUV averaged $ 10,000 per unit. Profits on the Ford Excursion were at the top of the field at $18,000 per unit. At that time, SUVs comprised 20 percent of all of Ford's vehicle sales and accounted for the majority of Ford's...
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...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in December...
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...Tools and Techniques Practitioners and Experts Evaluate KM Solutions This page intentionally left blank Knowledge Management Tools and Techniques Practitioners and Experts Evaluate KM Solutions Edited by Madanmohan Rao AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Elsevier Butterworth–Heinemann 200 Wheeler Road, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2005, Elsevier Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions@elsevier.com.uk. You may also complete your request on-line via the Elsevier homepage (http://elsevier.com), by selecting “Customer Support” and then “Obtaining Permissions.” Recognizing the importance of preserving what has been written, Elsevier prints its books on acid-free paper whenever possible. Library of Congress Cataloging-in-Publication Data Rao, Madanmohan. KM tools and techniques : practitioners and experts evaluate KM solutions / Madanmohan Rao. p. cm. Includes bibliographical references...
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...中山大学数计学院 2013级软件工程专业(2015学年秋季学期) 《SE- +电子商务》期末考试方案 (考试形式:Final Assignment) 《中山大学授予学士学位工作细则》第六条 考试作弊不授予学士学位 方向: 姓名: ______ 学号: 出卷: 审核: Final Individual Assignment-2015 No. True/False Indicate whether the statement is true or false.(20 points, 1 point each) ____ 1. Transferring funds, placing orders, sending invoices, and shipping goods to customers are all types of activities or transactions. ____ 2. A value added network (VAN) is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI. ____ 3. An HTML document is similar to a word-processing document in that it specifies how a particular text element will appear. ____ 4. Although an extranet is a VPN, not every VPN is an extranet. ____ 5. The three main elements of a Web server are the hardware, operating system software, and client software. ____ 6. Academic publishing has always been a relatively easy business in which to make a profit. ____ 7. Companies that have existing sales outlets and distribution networks often worry that their Web sites will take away sales from those outlets and networks. ____ 8. The benefits of acquiring new visitors are the same for Web businesses with different revenue models. ____ 9. A banner ad is a small rectangular object on a Web page that displays a stationary or moving graphic without a hyperlink to the advertiser...
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...Intellectual Property Theft in the Automotive Industry Scope, Trends, and Mitigating Strategies Table of Contents Introduction………………………………………………………………………………..3 Scope of Intellectual Property Theft………………………………………………………3 Intellectual Property Theft and China……………………………………………………..4 Intellectual Property Theft in the Automotive Industry…………………………………...5 The Subtle Pick-Off……………………………………………………………….5 Piracy and China’s Global Emergence…………..………………………………………..6 Consequences of IP Theft…………………………………………………………………7 Mitigating Strategies………………………………………………………………………7 The Autoweb Intellectual Property Exchange…………………………………………….8 Fusion-DX………………………...………………………………………………9 GlobalSource………………………………………………………………….…..9 Data Integration Services……………………………………………………….…9 GlobalSource...………………………………………………………………….…9 Integrated Translations…………………………………………………………….9 Autoweb Company Overview……………………………………………………10 Bibliography………………………………………………………..……………………11 www.autoweb.net 2 Introduction I ntellectual Property protection in the manufactured goods sector is not a new idea. Laws prohibiting manufactured goods counterfeiting and piracy activities existed as far back as the Middle Ages when bakers, artisans, and craftsmen used distinctive marks to distinguish their products and work from would-be counterfeiters. The general problems associated with modern day counterfeiting and intellectual property piracy have long been recognized, yet today’s high-tech economy has magnified the problem of...
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...OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT OPERATIONS AND PROJECT MANAGEMENT www.ibscdc.org 1 Efficient Project Management at TransWorks Information Services Pvt. Ltd., an Indian-based BPO Company This is a real life case taken from a service industry; it discusses the real life problem faced by a BPO Company. It focusess on the problems faced by the calling agents and the management as a whole, many a times it so happens that the management perceives a problem in a different angle and the solution eludes them; this causes a lot of frustration on the part of employees and management resulting in mass attrition. The real concern today for any call centre company is its high attrition rate; the basic reason being the discord between the management and the employee. The employees look out for a congenial and empathetic management and shift to the other competing companies when offered a good work environment. This case study throws light on one such aspect where a mass attrition was avoided by the top management by strategic and lateral thinking. Pedagogical Objectives • How a manager dealt with such a challenging project with support of his team of 14 fresh trainees • How he managed to save the project and bring about some wonderful changes to glide through the difficult times • How innovation and teamwork can change things for an organisation. Industry Reference No. Year of...
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...increase profit margins and reduce costs, Volkswagen, GM and Ford are some companies, which use the same components in different car models and car brands. These companies have in other words succeeded in synergising research and development effects within the company despite car model and business area. By a contrast, BMW, an individual actor, has yearly shown strong financial results and has retained its market shares. This becomes of interest to study more profoundly, in order to find the factors behind a successful company and a strong brand. Purpose: The purpose of this thesis is to analyse the development of BMW during the past five years. Not only are the financial statements taken into consideration. In addition, a comparison to competitors and the market situation is also made. Delimitation and assumptions: This thesis is delimited to an analysis of BMW between the years 2001-2005. The thesis is based on the assumption that BMW is the most successful automotive manufacturer in the premium segment. Methodology: In the study of BMW both primary and secondary data are used. The primary data consists of an interview and secondary data is collected from annual reports. Results and Conclusion: BMW is a well known and highly...
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...Network Structure and Inter-organizational Knowledge Sharing Capability ABSTRACT This paper examines how the structure of a supply network can affect the inter-organizational knowledge sharing capability, which is expressed by absorptive capacity and shared identity. The supply network structure is analyzed by two dimensions – formality and centrality. Propositions about the relationships between network structure and knowledge sharing capability are suggested at the end. Subject Areas: Supply chain management, Inter-organizational knowledge sharing, Absorptive capacity, Shared identity, Network structure. 1 1. INTRODUCTION Historically, individual organizations have tried to improve their own performance in an effort to gain competitive advantage. Today, the success of an individual organization depends largely on the performance of its suppliers and customers [1]. Consequently, supply chain or supply network management is one of the critical success factors in today’s marketplace [2]. As organizations increasingly connect with and rely on partners and suppliers in their supply networks, interdependencies among these organizations naturally increase. This increase, in turn, makes today’s supply networks more complex [3], and members of such complex supply networks face many sources of uncertainties – internal as well as external1. Fisher [4] argues that the strategy of the supply network – lean vs. responsive – should be aligned with the product types – functional vs...
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...TOYOTA’S BUSINESS STRATEGIES IN INTERNATIONAL MARKETS Assist. Mihaela Funaru Ph. D Student University of Braşov Faculty of Economics and Business Administration Braşov, Romania Abstract:Toyota’s success both on the Japanese market and international market due to its desire to make products with high quality. The Japanese believe that nothing is so good that it can not be improved, so they constantly struggle to increase the quality of everything they do. This attitude can be expressed by a single word:”Kaizen”. It means „continuous improvement” and is the key word to guide them towards perfection. This paper presents the strategies of Toyota Company in their attempt to gain supremacy in the international market. JEL classification: M16 Key words: global strategy; international markets; technological innovation; hybrid systems; kaizen 1. TOYOTA MOTOR COMPANY Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer. Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market, the other two are Nissan Motors and Honda Motor. Also the company provides financial services through its subsidiary, Toyota Financial Services, and works in other fields. Automotive products are sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu...
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...points out that many new products are merely copies or imitations of existing ones. The study of innovation is concerned with identifying how firms use their existing knowledge and technical resources to develop goods, processes and services that are significantly novel. Innovation is often seen as a key driver of economic growth for a country and increased firm productivity (Gann, 2003 cited in Abbott and Jeong, 2006). Trott (2005) demonstrates that the industrial revolution of the nineteenth century was fuelled by technological innovations, while Abbott and Jeong (2006) argue that there is now increasing emphasis on the importance of innovation for long-term economic success. At an organisational level, specific benefits include such factors as market growth, reductions in production cost, competitive positioning and opening up of new markets (Slaughter, 1998). For Ettlie the key questions in the study of innovation relate to the way some firms can utilise individual creativity in innovation more successfully than others. Innovation is has become a vital part of business survival and is supported by much academic study into reasons for its success and failure, for example, in 1994 – 1995, 275 books published in the US had the word ‘innovation’ in their title (Trott 2005). This paper will explore the underlying definitions, concepts and models that provide and introduction to understanding the study of innovation. Prahalad and Ramaswamy (2003) argue that managers are under pressure...
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...Strategic Management Case plus Case Answer – Apple’s Profitable but Risky Strategy Case study Apple’s profitable but risky strategy When Apple’s Chief Executive – Steven Jobs – launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the company’s strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. This case explores this profitable but risky strategy. Note that this case explores in 2008 before Nokia had major problems with smartphones – see Case 9.2 and Case 15.1 for this later situation. Early beginnings To understand any company’s strategy, it is helpful to begin by looking back at its roots. Founded in 1976, Apple built its early reputation on innovative personal computers that were par-ticularly easy for customers to use and as a result were priced higher than those of competitors. The inspiration for this strategy came from a visit by the founders of the company – Steven Jobs and Steven Wozniack – to the Palo Alto research laboratories of the Xerox company in 1979. They observed that Xerox had developed an early version of a computer interface screen with the drop-down menus that are widely used today on all personal computers. Most computers in the late 1970s still used complicated technical interfaces for even simple tasks like typing – still called ‘word-processing’ at the time. Jobs and Wozniack took the concept back to Apple and developed their...
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