Case Presentation: Daimler-Chysler Merger

Happily ever after?

The marriage of these two companies seemed to be the success of the century. Both with solid sales volume and brand equity, their union would imply a boom in the car industry.The whole world had great expectations from them. Of course there had been worries because of their different cultures, interests and backgrounds, but these were too small compared to the gains they would bring to each other. So, it only took less than a year to reach the ever lasting contract. Unfortunately or not, marriage between companies that so much differed ended up in a divorce after 9 unsuccessful years.

Putting this business case at a personal level, a presenter learned about the implications of the so called international marriage that she had considered in order to open up her possibilities of finding Mr. Right. Efforts to maintain such a controversial relationship, I mean, controversial at least to many Koreans, would not balance the gains of being together. Or the opportunity costs of marring a foreigner could be higher than the benefits the partner would bring. Or the comforts of similarities are larger than the excitements of the unknown world.

In other words, it is a quite risk. So if marriage is supposed to mean settling down, taking risks would contradict its purpose, especially when it comes to the 'I will love you forever no matter what' vow.

But it would be nice to find someone worth of taking whatever the risks, right? Or even better would be to be loved in such a way because deep inside we know all the flaws we have.


Merging or acquiring? Being merged or acquired? Doesn't matter.

Back to the business case, the real purpose of the deal was the acquisition of Chrysler by Daimler Benz, although the official announcement was the so called merger of equals. But this is not a very important factor when assessing the success of the union. What the case presenters concluded was the inexistence of post merger integration which had caused such a failure.

Also in real life, whether a marriage is a merger or an acquisition, or whether the balance sheet of gains and losses is not that well-balanced, doesn't matter. What is important is the post integration management. Intentions of taking over, indifference, or the transfer of responsibilities to the partner is a direct route to failure. Melting and molding are necessary to build a solid relationship.This restructuring of both parties is certainly painful, but we all know that once we mold to each other the success of the union will come as a matter of course.

Just like in any M&As, success of a marriage should be assessed not at the decision moment of the seemingly perfect match, but when we actually see the melting and the molding of the agreement become a real union.

It's crucial to find the one that matches with oneself. Still, restructuring is required and we all know that. The key issue here is whether we have the willingness to painfully melt and mold ourselves to the one we are committing the rest of our valuable lives to.

Perhaps it is my lack of that willingness that has kept me single until today. Perhaps it is my naivety (or lazyness) that still dreams of a perfect match, unnecessary of such an arduous process. Perhaps these are just coward excuses.