DAIMLER CHRYSLER Essay Example | Topics and Well Written Essays - 2000 words

DAIMLER CHRYSLER - Essay ExampleThe differences among Daimler and Chrysler provided the two companies a good opportunity for merger in order to streamline their operations. Daimler-Benz had specialized in production of sumptuousness cars for sale in the upper mart segments. The high society had invested heavily in research and development and had coherent term technological experience that positioned it well in the industry above its competitors. According to Maielli (2005, p. 251), Daimler practiced crapper production and focused on strengthening its technology to achieve a higher level of creativity. Although the community had an international market for its car models, it focused on a particular market segment accordingly the produced quantity did non enable the connection to realize economies of scale. As a result of specialization in production of luxury cars the go with was not able to utilize its technological efficiency fully. Furthermore, the company had a lot of b ureaucracy in its management that slowed down decision making processes hence limiting the companys effectiveness for expansion (Slack, Stuart & Robert, 2007, p. 164). Daimler had a capacity of producing one million units of its products while Chrysler had a capacity of three million units. ... 316). The company had flexible work and time management that enabled employees to work even during the weekend and overtime in order to increase output. The company introduced a performance based rewarding carcass that recognized each individuals input in the company in order to motivate the workers. In addition, the company advocated teamwork with stakeholders in order to streamline their operations. For example, the company collaborated with its suppliers in order to reach the international market efficiently. Chrysler was slight bureaucratic in nature (Kohler, 2005, p.314). Individual workers were allowed to make decisions on their own without having to consult senior managers. This man agerial flexibility nurtured creativity in the company and simplified decision making process. The company engaged in developing new product designs for different market niches. The efficient and flexible management of Chrysler company enabled the company to come up with new car designs hence increased its market share (Maielli, 2005, p.258). The company had not focused much on research and innovations although it was producing different varieties of car models for various market segments. This created a potential risk of losing creativity and becoming technologically obsolete (Slack, Stuart & Robert, 2007, p. 197). The company lacked good base for foreign market since it focused on production for the domestic market, especially North America. However, the company enjoyed economies of scale due to large scale production for local market. The company had efficient manufacturing process that Maielli (2005, p. 251) describes as lean production. 2. What were the main differences betwee n the Mercedes and Chrysler production processes and how did