Culture and Organisations of Daimler Essay Example | Topics and Well Written Essays - 3500 words

Culture and Organisations of Daimler - Essay Example Two German automobile manufacturers Benz & Co. and Daimler Motor Company merged together in 1926 and named the new company Daimler-Benz. Its Mercedes cars were arguably the best example of German quality and engineering. Another merger came in 1998 when Daimler-Benz and U.S. based Chrysler Corporation, two leading global car manufacturers, agreed to combine their businesses which was then perceived to be a ‘merger of equals’ (Casestudy, 2008). This merger was supposed to be the third in the world in terms of revenues, market capitalization and earnings, ranking after GM and Ford. It was also considered to be fifth in terms of the number of passenger cars and trucks sold, ranking GM, Ford, Toyota and Volkswagen. However, within two years of the Daimler-Chrysler merger, the company suffered third quarter losses of more than half a billion dollars and in 2001 they slashed about 26000 jobs at its ailing Chrysler division. What was described as ‘marriage made in heavenà ¢â‚¬â„¢ in 1998, the Daimler-Chrysler merger proved to be a costly mistake for both the companies. In early 2007, Daimler was forced to sell 80 percent of Chrysler to private equity firm Cerberus Capital Management LLC which ended a nine-year merger. Critics believe that though strategically the merger made good business sense, the two organizations had contrasting culture and management styles that hindered the synergy. Organizations are no more constrained by national borders and partnerships are driven by the need to achieve economies of scale. The expected synergies fail because the cultural fit is ignored. Globalization may have brought companies and nations closer but the difference in organizational culture is perceivable. Culture has been recognized as a strong determinant of beliefs, attitudes and behavior. Research suggests that decision-makers give disproportionate attention to strategic fit as compared to integration

Poverty in Guatemala Essay Example | Topics and Well Written Essays - 1000 words

Poverty in Guatemala - Essay Example In 2012, only eleven point percent of the taxes reached the Central Bank. Of the 215 countries ranked in the CIA World Fact Book, the collected GDO is at position two hundred and four. However, the problem does not have any relations with too low value-added tax or income, but the inefficiency from government authorities and corrupt public servants. Now that majority of the population surive in informal economy makes it easy for the tax collector to hide behind little collection. The informal sector means that a bigger proportion of the population does not have formal businesses and formal jobs therefore; they do not operate with registered licences. Based on this, the tax authorities cannot levy taxes on them. Registered businesses also have the tendency of evading tax adding to the complication. Comparatively, Honduras, an immediate neighbour to Guatemala spends 15.8% of the GDP after collection, Kenya; a country in Africa collects and spends 18.4 % of its GDP, and Germany, an economic powerhouse spends 40.6% of the GDP (Zakaria 36). In other case studies, Mexico spends 29.7%, South Africa 26. 8%, Costa Rica 21%, and Canada 32.3% of its GDP. Data collected from economic sources shows a hitherto correlation (positive) between the proportion of GDP channelled through government spending and the standards of living of a country. Good public services and infrastructure explain factors behind established business activity. Senior economists from the World Bank hold that the economy of Guatemala continues to with typical support from private consumption. However, they also hold that the rate of investment is on a steady decline with little progress in the rate of productivity. Normally, lack of or minimal productivity affects the incomes for workers negatively. The growth rate of the country’s GDP is less impressive taking into account demographic trends of the country. While the population continues to grow at an average of 1.9%, the