Subject category:
Strategy and General Management
Originally published in:
2021
Length: 12 pages
Data source: Published sources
Topics:
Consolidation - acquisitions and mergers; Cultural alignment; International expansion; Brand conflict; Corporate culture; Multinational Corporations (MNCs); Economies of scale; Mergers & acquisitions (M&A); Foreign direct investment (FDI); Managerial control and command; Intangible assets; Synergies fit; Diversification/growth strategies; Brand equity dilution; Technology transfer
Notes: To maximise their effectiveness, colour items should be printed in colour.
Abstract
Traveling from the Mercedes-Benz corporate headquarters in Stuttgart to BMW's in Munich, you would have to drive eastwards, eventually down either of two autobahns. If you chose the older A8, you might cut your travel time by up to thirty minutes, otherwise choosing the A96 - by first going south, down the A7 - might take you the full complement of 2 hours and 38 minutes, a total travel distance of about 160 miles. Much of Germany's autobahns haven't speed limits, however, so your time might be even shorter, depending on your speed proclivities. But both Mercedes and BMW would argue that the trip, in either direction, is most pleasurable if done in their car. What isn't arguable, though, is that the long transatlantic trips they both made by mergers and acquisitions in the 90s and 2000s, thousands of miles from the A8 and across the Atlantic, in search of larger market shares and heavier profits, were not pleasurable at all. Both since packed their bags and trudged back to Stuttgart and Munich, with little appetite for similar further travel.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 1993 - 2007.Geographical setting
Region:
World/global
Countries:
Germany; United States; United Kingdom
Featured companies
Mercedes-Benz AG / Daimler AG
Employees:
10000+
Turnover:
EUR 100 billion
Type:
Public company
Industry:
Automotive
Other keywords:
Multinational; Luxury brand vehicles; Daimler Chrysler
BMW AG
Employees:
10000+
Turnover:
EUR 100 billion
Type:
Public company
Industry:
Automotive
Other keywords:
Multinational; Luxury brand vehicles; Rover Group; Mini
Chrysler Group
Employees:
10000+
Turnover:
USD 57 billion (approximately)
Type:
Public company
Industry:
Automotive
Other keywords:
Fiat Chrysler; FCA; Stellantis; Daimler Chrysler
Featured protagonists
- Robert Eaton (male), Chairman/CEO, Chrysler
- Juergen Schrempp (male), Chairman/CEO, Daimler-Benz
About
Abstract
Traveling from the Mercedes-Benz corporate headquarters in Stuttgart to BMW's in Munich, you would have to drive eastwards, eventually down either of two autobahns. If you chose the older A8, you might cut your travel time by up to thirty minutes, otherwise choosing the A96 - by first going south, down the A7 - might take you the full complement of 2 hours and 38 minutes, a total travel distance of about 160 miles. Much of Germany's autobahns haven't speed limits, however, so your time might be even shorter, depending on your speed proclivities. But both Mercedes and BMW would argue that the trip, in either direction, is most pleasurable if done in their car. What isn't arguable, though, is that the long transatlantic trips they both made by mergers and acquisitions in the 90s and 2000s, thousands of miles from the A8 and across the Atlantic, in search of larger market shares and heavier profits, were not pleasurable at all. Both since packed their bags and trudged back to Stuttgart and Munich, with little appetite for similar further travel.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 1993 - 2007.Geographical setting
Region:
World/global
Countries:
Germany; United States; United Kingdom
Featured companies
Mercedes-Benz AG / Daimler AG
Employees:
10000+
Turnover:
EUR 100 billion
Type:
Public company
Industry:
Automotive
Other keywords:
Multinational; Luxury brand vehicles; Daimler Chrysler
BMW AG
Employees:
10000+
Turnover:
EUR 100 billion
Type:
Public company
Industry:
Automotive
Other keywords:
Multinational; Luxury brand vehicles; Rover Group; Mini
Chrysler Group
Employees:
10000+
Turnover:
USD 57 billion (approximately)
Type:
Public company
Industry:
Automotive
Other keywords:
Fiat Chrysler; FCA; Stellantis; Daimler Chrysler
Featured protagonists
- Robert Eaton (male), Chairman/CEO, Chrysler
- Juergen Schrempp (male), Chairman/CEO, Daimler-Benz