In 1998 Chrysler Corp (U.S.) and Daimler Benz (Germany) merged at a cost of $36 billion. Daimler was one of the world’s most profitable automakers. Chrysler was one of America’s big three automakers. Both companies had solid reputations, in their respective areas. Reports state that Daimler believed that there would be no special problems with the cross-border merger, thus little attention was given to potential differences among the companies. What question do you think might have been important to ask prior to the merger?

A. Will the acquisition cost result in enough Goodwill, such that the consolidated balance sheet will attract new investors?

B. How can the merged organization successfully integrate Daimler’s formal bureaucratic style with Chrysler’s spontaneous casual style?

C. Where will the consolidated financial statements be prepared?

D. How can the roll-out of new automobiles be operationalized with technology from companies?

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Prior to the merger the merging companies are concern about successfully integr... View the full answer