Chrysler&Fiat Essay Example | Topics and Well Written Essays - 1250 words

Chrysler&Fiat - Essay Example â€Å"The marriage was based on ego the egos of the two men at the top of the companies at the time who got rich on the deal not compatibility† (Krebs, 2013). Cultural differences made things even worse. This fact limited communication between Daimler and Chrysler. However, when two car companies merge they should have strong relationship and similar cultures. Both sides should understand each country’s traditions before they implement new concepts to their new styles of their cars. A year later, Chrysler decided to move on with Fiat Italian automakers. This time the company should build a solid rock foundation before they further unite. In my perspective if they don’t want to repeat the same costly failures, Chrysler should reflect about there past mistakes that negatively impact their business. They should engage in deep understanding and embrace equalities. Therefore, in order accomplish their goals the company should start to apply business strategies in effe ctive ways to promote a better level. It is important not to forget the cultural differences that created concerns. After the analysis above about the issues at Chrysler, I came out with effective business strategies that may resolve Chrysler’s problems. ... re to improve Chrysler & Fiat relationships through better communication, apply the Hofstede’s theory in business, and follow the current regulation. In my opinion before companies go public they need to have strong structures to support their plans. In business communication is one of the most important things. The initial steps that the CEO of Chrysler should take are to understand Fiat’s background. The firms need to promote open-minded for each other. Furthermore, these two companies should share their visions and missions so they will implement a new hierarchy system that is going to satisfy both companies’ needs. â€Å"This companies merges can harm communications within the companies, especially if the companies adopt distance working and mobile sales and service teams† (MacKechnie, 2013). Chrysler & Fiat need effort and time to fulfill this goal. Both sides should embrace flexibility and equalities because I believe that these will solve the mergin g issues that would cause conflicts at the initial stage. After they overcome the internal structure goals they could minimize bigger conflicts in the future. This first step is the simplest business strategy, but it is the most important aspect of business. It is better for them to consider this step rather than decide to quickly go out to find the profit as soon as possible. It is going to raise unexpected circumstances that would negatively impact the alliance between Chrysler & Fiat. Thus, in order to achieve short term and long term benefit this step is the one that needs serious consideration. I believe that they will have better understanding in the future when they need to overcome the company’s problems. In addition, by understanding both sides’ views, they will focus to pursue one objective that