Chrysler LLC: Business Failure Introduction The Chrysler Group LLC is a corporation, which was established after the merger between Daimler and Chrysler in the year 1998. In the year 2007, Daimler sold Chrysler to renown Cerbus Capital Management. In the year 2009, after filing for bankruptcy, Chrysler Group LLC in its aim of establishing a global or a worldwide tactical alliance with Fiat S. p.A, which produces the following products; Fiat vehicles and products, SRT, Mopar, Ram, Dodge and Chrysler. Because of the alliance, the company now has resources, technology and a global distribution from the culture of advancement of Chrysler Group, which was laid down by Walter P.
Chrysler in the year 1925, and the harmonized technology of Fiat, which can be dated to 1899. The following is a description of how organizational behavior theory, leadership, management and the group’s organizational structures contributed to the failure and how they would have been used to predict and explain the company’s failure. Reasons for failure A partnership has been defined as a mutually beneficial and continual relationship between a seller and a buyer (Scott, 2007).
Scholars argue that partners would rather have a dependent relationship with each other rather than behave like enemies. Partnership develops in various forms such as mergers, joint ventures and the acquisitions. A company undergoing problems may utilize any of the above forms to gain organizational growth and enjoy a global presence (Hatch, 2006). The reason behind Chrysler failure was that its partnerships were formed solely on the basis of financial and economic information. It was not taken into account on the organizational cultures of each organization and how these cultures would operate as a cohesive organization.
The organizational leadership, management and the organizational structures of each of companies should have been considered and aligned to ensure a cohesive unit/company (Stephen, 2004). According to Hatch (2006), organizational behavior involves, “the analyses of the impact of persons, structures and groups upon the behavior in an organization. ” Organizations are always undergoing revolutionary and unprecedented change. There is a speed in making decisions, technological and global competitiveness, mergers and the acquisitions, rethinking business processes and alliances among others. The reasons behind the failure of the company were a result of a complex combination of organizational, managerial and leadership factors.
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