Organizational and Cultural Challenges in a Transatlantic Merger

INB400 – International Organizations and Management

Term Paper

Organizational and Cultural Challenges in a Transatlantic Merger

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The Case of Chrysler Group LLC

Department of Strategy and Management

Advisors:

Professor Paul N. Gooderham

Professor Kirsten Foss

Norwegian School of Economics

Fall Term 2013

Candidates:

Anna Borovova s135617

Ulrich Korus s136339

Branko Mirkovic s135609

Maxim Ozerov s126926

Ivan Paladin s135605

Bergen, October 23rd 2013

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Index

1. Introduction..…………..…………………..…………………..….. 3

2. Theoretical Framework…………...……..……………..………… 3

3. Acquisition Environment …………………..……………….…… 6

4. Organizational Changes …………………………………………10

5. Cultural Changes…………………..…………..………………... 14

6. Consulting ……………………………………………………….. 21

References ….…………………..…………………………………... 24

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1. Introduction

Mergers and acquisitions that spread across borders and jurisdictions have

become common practice in the current global commercial environment. However,

according to some estimates (Forbes, 2012) about 50% of shareholders would have been

better off if they never went into the M&A process. In case of a cross-border M&A the

challenges that arise are even stronger and thus require a lot of managerial effort to

overcome. Some research state that over 70% of such M&As do not generate appropriate

results after the integration (Forbes 2009).

The purpose of the paper is to discuss the issues and challenges of a