Essay Preview: Mba
Report this essay
Chrysler Corporation, one of the largest automobile and truck manufacturers in the country, entered a financial crisis in the late 1980s, early 1990s. In May, 1998, company reports indicated that the company only sold 17,713 vehicles outside of the United States, due to powerful competitors. Therefore, due to the companys lack of competitive drive globally, the company sought out sources to merge with “the largest industrial company in Germany, Daimler-Benz; this merger became known as Daimler Chrysler (Daimler-Chrysler, 2006).
Daimler Chrysler, a major automobile and truck manufacturer and financial services provider; is headquartered in two different locations: Michigan (USA), and Wurttemberg (Germany).
On May 7, 1998, the company was formed by the merger of Chrysler Corporation and Daimler-Benz; the former CEO and president, Dieter Zetsche of Chrysler and Mercedes, was awarded the chairman of Daimler Chrysler in 2006. The emergence of Daimler-Benz and Chrysler Corporation formed the production of both companies cars and trucks such as: Jeep, Mercedes-Benz, Smart, Maybach, and Dodge. As such, in 2004, the Daimler Chrysler has begun folding Mercedes and Chrysler brand parts operations worldwide into a single operation” (Daimler-Chrysler, 2006).
The outcome of Daimler Chrysler was a major success in the industry of truck and car manufacturers, reaching sales of $141 billion dollars, which produced 4.5 billion dollars in profits for the company. The number of jobs for United States and Canadian auto workers increased significantly, while Germany saw an “enormous outflow of capital” (Daimler-Chrysler, 2006). In 2004, the companys implementation plan to fold both Chrysler and Mercedes brand parts operations worldwide, into a single operation, saved the company more than $25 million dollars; however, the company has faced some controversy in the past several years. Keith E. Crain, publisher of Automotive News, states that it is unlikely to be able to “blend these two cultures into one global entity without losing the characteristics that have made these two companies so successful,” which as brought the fear to Americans that the Daimler Bureaucracy, may impact Chryslers ability to sell to the American public (Holstein, 1998). Although the company has been faced with issues, they remain the fifth largest company in their industry, and still remain strong.
According to the editorial board of the (ICFI) International Committee of the Fourth International, “The Chrysler-Daimler merger is another powerful proof that only the perspective of socialist internationalism offers a way forward for working people” (Daimler-Chrysler, 2006).
Sprint, a global communications company, offers communications services such as: wireless communications services, long distances, and a carrier of Internet traffic. As such, the company “operates local telephone services in around 18 states, and long distance services across the US” (Sprint Communications, 2003). The headquarters of Sprint is located in Overland Park, Kansas.
In 2003, Sprints net income fell by $1,290 million dollars, which resulted in a loss of $1,000 million dollars in the year of 2004. Due to this loss, the company started their “cost