Merger can be defined as the agreement between firms that produce similar products. When two companies merge, they combine their operations to build a stronger base. The merger of Benz and Chrysler is a typical example. This union is referred as a merger of equals. The companies have the same strengths and business orientation. While the merger talk was ongoing, issues relating to who controls the organization became the subject of debate. By the end of the merger talks, DaimlerChrysler was a firm bound to fail (Andress, 2011).
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Key Issues/Challenges Merging IT at DaimlerChrysler
The merger of DaimlerChrysler came with issues which include:
- Communication gaps: Before the merger, the workforce from both companies anticipated a change in culture and this change was not realized. Job cuts at Chrysler Corporation increased which led to communication gaps in the organization. Teamwork promotes efficiency; the lack of cohesion among staff of the two companies hindered the growth of DaimlerChrysler Corporation.
- Power control: Before the merger, Chrysler recorded profits in their stock-market due to their marketing strategy. However, Chrysler’s stock share index dropped and they conceded a great loss in their capital base after the merger. This was a result of the total control by Daimler, which introduced the German culture to its operations. This pushed away Chrysler’s customers from any business transaction with DaimlerChrysler Corporation (“National Institute of Standards and Technology,” 2009).
- Conflict management: The result of disagreement of which policy to adopt raised serious concerns for the management of DaimlerChrysler. The right to decide which production strategy should be used and for which market, was controlled by the Germans which added to the communication gap in the organization.
- Conflicting cultures: Daimler-Benz was known for their achievements in the sale of luxury cars and they had a strong business network. Thus, Daimler-Benz ranked high in the automobile business. Chrysler manufactured low -cost compact cars and minivans and they were the biggest sales company in the North America. This statistic proved that, both companies were at their best in managing the internal and external transactions in the organization. The production team of Chrysler was downsized to fit the cost-reduction strategy of the Corporation.
- Difference in Operation Process: The product line of DaimlerChrysler also suffered challenges. There was a conflict in decision making in regards to the brand of cars to produce and the kind of technology to introduce. Chrysler was known for a robust IT technology; the growth of her production strength lies in the efficient use of the IBM’s CATIA CAD/CAM system. However, the control of the operations was headed by the Germans and they opposed the introduction of IBM’s CATIA CAD/CAM system technology.
- Lost in share Index from Chrysler Corporations: The merger of the two automotive giants resulted in the loss of shareholders from Chrysler Corporations. This was caused by the internal conflicts in the companies and the public perception about the merger.
- Executives were fired from Chrysler: Due to duplication of job description, there was a massive job cut in the organization. Although the merger was seen as a consolidation among equals, the result of the displacement proved otherwise.
- IT management was not centralized: The introduction of technology has reduced the shortage of information dissemination in business organizations. Nevertheless, when this technology is not centralized, it will not be useful in any business transaction Chrysler Corporations had a centralized network system until the merger with Daimler – Benz. This is another challenge for the organization.
- Different business Strategies: Culture difference between the two companies has affected their business strategy. While executives from Daimler would want to produce luxury buses, Chrysler executives would desire to have a system that produces compact cars. This difference in business strategy causes friction for the success and growth of the organization.
Security Plan for DaimlerChrysler Corporation
The success of DaimlerChrysler Corporation hinges on the management of all aspects of production and workforce. DaimlerChrysler would require a workable security strategy that is planned to be successful. This security strategy can be categorized into people, process and technology.
The security plan as it Relates People in the Organization
- Job Description Technology: The management of the workforce requires careful examination. Technological efficiency would make this task simple. Each staff is trained under his or her specific job description for the growth of the organization. The executives would integrate this technology into the entire structure of the organization. From the head to the bottom, each staff understands what he or she has to do for the success of the firm.
- Information Technology: The executive of DaimlerChrysler must update her information technology, to link each department to the information network. This would encourage communication in the organization and remove speculation and rumours. Information would be shared equally among the workforce and this would boost team spirit among the staff. Teamwork is an important key to success in a corporate organization. The diversified culture in the organization will be reduced with an updated information technology.
The security plan as it relates Process and Technology in the Organization
- Centralized Information Technology: The key to success in an automobile industry is an effective business strategy. The business strategy will match market trends and would serve as a competitive advantage over similar competitors. Information technology would assist in tracking customer’s demand and desire. Information would be collected from different regions of the company, transferred to a centralized system that would be used for decision making. The kind of automobile to produce would be decided with an updated information system. This will reduce the problem of cultural conflict in the organization (“National Institute of Standards and Technology,” 2010).
- An Updated Storage and Security Technology: The cornerstone for every success story hinges on the integrity of the organization. The integrity of DaimlerChrysler Corporation is strengthened with customer confidentiality. Information transfer is managed through secured channels and firewalls. An updated security technology would help reduce risk encountered in the organization. The information gathered are kept as confidential files and accessed only by authorized people. The login system is encrypted with security measures to reduce security breach from unauthorized use.
A Proposed Timeline for Addressing each Element of the Security Strategy
The problems encountered in the merger of Benz and Chrysler would not benefit the organization. The proposed security plan as it relates to people, process and technology in the merger must be implemented immediately.
The cost of expansion must be introduced in the next budget and the funds for acquiring a secured technological firewall must be released immediately. The training of staff in the organization in his or her job description should be implemented immediately. The management must unify the workforce and approve rewards that would motivate the employees for efficiency.
Estimates for Implementing Recommended Strategies, with Rationale
Using the appropriate timeline, the Corporation would deliver 98% success with the recommendations. When these recommendations are partly implemented, there would be partial growth of the organization and by estimation it would amount to 30% success. If these recommendations are not implemented, there would be no change in the organization and it would be a setback for the firm. The success of the merger should be an advantage for Daimler and Chrysler, and this becomes a collective objective of the Corporation.
Recommendation Regarding the Next Steps to take on Mitigating Risks Identified
The security strategies analyzed for the organization, are highly effective and achievable when implemented. These recommendations were carefully examined without prejudice. The challenges facing the merger of the two automotive giants were analyzed and the solutions reached were workable and could be carried out within the next business season. I assure you that these recommendations would stand the test of time in years to come and would be the cornerstone to the achievements of the organization.
The merger between Daimler and Chrysler would be successful when the solutions to challenges studied in the cased study are fully implemented. The goal of the merger is to cut cost of production, operations and reduce the cost of research and production. However, the equality of the merger must be reflected in management and the structure of the organization. The success of a merger depends on unity of management, harmony of operations and efficiency in the organization’s cultural integration.
Andress, J. (2011). The Basics of Information Security: Understanding the Fundamentals of InfoSec in Theory and Practice. Amsterdam: Elsevier.
National Institute of Standards and Technology: Guide for Applying the Risk Management Framework to Federal Information Systems (2009). NIST Special Publication 800-37 Revision 1. Retrieved from https://csrc.nist.gov/publications/detail/sp/800-37/rev-1/final
National Institute of Standards and Technology: Recommended Security Controls for Federal Information Systems and Organization (2010). NIST Special Publication 800-53 Revision 3. Retrieved from https://csrc.nist.gov/publications/detail/sp/800-53/rev-3/archive/2010-05-01