Question

In: Operations Management

Identify and evaluate a combination of businesses that have achieved synergy and another that has failed...

Identify and evaluate a combination of businesses that have achieved synergy and another that has failed to do so.

Solutions

Expert Solution

Failed businesses

> Daimler and Chrysler

Both companies had different cultures in them and they were competing. There were clashes between German and American management teams. Both the companies were very good in engineering and technology and had a lot to share with each other and realise synergies. But conflicting cultures played a major role which also led to exit of many from top management of Chrysler. These two companies were not able to utilise what they have got together and it stands a failed merger.

Successful business

> Tata Motors and Jaguar LandRover

   This combination can be called successful for the following reasons

>>Tata has been able to utilise the design language developed by JLR and produce cars with better designs under TATA brand

>>JLR was able to utilise the name and distribution system of TATA in India and was able to boost its sales

  


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