Anatomy of Crisis Management: A Case Focusing on a Major Cross-cultural Clash within DaimlerChrysler

This article explores the issue of crisis management within the arena of a major cross-cultural conflict surrounding the merger of two giants in the international automobile industry – the German-based Daimler-Benz and the American-based Chrysler Corporation. The merger was formally announced in mid-1998, and soon thereafter a major crisis arose in the process of integrating the organizational cultures of the two firms. The crisis has become so great that it even threatens the long-term existence of DaimlerChrysler as this mega international corporation was originally conceived to be. A paradigm of crisis management composed of four distinct phases – the prodromal crisis, acute crisis, chronic crisis and crisis resolution – is used as the principal focus of analysis. In conclusion, it is noted that DaimlerChrysler executives – German as well as American – must create a global organization that reflects shared values and purpose, while also honoring national differences.