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Crisler Corporation. Senior thesis

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I dex His ory of Chrysler Corpora io His ory of Daimler-Be z Corpora io Shor Summery of Curre Posi io of DaimlerChrysler Reaso s for Merger a d ew Oppor u i ies Oppor u i ies i ew Marke s Decrease i Price of Ma erials Bough from Suppliers Decrease i R&D Expe ses per Produc io U i Co flue ce of ech ologies of Bo h Corpora io s Double S re g h of he ew Corpora io Marke Co cer s ew Corpora io Achieveme s of he ew Corpora io Survey of Rece S ock Performa ce Comme s o some of Fi a cial Ra ios of he ew Corpora io Gover me Co cer ed ha E viro me al Issues i he ew Corpora io Co clusio His ory of Chrysler Corpora io I would be rue o say ha Chrysler Corpora io was bor lo g ago before he year 1925 (whe i was officially es ablished). I was s ar ed as a resul of Wal er P. Chrysler’s effor s o crea e a car ha would be affordable a d compe i ive i he marke . he firs car would i corpora e four-wheel hydraulic brakes a d a high-compressio six-cyli der e gi e. I 1924, ew York for he firs ime saw a car ha became he a ces or of all ge era io s of Chrysler’s cars. I was he Chrysler Six. he car was o allowed o be prese ed a he ew York Au omobile Show, because i was o i produc io . Bu o pu i i produc io Wal er Chrysler eeded o raise ex er al fu ds. Eve ually he came up wi h a very i ve ive idea o park his car i fro of he buildi g i which he show ook place. Goi g o he show, exhibi ors a d i ves ors had a cha ce o see he Chrysler Six. Chrysler’s effor s led o successa Chase Securi y Ba ker u derwro e a five millio dollars issue of Maxwell Mo or Corpora io ( he compa y of which Wal er Chrysler was a chairma ) debe ure bo ds o fi a ce fu ure developme . I a year Wal er Chrysler purchased Maxwell Mo or Corpora io , re amed i o Chrysler Corpora io a d became he o ly ow er of i . he ew compa y was growi g very fas . By he e d of he year Chrysler Corpora io had 3800 dealers i he U i ed S a ed alo e. he profi ha year was abou $17 millio . I 1934, he compa y i roduced Airflow o he marke . his car was a resul of e gi eer Carl Breer’s a d Orville Wrigh ’s work. hey had bee worki g o a ew ge era io of cars wi h a eardrop fro . U for u a ely his car did o ma ch cus omers’ as es. However he compa y recovered ha ks o i ova io s like ball beari gs rea ed wi h Superfi ish, a foreru er of he au oma ic ra smissio (fluid Drive), a d he color-coded “Safe y-Sig al” speedome er. he compa y co i ued his success i 941, whe i i roduced he luxury-orie ed ow & Cou ry wago . his was he compa y’s firs mi iva wi h i e-passe ger sea i g a d a rear ha ch. Besides ha , i was he firs mi iva wi h ge ui e wood ex erior pa els. his model was i big dema d. O Augus 18, 1940, he compa y was shake by grief: Chrysler Corpora io ’s fou der, Wal er P. Chrysler, passed away. I 1955, Chrysler Corpora io debu ed i s “mas er piece”Chrysler C-300. his car was he mos powerful full-size car i he world, a d soo wo we y ou of for y races co duc ed i 1955. Chrysler Corpora io played a big role i produc io for mili ary service duri g World War II.

he compa y’s full capaci y was direc ed oward produc io of a ks a d 40mm railer-mou ed a i aircraf gu s. I o al, Chrysler par icipa ed i six y-six mili ary projec s ha were wor h of more ha 3.4 billio dollars be wee 1940 a d 1945. Wi h he begi i g of he era of space co ques , he Chrysler Corpora io ac ively par icipa ed i he co s ruc io of powerful e gi es used o lau ch as ro au s i o orbi . ASA chose Chrysler o co s ruc he Sa ur 1 a d Sa ur 1B lau ch vehicles, which were assembled a i s pla i Louisia a. I May of 1998, a eve ook place ha led o huge cha ges i he au o world. wo of he world’s mos profi able car ma ufac urers, Daimler-Be z a d Chrysler Corpora io , agreed o combi e heir busi esses i a equal merger. His ory of Daimler-Be zO Oc ober 1, 1883, Karl Be z s ar ed his ow compa y, which was called Be z & Cie, Rhei ishe Gas Mo or E fabrik. Be z’s cars i creased i populari y af er he s ar ed o build mul iple cyli der e gi es wi h 16 horsepower, which i creased he speed. he sale of au omobiles was i creasi g every year. I he si gle year of 1901, Be z & Cie sold 2,702 vehicles. By ha ime, Be z was selli g his vehicles i Fra ce, E gla d, Russia, U i ed S a es, a d Si gapore. wo years la er a he age of 60, Karl decided o re ire from he car busi ess a d he compa y was ake over by his so s, Euge a d Richa d. O April 4, 1929, a he age of 84, Karl Be z passed away a his house a Lade burg. A he prese ime, Karl Be z is co sidered o be a pio eer i car buildi g i Germa y a d worldwide. I Germa y, Be z is a his ory figure a d of e here are sig s a Mercedes dealerships, which say, “Fa her Be z.&quo ; Duri g World War II bo h compa ies, Be z & Cie a d Daimler-Mo o er -Gesellschaf , were ordered o cha ge heir produc io li es for mili ary purposes. Bo h compa ies s opped maki g cars a d bega he produc io of Be z & Cie aircraf e gi es. DMG was buildi g he aircraf . 1916 was a drama ic i crease he umber of employees i Be z a d DMG fac ories. he umber of workers of he Be z fac ories i creased from 7700 o 12,000 a d DMG’s workers i creased from 3750 o 16,000. Whe he war was over, hi s became very difficul for he Germa car builders. Ma y car-buildi g compa ies had s opped produc io a d had o close dow heir fac ories. Bo h Be z a d DMG were grea ly affec ed by he war a d by 1924, he preside s of bo h compa ies sig ed a merger agreeme , “Agreeme of Mu ual I eres ,” which made hem i o o e compa y. Duri g his ime, he Mercedes model became very famous a d recog izable arou d he world. Due o he i creased populari y of he model Mercedes, he ew compa y was amed Mercedes-Be z. he ame Daimler-Be z was used also. For he ex decade, he Mercedes-Be z domi a ed he Germa au omobile marke . Mercedes sales were much higher ha he o her Germa car compa ies, such as BMW a d Opel. I he early 1930’s his ory repea ed i self wi h he rise of Adolph Hi ler. he ma ageme of Mercedes-Be z bega gradually o lose co rol of he compa y. he ew gover me brough he vehicle u der s ric regula io . he whole Germa car i dus ry was ake over by he a io al Socialis s.

Hi ler a ou ced ha he produc io of Germa cars would be “dras ically reduced” (Kimer, p. 276, 1986). I he mid 30’s he Mercedes-Be z fac ories were begi i g o be used for mili ary purposes. his idea was give by Jakob Werle , he former ma ager of MercedesBe z, who la er became Hi ler’s perso al advisor of ra spor a io . A i eres i g fac is ha Hi ler had ma y ki ds of cars, bu whe ever he was pho ographed i a vehicle, i was a Mercedes. O e of Hi ler’s favori e models was his parade car, ype 770, he “Grosser Mercedes” (Kimer, p. 282, 1986). Wilhelm Kissel was a ge eral direc or of he compa y i he mid a d la e 30’s. He ried o keep his compa y free from gover me i volveme , bu his proved o be oo difficul . By war ime, he Mercedes-Be z fac ories were basically maki g mili ary produc s. By he ime Hi ler s ar ed he war wi h he U.S.S.R., Mercedes-Be z was maki g all ki ds of army equipme . he Germa army eeded he bes machi es a d Mercedes-Be z fac ories were produci g pla es, rucks, a ks, a d various ki ds of e gi es. he mos famous Mercedes war produc was a mili ary pla e called Msserschmi . his pla e made he Luf waffe he bes airforce i he world. he Msserschmi was co sidered he bes pla e a ha ime; i had a Mercedes DB 600 e gi e, which made his pla e much fas er ha a y o her pla es i he world (Kimer, p. 283, 1986). I 1945, af er he e d of he war, all of he Daimler-Be z fac ories, much like he res of Germa y, were rui ed. A America repor er wro e abou wha he had observed i Germa y righ af er he war - “Ci ies were dead, fac ories idle bridges dow , rails go e. Rubble was everywhere” (Kimer, p. 283, 1986). World War II comple ely des royed Daimler-Be z, a o e ime he world’s larges au omobile compa y. I ook more ha hree years o rebuild he fac ories. However, ma y divisio s of he compa y were los because hey e ded up i Eas Germa y. A firs he compa y was rebuildi g U.S. army vehicles. By 1949, over 6,000 cars had bee buil a d he mai focus of Mercedes-Be z was agai he produc io of luxury cars (Kimer, p. 290, 1986). Wi hi he ex wo years, he compa y was comple ely rebuil a d he umber of employees si ce he begi i g of he war was doubled. ow he umber of workers was almos 40,000. By he year 1952, Mercedes-Be z had buil 100,000 cars a d 250 i he U i ed S a es. I 1955, he ew models 220, 300, a d 300S were i roduced i a Fra kfor Au o Show a d he model 300S was amed he car of he year. From ha ime, Mercedes s ar ed o expor more cars arou d he world. However, mos of he cars were sold i Germa y (Co sumer Guide, p. 32, 1986). By 1960, he Mercedes was he umber o e selli g car i Germa y, bu a he same ime, he BMW became a very close compe i or. Mercedes los a large share of he marke o BMW. his was a ime whe he compa y s ar ed o look for ew marke s. he U i ed S a es was a promisi g marke for he Mercedes. I he early 60’s he compa y i creased i s sales o 50,000 cars sold i he U.S. (Co sumer Guide, p. 46, 1986) However, i he mid 60’s, he sales we dow . he ew 190D four-cyli der diesel model did o sell well i he U.S

The one Enron partner that has escaped largely unscathed is McKinsey, which is odd, given that it essentially created the blueprint for the Enron culture. Enron was the ultimate talent company. When Skilling started the corporate division known as Enron Capital and Trade, in 1990, he decided to bring in a steady stream of the very best college and MBA graduates he could find to stock the company with talent, Michaels, Handfield-Jones, and Axelrod tell us. During the nineties, Enron was bringing in 250 newly minted MBAs a year. We had these things called Super Saturdays, one former Enron manager recalls. Id interview some of these guys who were fresh out of Harvard, and these kids could blow me out of the water. They knew things Id never heard of. Once at Enron, the top performers were rewarded inordinately, and promoted without regard for seniority or experience. Enron was a star system. The only thing that differentiates Enron from our competitors is our people, our talent, Lay, Enrons former chairman and CEO, told the McKinsey consultants when they came to the companys headquarters, in Houston

1. Organizing the corporation

2. Characteristics of a corporation

3. Borland Software Corporation


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