Exxon Corporation and Mobil Corporation

Assignment Name:                 Mergers & Acquisitions

Ye Chen                        300759254

                                                                                Zhuqiong Luo                300763968

Qiongye Wu                  300728915

                                                                                Yonglin Zhang                300759610

College Name:                         Centennial College

Course Name:                                Human Resources Strategy

Course Code:                                HRPD 712

Section:                                        101

Instructors Name:                        Nadira Slngh

Date Submitted:                        November 26, 2014

Question 1

Identify 2 organizations that tried to merge and failed

American company Chrysler and German company Daimler-Benz

Identify 2 organizations that achieved a successful merger

Exxon Corporation and Mobil Corporation

Question 2

Explain why the two organizations that your team selected failed to merge

On May 7, 1998, the two automakers, German Daimler-Benz and American Chrysler announced a merger of equals. Due to the cultural clash, internal problems of both sides and the industrial development, the merger turn out to be a failure. The reasons of its failure are listed as follows:

Cultural Clash

The chart below shows the cultural difference between the two companies in terms of their company structure, how they value their products and working atmosphere

These cultural factors resulted in conflicting goals and orders in different departments from the two companies (Kerbes, 2007).

Lack of trust between the employees

Employees from the two companies lack commitment to work with each other. The major reason is that the initial concept of “merger of equals” was far from reality. Many of the key executives from Chrysler were replaced by Daimler counterpart in the initial stage of the merger (Kerbes, 2007).

The industrial challenges

When the Asian automotive player Toyota entered the U.S market, the Chrysler side failed to compete with others in the industry (Kerbes, 2007).

Question 3

Explain why the two organizations your team selected achieve a successful merger?

In 1999, the two oil company, Exxon and Mobil merged together and formed THE ExxonMobil Corporation. This largest merger in history has been a great advantage to both of the companies due to its economies of scales and technological advantages used in optimal drilling and transportation.

The two companies have achieved the successful merger through:

1. Communication and corporation in terms of technology

The exchange and corporation of technologies of the two companies has helped ExxonMobil cut down the time used in discovering and extracting oil and gas. It also enabled the organization to explore resources in some areas in very hard conditions (Mohammed, 2013).

2. Vertical integration of business

Shortly after the merger, the company vertically integrated in businesses which include exploration, drilling, oil and petrochemical refining. Huge profit was generated from the vertical business integration (Mohammed, 2013).