Case study Example | Topics and Well Written Essays - 750 words - 9

Case Study Example Robert Eaton could have protected himself by drafting a contract that would protect the rights of Chrysler employees and should have proceeded with the merger only after Daimler complied. 3. A firm can protect itself from cannibalization by accurately balancing demand and supply of their product. They should ensure that inventory levels are such that an existing product is gradually sold out before a new one is introduced. However investments in R&D would ensure that they introduce innovative products before the competition. 4. Cultural problems could be avoided with introducing a superior organizational culture that would supersede other cultural values. This can be accomplished by making employees feel as if they are a part of a family and the organization is their home. Once they are at the work place they need to forget individual differences and embrace a common organizational culture. 5. Zetsche’s move to fire the head of sales and marketing immediately was wrong. Although Zetsche was advised to make drastic change (Hartley 207) and indulge in cost-cutting, firing a person of this position would lower the morale and motivation of the other employees. Furthermore, there was no evidence that Sales and marketing was responsible for loses, on the contrary loses were as a result of the overstocking decision by Schrempp. 6. Rebates are a better choice than regular price reductions. In case of price reductions the customer may perceive that the price is low because the product has lower quality or it will be replaced by a newer version. Furthermore, price reductions can hinder the ability of a manufacturer to take the price back to its original (Lamb et al. 235). 7. Yes, I agree that the use of parts of Mercedes in Chrysler cars would damage the perception of the Mercedes brand. Chrysler makes cars for people with varying purchasing power and quality expectation. Mercedes on the other hand was known for its prestige and class. By