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In 1998, German automotive company Daimler AG (OTC: DDAIY), then known as Daimler-Benz, and American car company Chrysler merged to form a transatlantic auto company. Many observers praised the merger because it combined two companies that focused on different areas of the automotive market and operated in different geographical regions. However, the financial and product synergies for this merger soon paled in comparison to the cultural conflicts the merger created. Chrysler had a loose, entrepreneurial culture, while Daimler-Benz had a very structured and hierarchical approach to business. Analysts noted clashes between the German and American managers at the companies. Ultimately, the merger dissolved when Daimler sold its remaining 19.9% stake in Chrysler in 2009.
1. Why does company merge? List FIVE (5) reasons clearly.
2. There are problems in merging of these two companies. Predict FIVE (5) problems that they are facing in merging process.
3. Suggest FIVE (5) ways how they overcome the merging problem.
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