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In this paper, an analysis on why did Daimler Benz choose its current restructuring approach will be done.
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| Submitted: Fri Jan 28 2005
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Summary Daimler Benz is a huge conglomerate with business interests in many different industries. Due to the changing market conditions and its many product types, it had to change its previous organization structure and operations to fit the current situation. In this paper, an analysis on why did Daimler Benz choose its current restructuring approach will be done. A critique on their approach will also be discussed and what they should do next to deepen the impact of the organization change will be suggested. Restructuring of Daimler Benz On 1.1.1993, the restructuring of Daimler Benz started. An analysis of Daimler Benz before the restructuring shows that it was in "Phase 2: Direction1". The direction phase is characterized by a highly centralized hierarchical organization structure. Many levels of hierarchies were built up at Benz resulting in a long chain of command and propagated reporting levels. This was due to the organization adding...
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