Short-term issues. Attention focused on sealing the deal, not on the longer-term, all-important issue of how to make it work.
Leadership issues. The leadership at all levels of DaimlerChrysler clashed as the new company drew its leaders from two radically different firms: Daimler-Benz and Chrysler (see point 1 above).
Corporate identity and communications issues. There are dangers in replacing familiar brand names with those of a new brand. The magic of the old may be destroyed, or at least diminished, by the logic of the new. The degree of emotional attachment felt by stakeholders to a company’s name should not be underestimated. In the case of DaimlerChrysler, Daimler-Benz’s stakeholders were offended by their company’s renaming as they believed the process was really an acquisition, and Chrysler stakeholders were similarly offended by the renaming of their company.
Once a deal is agreed in principle, the chances of it succeeding will be greatly enhanced if the messages sent out from both organisations are consistent. This rarely happens in a thoroughly convincing way, but when it does it makes a big
difference.
Potentially conflicting objectives. It is hard for employees to focus on the corporate objectives of a merger if they are worried about their own position. All mergers involve reorganisation and job cuts, so to keep employees as “on side” as possible there must be regular and honest communication.