So, is big credit beautiful?

Many commentators, such as management guru Tom Peters, view major mergers such as that between Daimler-Benz and Chrysler as a recipe for disaster. If a firm is strong, then a merger will introduce sources of weakness, or at best take attention and resources away from sources of strength. If a firm is weak, then it is better to focus on the sources of weakness rather than divert resources into negotiating and implementing a merger. There is an argument that rapidly enlarged businesses leave themselves open to leaner, quicker and less bureaucratic competitors.

The counter argument is borne out by the DaimlerChrysler merger. Although success may be difficult to achieve it is still possible to prosper, and despite its many problems, DaimlerChrysler is evidence of this. Furthermore, for many organisations it represents the best, or only, option.

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