Organization Development and Change

DISCUSSION ASSIGNMENTS

Discussion # 1:

[a] How might diversity among employees of different cultural background and

with varying specialties and expertise actually strengthen an organization’s culture

post-merger?

As cross-cultural differences are properly handled, significant positive outcomes can result. Diversity can bring creativity through challenging the accumulation of traditional assumptions and a group think that may exist within the organizational culture of each partner. A new culture of innovation, flexibility and adaptability to change may replace the old cultures. Such change will be supported by the synergy that will exist across the varying cultural backgrounds, specialties and expertise in the post-merger organization. Decisions that were previously perceived to be extremely risky will not necessarily continue to be perceived that way, since the new organization may actually have the necessary skills and abilities.

[b] Mercedes recently changed its U.S. strategy by announcing that it is developing

cars for the $30,000 to $45,000 price range (as well as its typical upper-end cars).

What might have accounted for this change in strategy? In your answer, include a

discussion of the implications of the change.

Mercedes is clearly diversifying its product mix to reach a larger number

of potential buyers.  By restricting itself to the extreme upper end of the price

range, it would be very difficult for Mercedes to sustain impressive growth rates.

However, by diversifying into the $30,000 to $45,000 price range, Mercedes can

now appeal to a large number of "new" Mercedes purchasers. 

From a marketing standpoint, Mercedes can now target the vast middle-upper

income purchaser who may be able to afford a $30,000 to $40,000 car.  From a

production standpoint, Mercedes can enjoy enhanced economies of scale by

producing more automobiles (some of the basic component parts for the $30,000

to $40,000 cars are undoubtedly...