We show that the discrepancy between the Tully-Fisher relation and the lumi
nosity function predicted by most phenomenological galaxy formation models
is mainly caused by overmerging of galaxy haloes. We circumvent this overme
rging problem, which is inherent in both the Press-Schechter formalism and
dissipationless N-body simulations, by including a specific galaxy halo for
mation recipe into an otherwise standard N-body code. This numerical techni
que provides the merger trees which, together with simplified gas dynamics
and star formation physics, constitute our implementation of a phenomenolog
ical galaxy formation model. Resolving the overmerging problem provides us
with the means to match both the I-band Tully-Fisher relation and the B- an
d K-band luminosity functions within an Omega = 1 sCDM structure formation
scenario. It also allows us to include models for chemical evolution and st
arbursts, which improves the match to observational data and renders the mo
delling more realistic. We show that the inclusion of chemical evolution in
to the modelling requires a significant fraction of stars to be formed in s
hort bursts triggered by merging events.