...October 19, 1999 Huascar E. Gomez Introduction to Business Mercedes-Benz Case Questions: 1. What evidence of the modern view of organizations in Table 9.2 can you find in this case? 2. Does Mercedes-Benz Credit Corporation qualify as a learning organization? Explain. 3. Did Georg Bauer do a good job of avoiding organizational decline? Explain. 4. What do you think about the ethics of Georg Bauer’s downsizing strategy? Explain. 5. Did this experience most likely strengthen or weaken the Mercedes-Benz Credit Corporation’s culture? Explain. Answers Figure 9.2 1. After reading the Mercedes-Benz case carefully and comparing it to figure 9.2 I came to a conclusion. In this case you can find evidence of: • Labor, I read on page 283 that he expanded to 100 people, meaning he hired people. • Market Information, he did some research and found out that American were expecting something else from companies other than perfection, Americans were requiring sincerity and efficiency now. • Managerial Subsystem, he had managers in charge of every department to start with but then he decided that instead of having managers he should have team leaders , who are people much like managers , I mean they have almost the same task, which is “lead”, but there is a difference though, authority. A manager has the October 19, 1999 Huascar E. Gomez Introduction to Business authority to approve something , he is someone that people have...
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...Mercedes – Benz Since I am not a fan of the Mercedes-Benz, I asked my son to help me out with this assignment. So, we choose the SLS AMG GT Roadster. We’ve added Carbon Fiber Fide Mirror Caps, AMG Carbon-Ceramic Braking System, Carbon Fiber Engine Compartment Covers and the Mercedes-Benz Star Service Prepaid Maintenance 5 years or 50,000 miles. The basic price is $210,080, after adding the extra options it went up to $256,704. I don’t know much about cars, other than put gas and oil change every so often. I think with the number of different of models Mercedes-Benz has there must be many possible configurations. But if there is only two types of vehicles, three color schemes, four packages, and two option choices there isn’t much to have different vehicles for every customers. Mercedes-Benz strategy has changed, they focused on the safety, luxury, and precision engineering of its cars, but this had to change due to the increase competition in the luxury car industry and changing consumer attitudes about the MB brand. Mercedes-Benz is now focusing on the expansion of its target market, this includes people twenty five to thirty five years of age as well as its initial targets. The strategy is more life style oriented and is more on presenting the more fun loving, approachable and energetic side of Mercedes Benz. Mercedes Benz is aiming to achieve their goals through four strategic growth areas: Strengthening the core business - renewing and expanding model range...
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...Masters Programmes Assignment Cover Sheet Submitted by: Date Sent: Module Title: Module Code: Date/Year of Module: Submission Deadline: Word Count: Number of Pages: Question: Student ID: 1267016 17 December 2012 Economics of the business environment IB9710 December 2012 17 December 2012 3000 words (Including in-text referencing) 27 Mercedes Benz Cars and its economics “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of W arwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” Mercedes'Benz' ' ' ' Content 1' Introduction of the Firm and its market ............................................................................2' 2' Macroeconomic exposure and protection ..........................................................................3' 3' Market Exposure................................................................................................................6' 4' Non economic exposure .....................................................................................................9' 5' Vulnerability..................................................
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...Mercedes Benz AAV Project 1. Q. What is the competitive environment faced by MB? Ans; Mercedes Benz is a world know Luxury car brand. Their main competitors are BMW, Lexus, Acura, Audi etc. At that time, not many of their luxury brand competitors were into AAV cars, companies who had AAVs in the market were GM, ford Jeep etc. But this was a rapidly growing market. 2. Q. How has MB reacted to the changing world for luxury automobiles? Ans: Luxury Car makers were hit hard by the recession the early 1990s. The car sales plunged and companies were showing losses. Mercedes Benz struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing markets to face the tough market conditions Mercedes made several changes within its business. Mercedes streamlined the core business, reduced parts and system complexity, established simultaneous engineering programs with suppliers. In search of additional market share and new segments, MB started developing new range of products. New products introduced were the C-Class in 1993, the E-class in 1995, the new sportster SLK in 1996, and A class and M class all-activity vehicle (AAV) in 1997. In addition, MB moved its manufacturing facilities closer to the market that is the USA. Most, importantly it became more customer oriented and used customer opinions for developing almost every part of the car 3. Q. Using Cooper’s cost, quality and functionality chart, discuss the factors on which...
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...Mercedes Benz is an automobile manufacturer that was founded by Karl Benz and Gottlieb Daimler in the year 1926, also is the international division of the German manufacturer Daimler AG. Mercedes Benz headquarters are found in Germany in a city known as Stuttgart, Baden-Wurttemberg, Germany. Now, Mercedes have 129,106 employees. They also have automobile branches in over 25 countries and 368 associated dealership. Mercedes Benz has also had the international experience in fashion and also sponsoring races. The company offers different of products ranging for cars to medium size vehicles, vans, buses and other trucks. Mercedes-Benz has 12 different classes ranging from A to S classes under 3 categories, sedan and coupes, SUV, Supercar and Roadstars. Mercedes-Benz will underscore the technological leadership with innovations of safety, efficient drive system and autonomous driving. The main competitors of Mercedes-Benz are BMW and Audi. Mercedes-Benz makes up one of the “German Big 3”, alongside Audi and BMW, which are the three main, best-selling luxury automakers in the world. In 2014, BMW had 17.6% shares in he US luxury segment; second Mercedes share 17.1% and Audi share 9.4%. The key feature of automobile industry is produce safety, durable and high quality car to meet customer’s requirement. Although Mercedes Benz had lost the global luxury sales number one to BMW in 2005, Mercedes Benz has the significant advantage compared to the other luxury automobiles manufacturer...
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...of Background of Mercedes Benz In 1885 the townspeople of Cannstatt, Germany, were startled to see Paul Daimler, son of Gottlieb Daimler, roll away from No.14 Taubenheimstrasse on a wooden-spoked two-wheeler powered by a fraction of a horsepower four-cycle internal combustion engine. That belt driven motorcycle (actually a four-wheeler as it had two eight-inch diameter outrigger wheels to keep it stable when at a standstill) was the forerunner of all automobiles. Gottlieb Daimler was the first man to harness with any true degree of success a combustion engine into a road vehicle. Granted there were horseless vehicle predecessors to Daimler's motorcycle but Daimler's was the first recognized internal combustion vehicle and the first to incorporate a practical transmission system. Shortly after Daimler applied for his combustion motor patent, Carl Benz of Mannheim, Germany was granted a German patent covering a three-wheel motor car he constructed in 1844. This single cylinder, 3/4 hp, benzene fueled motor car had a combination of belts, chains and gears to transmit power to the rubber tired rear wheels but no gear change was possible. Daimler's first four-wheeler, a Victoria-type motor driven carriage, was built in 1886. By 1890 demands for Daimler's engine made expansion necessary and a corporation was formed, the Daimler Motoren Gesellschaft. or Daimler Motor Company as it was known in English. Benz, with several associates formed another corporation, Benz & Company,...
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...Systems and Operations Management Mercedes Benz Analysis of the competitiveness of operations management Abhijeet Ghosh, A4060514, MBA Intake 14 (Group B) London School of Business and Finance Table of Content Executive Summary & Introduction 3 Product and Services 3 Task 1: Operations Management 4 Operations Strategy 4 Process Design 4 Body Shop 5 Paint Shop 6 Assembly 7 Just in Time 8 Quality Management 8 Innovation and Improvement 9 Supply Chain Management 10 Task 2: Integration of Information system 12 Business Integration Server 13 Task 3: Job Design 14 Lean Manufacturing 14 Conclusion 15 Appendix 16 Reference 18 Executive Summary and Introduction Mercedes-Benz is a division of the German manufacturer Daimler AG, and the brand is used for automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, Baden-Württemberg, Germany. The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler's 1901 Mercedes and to Karl Benz's 1886 Benz Patent Motor-wagen, widely regarded as the first automobile. Part of Daimler AG, Mercedes-Benz USA (MBUSA) is responsible for the distribution and marketing of Mercedes-Benz, May Bach, smart, and Sprinter products in the United States. In 2011, the company sold 264,460 passenger vehicles in the US, representing 17.5% year-over-year growth, in addition to 16,577 Sprinters. Although MBUSA was founded in 1965, importation of Mercedes-Benz vehicles actually began in 1952...
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...Marketing Assignment #5 Mercedes Benz 2013 Super Bowl Commercial: Soul Segment the ad is targeting: * Men who love women, power, prestige, and sports * Age: 25 – 40 * Income: medium income Position of the brand: The luxury brand name car that can satisfy all men’ desires while the price is still affordable. Five M framework: Mission – create awareness and drive sales A: Create awareness about this new moderately priced sedan. I: Arose customer interest by casting superstars to perform the commercial. D: Rose desires by linking the car with power, prestige, and beautiful women. A: The main action plan is to drive sales of this new car. Message The message is clear: you can get what you want without selling your soul - infer to spend all of your money. This ad is very memorable because there are 3 super stars participated in this ad (Willem Dafoe, Kate Upton, and Usher); because of those celebrities, it’s easier to catch up customer’s eyes in the first place and create buzz. Moreover, the ad arose emotional desires for men, the desires for power and pretty women. Plus the affordable price for this new sedan which made this ad become believable. Although I am not their main target audience (I am woman), I still be touched by the low price of this new car, which change my perception about the image of high price of Mercedes Benz. Money/Media I think superbowl is the right media for Benz to advertise this new car. Because the people who watch...
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...INTRODUCTION The Mercedes – Benz Company began with the merger of Daimler Motor Company and Benz & Company in 1926. Since the merger, Mercedes – Benz has created and sustained a reputation for innovation and excellence by producing high-quality automobiles. An analysis of Mercedes – Benz would not be complete without an examination of the DaimlerChrysler Automotive Group, as the two industry leaders merged in 1998. The Mercedes – Benz Company is now owned and operated as part of the DaimlerChrysler Automotive Group. Throughout the paper, the guiding principles of DaimlerChrysler will be referred to, as their management decisions directly dictate those of their subsidiary, Mercedes – Benz. PART A: KEY MANAGEMENT ACTIVITIES There are several key management activities that the DaimlerChrysler group executives take part in that contribute to the company being considered a leader in their industry. One such activity is when the CEO and other board members meet with the European Works Council (EWC) and with the World Employee Committee (WEC) each year (.eurofound.europa.eu). These two committees are dedicated to building and fostering strong relations between employees and management. During committee meetings, concerned employees are encouraged to present their thoughts, ideas and suggestions for change to the management board (.eurofound.europa.eu). Through this interaction, a direct link is created between management and employees. DiamlerChrysler created the World Employee...
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...Mercedes Benz Wow! This is really an interesting assignment. I never thought I could eventually customize my own car to my own liking. I use to just go to the car lot and just pick a car with everything already installed or add on. Customizing your own very car is very interesting and fun. I build an S-class Mercedes-Maybach S600 starting at the price of $191,975 with the MSRP of $189,350. The basic model price of this car starts at $94,400. I always love the color blue, so the exterior color is lunar blue metallic with a 19 inch twin 5 spoke alloy. I even added the rear spoiler which makes it look even better. Now moving on to the inside of the car, which is Crystal Grey/Seashell Grey Exclusive Nappa leather and designo Metallized Ash Wood trim. I picked the option of the executive rear seat package plus which includes dual rear seats with folding tables and heated and cooled rear cup holders. Isn’t that great or what? I even add the wheel locks for protection and the all seasoned floor mats. The final price of the car with added on items came up to $200,465 compared to the basic model price which is $94,400. Now this is a very expensive car but if that’s what a customer expected and wanted then that’s it. I believe there could be a possibility of a large number of vehicle configurations. And every customers can have a different vehicle based on their interests, but, if Mercedes Benz had only two types of vehicles, three color schemes, four packages and two option choice...
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...(passenger-cars and commercial vehicles combined) sold. DCX generated revenues of $155.3 billion and sold 4 million cars and trucks in 1998. Schrempp and Eaton jointly led the merged entity, as co-chairmen and co-CEOs. | | DCX sources were confident that the new company was well poised to exploit the growth opportunities offered by the global automotive market in terms of geographical and product segment coverage. (Refer Exhibit II for Daimler Benz and Chrysler's product ranges) | However, analysts felt that to make the merger a success, several important issues needed to be addressed. The most significant of these was organizational culture. German and American styles of management differed sharply. A cultural clash would be a major hurdle to the realization of the synergies identified before the merger. To minimize this clash of cultures, Schrempp decided to allow both groups to maintain their existing cultures. The former Chrysler group was given autonomy to manufacture mass-market cars and trucks, while the Germans continued to build luxury Mercedes. However, analysts felt that this strategy wouldn't last long. When Chrysler performed badly in...
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...Global Supply Chain Management DaimlerChrysler/Nummi Case#4 Daimler-Benz considered one of the first manufacturing companies dedicated to the automobile industry in late 1920's, its line of production was luxury brands like Mercedes Benz, Smart & Daimler Trucks among others. Unfortunately the company was not having the acceptance expected in Europe; need of an evolution the way it did, business to be able to position itself in other markets like Asia and the United States. Chrysler Corporation is a vehicle manufacturer company with a base in the United States and is considered the third distributor of vehicles behind GM and Ford. Prior to the merge of General Motor, the company had many internal problems that wouldn't let it move forward in the industry; actually manufacture the following brands Chrysler, Dodge & Jeep among others. Prior to the merger both companies differentiate from each other specially the different management and operation styles. In 1995 Chrysler had many labor problems due to the reduction in quality, re-calls and consumers dissatisfaction over 220,000 employees were lay-off. On the other hand the Daimler-Benz had a highly skilled workforce, job satisfaction, good relationships with German labor unions and managers getting involved on daily problem solving. The strategy of the Daimler-Chrysler merger would create the fifth company in the world, in the industry by volume compared with GM, Ford, Toyota and Volkswagen. The company would take...
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...Stuck in First Gear Publication: The Economic Times Mumbai;Date: Jul 7, 2012;Section: Global Business;Page: 6 SLOW WHEELS Why Chinese Car Brands are Stuck in First Gear Local brands make up only about 30% of their home market, the lowest proportion of any major economy ike many Chinese, Zong Zhaoxiang wishes nothing but the best for the Chinese car industry – yet he won’t be buying a Chinese car anytime soon. The 52-year-old chairman of a Shanghai chemical company, Zong said he expects Chinesebranded cars to have bright prospects. However, he loves the comfort, quality and image projected by his black Mercedes-Benz S-class, and he said he may buy another Mercedes-Benz model or a BMW in the future. “If Chinese-made cars were better designed and could demonstrate your status, more people might buy them,” Zong said. Not all of Zong’s compatriots can afford a Mercedes-Benz, of course. But most of them still prefer foreign brands to domestic ones. Volkswagen and General Motors sold the greatest number of vehicles in China in 2011, the world’s largest car market, followed by Nissan, Hyundai and Kia. All domestic car makers combined captured only about 30% of their home market, the lowest proportion of any major economy. This is not what Beijing intended. In contrast to other “strategic” industries like telecom and banking, the auto industry has been gradually opened to foreign investment over the past two decades, as Beijing allowed foreign car makers to form joint ventures with...
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...Assignment 6: PRICING a) Computation of Economic Value of an offering Mercedes Benz is launching its luxury SUV (called the CDL class) in a market dominated by Lexus GL. The CDL class uses diesel and obtains 25 miles per gallon. The Lexus model, priced at $48000, uses premium gasolene and obtains 20 miles per gallon. Both the models need to be serviced annually but the CDL being a diesel engine requires annual service that is costlier by $100. The life of a diesel engine is typically longer – hence the residual value of a 10 year old CDL is estimated to be $1600 higher than the Lexus. Assume (i) the average cost of premium gasolene to be $3.00 per gallon (ii) the average cost of diesel to be $3.25 per gallon (ii) the average customer drives 12000 miles per year and (iii) there is no time discount. What should be the price of the CDL such that the economic value of Benz CDL over Lexus GL (during a 10 year use horizon by a customer) is completely appropriated by Mercedes Benz? The economic value of CDL: Price of substitute=48000 Cost saving=(12000/20*3-12000/25*3.25-100)=140 Revenue enhancing=residual value=1600+residual value of GL Use horizon=10 EV of CDL=48000+140*10+1600+residual value of GL=51000+residual value of GL The economic value of GL: Price of substitute=X Cost saving=(12000/25*3.25-12000/20*3+100)=-140 Revenue enhancing=residual value=residual value of GL Use horizon=10 EV of GL=X+(-140)*10+ residual value of GL=X-1400+residual value of GL To make...
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...think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed? 3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to process redesign and organizational change? 4) What are the advantages and disadvantages of each approach. 1) What is your assessment of Daimler-Benz's operations in many different fields? 2) Should the various groups operate autonomously? What kinds of activities should be centralized? 3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first place and why did it venture into the Aerospace and Inter Services businesses? 4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? 1) Prepare a profile of the potential buyer of the Lexus. 2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe? 3) Why has the Lexus model been very successful in the U.S. but has not...
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