Business Management: Theory, Analysis, and Corporate Responsibility

This document provides an overview of business management, including Mintzberg's theory, PESTLE analysis, and corporate social responsibility. It explores how Mercedes-Benz applies these concepts in their operations.

Business Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
What is management?.................................................................................................................1
Mintzberg's theory of management.............................................................................................1
PART B............................................................................................................................................4
PESTLE Analysis........................................................................................................................4
Porter's Five Forces.....................................................................................................................5
PART C............................................................................................................................................7
Corporate social responsibility....................................................................................................7
Corporate malpractice.................................................................................................................7
Hofstede five dimension culture.................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business management refers to the disciplines which refers to the organising, identifying
and planning of several kinds of business operations. It is also considered as the suitable degree
of program which shows about the fundamental skills which is required for effectively running
and managing business. Undertaking the business management, company can also perform
budget analysis in order to find effective ways for the company to cut their costs (Adekola and
Sergi, 2016). In order to carry forward this report Mercedes-Benz is considered which is a
German manufacturer and marketer of luxury cars and SUVs, headquarter in Stuttgart, Germany.
Mercedes-Benz is one of the largest premium car seller in world and founded in 1926. This
report is classified under three parts as first one depicts the management and concerning theory,
second covers about the business environment which include various models like PESTLE and
Porter's five forces. Last part covers the corporate social responsibility and national culture with
effective examples.
PART A
What is management?
Management is considered as the administration and coordination of various tasks in
order to attain effective goals and objectives of company. In terms of this, administrative
activities include development of the organisational strategy and also coordinate with the efforts
of staff in terms of achieving proper objectives regarding the application of available resources.
Hence, it is also referred to the senior structure of staff members of an organisation (Davis and
Comeau, 2020).
Mintzberg's theory of management
This theory is proposed by Henry Mintzberg in order to break down the management
roles and other responsibilities to organise the workplace and convert complex tasks into simple
concept. In terms of this, Mintzberg believes that the skills that are learned with the help of
experience cannot be taught in classroom and also recommend breaking down of management
roles and responsibilities in terms of arranging workplace and assigning tasks to other people
considering their skills and experience. Hence, this concept is helpful for Mercedes-Benz in
order to organise each and everything in effective manner and develop efficient culture which
allows each member of Mercedes-Benz to develop their own skills. In terms of this, there are
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various roles and functions that are performed by the managers of Mercedes-Benz as it leads to
identifies the tasks to management as these are mentioned as under:
(Source: Mintzberg Managerial Roles, 2020)
Interpersonal contact
It is concerned with developing effective contact between the manager of Mercedes-Benz
and people in the environment. The following roles are as: Figurehead: Mangers who perform this role are responsible for the legal and social
matters as they are the one who represent company in professional way (Strydom and
Rudansky-Kloppers, 2016). For instance, in Mercedes-Benz these managers develop
relations with customers and take them to lunch and attend various functions. Leader: Here all the managers need to perform the roles and responsibilities of leaders as
they leads to develop proper communication with employees, inspire and offer effective
training to them. Moreover, employees also look for the support and instructions from
their managers. For instance, the manager of Mercedes-Benz motivate and encourage
employees and also undertake their formal authority as well. Liason: These managers are responsible in order to develop healthy relationship and
networking outside the company and also depends on the significant information. For
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Illustration 1: Mintzberg Managerial Roles

volkswagenexample, few managers of Mercedes-Benz develop relations with the other
employees for their future growth and development.
Information processing
It include the processing of information in order to identify the information as here
managers are expecting to exchange flows of information with their subordinates, fellow
managers and board of Directors. Its following roles are mentioned as: Monitor: These managers seek effective information within an outside of the company in
order to assess the operational activity of Mercedes-Benz and they also analyse the
effective issues which need proper approach and also made effective change. Disseminator: Here, the managers of Mercedes-Benz who perform this role relay on the
valuable information and then assign effective tasks as per the skills of employees. Spokesman: These managers of company depends on the external information and also
act as the spokesperson of company (Parris and et. al., 2016).
Decision making
Here, the managers of Mercedes-Benz are responsible for their own decision making
considering various ways at different levels. In terms of this, leaders are also involved as
leadership style is also important in decision making procedure. Its roles are as follows: Entrepreneur: Here, managers act as the entrepreneur and also encourage their
employees for change and innovation by implementing new and fresh ideas in Mercedes-
Benz (Foster, O'Reilly and Dávila, 2016). Disturbance handler: It depicts various internal and external issues that become as the
barrier for the running and functioning of company that are handled by the managers of
Mercedes-Benz. Resource allocator: Here, managers should allocate and observe several resources
regarding the funding of various equipment that are used in the operations of Mercedes-
Benz.
 Negotiator: These managers are accountable in order to effectively participate and direct
bargaining in Mercedes-Benz for effective benefits.
Therefore, critical thinking is useful for the managers of Mercedes-Benz regarding their
problems and it is the process which offer effective tools regarding the better decision making of
managers as it helps in terms of predicting the several effects and consequences of prominent
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decisions. Stakeholders are those who have prominent effect on the efforts of company and
include stakeholders as per their interest and also respond towards their requirements.
PART B
PESTLE Analysis
It is useful in order to monitor and analyse the most influential external factors of the
environment which impact the performance and productivity of company. It is conducted at the
time of taking respective entry within the market and it s few factors are evaluated below: Political: This factor is impacted by the political bodies as it include several factors like
government policies, foreign trade and so on. In terms of this, the political stability gets
influence after Brexit as it positively impact the expansion of company. Moreover,
significant changes arises considering the policies that are related with usage of parts,
engine and so on (Aithal, 2017). Hence, it not only influences the host country but also
consider the company in which Mercedes-Benz wants to operate. Economical: It include economic factors regarding the changes in foreign exchange
rates, GDP and so on which impact the particular demand of products at the market and
also invest regarding the business decisions. Moreover, economic system of country put
positive impact on operational activities of Mercedes-Benz as company has monopoly
which give tough competition considering the economic system. Hence, the GDP
impacted the growth and capital decisions in prominent way. Social: It depicts those factors which occurs and depends on society and influence
company as it encompasses the values, culture and community. In terms of this,
Mercedes-Benz launch its products after effectively conducting market research in order
to identify the requirements of change as it put positive impact on the expansion of
company. Therefore, respective company need to identify the products as the population
which is significant in bid to advertise its premium products to targeted customers as they
cannot provide their luxury products to general public (Burns and Dewhurst, 2016). Technological: It represents the technological incentives, changes and automation as for
this, company has the power in terms of fluctuating the price structure within the
competitive business environment. Hence, it becomes very important for the company to
significantly innovate something fresh that put positive impact on the growth and
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expansion of company. In terms of this, there are several examples by which Mercedes-
Benz redesign their products for the whole industry. Recently, Mercedes-Benz made
technological development in terms of Bluetooth connectivity, comfort and many more
which is helpful in become famous within the industry (Maunder, 2019). Legal: These are the factors which overlap political factors and also consider specific
norms and regulations like consumer protection, copyright and so on and it is also made
by government. For this, company use employment and discrimination laws as it put
positive impact on the operations and expansion of company. Furthermore, company also
adopt intellectual property rights in order to protect its rights that are useful to protect
ideas of Mercedes-Benz. Along with this, health and safety laws are useful in bid to
witness horrible conditions for the staff members that are impacted by the revolution of
industry.
 Environmental: Various sectors have their own standards considering the environmental
conditions as the weather situation influences the competence of Mercedes-Benz in terms
of managing the transportation for the complete product life cycle. In terms of this, it
negatively impact the delivery dates of product due to the unexpected monsoon. Along
with this, company also leads to adopt suitable standards regarding the planting of more
trees in terms of reducing the impact of global warming (Raut and et. al., 2019).
Hence, both political and legal external factors are the most influential for the business
and also extended towards the organisation's policy and prominently run and operate company.
Along with this, the managers of Mercedes-Benz need to decide all of these external factors
which is useful regarding the identification of better opportunity and exposure which is effective
in order to prominently run an organisation.
Porter's Five Forces Threat of new entrants: New entrants become the threat for the development of company
as they take entry in market regarding the innovative ideas in order to adapt the
requirements of market (Waxman, 2017). Beside this, considering the automobile
industry like Mercedes-Benz has low risk from the new entrants as in this company offer
premium products which set high standards for new ones that are difficult to achieve.
Moreover, Mercedes-Benz is more prestigious because it sell products that are of
premium cost and due to this, they target rich or high class people who can afford their
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prices. Furthermore, new entrants also need high capital investment in order to take entry
in market and various norms and regulations also become threat for company. Threat of substitute: Luxury vehicles does not offered with the purpose of transportation
as it becomes the symbol of success, status and achievement. Moreover, substitute of
Mercedes-Benz is the low price vehicles and other transport that are not considered under
any kind of status symbol. Along with this, Mercedes-Benz provide luxury products for
which the threat of substitute is low as only few customers afford these products. Bargaining power of buyers: In current market there are various types of manufacturers
are present who deals in premium and luxury products. The vehicles that are provided by
other brands have their own quality and price factor. In terms of this, purchasers has
effective accessibility of information and prominently compare various products with
different brands before making their decision (Hakim, 2018). For this, the bargaining
power of buyers are high as customers has many options in order to switch from one to
another. For instance, Rolls-Royce offer prominent choice to their customers in order to
made effective choice to made it customised and due to this factors, customers are willing
to pay extra for product. Bargaining power of suppliers: Within the automobile industry various types of
suppliers are present and they belongs from small, medium and large size and due to this,
they does not has effective position to bargain in terms of prices. In relation with
Mercedes-Benz, they deals in premium quality of products and due to this, they trade
with those provider who offer luxurious services. Therefore, suppliers of Mercedes-Benz
has the authority to set monopolistic standards. Hence, the bargaining power of suppliers
is moderate s company bought products only from few suppliers.
 Competitive rivalry: There are various competitors are present within the market which
include Audi, Volvo, Jaguar, BMW and so on. For this, vehicles that are developed by
these brands prominently innovative and popular regarding its features on the grounds of
design and other amazing features. Along with this, existing rivals also do something
innovative in order to attract maximum number of customers regarding new innovation of
products (Chang, 2016). Hence, competitive rivalry is moderate and exit barriers are
high due to the huge amount of investment.
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PART C
Corporate social responsibility
Sustainability: Respective company regularly put emphasis on the local issues by which
local communities are benefited. It depicts the engagement of local people which result as the
successful execution of project. For this, organisation enable as the participation of local people
regarding their project as these are the initiatives which give proper time to project due to their
knowledge. In terms of this, the effective objective of company is to enhance the quality of
infrastructural facilities, education and so on in order to offer clean and safe environment. Along
with this, company is more concerned in order to offer something back to nature and due to this,
they preserve present sources in order to protect environment (CSR Initiatives, 2020).
Environment: Environmental protection initiatives are taken by company in order to
prevent the rights of company and also useful for the business purpose in order to attract
maximum number of people which leads to improve their sales. Along with this, environmental
standards are also considered by company in terms of enhancing their sales. Moreover, various
environmental standards are considered by company and reason for this is, deforestation,
pollution and so on. For this, respective company take proper initiatives to save environment and
become more environment friendly which put positive impact on the image of company in terms
of eliminating global warming (CSR Initiatives, 2020).
Corporate malpractice
Corporate malpractice depicts the illegal, careless and dishonest behaviour done by
company by which they feel more guilty in their work or profession. In terms of this, two
significant corporate malpractice which is done by company is mentioned as:
Employees layoff: The parent company of Mercedes-Benz layoff around 15,000 workers
as they tries to introduce electric cars and also adopt various machines that leads to reduce the
work of employees as after this, company does not have much requirement of employees. It
leads to impact the brand image and reputation of company and due to this, the employees of
Mercedes-Benz have fear of job security. Besides this, Daimler face penalty for breaching
employment law which is not justified with employees (Mercedes-Benz parent company Daimler
is preparing to layoff 15,000 workers as it tries to adapt to electric cars, 2020).
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Competitive competition rejects complaint against Mercedes-Benz: The fair deal
regulator Competitive commission of India has dismissed a complaint of unfair business
practices which made German luxury cars by saying that there is no competition issue involved.
This malpractice is done in India as the complaint alleged lack of proper after sales service
network leads to delay in availability of spare parts and also abuses the dominant position to
cheat the informant regarding no other service centre in the whole state except one which is
authorised by Mercedes-Benz (Competition Commission rejects complaint against Mercedes
Benz, 2016).
Hofstede five dimension culture
Culture is helpful in order to successfully operate and smooth running of an organisation
and it is learned by the shared way of thinking and acting within the group of people and society.
In terms of this, Hofstede five dimension culture is evaluated as under:
 Power distance: This culture depicts the power status and various differences between
their members. Here, high power distance index shows that culture consider inequality
and power that leads to inspire and show prominent rank and authority. Meanwhile, low
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Illustration 2: Geert Hofstede’s five dimensions of national culture

power shows that culture tends to motivate prominent structure concerned with
decentralised decision making responsibilities. Therefore, Mercedes-Benz follow low
power as in this company tends to motivate their employees regarding their best
performance. Individualism vs. Collectivism: It shows the degree to consider in which people are
integrated towards the dependence of groups. In this, individualism depicts that it has
huge significance in terms of attaining effective goals and objective whereas, collectivism
put huge focus on the well-being of group and also leads to include the safety of staff
members (Castillo and et. al., 2017). Hence, Mercedes-Benz follow collectivism which is
followed by both managers and employees for the betterment of entity. Long term vs. short-term orientation: It depicts the extent in which long term orientation
put emphasis towards the future and also leads to delay the short term success to achieve
its goals and objectives. Besides this, short-term put emphasis on the nearby future and
consider offer short term goals that focus on current time rather than future (Kétyi, 2016).
Therefore, for this, Mercedes-Benz adopt both the orientation as per the situation of
environment. Uncertainty avoidance: It depicts the ambiguity regarding the tolerated in the dimension
consider the unknown situations and events. In terms of this, high uncertainty avoidance
show low tolerance considering the uncertainty and risk factor. Moreover, high tolerance
shows that risk factors are openly accepted. Therefore, Mercedes-Benz adopt high
uncertainty avoidance as it tends of eliminate strict rules.
 Masculinity vs. Femininity: It depicts the overall preferences of society considering the
attitude and overall attainment of equal behaviour. For this, masculinity shows the
features like assertive and concentrated regarding gender roles. Femininity shows
features like fluid gender roles, modest and concentrated on the quality of life (Suša
Vugec, Tomičić-Pupek and Vukšić, 2018). Hence, in Mercedes-Benz adopt both types of
culture in order to maintain equality in company.
CONCLUSION
From the above discussed report, it is analysed that business management is the term
which is useful in offering proper training and pertain to the planning, execution, supervision and
identification of business enterprise. In terms of this, business manager who has major
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responsibilities regarding the proper management of representatives work for the business. In
terms of this, they are helps in promoting the marketing programs and also perform budget
analysis regarding the cost of company. Along with this, report covers the discussion about
management, and perform proper identification about the environment of business and describe
the proper things about the corporate social responsibilities and culture of company in proper
manner.
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REFERENCES
Books and Journals
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE), 1(1), pp.1-13.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Castillo, P.A and et. al., 2017. Applying computational intelligence methods for predicting the
sales of newly published books in a real editorial business management
environment. Knowledge-Based Systems, 115, pp.133-151.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Davis, C.H. and Comeau, J., 2020. Enterprise integration in business education: Design and
outcomes of a capstone ERP-based undergraduate e-business management
course. Journal of Information Systems Education, 15(3), p.8.
Foster, G., O'Reilly, N. and Dávila, A., 2016. Sports business management: Decision making
around the globe. Routledge.
Hakim, M., Roseboard Inc, 2018. System and method for providing unified and intelligent
business management applications. U.S. Patent 9,971,979.
Kétyi, A., 2016. From mobile language learning to gamification: an overlook of research results
with business management students over a five-year period. Porta Linguarum: revista
internacional de didáctica de las lenguas extranjeras, (1), pp.45-59.
Maunder, W.J., 2019. The human impact of climate uncertainty: weather information, economic
planning, and business management. Routledge.
Parris, D.L and et. al., 2016. Exploring transparency: a new framework for responsible business
management. Management Decision.
Raut, R.D and et. al., 2019. Linking big data analytics and operational sustainability practices for
sustainable business management. Journal of cleaner production, 224, pp.10-24.
Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management.
Oxford University Press Southern Africa.
Suša Vugec, D., Tomičić-Pupek, K. and Vukšić, V.B., 2018. Social business process
management in practice: Overcoming the limitations of the traditional business process
management. International Journal of Engineering Business Management, 10,
p.1847979017750927.
Waxman, K.T. ed., 2017. Financial and business management for the doctor of nursing practice.
Springer Publishing Company.
Online
Competition Commission rejects complaint against Mercedes Benz. 2016. [Online] Available
through <https://www.deccanchronicle.com/business/companies/191216/competition-
commission-rejects-complaint-against-mercedes-benz.html>./
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CSR Initiatives. 2020. [Online] Available through
<https://www.mercedes-benz.co.in/passengercars/the-brand/corporate-social-
responsibility/sustainable-development-goals.module.html>./
Mercedes-Benz parent company Daimler is preparing to layoff 15,000 workers as it tries to
adapt to electric cars. 2020. [Online] Available through
<https://www.businessinsider.in/tech/news/mercedes-benz-parent-company-daimler-is-
preparing-to-layoff-15000-workers-as-it-tries-to-adapt-to-electric-cars/articleshow/
74072284.cms>./
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