Operational Improvement Strategies for Mercedes-Benz, Audi, and BMW

Business Operation and
Service

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Mercedes-Benz, Audi and BMW......................................................................1
1. Company wide operational improvement strategy to solve the issues with Mercedes......3
2 Advise on the operational strategies that Audi and BMW can implement to gain market
share over Mercedes-Benz.....................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business management includes the activities related to analysing, planning and
controlling of the different business activities. The contribution of these is effective in nature to
ascertain qualitative results in near future. The necessity of management arouse due to the
presence of many factors at marketplace. All these factors have the direct impact over the
performance of an organisation (Bilicki and Roeder, Target Brands Inc, 2016). The use advanced
tools and techniques in the current framework is important in nature to resolve the issues and
attainment of large market share in market. The organisation considered in completion of this
report is Mercedes-Benz. The major issue faced by this organisation is related to quality that
have direct impact over the image and sales of the organisation.
This report covers the use of different operational improvement strategies to solve the
issues faced by Mercedes includes Lean manufacturing, TQM, quality systems, quality control
and cause effect analysis. Also, operational strategies in respect to the Audi and BMW are
defined to attain the large market share.
Overview of Mercedes-Benz, Audi and BMW
Mercedes Benz
It is automotive organisation deals in the manufacturing of luxury vehicles, buses,
coaches, ambulances and trucks. The headquarter of this organisation is established in Stuttgart,
Germany. This organisation is founded on 28 June 1926. The products and services are available
word-wide. The slogan is used by the organisation to serve their products at worldwide level is
“the best or nothing”. Initially, high growth is attained by this organisation then after lots of
competitors comes to reduce the operation's of Mercedes-Benz. Currently, the level of
competition is high in this industry where large number of manufactures are working at
worldwide level. At present, many issues are present in the organisation relate to the quality in
manufacturing of products along with implementation of the growth strategies (Chatzoudes,
Chatzoglou and Vraimaki, 2015). In 2005, due to quality issues Mercedes-Benz has to recall
their products because of the persistence of the issue related to batteries, alternators and brakes.
The total number of cars recalled are around 1.3m million due to which huge amount of loss was
faced by the organisation. Afterwards, organisation is able to maintain the goodwill with the
organisation but requires to made few changes in their operating strategies.
1

Audi
This automotive organisation established on 25 April 1910. The headquarter of this
organisation is present in Ingolstadt, Germany. The products and services are served by this
organisation at world wide level. The main product in which this organisation deals includes
luxury vehicles. The process of the manufacturing of their different variant vehicles is carried out
in 9 different countries at 11 production facilities. The name of the founder of this organisation is
August Horch. At present, organisation is doing good and earning significant amount of profits.
Afterwards, many issues which are faced by the organisation related to the quality of their
operations that have some negative impact over their image and profits too. Some of the common
issues which are faced includes Oil leaking, Exhaust leaking, Rattling Engine and smelly heating
& ventilation system (Choi and Li, 2015).
BMW
This is the well known and recognised organisation in the automotive industry. This is
founded on 7 March 1916. The headquarter of this organisation is situated at Munich, Germany.
The products and services are served at world wide level. The number of products in which this
organisation deals includes cars and motorcycles. Initially, this organisation in 1916 manufacture
aircraft engines. Now, it become renowned manufacturer organisation in auto-mobile industry at
world wide level. The goodwill of this organisation is good in market. This enables the
organisation to earn decent amount of profits from the market. The story of this organisation is
not only based upon the success. The number of which are faced by the management on the
regular basis includes vibration in steering wheels under braking, oil leaks and faulty tail lamp
assembly (Choi, Chan and Yue, 2016).
The overall level of competition in all three organisations is high in nature. Lots of
innovations are done on frequent basis by all the three manufacturers in their products to combat
the operations of each other. Also, the providence of products at worldwide level in different
variants to justifies the demand of the each segment of market depicts that intense competition is
present in between these three.
2