Introduction to Business Operations and Services

This document provides an introduction to business operations and services, with a focus on the company-wide operations improvement strategy of Mercedes-Benz. It also offers advice on the operational strategies that BMW and Ferrari can implement to gain market share from Mercedes-Benz. The document includes an overview of Mercedes-Benz, competitor analysis, financial highlights, and the issues facing the company. It also discusses various operations improvement strategies such as TQM, lean management, Six Sigma, supply chain management, and customer engagement.

Introduction to business
operations and services

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Introduction of the company wide operations improvement strategy.............................................3
Overview or profile of the Mercedes Benz.................................................................................3
Competitor’s analysis of Mercedes Benz ...................................................................................4
Financial highlights.....................................................................................................................4
Issues facing by Mercedes Benz. ...............................................................................................5
Company wide operations improvement strategy.......................................................................6
Advise on the operational strategies that BMW and Ferrari can implement to gain market share
from Mercedes-Benz........................................................................................................................9
Introduction about BMW............................................................................................................9
Introduction about Ferrari...........................................................................................................9
Suggested operational strategies to gain market share from Mercedes Benz...........................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................12
Books and journals ...................................................................................................................12

INTRODUCTION
Analysis of business performer is important for business organisation to maintain
different function in appropriate way. This is because there are number of function in
performance on organization which create differences. In order to cover these differences and
perform function in appropriate way, organisation use business performance analysis. This is
responsibility of management in organisation to analysis the current performance of organisation
in different function and formulate effective strategies which can be use to cover differences in
performance. In current business environment, it is needed that organisation use to identify
internal and external factors which has direct impact on performance of organisation (Alreshidi,
2018) . This is because it is helps in formulation of number of functions which will prevent
organisation and safeguard performance of employees accordingly to current functions. This
report is also based on study on Mercedes-Benz in order to gain information about current
system and failure in operation of organisation. Mercedes-Benz is an car manufacture
organisation which is famous for its world class cars. This is luxury car manufacturer which is
facing number of irregularity into down step in market. This report consist information about
number of function which ha to be performed by organisation in order to achieve business
objectives. It also includes providence of information about company wide operations
improvement strategy and the operational strategies that can be implemented by BMW and
Ferrari to gain market share from Mercedes Benz.
MAIN BODY
Introduction of the company wide operations improvement strategy
Overview or profile of the Mercedes Benz
Mercedes Benz is an global car manufacturing organisation which is performing its
function at global level. It was founded in 1926 by Karl Benz, Gottlieb Daimler as an small car
manufacturing firm. It is performing its function from its headquarter in Stuttgart, Germany.
This is popularly known for its wide product ranges and luxury looks which include luxury
vehicles, trucks, vans, coaches, buses and ambulances. This is also operating in sports function
where organization is using sponsorship programmes (Bruno, 2019Enneking and et. al., 2019).
The main mote of firm is to provide high class services to is customer where it provide good
product mix in order to relation and perform function this is use by organisation to achieve

business objectives and manage function in appropriate way. Company is holding strong
position in market in relation to its premium car and other auto-mobile. This is also helpful to
organisation is using its global reach and performing its function at global level because of
quality products.
Competitor’s analysis of Mercedes Benz
Mercedes-Benz is performing it function at global level which makes it essential for
organisation to perform and mange all these in appropriate way. Here organization is -
performing as a division of Daimler AG, a German company. It is dealing in number of
products, where the main product of organization are luxury vehicles, Lorries, coaches and many
other products. There are number of competitors to the products of organisation which are
impacting on sales of product and services offered by organization. These are Jaguar, BMW,
Audi, Ferrari, Volvo, Porsche, Volkswagen, Aston Martin etc. all these competitors of
organisation are using different strategies which are impacting on organisation and has to be
identified in order to achieve business objectives. Audi and BMW are the main competitor of
organisation which are impacting on performance and business function of firm (Evangelos,
KGupta and Rastogi). Audi is in direct competition to Mercedes-Benz because it is operating
with better design. Audi is operating with more than 9 production units which is grater that
Mercedes-Benz. This facilitates organisation facts production and better innovation according to
demand of cars. BMW is also acting as a competitor to organisation as it is using number of
products. For the success and sustainable growth company should reduce the employee turnover
that means they should hold talented workforce. They also consider the quality of product so that
they provide best quality with affordable prices so that they take competitive advantage. It
directly boost the growth and maintain the brand name in the market.
Financial highlights
There are many functions that performed by organisation for the accomplishment
business function and manage profitable. This is dependent on finance in organization and using
function in appropriate manner. This include number of analysis which can be use by
organisation to perform function and achieve better profits in current business. In context of
present report some of these analysis in context of Mercedes-Benz are discuss below. All these
show current performer of organisation to achieve its business objectives.
.

Figure 1Income Statement
Figure 2Income Statement (€ Billion).
This can be evaluated from above mentioned graph that there is continuous trends
towards decrease in net income of Mercedes-Benz in order to achieve better profitably. As seen
in the trend of year 2017,2018 and 2019, there is regular decrease in the net income of
organisation. In this trend, it is show that the regular decline of net income in year 2017 was
10.53 which again decline in year 2018 and obtain 7.25. It is continued in next year i.e. 2019 the
organisation noticed a huge decline i.e. 0.38. large number of competitors in market and various
other issues are impacting on perforce of firm and are leading to decile in net income of
organisation from last three years. This make it clear that organisation has to use effective
function which will facilitate better function and help in improving its performance (John,
Gwahula and Msemwa, 2018).
Issues facing by Mercedes Benz.
There are number of issues which has to be faced by Mercedes-Benz in current business
environment. These are linked to performance of organisation and using function according to
need of business environment. These are an ageing flagship line as well as ongoing sales

problems in China, slow growth within the entry-level division, Daimler A G's Mercedes-Benz
unit is facing a bigger issue and tough completion against key rivals such as Volkswagen AG and
BMW Group. All these are impacting on organisation performance sand leading to decline in
profits. Alon wit this, it is also analyses that there is also backwardness in development of
organisation at international level. This is because Mercedes-Benz developed its international
market by 17% from year 2007. on the other hands, its main competition business firms like
BMW and Audi have witnessed gains of 70 % and 35% respectively in the same time duration.
This can bee seen that organisation is focusing on increasing its business function in China
which is impacting negatively on growth of firm (Li and et. al., 2019). This is because there are
number of functions which has to be performed by organisation to mange functions and using
these according to validity of resources. mainly in lower-end and higher volume section
inhabited through the likes of Audi’s Q3 as well as BMW’s 1-Series is also an reason in this
failure.
Decline in staff perforce is also an issue which is faced by organisation. This impacted
negativity on productivity and profitably. This is because Mercedes-Benz use to terminate
number of staff employees to decreasing its function. This is also seen that there are number of
profit alarm which has to be cheeks by CEO of Mercedes-Benz in order to perform function and
chive business objective. This is related to all those function which has to be perform and use
function in appropriate manager. It targets to reduce the expenditure by approximately $1.1
billion with 2022.
Company wide operations improvement strategy
It can be identified from the discussed information that there are many functions that are
allied to finance (Zengin, 2018). There are number of function which are performed by manager
in order to achieve better functions in finance and using function according to needs and
requirement. These are regular down fall in perforce and finance of organisation this is
impacting on perforce and leads to failure of operations. There are number of tools which can be
use by organisation in order to achieve better function and performer in more effective way.
Some of these tolls are discussion below:
TQM: This is system which is use by organization to maintain quality in working and
perform operations in effective way. This is use to manage function and achieve business

objectives accordingly. This include number of fetchers which are use to perform by organisation
and achieve business objectives. Some of these are smoothing out improving the client
experience, supply chain management and guaranteeing that representatives are speed up with
training. This also foe on improving working process in organisation in order to achieve business
objectives and performing function in effective way (Valdez, 2019). Under Mercedes-Benz,
organisation can also implement this process in order to attain organisational objectives and
perform function in appropriate way.
This is use to upgrading function and perform al these function in appropriate manner.
Herein , manager always focus on implementing this function on production of organisation.
This is because using total quality management in production facilitate effective working and
reduce wastage in organisation by maintain quality of goods and services offered by
organisation. This is effective in achieving business objectives and managing functions in
appropriate manner. Manger always focus on better quality of work so that they can mange it
according to needs and requirement. They also use to upgrade number of process which are
related to employee performance and building better quality products. This make it important
activity which is performed by management of organization in order to achieve business
objectives.
Lean management: This is that kind of management style which is use by organization to
achieve business objectives and performing all these function according to availability of
resources. This is an effective tool which can be use to achieve better results and performing
function in appropriate way (Mingotto, Montaguti and Tamma, 2020). It include use of number
of activities which has to be performed by organization to achieve business objectives and bring
effectiveness in working process of firm. This is performed to minimise wastage organisation
and improving function according to current needs and requirements.
This act as an important function in context of Mercedes-Benz, this is important for
organisation to achieve its business objectives and performing function in appropriate way.
These are number of function which can be improved by organisation by using lean management
system. This will helps organisation in improving overall quality of product and manage function
in appropriate way. This will lead to success of organisational operation and provide competitive
advantage over main competitors.

Six-sigma: It is an statical based approach which is related to perform of organization and
utilizing resource by fuller effectiveness in ordered to minimise wastage of product and services
which are offered by organisation to local customers. This is an effective way to improve
organisation function and it include number of stages which can be used to achieve business
objectives and resources wastages of product and services at time of production. This concept is
developed by Japanese firm Toyota. This include using and graphics representation which
include number of stages which has to be achieve by business organisation one by one. This is an
appropriate system which can be use to achieve business objectives and performing function in
non appropriate way (Piekarz, 2020) . Six sigma is useful for organization in reduction of
personal time and skills, reduce wastage, reduce inventory needs, reduce workers and defects,
increase customer satisfaction etc. these are some benefits which can be use Mercedes-Benz in
order to achieve its objectives and performing function in appropriate way. These are use of
functions which can be use to maintain good relation to customer. By implementation of of six
sigma approach organisation can use to perform number of function which is used to achieve
business objectives and perform these function in appropriate way. This is used to achieve better
results and performing function in appropriate manner.
Supply chain: This can be definiens that network which is use by organisation to sell
produce in market. this can also be explained as an function which is use by organisation through
maintaining relationship in organization and suppler of organizationals products. This include
number of function such as activities, entities, people, resources and information. It is important
for firm to implement this function in appropriate way to achieve business objectives and
perform function according to needs and requirement. In context of Mercedes-Benz, it is
operating its function at global level where it is needed to use appropriate function and perform
these function in global context. This also helps in motivation and using appropriate systems
which can be use to achieve better functions and management. This will also improve functions
and use these function according to current needs by identification of customer and providing
produce according to these demand. This is observed that Mercedes-Benz has to develop its
supply chain in effective way. This will help in improving availability of firm for number of
products and using them according to firms requirement.
Customer engagement: This is also an method which can be use by Mercedes-Benz in
order to achieve its business objectives and perform function in appropriate manner. This will

help organisation in functioning in smooth way and achieving objectives. This is related to using
cutomer as price function in organization and providing them number of benefits so that they can
retain with organisation for longer period of time. This is best method which can be use by
Mercedes-Benz because to will facilitate better profitably and long time fixed customer. This
also use by organisation to manage its function and perform activities (Pinedo and Xu 2017).
These are related to activating business objectives and managing function according to current
needs. This include some activities such as n increasing customer conversation, reduce cost of
service and marketing, more customer acquisitions, better customer engagement, improved crisis
management, improved operational strategy, increased customer loyalty and retention etc.
Advise on the operational strategies that BMW and Ferrari can implement to
gain market share from Mercedes-Benz
Introduction about BMW
BMW is an multinational organization which was founded by Camillo Castiglioni,
Franz Josef Popp, and Karl Rapp. This was founded in 1961 and currently operating with its
headquarter in Munich, Germany. Organization is performing its function and using all these
function in appropriate manner. This is because organisation is using production of number of
engines and other function which can be use to achieve better results in environment where it is
operating. Organisation also has its international image in market where it is operating in more
that $1 nations and performing in over 3000 local importers and dealership in over hundred
nations. It is also holding market of two wheelers where its is operating in business of
motorcycle production. This also helps organisation in improving its products mix. Organisation
is using continuous development in its function. This is also evaluated that firm is operating in
their own financing business, which tenders financing for vehicles. This can be analysis that
organisation is using function and performing these function in appropriate way.
Introduction about Ferrari
Ferrari is an Italian-dutch car manufactures which is operating functions in appropriate
way. Headquarter of organization is situated in Amsterdam, Netherlands, Marcello, Emilia-
Armagnac, Italy. Organisation is producing spots cars and luxury cars which are related to high
perforce ans speedy engines. Because it is the multinational organisation that was involved in the
design, engineering, sale of luxury performance sports cars and production.

Suggested operational strategies to gain market share from Mercedes Benz
there are number of strategies which can be use y organisation in order to achieve better resulted
and implementation there function to performing in market. In relation to current position on
Mercedes-Benz in market, it can be evaluates that organisation is not performing according to
current business function which is impacting in negative way. It can be seen that organisation
needs to improve its strategy and perform function in appropriate manner. In this, organisation
can use ANOFF matrix (Rakesh, 2017) . This matrix include number strategies which are useful
for organisation perform its function and achieve business objectives in appropriate way. It
includes four types of strategies which are Market development, Market penetration,
Diversification and Product development. All these can be use by Mercedes-Benz in order to
achieve its business objective. All these are discussed below:
Market penetration: Under this strategies organisation can use to improvise its current
products by using new and innovative methods to attract and retain customer in existing market.
Here Mercedes-Benz can use this performing its function by using existing products.
Market development: In context of this Mercedes-Benz can use to introduce existing
produce to new market (Rimba and et. al., 2017). This is an useful strategies where firm can
implement its product to new market by using appropriate research.
Product development: Under this organisation has to develop an new product to attract
customer and bring innovation in market.
Diversification: It is the strategy that used by organisation diversified new product in the
market. It is very risky for the business to adapt this one.
Most appropriate strategy which can be use by organisation to improve its function are
product development. This is that strategy which is used by organisation to improve function.
From this the company take a benefit of recognition of current brand name and image. It will be
best when the company wants to capture the large market share (Tariq, 2017).
CONCLUSION
It can be concluded from above mentioned information that there are number of function
which can be use by organisation to achieve its function and manage all these function in
appropriate way. This can be seen from case study that Mercedes-Benz is suffering fro Compton
and failure in operations which is leading to decreasing productivity and profitability. This can

be concluded from above that there are number of functions which can be use by organisation to
manger these failure and achieve advantages over competitors.

REFERENCES
Books and journals
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Technologies in Business Operations and Management (pp. 405-416). IGI Global.
Enneking, L. and et. al., 2019. Accountability, International Business Operations and the Law:
Providing Justice for Corporate Human Rights Violations in Global Value Chains.
Routledge.
Evangelos, K., The effects of cloud computing green attributes on the sustainable development of
SMEs’ IT business operations.
Gupta, R. and Rastogi, P., Barcode for Retail Store Operations-The Perfect Tool at Low Cost.
John, E. K., Gwahula, R. and Msemwa, F. M., 2018. The influence of perceived risk on the
uptake of Mobile Money Services by SMEs operations in Karagwe district,
Tanzania. International Journal of Advanced Engineering, Management and
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Li, F., and et. al., 2019. Key factors affecting sustained business operations after an earthquake: a
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industry. Electronic Markets, pp.1-18.
Piekarz, M., 2020. Sport Operations Management and Development: An Applied Approach.
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risks. Foundations and Trends® in Technology, Information and Operations
Management, 11(3), pp.223-342.
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Rimba, and et. al., 2017, April. Comparing blockchain and cloud services for business process
execution. In 2017 IEEE International Conference on Software Architecture (ICSA) (pp.
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Tariq, U., 2017. To analyze the impact of supply chain practices and tools used by DHL to
manage its operations (Doctoral dissertation, University of Management and
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Valdez, E. J., 2019. ATTRACTIVENESS OF TOURISM INDUSTRY IN CALABARZON:
INPUTS TO BUSINESS OPERATIONS INITIATIVES. International Journal of
Research-GRANTHAALAYAH. 7(4). pp.225-254.
Zengin, S., 2018. Re-define Product and Services Development: A Customer-Centric Perspective
in Financial Services. In Strategic Design and Innovative Thinking in Business
Operations (pp. 311-330). Springer, Cham.