Strategies to Improve Business Operations at Mercedes

Business operations and
Services

INTRODUCTION
Operations of company can be defined as daily activities of company which help to
increase profitability. Activities that help to earn revenue to cover expenses of business. Help to

manage challenges like marketing, sales grow in a business. Business operations vary according
to requirement and structure of a industry. Mercedes is a German automobile company
specialized in manufacturing luxury cars, buses and coaches. One of the largest seller of
premium vehicles all over the world. In this report will analyze problems that affect overall sales
of Mercedes vehicles, introduce companies wide operations all over the world. Develop strategy
for tools and techniques that help to increase profitability of company and maintain their position
in market.
Part 1
1 Introduction of companies wide operations improvement strategy.
BMW is the leading firm that provides high quality automobile products to wide range of
consumers across the world. Recently Mercedes having a bad time due to increase in competition
from Audi and BMW. Overall quality of products are reducing day by day. Strategy that help in
improvement of operations in Mercedes are as follows.
Implementing Lean manufacturing process and improvement in supplier relation
Lean manufacturing is a strategy to reduce wastage within manufacturing systems to
increase productivity(Liu and Lin, 2017.). Lean manufacturing help to analyze value for
customers, produce product according to customers request. Reducing waste is one of the most
effective process to increase sales and profitability for business. In context of Mercedes company
is facing problem with their quality and reducing profitability of business. Company need to
reduce over production of their vehicles and wait to get orders from customers by creating value
for their products in customers mind. Analyze demand for product in different economies and
transport vehicles according to requirement of customers in a territory to reduce transportation
cost. Control excess inventory and raw materials that increases expenses of company. Reduce
workforce large number of unskilled workers will reduce overall productivity of business,
3,85,000 employees worldwide are working in Mercedes, company cut around 8500 jobs to
reduce wastage. Develop a process from beginning of production to delivery of vehicles. Process
help to identify improvement and reduce wastage of excess material it is an entire life cycle of
product and services.
Suppliers play an important role in each and every stage of product life cycle. Suppliers
provide raw materials to companies for manufacturing of final product. For success of business

Mercedes communicate regularly with their suppliers to reduce confusion and disagreement,
communication help to understand each other requirement(Uhl and Gollenia, 2016.) . Discuss
problems with supplier help to develop a relationship and build trust and respect so that they
work with loyalty towards company. Company get advice from their supplier about changes in
products which help to identify risk. Set roles and responsibilities help to work together and
reduce wastage.
Focus on leadership
Leadership help company to guide, direct employees towards achievement of
organizations goals and objectives, increases confidence and abilities of employees towards
work. In context of Mercedes, ineffectiveness of management team is unable to meet
organizational goal. Leadership help to complete work on time and improve effectiveness of
employees in company. Mercedes focus on leadership because it help them to make all other
employees work according to requirement of business. Leader help to shape behavior of
employees towards organizations success. Improvement in leadership help company to focus on
change. Leaders help to analyze employees while working in company to maintain quality of
vehicles. Improve ability of leader to focus on changes to produce product according to
requirement of company.
Financial strategies
Financial strategy help to improve operation management. Company need a plan and
define its objective to develop a financial strategy. Financial strategy help to generate revenue
for business. In context of Mercedes financial strategy help to use resources effectively.
Mercedes set budget according to requirement of their business by analyzing cost of products of
their competitors like BMW and Audi. Set budget by analyzing prices of raw materials, other
transportation and production cost. Budgeting help Mercedes to increase profitability of their
business in market. Mercedes aim to set budget is to increase overall sales of vehicles.
Production overhaul
Production overhaul help to improve quality of products(Lacity and Willcocks, 2017.). In
context of Mercedes company prepare process for producing their vehicles to minimize wastage.
Production overhaul help company to maintain quality and work according to set budget for
business. Strategy help to modify the way that Mercedes is using for producing products.
Personnel management