Operations and Services in Mercedes-Benz: Strategies for Improvement

Introduction to Operations
and Services

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operations improvement strategy................................................................................................3
Operational strategies for BMW and Ferrari...............................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations and services are two major aspects for an organisation, company or venture.
In this situation, top-level management within each company is responsible to always run its
different operations and services in a progressive manner. This is very necessary task for the
management of a company, because without progressive operations and services management
can’t achieve its decided objectives and aims on time. In this dynamic and modern world, there
are very high competition within each industry or sector. That’s why each and every company
should effectively operate and serve its different operations and services respectively. By doing
this thing, company can easily gain huge competitive advantage in its respective industry or
sector. This report discusses operation and service aspects of Mercedes-Benz. Currently this
company suffers from different organisational issues which has on quality, tie-up, etc. There are
some productive operation improvement strategies, tools and techniques also has been discussed
in this report which can support to Mercedes-Benz for improving its operations and services.
MAIN BODY
Operations improvement strategy
According to the current situation, top-level management of Mercedes-Benz is highly
required to adopt a productive operations management strategy (Lee and Schmidt, 2017). On the
other side, existing management of company need to employ some effective tools and techniques
in its business environment. By using these various techniques and tools a company can easily
improve or develop its different operations and services. There are major competitors of
Mercedes-Benz like; Audi, BMW, Ferrari and Land Rover etc. also has already adopted various
tools and techniques for systematically improving its different operations and services. This is
the main reason that, top-level management at Mercedes-Benz need to use various techniques
and tools for achieving huge competitive advantages in the luxury car market.
According to different automobile industry experts, market competition in the
international retail industry is increasing day by day. Many new entrants are coming in this
particular industry on daily basis. In this situation, other automobile companies will give very
tough competition to the Mercedes-Benz in the market. That’s why this company should start to

provide the best quality vehicles in the market for standing against high market competition.
There are some productive tools and techniques under operations management strategy which
can support to Mercedes-Benz for improving its quality of vehicles in the international
automobile industry.
TQM (Total Quality Management)
The management at Mercedes-Benz should implement the TQM (total quality
management) technique within its production processes for developing or producing quality
products and services (Aleksić, Grubić-Nešić and Aleksić, 2019). Currently many other
automobile companies also have successfully implemented this technique within its production
processes for providing the best quality vehicles in the market. This is the main reason that, top-
level management of company is highly required to implement TQM technique in its production
processes. If marketing team of this company cover market research, then it will find that most
people within Europe give very higher priority to those automobile companies which offers the
best quality in vehicles. Basically, a vehicle or car is that kind of asset which people purchase for
long time usage, in which Mercedes-Benz should understand this basic thing. Currently total
quality management is one of the best techniques for different businesses which can contribute in
development of product quality.
In this situation, existing management of the company need to take some productive decisions
for employing or implementing total quality management technique. TQM will definitely support
to the company for properly managing the excellent quality of its luxury cars. Mainly people
who comes from high income groups are afford cars of Mercedes-Benz. There are Mercedes
charges very high prices from different customers when they purchase cars from this company.
In this situation, top-level management of company is responsible to provide the best quality cars
with additional modern specifications to customers. On the other side, this luxury car company
generally uses the value-based pricing strategy for setting the specific price for its luxury
vehicles (Erat, 2017). Basically, most companies which uses value-based strategy are always
offers premium products in the market. In this situation, cars which has offered by the Mercedes-
Benz are also comes under premium category. This is the main reason that, this company also
should provide the best quality cars to its different customers.