Strategic Management KPI Analysis

This assignment focuses on strategic management, requiring students to analyze and evaluate key performance indicators (KPIs) within the context of different industries. Students will utilize case studies and theories presented by authors such as Ajai and Nelson, along with other prominent figures in the field. The primary objective is for students to demonstrate their understanding of strategic management principles and their ability to apply them critically and practically through KPI analysis.

Strategic management

Executive summary
Strategic management is important activities that is performed by various organisation to
regulate their business operations effectively and effectively. Present report was based on
understanding various key performance indicators that represents Mercedes Benz position in
market as compared to customers. Mercedes Benz group is major tour planner which is a
company of opportunities for their customers and stakeholders and their employees. There are
various KPI such as profits, cost , employee turnover, CLV, CAC and CSAR etc. has provided
understanding that firms has its strong position in market as compared to competitors. It is
identified that organisation has adopted New product development strategy for expansion of
business in Automotive. SAF framework has also provided understanding that New product
development strategy is suitable for organisation and its provides them support in achievement of
growth and development.

TABLE OF CONTENTS
Executive summary .........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Analysis of organisation's strategic position using relevant KPIs..........................................1
Analysis of organisation strategic direction...........................................................................3
Critical evaluation organisation strategy ...............................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................9
........................................................................................................................................................11
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INTRODUCTION
Strategic management is analysed as formulation and implementation of important goals
and initiatives that has been taken by management on the behalf of owners which is based on the
consideration of resources and assessment of internal and external environments in which
organisation is competing. Present report is based on analysis of Mercedes Benz group and its
strategic management that provides overall direction to business enterprise and involves
specification of objectives, policies and plan which are designed to achieve these objectives and
allocation of resources in order to implement the plans (Hitt, Ireland and Hoskisson, 2012).
Mercedes Benz group is major tour planner which is a company of opportunities for their
customers and stakeholders and their employees. Further, company is manufacturer of luxurious
and wide range of Vehicles with their brand name. They usually have strong brand position in
automotive and achieved high profitability in market by providing quality of products and
services to clients.
Their effective integrated model allows them to leverage the power of distribution in their own
source markets and optimum clients volumes for their own assets. Further, their strategy is to
offer differentiated and controlled products to attract target customer, drive demands in target
markets and create entry barriers. Presently Mercedes Benz has strong financial position as they
having a net income of around 15000 million and operating income of 20000 million (Hill, Jones
and Schilling, 2014). The main competitors of organisation are analysed Volkswagen, Toyota,
Audi in UK. There are various luvxurious vechile have been luanched by organisation in
market to attract cutomer.
Analysis of organisation's strategic position using relevant KPIs
Key performance indicators are identified as measurable values which clearly
demonstrates the ways through which company is effective achieving key business objectives.
Large scale organisation use their KPIs for evaluation of success at reaching the targets. In this
context, there are also some key performance indicators for Mercedes Benz have identified and
use to analyse the strategic business position of organisation in market. Some of them are as
follows:
Financial metrics:
 Profits: Most important performance indicator that clearly provides an analysis of
company's financial position as compared. Moreover, shareholders of Mercedes Benz
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groups always analyse firms' annual report to analyse the profits that clearly defines its
capabilities to sustain its position in market (Moutinho and Vargas-Sanchez, 2018). At
present, Mercedes Benz has strong financial position in market in comparison to its
competitors. Company is now analysed as market leaders in their automotive sector in
terms financial strengths.
 Cost: It is also a n important KPI in which shareholders and investors measure the cost
effectiveness of organisation and finds the best ways to reduce and manage the costs
(Ginter, 2018). Mercedes Benz group has provided understanding that they have
managed to cut its underlying cost.
Customers matrix: Customer lifetime value: In addition, minimizing the cost is not only the ways for
customers acquisition. Further, CLV provides support to consider at the value Mercedes
Benz is getting from along term customer (18 Key Performance Indicator (KPI), 2017).
In this, organisation's position in industry have been identified through analysis of
effective channels used by organisation to attract customers at best price. Customer acquisition cost: It is also important performance indicators which is analysed
organisation' shareholder to demonstrate its effectiveness in earning high amount of
profits in market. It is also considered as which is incurred by Mercedes Benz for
attracting customers to buy its products and service (Wheelen and et.al., 2017). From
sales forecast of company, it is analysed that Mercedes Benz customers acquisition cost
has been decreased as they have applied new and innovation channels for promotion of
their new Vechile in market.
 Customer satisfaction and retention: Increase in customers satisfaction and retention of
previous customers towards the organisation also provide analysis firm's capabilities and
potential in market as compared to its competitors. In this context, By providing quality
products and services at competitive prices, Mercedes Benz has increased the satisfaction
of its target customers and also provided some special continuously to retain its previous
potential customers.
People metric:
 Employee turnover rate: This KPIs is mainly an indicator of firm's effectiveness
towards achievement of its objectives. Employees are analysed as strength of Mercedes
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Benz group as they provide support in accomplishment of various business objectives
such as attracting customers, increasing in market, carrying out research. Increase in
employee turnover rate determine weaknesses of organisation in managing its operations
(Slack, 2015 and Davis, 2014). In this, it is analysed Mercedes Benz has implemented
various monetary policies to motivate its employees and retain qualified employees at
workplace. They are also following all the rules and regulation related to employment of
organisation.
 Employee satisfaction: Satisfaction of employees towards organisation tends to provide
a clear understanding about the effectiveness of organisation in market towards
application of market avoidance (Meyer, Neck and Meeks, 2017). Employees in
Mercedes Benz are highly satisfied with compensation policies and business operations
of organisations.
Analysis of organisation strategic direction
Mercedes Benz is one of the largest tourer operator in the international touristy industry and this
company aim to hold a strong business and portfolio in all parts of universe (Molina-Azorin,
2012). Mercedes Benz using these strategies become most successful in all over the world they
use there policy, techniques, supplier and increase their market share and price as well. This
company use Ansoff matrix for evaluate the growth of the businesses.
Ansoff matrix
Market penetrations
 It is referred to exiting product in
existing market and this company main
motive to achieve the growth with
exiting product in their current market
segments.
 It aims to increasing their share and
improve product quality (Killen and
et.al., 2012).
 If Mercedes Benz can introduce their
package in the existing market they
easily penetrate the market, this
Diversification
1. This company focus to expand their
businesses through its investors,
suppliers and social media channels
along with digital advertisement.
 These strategies are very helpful for
reducing the risk of the businesses and
government also giving this company
relaxation to entry
 This company can't face any problems
regarding to licensing and make a good
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company earn more profit and cover its
cost (Evans Stonehouse and Campbell,
2012).
relationship with foreign
 New product development strategy of
business to commercial vechile and
machinary equipments.
Product development
 They introduce their new product same
market this company spent lot of
money on advertising.
 They choose particular locations and
directed reasonable packages (Alkhafaji
and Nelson, 2013).
 They are Utilizing of excess
productions and increase its product
line stay in the market and increase its
market share.
Market development
 This company direct connect with their
customer online and sell their new
product.
 The purpose of this company providing
satisfied their target customer offering
new and luxurious vechile as compard
to competitors.
 This firm develop their new product
and its target to raises existing market
Mercedes Benz will adopt new products developmen strategy for long term earning and it
helps a businesses giving more opportunities or increasing the profitability in automotive sector.
It is totally based on market share and market growth. It shows the high and low rate of the
businesses and it provides graphic representations on this company.
The objective of this report is to analysis the critical position of Mercedes Benz GROUP by
applying PESTLE Analysis.
Political
Political factor includes Tax policies of government, it has moderate impact on the performance
and growth of Mercedes Benz Group. Negative publicity and the risk of perception arrives is
generated by political instability which influence the decision of clients and which result in
unavoidable decrease in clients arrivals (Rothaermel, 2015). On the other hand, the financial
condition is also affected by the terrorism which led to serious crises of Mercedes Benz Group.
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Economical
Automotive is a growing company, the growth and employment has come strategic component
of the world economy. Downward momentum has been seen due to Recession. By high level of
fixed assert most of the Automotive operator were handicapped and were less able to manage the
automotive industry and airlines. There is fluctuation in exchange rates, fuel cost and currency
fluctuations. Primary Automotive sectors like lodging, restaurant, transportation and retail trade
has most direct effect on economic environment of Mercedes Benz group.
Socio-Culture
It mainly refers to the perception and values of customers towards purchasing products
and services that also effects the profitability of enterprise. Influene of social culture of business
of organisation is positive as people are likely buy their products and services in market.
Company have influence the perception of customers by providing quality of services at
workplace.
Technology
For reservations and administrative operations for business, information technology has given
boost to Automotive.
Environmental
These are the environmental factors that needs to be complies by organisation for regulation of
business operations effectively. Legislations related Emission and pollution also provided
influence the business operations of organisation in market.
Critical evaluation organisation strategy
There are various important strategies have been adopted by organisation in order to
achieve success in business operations. Implementation of these strategies will provide support
to organisation in overcoming its weaknesses and reduce the impact of external factors on
business operators (Lasserre, 2017). As it was clearly analysed that Mercedes Benz group has
adopted the business strategy of diversifying its business operation in automotive and cruise
business. Moreover, SAF framework of operation is applied for critical analysis of organisations
strategy which involves three important business elements which are mentioned above:
 Suitability: This element of model clearly states that organisation will tend to its achieve
success in business operations when the strategy which they have applied in their
organisation is effective. Strategy of organisation is identified as suitable when its uses its
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strength, overcome its weaknesses and helps in accomplishment of strategies. In this
context, New product development strategy is also considered as important business
strategy which provides support to Mercedes Benz group in achievement of high
profitability in market as compared to rivals but it also contains high risk and sometimes
its tends to create situation of failure. Along with this, for New product development
strategy of business in Machinaries and autmobile accessrioues manufacturing
requires a lot of capital and resources. Moreover, strong financial position in Automotive
industry and brand image is major strength of organisation which provides them support
in New product development strategy of business.
 Acceptability: It is also important element of model which clearly implies that firm's
strategy tends to be successful in market when its accepted by its stakeholders.
Stakeholders are key player which possess their major impact on business operations of
organisations (Keupp, Palmié and Gassmann, 2012). Organisation can aslso makes
collboration with other autmobile parts manufacturers. They will also focus on New
product development strategy of their portfolio geographically through growing their
Australia and Asian countries , while also strengthening their core destination in Europe.
Moreover, it is clear identified that stakeholder will provide their acceptance towards
strategies when they will find the best return on investments and facilities.
 Feasibility: It is clearly determines the availability of resources for implementation of
strategy. For New product development strategy of business operations there are major
requirements of Mercedes Benz to have Adequate financial resources which provide
them support in carrying business activities (Ward, 2012). From internal business
analysis, it is identified that firms has strong financial position in market with an aim of
getting major financial position in market. Along with this, it is also essential for
organisation to have adequate human resource to performs business functions for New
product development strategy of business (Priem, and Carr, 2012). From the analysis,
analysis of it is clearly identified that organisation needs to adopted various important
business strategies to carry out various business expenses and promotion of various
important strategies to increase the market position and achievement. They also need to
adopt important business strategies and hire qualified candidates which provide them
support in accomplishment of objectives.
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CONCLUSION
In this report, it is concluded that strategic management play an important role in
providing success to the organisation in international market. Mercedes Benz groups is an
international Automotive service providers and now its has diversified its business operations in
and Automotive sector to promote the business operations. Mercedes Benz group is major tour
planner which is a company of opportunities for their customers and stakeholders and their
employees Mercedes Benz has strong financial position in market in comparison to its
competitors. CLV provides support to consider at the value Mercedes Benz is getting from along
term customer. Mercedes Benz customers acquisition cost has been decreased as they have
applied new and innovation channels for promotion of their products and services in market.
Increase in employee turnover rate determine weaknesses of organisation in managing its
operations. Employees in Mercedes Benz are highly satisfied with compensation policies and
business operations of organisations.
RECOMMENDATIONS
From the analysis of organisation financial position it is analysed it will tend to achieve
group of around 4 percent in their business operations. While adopting New product
development strategy strategy, it is essential for organisation to have support of stakeholders.
Therefore, it is essential for organisation to analyse the interest of their stakeholders towards
business operations and try to satisfy their expectation for achievement of contiguous support.
Mercedes Benz also needs to provide their focus on increasing the profitability and its position in
market. For achievement of success in business operations , it is essential for organization to
deliver high quality products and service to attract its target customers. Along with this, they also
adopt effective and new marketing techniques for increasing their brand image in diversified
market.
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REFERENCES
Books and Journals
Alkhafaji, A. and Nelson, R.A., 2013. Strategic management: formulation, implementation, and
control in a dynamic environment. Routledge.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
Automotive. Taylor & Francis.
Ginter, P.M., 2018. The strategic management of health care organizations. John Wiley & Sons.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Keupp, M.M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews, 14(4), pp.367-390.
Killen, C.P., Jugdev, K., Drouin, N. and Petit, Y., 2012. Advancing project and portfolio
management research: Applying strategic management theories. International Journal of
Project Management, 30(5), pp.525-538.
Lasserre, P., 2017. Global strategic management. Palgrave.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Molina-Azorin, J.F., 2012. Mixed methods research in strategic management: Impact and
applications. Organizational Research Methods, 15(1), pp.33-56.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Automotive, CABI
Automotive Texts. Cabi.
Priem, R.L., Li, S. and Carr, J.C., 2012. Insights and new directions from demand-side
approaches to technology innovation, entrepreneurship, and strategic management
research. Journal of management, 38(1), pp.346-374.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
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Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Ward, K., 2012. Strategic management accounting. Routledge.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
Online
18 Key Performance Indicator (KPI), 2017.[Online]. Available through
:<https://www.clearpointstrategy.com/18-key-performance-indicators/>
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