Technological Advancements and Legal Compliance at Mercedes

The analysis of PESTLE factors for Mercedes-Benz provides insights into various external influences on its business strategy. Political factors include regulatory frameworks and governmental policies in key markets like Germany and China. Economic considerations involve global economic trends impacting demand and pricing strategies. Social factors cover changing consumer preferences towards luxury and eco-friendly vehicles. Technologically, Mercedes faces the need to innovate in areas such as electric vehicles (EVs) and autonomous driving technologies. Legal aspects include compliance with international trade laws and environmental regulations. Environmental challenges focus on sustainability practices and reducing carbon footprints. These elements collectively shape Mercedes-Benz's strategic direction and competitive positioning.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 & P2 Covered in PPT........................................................................................................1
TASK 2............................................................................................................................................1
P3 Interrelation between functions and manner in which they relate to organisational structure
................................................................................................................................................1
TASK 3............................................................................................................................................4
P4 Positive and negative impacts of macro environment of business operations..................4
TASK 4............................................................................................................................................6
P5 Conduct SWOT analysis of Mercedes..............................................................................6
P6 Describe how strengths and weaknesses are related with external elements....................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment can be referred to as an amalgamation of various factors residing
in the internal and external environment of an organisation. In this contemporary environment, it
has become extremely organisation to consider external and internal factors so that operation in
the market can be sustained. A business environment focuses on factors such as competition,
governmental policies and legislations, market and technology which carries a greater degree of
influence upon organisation. Mercedes Benz is a German organisation known to deliver higher
performance cars around the globe (Aula, 2010). This assignment focuses on various types of
organisation which rely in the domain of private limited, public and charity institution. The
influence of numerous internal and external factors will be identified along with explaining their
interrelationship. Finally, the strength and weakness of this organisation will be discussed
through external analysis.
TASK 1
P1 & P2 Covered in PPT
TASK 2
P3 Interrelation between functions and manner in which they relate to organisational structure
Numerous elements of environment of organisation that influence the activities and
decision in indirect and direct manner. The components can be micro as well as macro factors in
regard of different environments involving weakness, threats, strengths and opportunities. There
are various divisions or functions can aid company's functions in their best way (Aterido,
Hallward-Driemeier and Pagés, 2011). Here are discussed some organisation activities and this
can assist in objective meeting of organisation. MAIN BODY
The organisation follow proper structure of organisation according which entire activities
is employed in Mercedes Benz. Under the illustration of followed structure is presented:
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Here are mentioned some of the major functions and the ways through which it can help in
meeting their business objectives:
Finance: It is fundamental for company like Mercedes to maintain the financial
operations and activities in order to balance their capital organisation. This is major
organisation's functions of both large and small organisation which help in administrating the
financial operations of maintaining and assigning the financial parts in their several operations.
This consists of main two entities accountants and manager (Borio, Drehmann and Tsatsaronis,
2014). Accountants are responsible for documenting data, recording credited and debited amount
along with underlying expenses of operation etc. Financial manager is accountable for planning,
budgeting and allocating financial activities along with collection of funds and investment which
has been made.
In regard of determined objectives and aims in accomplishing, the division help in one
main part, which help maintaining in the balanced utilise of the funds. Capital of organisation is
can be organised through the assistance of this functions which can assist them in achieving their
business aims and objectives in significant manner.
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Illustration 1: Organisation structure of Mercedes
Source 1: Organisation structure of Mercedes, 2018

Human Resources: Personnel is one of significant division within the company. This aid
in maintaining their executing and operations of plans in order to function through coordinating
and controlling relations of worker of Mercedes in efficient manner. In regard of this, they
conduct policies and guidelines of company, undertake legislation of employment, promotion
and rewarding activities along with managing wages allocation etc. through using collective
bargaining procedure, negotiation etc.
This department is backbone of organisation which can help in creating more friendly,
flexible, effective environment leading to more productive and profitable activities within a
company (Edquist, 2010). Through this, enterprise can stimulate their worker, inspire their
growth and development. Overall, entire practices can direct to achieving business objectives of
Mercedes.
Management: This is associated with the company's clerical enterprise performance
require to document and manage numerous of data and information related with the activities,
sales, worker, operations and manufacture of work etc. As Mercedes is global automate
organisation, this is needed to maintain, admin and secure their data for securing and providing
safety.
This company would assist them in creating proper information protection which can
assist them in maintaining their relation with worker, track entire operations as well as can help
aid in reaching market research which lead to sustainability of market.
Sales and Marketing: Marketing and sale management is major activity which an
organisation aims for meeting their objectives of business. Mercedes assist in achieving business
strategies, services and products that can help in trading, promotion, research of market,
targetting, strategies development, company policy management etc. Through the help of this, a
company can achieve their target and meet their business objectives.
The major aim of Mercedes is to hike the sales number and deploy the business
environment (Grimpe and Kaiser, 2010). By managing sales ad marketing division of enterprise,
company can reach more consumer or buyer number along with attracting potential buyers for
services and products. Hence, more sales will lead to more expansion and business benefits.
CONCLUSION
Hence, by managing their divisions and functions, Mercedes can achieve their vision and
mission of their company with certain period of time. Also, board of directors can meet their
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aims and objectives of business through undertaking their major decision making in significant
manner.
TASK 3
P4 Positive and negative impacts of macro environment of business operations
Macro environment can be defined as the elements that influence the organisation's
surroundings in effective manner. The major uncontrollable factors and external which can
influence the decision making procedure as well as affect the strategies and performance. These
elements involve the factor of economic, political, legal and social situation along with natural
and technological forces. In order to maintain this, this report will undertake the PESTEL
analysis which is discussed as below:
Political/Legal Factor: Various legal claims, proceedings, investigation of government are
pending of Mercedes on a wide topic range such as fuel economy, dealership, emissions, safety
vehicle, suppliers as well as other intellectual property rights, environmental and shareholder
matters, warranties of products etc. Positive Impact: Organisation invested more automobile which has been accountable for
expansing their organisation worldwide. This has made easier for company to expand and
evolve in international environment of working (Hamilton and Webster, 2015). Negative Impact: As company has to deal with various foreign policy, VAT rates etc.
that can be more complex for enterprise. Also due to various cases, company has to deal
with more infringement or various fines.
Economical Factor: Mercedes was charged various fines for overcoming different files and
cases within organisation which is leading company toward major loss. As company has global
presence, such factors doesn't have major influence. Positive Impact: As per the studies, this economy will influence Mercedes as the
economic growth outcome like the consumer income that would increase majorly. Negative Impact: There would be various negative influence of company on their sales
rates along with inflation outcome (Jung, Kim and An, 2011).
Social Factor: Cause of the global warming issue, Mercedes has invented electric small cars and
cars for declined spaces like the smart “fortwo”. The company has also examined the
environmental friendly care which is called BIOME. There are various advantage and
disadvantages which can lead to meet business objectives in more significant manner.
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 Positive Impact: This can help in branding and creating unique recognition through
making better initiative in regard of environment. Negative Impact: Though this has a good invention, this is more expensive and demand
more financial asset to manage research and experiments which can lead organisation
toward loss.
Technological Factor: Technologies has manage in production and promotion which has
made the labour force and reduced their impact. Advanced technologies can help in meeting their
outcomes. Also company has been working over the advanced technologies and activities along
with hydrogen cars which is functioned by technology. Positive Impact: This has enhanced their outcome and productivity of company along
with their product quality and efficiency (Kolios and Read, 2013). Negative Impact: This led to unemployment and more reliability on technologies that can
direct toward mutiny, crisis and other unions activities.
Environmental Factor: This is one of the major factors enlisted as the preferences of
organisation nowadays while developing an organisation. The new products of company like B-
Class, Trimetric Car, B180 etc. are more eco-friendly from which emission of CO2 and fuel
consumption is less which promote the better environment is more fundamental manner. Positive Impact: As people are more environment conscious nowadays in UK, this can
help company in attracting consumer attention along with creating better positioning in
marketplace. Negative Impact: Lack of advancement as well as lead to more investment of financial
part of company. The success of products and service depend on the favourable condition
of consumer (Miller, Yablonovitch and Kurtz, 2012).
Legal Factor: There are various legislations and laws which are newly created in the industry of
automobile. This has become fundamental for company to produce products with the trademark
which can lead to more positive influence in the working environment of organisation. Positive Impact: The company has been providing employment to people of United
Kingdom which has helped in supporting company through subsidies.
 Negative Impact: It can lead to more legislation and restriction for enterprise obstructing
the functioning of business activities.
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TASK 4
P5 Conduct SWOT analysis of Mercedes
Elements and factors of company which immediate operations areas that influence their
decision making procedure along with performance of organisation. A company's internal
environment shapes their judgements and activities in more significant manner leading more
clients, favourable areas, demands of consumer etc. Mercedes business has been affected by
various internal elements that need to be analyse in order to achieve the required outcome.
Business of company is getting continuous growth and dynamic nature (Moutinho, 2011).
However, company is focusing over innovation of technologies aggressively for growth and
popularity. There are various elements such as strengths, threats, opportunities and weakness that
can affect that luxury brand vehicle which is discussed as below:
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Strength Weakness
 Mercedes Benz is a global leader and
has a good brand value in the premium
cars.
 Mercedes invests vast capital amount
on brand building and manufacturing as
it has strong financial organisational
situation.
 Company invest approximate £12
billion assigned for research and
development division.
 Good presence in McLaren Mercedes
under Motor Sport (Siewiorek and et.
al., 2012).
 Assembled and manufactured in more
than 20 nations across the entire world.
 The company is considered as the
marketing, advertising as ell as create
more brand awareness by Print Media,
OOH, TV, online advertisement etc.
 Organisation is a innovation leader as
well as is accountable for the intrinsic
combustion engine bags air etc.
 Intense competition refer to the limited
share of market for growth of
Mercedes.
 Considering the car brand globally,
even minute problems are damaging
proportion that influence the company
brand adversely.
 The company has been venturing into
dissociated businesses which can help
in achieving business objectives.
 The products and services of enterprise
demands high cost of maintenance and
are more expensive model which is not
affordable for common person.
Opportunities Threat
 Mercedes can aim on the improving
hybrid fuel and cars efficient products
or cars for the upcoming time.
Emerging taping markets all across the
global as well as creating a
international brand.
 Intense competition among other global
automobile brand is leading
organisation toward major loss that can
create weakness for enterprise (Borio,
Drehmann and Tsatsaronis, 2014).
 The drastic and constant increasing fuel
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 Fast developing automobile luxury
market along with increased income
can assist the company in evolution and
create business development
opportunities.
 The organisation has strong presence in
market that can be leveraged in order to
acquire more consumer.
prices are one of major threat for
Mercedes company.
 Policies of government in the sector of
automobile across the entire world can
become the cause of losses in business
of Mercedes that need to be recovered
by organisation for proper
development.
Through attempting these activities, organisation can achieve their mission and vision
determined by a company. This is fundamental to undertake internal environment of a company
before developing any strategy or business plan in their best way.
P6 Describe how strengths and weaknesses are related with external elements
A business company consist of two types of environment including micro and macro
environment. This is required for a company to evaluate different working environment of
organisation. These micro and macro environment need to be evaluate within a working
organisation in order to carry out effective strategies and business plan within enterprise. This
not only help in achieving business objectives but also affect the sales and branding of enterprise.
Mercedes is a large organisation that need major attention to these elements before
implementation of any operation, activity or strategy. Here are mentioned how the pestle analysis
elements shapes the strengths and weakness of enterprise in order to explain their interrelation
with the company.
Political Factor: Various laws and indifferent political situation in United Kingdom has
been leading to more weaknesses for enterprise (Aterido, Hallward-Driemeier and Pagés, 2011).
Due to unemployment increment within the country, government has been relying over the large
enterprises which can lead to various subsidies and benefits to organisation. This can be
considered as strength of enterprise.
Social Factor: “BIOME” and Fortwo are the revolutionary models of cars which is one
of the major strength rendering opportunities of development to company. These electrical cars
are according to recent demands of society making the company one of strongest automate firm.
Technological Factor: Electrical and use of advanced technologies are leading the
company at the favourable position among consumer and service user. This has created more
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strong and better position of Mercedes within the organisation. On the other hand, due to more
unemployment, company may have to face negative consequences. Hence, this is one of major
weakness and threats which the company has been facing.
Economical Factor: Though company has strong financial positioning with the
automobile market, major fines and legal cases can lead to more expenses and major loss of
financial asset. Hence, this can lead to major strengths as well as weakness of enterprise leading
to downfall threat to enterprise.
Environmental Factor: Better and advanced technologies of electrical cars makes the
brand more favourable to those individual which has created one of major strengths (Aula,
2010). This can help in achieving business objectives in more significant manner.
Legal Factor: Different laws and legislation can lead to obstruction in the functioning of
business of Mercedes. Hence, the legal consequences of company are creating major weaknesses
of enterprise.
Hence, it can be stated that company need to evaluate major perspective of macro
environment in order to determine the micro elements which influence a business. Mercedes
manage proper management and administration leading to develop in their business activities.
CONCLUSION
This can be summarised from the above report that a business organisation need to
determine their basic purpose, mission, vision and strategies in order to achieve business
objectives in significant manner. There are various types of business environment within the
commercial industry such as private, voluntary and private company etc. which are different
from each other on the grounds of their size, purpose, aims and scope. This is required to
understand the major purpose before analysing and implement a strategy of business within a
company. Organisational structure and their function such as human resource management,
financial, consumer service, sales and marketing affect the business objectives and purposes in
significant manner. Macro environment can be defined as the elements that influence the
organisation's surroundings in effective manner which involve economical, political, legal and
social situation along with natural and technological forces. This is required for a company to
understand and evaluate the major aspects of micro and macro environment for managing growth
and sustaining in competitive industry. This report also claims that micro factors of enterprise are
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interlinked with the external forces of company. In order to manage one aspect of business
surrounding, it is fundamental for company to maintain another as they are interrelated.
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