Detailed Analysis of Mercedes-Benz's Business Environment: A Report

This report provides a comprehensive analysis of the business environment surrounding Mercedes-Benz, a leading German luxury automobile manufacturer. It begins with an introduction to the business environment and then delves into a detailed PESTEL analysis, examining the political, economic, social, technological, legal, and environmental factors impacting the company, particularly within the UK market. The report then presents a SWOT analysis, identifying Mercedes-Benz's strengths, weaknesses, opportunities, and threats. Following this, SMART objectives are established to guide the company's strategic direction. Based on the analyses, the report offers recommendations for Mercedes-Benz to enhance its competitive advantage and capitalize on market opportunities, including expansion into new markets. The report concludes by summarizing the key insights and emphasizing the importance of continuous environmental evaluation for business success. The report includes references to relevant sources.

Business and the
Business
Environtment

Table of contents
• Introduction
• PESTEL analysis
• SWOT analysis
• SMART objectives
• Recommendation
• Conclusion
• References

Introduction
Business environment is the sum or collection of all internal and
external factors such as employees, customer needs and wants,
supply and demand, economic changes and other aspects too that
directly affects the business activities. Respective report is based on
Mercedes Benz which is a German global auto mobile manufacturer
and seller that majorly known for their luxury vehicles, buses and
many more.

PESTEL analysis with their positive and
negative aspects
Political factors:
In context of Mercedes Benz that operates in various nations on which
various government agencies affect that increases both the time and
cost of doing business and getting certification and clearances.
In context of UK marketplace the auto mobile industry have to
governing the production of cars such as fuel efficiency that are
highly emphasized, emissions of vehicles and safety standards issues
should be give priority.

Cont...
Economic factors:
Price fluctuations affect the market of Mercedes Benz in both context
of local and international by comparing level of easing in last
decade. The demand of luxury or high priced vehicles directly
affected by the during the poor economic conditions, while Brexit
occurs in UK economy it bring inflation that decreases the
capabilities of purchasing of consumers which affect the
profitability of Mercedes-Benz.

Social factors
In today's competitive world consumers possess higher level of
social concerns in society which resulted higher level of consumer
activism and put pressure on non governmental organisations. Due to
changing needs every year new models released in market and specific
styles preferred in certain culture that affect the market share of
Mercedes-Benz in the UK marketplace.

Technological factors
In the advent of advance tools and techniques that is E commerce
which is a critical for Mercedes Benz business model, by evaluating
the e commerce infrastructure, technology infrastructure in order to
entering into a new market. As per fact all major players in UK
market majorly pay attention on R&D such as Toyota, Hyundai and
Ford investing in low emission and environment friendly vehicles
that enhance pressure on respective organisation to put more efforts
towards enhancing their image.

Legal factors
In context of Mercedes Benz they adopt health and safety laws in their
country but they needed to comply with them as different nations
have differ kinds of attitude towards health and safety measures so
they have to conduct through research and development in order to
gain potential outcomes. In context of UK marketplace the pollution
laws have grown very stricter as vehicles exported overseas pass
emission controls that affect on their market to apply in
organisation.

Environmental factors
In today's competitive world consumers become more demanding they
have to spend more budget on renewable energy sources as part of
their competitive strategy. The major factor in adaptation of low on
emission and fuel consumption in UK marketplace able to gain tax
subsidies and favoured government and law that proved beneficial
for them to remain competitive in market.

SWOT analysis
Strength:
High brand value: Mercedes-Benz is one of well established brand
and part of “German Big 3” luxury auto makers along with Audi and
BMW which are best selling luxury auto makers in market. They by
focusing on sponsorship by spending relying on events which attracts
the crowd.

Weaknesses
Expensive after sales services and maintenance: Servicing cost is
one of major factor which affect directly on decision of buying. In
context of respective organisation their servicing cost is high in
comparison to other giants.
Distribution is stunted: Mercedes-Benz expanded very strongly but
founded that its distribution on vehicles is very much exclusive that
affects on their supply in UK marketplace and on their brand equity.

Opportunities
Growth shifting to Asian markets: In context of Mercedes-Benz they
operate in the American and European market that are the pulse of
respective industry but they by focusing on shifting by delivering
their auto mobile in developing markets such as china, India and
other Asian nations and also in UK.
Enhancement of demand of premium vehicles: Organisations such
as Volvo, Audi and BMW are gaining higher market share by
targeting developing nations as increase in demand of Luxury public
transportation system.

Threats
Intense competition From other players: there are large no. of
player such as Audi, BMW and Volvo etc. respective organisation
are not leaving any stone unturned to remain competitive in market.
Volatility in prices of goods: The economy of economy is very much
fluctuating and due to lack of promotional events in the UK
marketplace hinders to reach at large no. of consumer base. So it is
very much essential for them to focus on their promotional events
to enlarge business opportunities.

SMART objectives
After analysing the effects of internal and external factors on business,
determined that organisation have to continuously enlarge business
opportunities by conducting research and development on regular time
interval.
To enlarge business opportunities in UK marketplace by using
promotional events innovatively in a year.

RECOMMENDATION
From the above analysis it has been recommended that for an
organisation it is very much crucial to find out opportunities on regular
basis in order to gain competitive advantages in positive manner. In
context of Mercedes-Benz they are operating in approximately in all
over the world but they for gaining positive outcomes by expanding in
market of Morocco as it is very much well prosperous place to enlarge
business opportunities.

CONCLUSION
From the above PPT it has been summarised that for an organisation it
is very much essential to examine or evaluate their surroundings that
directly affect on their business activities. By using the micro and
macro factor analysis organisation can be able to gain important kind of
insights and outcomes in order to take appropriate kind of actions. For
taking actions it is very crucial to frame smart objectives to reach at
desirable outcomes.

References
• What is PESTEL / PEST / STEP Analysis? How you can use
PESTEL Analysis for Mercedes-Benz, 2019. [Online].
Available through.
<https://embapro.com/frontpage/pestelcase/3632-mercedes-
benz>.
• SWOT analysis of Mercedes, 2019. [Online]. Available
through. <
https://www.marketing91.com/swot-analysis-of-mercedes/>.
• Quinlan and et.al ., 2019. Business research methods. South
Western Cengage.

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