Mercedes-Benz: Business Environment in a Global Context Report

This report provides a comprehensive analysis of Mercedes-Benz's business environment within a global context. It begins with an introduction to the company, its global presence, and its focus on luxury vehicles, including financial and legal aspects. The main body of the report delves into Daimler AG's basic information, financial performance (EBIT), and legal considerations. It then applies PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors influencing Mercedes-Benz, particularly in the Canadian market. The report also utilizes Porter's Five Forces model to assess competitive rivalry, threats of new entrants, and bargaining power of suppliers, offering insights into the company's strategic positioning and challenges within the automotive industry.

Business organisations and
environments in a global
context

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
3. PESTLE and basic information of business environment..................................................2
3. Porter's five force model.....................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Business environment inculcated all the internal and external factors that affect company
function, employees, product demand, customer and business regulation. Following will be based
on foreign direct investment. It describes about MERCEDES BENZ, which is basically located in
GERMANY. It is a global auto-mobile trade name and a part of the German institution Daimler
AG. The trade name is famed for luxury vehicles, buses, coaches, and truck (Ayios, 2018).
Moreover, focus will be on legal and financial information about organisation. Further, it shows
analysis of the business opportunity under consideration.
MAIN BODY
1. Basic information of business organisation
Focus on some basic information is described about Daimler AG is a German auto-mobile
business enterprise, which is the 13th largest car manufacturing business in the world. It is the big
truck manufacturer as well. Organisation was initiated in 1883. This sanction was first
performed in 1926 under Daimler BENZ. On the other hand, current trade name listing is world’s
number one auto-mobile sector, such as a MERCEDES BENZ. Mercedes outranks all other motor
vehicle brands in footing of user trueness and cerebral government.
They should focus on upper high class customer, with its new model roll-out, Mercedes
has responded to a market that is quickly evolving in favour of green technologies. On the other
hand, organisation financial performance will be dependent on market sector and firm need to
analyse different sectors to improve future execution (Beatty and Abril, 2018). Mercedes prove
itself as a good example of quality and also shows fundamental reasons to be selected in future.
There are two most important factors, which is helps to improve organisation performance in
different market are as follows:
Financial performance: In this context, (EBIT) Computation of earnings before interest and tax
will be help to find out the organisation profit and loss. In addition, operating profit and loss will
depend on customers. t If the financial resource is secure, organisation will think about new
investment in future.
Legal information: Legal information play a most important role in external factor in
organisation. There will be different countries who must focus on different rules and regulation,
and improve market environment. In addition, Legal Regulatory Compliance department has a
responsibility for aligning with the compliance monitoring device which is appointed by the
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CANADA authorities. It should be more focused on legal information about different companies
and improve overall result in market.
Therefore, Financial Services conception of the car manufacturing industry offers their
clients with a full range of automotive fiscal services which include leasing, financing, insuring
and fleet management (Begg and Levy, 2018). All kind of factors play a most important role and
should improve current as well as financial performance . They have focus on corporate social
responsibly and also on cultural changes. In this way, auto-mobile industry sells various kind of
services in all the nation. MERCEDES BENZ Canada is responsible for different kind of services
delivered by them to customers. That particular locating all most 1800 worker are working in 21
different locations across Canada. This is to be represent the best year for the company and
business entity is considered to be as top manufacturing brand.
3. PESTLE and basic information of business environment
Awareness of changing environment is a central importance in implementation and
development of strategies. It also emphasizes on situation scanning in the different type of
strategies in management for improvement in overall development of market sector. There will be
focus on economic condition of Canada. In addition, corporate social responsibility will be play a
most important role, which is help to expand business in different country. MERCEDES
organisation will be focus on more safety to provide new technology and innovation in solving
any problem inside as well as outside market environment (Gunasekaran and et.al, 2018). They
face different kinds of challenges related on production strategies. Therefore, business strategies
will be focus on how a business can capture the market. It also focuses on the ways which can be
used by company for satisfyingneed of consumers. Further, it describes different kind of factors
which play most important role such as :
Political factor: Political factor play a most important role in taxation system and will affect
imported car industry. In addition, import duty for car will be charged from 300 to 140 %, which
is based on capacity of engine and tax will be calculated as per the insurance policies, car cost etc.
This is the biggest loss of imported car industry; price of the imported car is more expensive as
compare to other cars.
Government policies plays a most important part. Rules and regulation are set up and
protect car form different emerging market place. Different kind of plants must be established
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different new markets. In the present computerized world, numerous associations lead their
business exercises through the web.
Economic sector: Here,each and every activity of business will be entered into economic
condition. In this context, exchange rate impact at the time of importing cars. This is a major
drawback of auto-mobile industry and reduce the level of car sales. There will be some changes in
the price of car as well as different market of countries (Kopnina, and Blewitt, 2018). This will
have direct impact on marketing strategies and operations management of leading auto-mobile
industry around the world. So, the patterns have grown up fats in most recent two decades with
exceptional exercises in monetary and keeping money division. In the mixed economy, the
legislature relies upon the enormous money related foundations like this association to raise
reserves. This organization has developed as muddled for serves to the extensive and little
association by giving advances, credits and a few buyer's exchange.
Social factor: Social and culture practices play a most important part for any organisation, who
have expanded business in new countries like Canada. Research work will be play most important
role to find new facts about local market and taste and preference of customer. Business entity can
focus on different class of group like upper class, higher upper class etc. So, it will be easy to
understand new market situations.. To be focus on need and wants of customer in market place,
which will be play a most important role for increase the growth rate of auto-mobile sector. There
are customer who focuses to buy a safety care,after comparing cost with others (Luthans, and
Doh, 2018). On the other hand, economic conditions will be change for due to decrease the level
growth rate. Moreover, company will be focus on demand of particular car as well as high
income group people in Canada. There are numerous adjustments in social patterns and clients
influence to the business by changing their inclinations. Development and advance technologies
of this firm affects numerous people and social explanations expands popularity, salary
wellspring of open, purchasing conduct of customers and some more.
Technological factor: Technology will be based on current environment of market network and
influence overall development of market share. Concentrating on development of new technology
will impact on market share as compared to other development countries. Nowadays, Canada is
rich and beautiful country full of new technology, which helps to improve current environment of
organisational changes. This will manage to attract the number of customer in market. It will
help to increase internal as well as external environment of business. In this organisation, a huge
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piece of people go through online gateway. This firm utilizes more finished web to give better
results to its customers. Thus, there are numerous issues which can be sought from utilization of
web. The bank has spent large amount to support in maintaining their status and framing new
innovations.
Legal factor: There are different kinds of law and government regulation will be play a most
important role for manufacturing sector. Moreover, customer life is depended on car quality
which should be standardized. . There are specific standards which is required by government
department for managing manufacturing services. It will completely depend on internal
environment of institution and has to improve their quality in providing goods and services in
market. (Molnar, 2018). It has quantities of staff individuals and representatives and hence it
must effect by various work laws and acts. The legitimate dangers are viewed as tremendous in
light of the fact that standard and supervision are high in this part or industry. There are numerous
shopper demonstrate likewise impacts on the business exercises of the auto-mobile sector in
Canada. Social obligations and customer concerns have additionally made by the legislative laws
and guidelines. The organization ought to imply these guidelines keeping in mind to achieve
goal in order to accomplish hierarchical benefits.
Environmental factor: Some environmental factors are focused in industry for improvement
in market share. In addition to this, it should consider population and should not damage
environmental factors in manufacturing auto-mobile industry. Focus on consumer discovery and
in environmental factor help to protect number of environmental conditions. In such factor, the
earth kindness has turned out to be basic for the auto-mobile sector of Canada. Ecological
concerns in administration are tended to this auto-mobile all around. Additionally it to corporate
social duties towards accomplishment in the business objectives and destinations.
3. Porter's five force model
Factors which play a most important role to to improve current as well as future
conditions in organisation. It is based on different factors related to competitor of auto-mobile
sector in Canada. Organization focuses on only those factor, which affects the overall market
share as well as profit. . Profit and productivity will depend on analysing competitors in market..
Concentration on many factors, start form new entry into market and end with competitor
strategies (Namvar, and et.al, 2018). All the factor is based on competitors conditions in market
share. Auto-mobile sector in Canada also emphasizes on new technology which will be used
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for it, anyone can enter into market to improve different level of conditions. Sometimes, changing
one brand to other with help of technology improves such kind of factors.
Porter's five forces has been discussed to analyze business strategy and it is a structure
which helps in creating competitive advantage. This model is used to examine industry's
effectiveness. Mercedes manufacturer is globally known for manufacturing luxury vehicles. It
strategies by Porter's model:
 Competitive Rivalry: Company manufacturing luxury items is very competitive in
market. Its competitor involves BMW, Audi and many more. But vehicles which are
manufactured by Mercedes Benz are always different from other brands. They differ in
their pattern, functions and is technically different. Enterprise of this brand always provide
premium quality products to buyers. This makes marketing more effective and
communicating to customers is also a basic part which is important for industry in order to
create clear standard and success of company. The obstacle are very large because of high
investments which are executed in it. Hence, competitive rivalry is very high for this
enterprise.
 Threats of New Entrants: An individual who is a new entrant in this firm are very high.
First comes equity of company which has created by existing brands by the time.
Comparatively, firms of Asian have tried to compete with existing workers but
unfortunately they failed to achievesignificant share in market (Ramadan, and Ahmad,
2018). Current brands which are working has been developed widely and became reputed
as a symbol of significance. Customers are initially engaged in this brand and do not
prefer to purchase other brands. Issues of new entrant involves investment, huge
marketing, cost of advertisement and rules of government. Including al these factors makes
threat of entrant very low for Mercedes Benz.
 Bargaining Power OF Suppliers: Number of suppliers in industry are related to small
size firm and at the same time manufacturers are of large size. Suppliers are not in a
position to reduce prices or can't even influence themselves by prices in market
(Solodilova, and Grishin, 2018). Manufacturers of this brand has set high quality in
products and raw materials. Selection of suppliers must be done in respect to this qualified
and original products. . Changeing cost for these manufacturers is not high. They set
quality of material very high and intense. So, bargaining power of suppliers is low.
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 Bargaining Power of Buyers: Manufacturers in this industry are in large number and
hence customers get different choices to buy luxury vehicle. Brands differentiate in respect
to price, pattern, quality, techniques and in look. Before making purchase customers verify
products with other brands in order to customers satisfaction. Some of brand also allows
customer to make choice in customizing vehicle. quality of products encourages
customers to purchase commodity and even they pay more than the actual price.
Bargaining power of buyers is high in context Mercedes Benz.
 Threat of Substitutes: Substitutes are indicators of their own behaviour towards success
and achievements. Luxury vehicles are provided to customers along with premium on
which does not involve transportation purpose. Substitutes for this are of low budgets
vehicle. Moreover, focusing on Mercedes Benz vehicles with premium threat of substitute
is not significant (Turban, and et.al, 2018). They are more focused on income which
becomes positive indicator to achieve higher status. Lastly, threat of substitute for
Mercedes Benz is average and on medium level.
CONCLUSION
In conclusion to this, brand portfolio is world’s number one auto-mobile sector, such as a
MERCEDES BENZ. Mercedes stands first in comparison to all other automotive vehicle brands
in terms of customers loyalty and emotional state. In addition to this, internal and external
factors of environmental factors play a most important role Many factors helps in expansion of
market for new graphical location. Moreover, auto-mobile industry improves cultural issues
and diversity of market. Porter's five forces is analysed to perform different strategies. Lastly,
focus on increasing staff individuals and representatives is made and hence it is affected by
various work through laws and acts. Overall, supervision power is high in this industry.
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REFERENCES
Books and journals
Ayios, A., 2018. Trust and Western-Russian business relationships. Routledge.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Begg, K., van der Woerd, F. and Levy, D. eds., 2018. The business of climate change: Corporate
responses to Kyoto. Routledge.
Gunasekaran, A. and et.al, 2018. Agile manufacturing practices: the role of big data and business
analytics with multiple case studies. International Journal of Production Research. 56(1-2).
pp.385-397.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill.
Molnar, A., 2018. Giving kids the business: The commercialization of America's schools.
Routledge.
Namvar, M. and et.al, 2018. Simplifying sensemaking: concept, process, strengths, shortcomings,
and ways forward for information systems in contemporary business environments.
Australasian journal of information systems. 22.
Ramadan, H.I.M. and Ahmad, S.B., 2018. The impact of business environment on performance of
manufacturing SMEs in Palestine: The empirical evidence. Asian Journal of
Multidisciplinary Studies. 6(2).
Solodilova, N.Z., Malikov, R.I. and Grishin, K.Y., 2018. Potential for development and limitations
of regional business environment. R-Economy. 1(2).
Turban, E. and et.al, 2018. Business-to-Business E-Commerce. In Electronic Commerce 2018 (pp.
123-166). Springer, Cham.
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