Comparative Analysis: Mercedes and Gymshark Business Success Factors

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FEATURES CONTRIBUTING
TO THE SUCCESS OF
CONTRASTING BUSINESS
ORGANIZATIONS
BTEC business unit 1
Introduction:
SEPTEMBER 28, 2021
ASSIGNMENT 1
Omer Rawashdeh
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The assignment has been studied for both private limited companies Mercedes
and Gymshark. The report will explain the qualities of these two successful
businesses .
Explain the features of the business:
INTRODUCTION:
Mercedes is one of most popular luxury companies in the world. The company
focuses on providing customers with good service and create the best quality cars
ever. is an international division of the German manufacturerDaimler AG is german
and he is the founder of Mercedes Benz. its mainly located in Stuttgart, Baden-
Württemberg, Germany.
Gymshark is a well-known workout clothing business that sells its products online.
Gymshark is known as the fastest growing company in the united kingdom. They
have had tremendous growth and an ever-expanding quality consumer base since
the outset.
OWNERSHIP:
Enterprises are no longer the best not only in terms of size and industry, but also in
terms of ownership structure. Some simply belong to men or women or a small
number of people, some are owned with the help of many shareholders, some are
owned by a charity or trust, and some are owned by the state. Different ownership
systems overlap with certain legal forms that companies can adopt. The legal and
ownership structure of a company determines much of its legal liability, including
the owner's private liability in the event that the company suffers a loss or goes
bankrupt.1
Mercedes Is a limited liability company with equity capital. Over 1 billion Daimler
outstanding shares are held worldwide. li shufu and the kuwaits sovereign are the
biggest partners in Mercedes.2
Daimler was the main owner of Mercedes. Daimler AG, headquartered in Stuttgart,
Baden-Württemberg, Germany, is a multinational automotive manufacturer. It is
one of the most well-known automobile and truck manufacturers in the world. In
1926, Daimler merged to establish Daimler-Benz.3
1
2 Gymshark. About us
3 Daimler. Overview of Damiler Shareholders
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Gymshark: Gymshark is on the top of the table in the UK fitness. It was founded by
Ben Francis. 4While still a student at Aston University, Ben founded Gymshark at the
age of 19. Gymshark is a private limited company. The business has limited liability.
Limited liability means if any debt occurs in the business, shareholders are have
control of it. This indicates that if corporate debts are not a big problem for
shareholders, they will simply lose their investment in the stock.5
6
SIZE:
Micro business up to 9 staff
Small business is 10-49 staff
Medium is up to 50-249 staff
Large is 250 staff and above
Mercedes: Mercedes-Benz AG is responsible for the global business of Mercedes-
Benz Cars and Mercedes-Benz Vans with over 173,000 employees worldwide which
makes it a large business. Mercedes is one of the biggest companies in the world and
is a multinational company. As it says in Satisa.com, “the number of employees
increased massively since 2013 and it was 96.8 thousand employees to 173 thousand
employees in 2021. The production of Mercedes-Benz vehicles is spread across a
variety of places.”7
Gymshark: Micro, Small, Medium, and Large are the four sizes of businesses. Micro
businesses are those with less than 10 employees and annual revenue of less than
£2 million.8 Gymshark is responsible for 850 employees that work in the company
4 Satista. Number of Daimler AG employees from 2012 to 2019, by division
5 Glassdoor. Gymshark overview
6 Bill, branding for results. Three Things Your Brand Can Learn From Mercedes-Benz
7 Mercedez-benz. The Purpose of Mercedes-Benz Cars.
8 Gymshark. About Us
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which makes the company a large business because it contains more than 250 staff
members9
REASONS FOR SUCCESS:
Mercedes: There are several reasons why Mercedes is very successful and one of
the most wanted cars in the world. Innovation is the main reason why Mercedes is
successful. Innovation is a concept that has been converted into realistic reality. For
a business, that is a product, process, or business concept, or combinations which
have been activated withinside the market and convey new earnings and increase
for the organization.10 Mercedez is one of the most advanced, luxirious companies
ever. Induction is a big part of Mercedez. Mercedes releases new cars with new
features and sizes every 5-10 years to keep the customers thinking.11
For example, they are releasing a new electric car in 2022. Mercedes-EQ announces
the all-electric 2022 EQS Sedan, which redefines the vehicle once more. The
completely new EQS from Mercedes-EQ is the first-of-its-kind fully electric luxury
vehicle, designed to exceed all expectations. While the EQS and the new S-Class are
very similar.
12One of the reasons Mercedes is successful is because of its attractive cars. Their
interior packaging is shoddy, and the ride quality is generally stiff across the board,
but there's no disputing that they look excellent and have a lot of showroom
appeal. Mercedes always prepares for the future. They always have a new feature,
new luxury cars that every customer would love to buy. 13Mercedes is one of the
only businesses that value its reputation so much. 14While manufacturing a superior
automobile is the first step in protecting the bran, the clients are most influenced by
the dealer experience. With this In mind, you'll discover that every Mercedes – Benz
dealership employees friendly, talented employees, including factory certified
service technicians. Every attempt is made to go above and beyond the customer’s
beyond the customer’s expectations. From the showroom to leasing to finance to
service and repairs, the watchwords of a mercedes-benz dealer are convenience and
great performance.15
Gymshark: gymshark is one of the first businesses that started working with
Instagram to post their clothing products and have a choice of communication with
their customers. Back when they only sold a few items online, the firm began
distributing free sportswear to fitness influencers in the hopes that they would fall
9 Mercedesbenzofcharleston. Our mission and vission
10 Gymshark. About us
11 Daimler. Locations overview
12 Autosofdallas. Mercedes-Benz Plans for Electric and Autonomous Vehicles by 2022
13 Mercedes-benz. Who owns Mercedes-benz corporation
14 meriem. ownership
15 row.gymshark. about us
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in love with the brand and begin wearing and promoting it to their enormous
following. 16Gymsharks focus is to please the customers, they focus so much on
innovation. 17New products get released that persuade and attract customers
because of the high quality material and the perfect prices. 18
Gymshark is passionate about more than just their online presence; over the years,
the company has created a friendly vibe for the fans by creating meetups where fans
can come and have a great time and meet the influencers that work for gymshark. 19
PURPOSE:
Mercedes: Your business purpose is the reason you have formed your company. As
it says in Mercedes's website “First move the world” this is the Purpose of Mercedes-
Benz Cars. 20It is the deeper which means at the back of Mercedes's work, it's far
what drives Mercedes, our “cause why”. “First Move the World” method pursuing
extra than what's straight away achievable.21
Gymshark: As it says in the gymshark website:
“We exist to create the tools that help people unlock their full, incredible potential and
put their ideas into action.”22
Be all that you imagined you could be. Be a visionary”.23
“We exist to unite the conditioning community”. 24
Gymshark focuses mainly on young adults from the age 15-25 because they would have
an interest in the business the most.
MISSION:
Mercedes: Mercedes’s mission is to inspire and create an exceptional workplace.
One employee, one customer, As Daimler says, “we create the luxurious shopping
16 satista.Total number of staff members employed by Gymshark LTD from the financial year of 2017 to
2020, by type
17 brandingforresults.Three Things Your Brand Can Learn From Mercedes-Benz
18 caranddriver.2022 Mercedes car EQS
19 Bill, branding for results. Three Things Your Brand Can Learn From Mercedes-Benz
20 carlist. Five Reasons Why Mercedes-Benz Is Number One
21 carlist. Five Reasons Why Mercedes-Benz Is Number One
22 entrepreneurshandbook. 5 Business Lessons From The Success Of Gymshark
23 entrepreneurshandbook. 5 Business Lessons From The Success Of Gymshark
24 ceotodaymagazine. how gymshark disrupted the fitness industry
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experience that our customers really deserve”.25 Mercedes’s mission is to become the
world's most recognized customer service center in the car industry. 26
Gymshark: “Before there is an action, there is an idea.”
Gymshark exists to build tools that enable people to realize their full potential and
put their ideas into action. 27Gymshark tries its best to attract and serve customers
wants and needs and they are doing that perfectly especially because of the
competition they have against other competitors like Nike and adidas. Millions of
people would choose Gymshark over other clothing companies because of the fast
delivery, good quality and price they have.28
VISION:
Mercedes: Mercedes will continually strive to increase customer’s trust by carefully
creating a premium automotive product29. Mercedes is aimed at the higher class
since they would have the chance to buy Mercedes financially.30
Gymshark: “Before there is an action, there is an idea.”31
Gymshark exists to build tools that enable people to realize their full potential and
put their ideas into action. Gymshark tries its best to attract and serve customers
wants and needs and they are doing that perfectly especially because of the
competition they have against other competitors like Nike and adidas. Millions of
people would choose Gymshark over other clothing companies because of the fast
delivery, good quality and price they have.
SCOPE: The business scope includes three types that are local, national, and
international.
Local Businesses: Local businesses trade their products to customers in the same
city, or geographic area.32
National business: A National business is located around one country33.
International scope business- a business that's located in different countries.
25 ceotodaymagazine. how gymshark disrupted the fitness industry
26 Mercedes-benz. about us
27 gymshark.about us
28 gymshark.about us
29 mercedesbenzofcharleston. our mission and vision
30 gymshark. about us
31 comparably.Mercedes-Benz USA Mission, Vision & Values
32 mercedesbenzofcharleston. our mission and vision
33 Gymshark. About us
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Mercedes: Mercedez is an international business, which means that it's located all
around the world34. Mercedes-headquartered Benz's are still in Stuttgart, Germany,
where the company's principal manufacturing facilities are located. However,
facilities are located in around 22 countries, including the United States, Austria,
Canada, Brazil, and Mexico.35
Gymshark: Gymshark is an English business based in the united kingdom 36 There
are no physical stores for gymshark but there is an online store that anyone can
access in any part of the world.
AIMS AND OBJECTIVES:
OBJECTIVE:
Mercedes: As Daimler says ‘The focus of all of these activities is on improving our
financial strength. Because that is the foundation of our sustainable business
strategy37
The main goal is to increase profit and be on the top of the league table above all the
competitors.38
Gymshark: This business's goals could include increasing sales or raising brand
awareness. Gymshark is planning to open its first physical store in London next year
which will attract more people to shop physically instead of ordering online.39
THE ORGANISATIONAL STRUCTURE OF THE BUSINESS
A flat organizational structure: suggests that there are several tiers of management
between the employees and the highest-level managers. 40Due to the lack of
secondary management, workers are given extra authority, such as choice
responsibilities.41
34 yourbussinessroom. scope
35 yourbusinessroom. scope
36 daimler.mercedes-benz US international
37 gymshark. where is gymshark located?
38 daimler. our strategy
39retailgazette. Gymshark confirms opening date of first high street store in London
40 yourbusinessroom. organisational structure
41 yourbusinessroom. organisational structure
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A hierarchical structure is common in larger corporations and organizations.42 It is
built on many levels of power inside the company, with a chain of command linking
various management levels. The amount of managers at each level might cause the
organization to take on a pyramid structure.43
A matrix organizational structure is a sort of workplace structure in which
employees experience to two or more supervisors rather than one manager who
controls all parts of a project.44
A holacratic framework is utilized in firms that have circle groupings of employees
who all have the same level of authority.45 This system does not require a
management function because each circle manages and manages itself. Even having
the CEO at the helm, all employees in this structure have equal decision-making and
control. They employ circles to illustrate that firm authority is equal rather than
pyramids and hierarchies to disperse staff.46
Functional system: refers to an organizational structure that is used to organize
personnel. 47They are divided into groups according to their individual abilities and
expertise. Each sector is organized vertically, with positions ranging from president
through finance and sales divisions, customer support, and personnel devoted to a
specific product or service.48
Mercedes: Mercedes' organizational structure is a "functional structure" and
“hierarchical”. 49Employees are distributed across the structure according to their
departmental functions, and they perform the tasks. Employees work in groups in
the same field and in the same location, collaborating and supporting one another.
The majority of decisions are made by the most experienced workers at the top of
the hierarchy, therefore decision making is quick. In a hierarchical structure,
instructions are often transmitted down from one person to the next until they
reach the top. If a problem arises in a hierarchical structure, it will be passed up the
chain of command from one person to the next until it reaches the point where it is
supported. Workers are tightly controlled in a hierarchical structure. Mercedes
employees will know exactly what they need to do and will not wait to be informed.
42 yourbusinessroom. organisational structure
43 yourbusinessroom. organisational structure
44 yourbusinessroom. organisational structure
45 yourbusinessroom. organisational structure
46 yourbusinessroom. organisational structure
47 yourbusinessroom. organisational structure
48 yourbusinessroom. organisational structure
49 homework-lab. Mercedes-benz structure example
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Gymshark: Gymshark’s organizational structure is “hierarchical” therefore
Benfracis would be on the top of the business because he is the founder. This is
shown from the diagram used below. 50 He has the power to organize and send work
for people below his hierarchy. The positivity of this type of Organizational
Structure of Hierarchy is that it is extremely simple and transparent to see the
different lines of authority. So you can see who is in charge of each team and to
whom you must report.51
52
P2: STAKEHOLDERS
50 theorg. org chart
51 theorg. org chart
52 smallbusiness. What Are the Advantages & Disadvantages of Hierarchical Structure?
Steve Hewitt
Executive Chairman
Henry Spear
President, North America
John Douglas
Chief Technology Officer
Elizabeth
Thompson
SVP, General Counsel
Danielle
Petesic
Chief Product Officer
Noel Mack
Chief Brand Officer
Philip Daw
Chief Financial Officer
Gemma
Hulbert
Chief Data Officer
Niran Chana
Chief Commercial Officer
Dave Parry
Chief People Officer
Ben Francis
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A stakeholder is a person that has an interest in a business. they can be external or
internal.
THERE ARE TWO TYPES OF STAKEHOLDERS WITH INCLUDE EXTERNAL AND
INTERNAL.
INTERNAL STAKEHOLDERS: Internal stakeholders can be employees in the
business. Internal stakeholders have the ability to have control in a business.
Internal stakeholders all can affect the business and their actions might have a good
or bad impact.
EXTERNAL STAKEHOLDERS: are those who don't work for the business, however
they can have an interest towards that business.
Customers= customers would prefer high quality products and fair prices and they
have the choice to change their business impression therefore the business needs to
meet the customers wants and needs.
Suppliers= they provide the business with products and they would want to get
paid a fair price to continue the relationship between the business and the supplier.
Lenders= External stakeholders who lend money or provide services to a business.
This type of thing could be included in a start-up business loan.
Creditors= Creditors are those who owe money and can thus be an organization or
an individual.
MERCEDES:
INTERNAL STAKEHOLDERS:
EMPLOYEES: Employee’s desire competitive salary, job happiness, and job security,
and improving their future and fortunately Mercedes serves the employees there
needs. Employees play an important part in Mercedes, they have large financial and
time investments in the company. Mercedes creates many benefits for their
employees to keep them motivated for example:
Medical Insurance Plans (2 plan options)53
53 corp.mbfs. working at Mercedez-benz financial services
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Short-Term and Long-Term Disability.54
Flexible Spending Accounts and Health Spending Account (HSA)55
MetLife Pet Insurance56
OWNER: Daimler is the owner of Mercedes, owners are the most significant
stakeholders. Daumler has the control over everything, he can fire anyone if he feels
unsatisfied about his work, or even sell the company to someone else. There are
several responsibilities for Daimler for example:
Good customer service. Customers would want good customer service. Without
good customer service, Mercedes would lose customers and profit. This will lead to
a huge loss in the business. Daimler’s responsibility is to make sure that the
customer service is very high so the business can achieve its goals.
MANAGER: Managers would want a good and a fair salary in order to be motivated.
The manager needs to make sure the employees are on the right path and manage
them very well. The manager Focuses on hiring, selects, organizes, and trains
employees to keep them on the job.
EXTERNAL STAKEHOLDERS:
CUSTOMERS: Customers seek high-quality products at a wide variety of costs.
Suppliers expect on-time payments and consistent orders. There are four main
customer needs that Mercedes consider. These are price, quality, choice, and
convenience. Mercedes-Benz has made a concerted effort in recent years to appeal
to what would be considered the middle-class customer. This is a significant shift in
their sales strategy. Mercedes is a luxurious company with different cars that attract
customers because of how they look, their strength and many different features.57
SHAREHOLDERS: Shareholders are interested in how much profit the company can
make and want to make sure it succeeds. Shareholders want the best for themselves
54 corp.mbfs. working at Mercedez-benz financial services
55 corp.mbfs. working at Mercedez-benz financial services
56 corp.mbfs. working at Mercedez-benz financial services
57 Daimler. overview of Daimler’s shareholders
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therefore they make sure Mercedes is in the right path to get a high amount of
profit. One of the shareholders is li shufu. Li Shufu is the biggest shareholder in
Mercedes.58
MEDIA: the media can be a big part of advertising for Mercedes. People would take
a picture of a new model from Mercedes and post it. This increases the customers by
seeing a luxury beautiful car in the media.
GYMSHARK:
OWNER: Gymshark's owners have a large influence on the business. The
stakeholders within the organization. These are the people who buy shares by
putting money into them. This enables gymshark to achieve their objectives.
Benfrancis' main goal is to invest and gain as much money as possible. Benfrancis
attends annual meetings once or twice a year and is always active in the media.
Francis’s main goal is to increase the possibility of gymshark's profit.
CHIEFS: A Chief of Staff typically works directly with the CEO or Founder to develop
strong relationships both inside and outside of the organization in order to carry out
the leader's vision, influence outcomes, and keep projects on track. A small
business's leadership team typically wears many hats.
EMPLOYEES: Workers at Gymsharks are well respected at the company, they share
a very friendly relationship with each other. The employees can give the customers
an impression whether Gymshark is a good company. The actions of gymshark
employees may have an impact on consumer confidence in the supermarket chain. It
is the employee's responsibility to persuade the customer that the employee can
provide catering in the most beneficial way possible. And, If Gymshark employees
are unsatisfied with how management and working conditions treat them, they may
fall short of the standards expected of them. This has a huge impact on Gymshark as
a company and its profits, and it's also a great example of how much influence
workers have on Gymshark.59
EXTERNAL STAKEHOLDERS:
CUSTOMERS: Consumers are most likely the most important external stakeholder.
It is the most important of these clients. Influence on the organization's success and
failure. Gymshark generates most of its revenue through these sales. As a
partnership, Gymshark strives to keep its customers as happy and secure as
possible. They frequently communicate with them on a regular basis. They can
maintain a strong connection between the organization and them by using social
media. We also do email marketing, in which the email subscriber receives some of
58 stephenzoeller. market segmentation
59 glassdoor. is gymshark a good company to work in
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Gymshark's most recent product offers. They are assisting their customers. We offer
specialized online services such as home delivery.
LENDERS: Lenders are people who help the business with cash and provide them
with services. For example, they can help when starting up a business and taking a
loan from them. A property mortgage or a car financing contract are two examples
of loans that a borrower may require. Gymshark's lenders have a large influence on
the organization because Gymshark as an organization would not function as
efficiently as it does now if these lenders did not exist.
CREDITORS: They finance the business by making loans and purchasing corporate
bonds. Their goals include obtaining payback for loan amounts as well as interest
generated. The company's credit rating is also a top priority for them, since they
require assurance that their money is safe.
CONCLUSION: In conclusion, both Mercedes and Gymsharkare very successful,
working with a strong vision and mission and trying their best to reach their
objectives.As well as making employees feel comfortable in their workforce by
providing the goods and needs for them. Every company communicates with and
builds relationships with its shareholders. They try their best to have a connection
with their customers by communicating with them and providing them good
services. As a result, they are getting closer to achieving their objectives. Because of
the organizations' existence and purposes, each had its own set of goals and
objectives. Gymshark is a company that makes money by selling high-quality
clothing, whereas Mercedes' primary goal is to win the league.
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https://www.daimler.com/company/strategy/
retailgazette. Gymshark confirms opening date of first high street store in London
https://www.retailgazette.co.uk/blog/2020/02/gymshark-london-first-high-street-retail-store-covent-
garden-long-acre-opening-date/gymshark2/
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
yourbusinessroom. organisational structure
https://www.yourbusinessroom.com/unit-1-exploring-business-international
theorg. orgchart
https://theorg.com/org/gymshark/org-chart
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theorg. orgchart
https://theorg.com/org/gymshark/org-chart
smallbusiness. What Are the Advantages & Disadvantages of Hierarchical Structure?
https://smallbusiness.chron.com/advantages-disadvantages-hierarchical-structure-66002.html
corp.mbfs. working at Mercedes-benz financial services
https://corp.mbfs.com/culture-benefits-diversity-and-inclusion/
corp.mbfs. working at Mercedes-benz financial services
https://corp.mbfs.com/culture-benefits-diversity-and-inclusion/
corp.mbfs. working at Mercedes-benz financial services
https://corp.mbfs.com/culture-benefits-diversity-and-inclusion/
corp.mbfs. working at Mercedes-benz financial services
https://corp.mbfs.com/culture-benefits-diversity-and-inclusion/
Daimler. overview of Daimler’s shareholders
https://www.daimler.com/investors/share/shareholder-structure/
stephenzoeller. market segmentation
https://www.stephenzoeller.com/mb-marketing-segmentation/
glassdoor. is gymshark a good company to work in
https://www.glassdoor.com/Reviews/Gymshark-Reviews-E1657113.htm
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