Mercedes-Benz: Management Strategy and Organizational Change Analysis

This report provides a comprehensive analysis of Mercedes-Benz's strategic plan and organizational change initiatives. It begins with an introduction to organizational change and management strategy, setting the context for the study. The main body delves into Mercedes-Benz's strategic plan, including its vision, mission, and objectives, focusing on the company's response to market trends and the adoption of digitalization. The report examines the strategic objectives, aims, and the application of strategic analysis and reporting tools, such as SWOT analysis, to assess the company's strengths, weaknesses, opportunities, and threats. Furthermore, it outlines the overall tactics employed by Mercedes-Benz considering its current market position and available options for implementing change, emphasizing the importance of effective plan execution and management. The report concludes with a summary of key findings and recommendations regarding the company's strategic direction and organizational adaptation within the competitive automotive industry.

MANAGEMENT STRATEGY AND
ORGANZIATIONAL CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
Strategic plan of Mercedes-Benz.............................................................................................................3
Strategic objectives and aims include application of strategic analysis & reporting tools.......................6
Overall tactic of Mercedes Benz considering current position, actions and choices available to
implement change...................................................................................................................................9
CONCLUSION.............................................................................................................................................13
REFERENCES ..............................................................................................................................................15
Appendix ...................................................................................................................................................17

INTRODUCTION
Organizational change refer to acts in which organizations and businesses modifies a
main element of its venture, it includes culture, infrastructure and underlying technologies use to
manage operations and internal procedures. In order to alter culture, structure and other
component, a company needs effective tactics and approaches develop by management. It can be
considered as essential action taken by several enterprises to change organizational structure,
policies, strategies and technology as well. While management strategy can refer to an action that
manager within companies take to gain one or more benefits. The current assignment will be
based on Mercedes Benz, which falls under category of top most automotive companies in the
whole world. This study will define organization’s strategic plan and describe objectives & goals
of company including application of appropriate strategic analysis & reporting tools.
Furthermore, this report will explain overall tactic of chosen firm considering its existing market
position, actions and choices accessible to implement organizational change.
MAIN BODY
Strategic plan of Mercedes-Benz
Mercedes Benz is well-known automotive brand in the world; it manufactures luxury
vehicles especially for target market after considering his or her needs, preferences and demands
(Kulcsár and SZŐCS, 2019). It was established in 1926 founded by Karl Benz, Wilhelm
Maybach, Gottlieb Daimler and Emil Jellinek, whose daughter Mercedes is real namesake.
Organization has successfully managed its international presence and grow it even better by
taking right actions and developing effective & strategic management strategies. Its aim is to get
commercial success and provide value added services and products to buyers.
Change overview-
Management within chosen company can achieve its set goals and business objectives in
effective manner when they consider key changes or market trends that add value among its
vehicles and services. It helps to increase profitability, productivity and sales even better and
allow organization to obtain excellent success and progress. In order to gain competitive
advantages, firm can make strategic change in form of technological change within its business
services which could put positive impact on its performance, productivity and profits margin.

While going through this change company can use mobility services in context of consumer
services management. According to that along with current activities, firm can lead way for new
mobility concept through which firm can change the way in regard to consumer services, instead
of offline they could provide services via online. In recent time, due to competitive environment
companies within automotive industry and other as well facing several challenges, to overcome
these, change is essential within Mercedes Benz. It currently undergoing a year of strategic
change that discuss above. According to this change, firm can add more valuable elements within
its management practices, which gain attention of new buyers and retain existing one for longer
period of time. Digitalization is the main reason behind change entire change, because it drives
management attention towards providing better services to consumers which he or she consider
as most valuable. In context of technology modification, manager needs to develop strategic plan
which is really very important to create (Goehlich, Fournier and Richter, 2020).
Strategic plan could consist of determining venture and setting realistic objective and
aims. It is essential document utilized to communicate with selected firm goals, activities needed
to gain those aims and all of other important components. It is management activity that manager
within Mercedes Benz utilize to concentrate resources, set priorities, strengthen operations and
assure workers are performing towards strategic aim and that is to implement technology change.
Manager here can develop an effective and appropriate strategic plan which could use to
communicate with firm aims, actions required to achieve those goals and all of other important
components can create during planning activity. Strategic plan in regard to change has been
mentioned below-
Vision-
The vision of Mercedes Benz is to increase its profitability and customer satisfactory
level even better than other automotive brands.
Mission-
The mission of chose company is to create productive and stress free environment for
workers from all over the world, which make them able to cater the excellent consumer services.
Objectives-

 To increase customer satisfactory level up to 40%
 To generate profits margin approx. 50%
 To boost productivity and performance level up to 45%
 To be competitive for longer period of time.
Plan for change-
In order to get success and obtain desire outcomes company needs to develop a plan
through which change is implement at workplace that could improve consumer service
management practices and performance as well in positive manner. Mercedes Benz goes through
technology change and according to that it can make current & further alters within customer
service administration act in form of providing services online instead of offline which is a
valuable thing in buyer context as it saves time. The current plan of Mercedes Benz is to provide
excellent services to buyers through mobility, which is possible when employees are
knowledgeable and able to serve it in systematic manner. It is form of service through joint
digital platform enables consumers to plan, reserve and pay for different kinds of products and
services. According to this plan, organization wants to provide satisfactory services to its target
market which is really very essential to do (Cruz and Sarmento, 2020). Firm make change by
offering people a number of varied concepts for professional and private applications through
that consumers could get all information about products, its quality and other things relate to
business in just one easy step that is valuable for them. As outcomes of this plan and change of
overall value added chain, company is capable to make development procedure smaller and
production workflows much flexible. Above change could permit enterprise to respond more
quickly and effectively to target market preferences and needs. Because of digitalization, the
overall change within chosen company could implement that bring benefits in several terms and
allow management to retain potential buyers for longer period which in return increase its
customer base even wider than last few years or months.
Execute & manage plan-
The above change due to digitalization is really very important as it helps boost
productivity, performance and profitability in regard to Mercedes Benz. Management after

developing above plan, should execute each activity and manage it successfully without making
any mistakes as it directly impacts on brand image and its reputation within automotive industry.
For examples, by providing right guidance and taking appropriate action such as training,
manager can execute plan effectively. Training is one of the best source through which
management can built a strong workforce who could serve its services with change such as
mobility services. Furthermore, organization can manage plan by conducting self-observation
practices that assist to identify and analyze workers’ performance and make further
improvements within it.
Manager in order to execute plan successfully and obtain desire outcomes should need to
visualize overall tactic, measure above strategy which relate to technology change and make
appropriate decision which is the main part of entire plan execution. Furthermore, management
should concentrate on each act and set taken by workers and other peoples at workplace, as it
enables them to take further action and decision accordingly. Leaders and managers by
collaborating and communicating with each other can successfully manage plan, which allow
both of them to obtain desire outcomes.
Strategic objectives and aims include application of strategic analysis & reporting tools
Aims-
The aim of Mercedes Bens is to enhance brand performance and pioneering role in urban,
electric mobility. They want to play leading role in automotive industry and worldwide premium
segment for longer period of time.
Objectives-
 The main objective to Mercedes Benz is to manufacture the best quality vehicles for its
target market or segment.
 Second objective of company is to gain competitive advantages.
 Third objective of firm is to strengthen leading position of its business in global truck
venture.
 Fourth objective of organization is to increase its profits margin and sales level.
Strategic analysis tools-

Strategic analysis can consider as procedure that includes researching companies ventures
and workplace environment within which Mercedes Bens operates. It is important to formulate
strategic planning for judgement making and smooth performing of that firm. There are different
types of strategic analysis tools available in the world of business that chosen company and its
management could utilize (Helmold, 2019).
SWOT analysis-
Strengths-
Experience and skilled workers are the key strengths of Mercedes Bens which its
management could use to achieve all above aims and objectives as well as gain desire outcomes.
With strong and talented workforce company is able to produce quality cars and other vehicles
according to needs and preferences of buyers. Furthermore, productive workforce or teams of
workers is important element that firm could use to gain competitive benefits, which is really
very essential to obtain.
Continuous product innovation is another strength of chosen firm which it can utilize to
increase profits margin and productivity as well as increase sales level even better than its rivals
(Crofton and et.al., 2019). Parent organization of selected brand always been known for
technological advancement right from outline of internal combustion engine.
Weaknesses-
There are certain factors or elements are accessible in business world that could impact
productivity and procedures of achieving aims and objectives in negative manner. It can be
identified through strategic analysis that servicing cost is one of the weakness that put negative
impact upon sales and brand image of Mercedes Bens. As compare to rivals, chosen firm serving
cost is high in similar segment, which can be considered it’s one of the biggest weaknesses that
affect brand image and position in negative manner.
Mercedes Bens expand strongly, however company is found to stunted progress because
it keeps distribution on products much exclusive that impact supply chain and its brand equity in
effective manner (Shimoji, Miyajima and Arai, 2020). These two weaknesses negatively
influence firm overall practices and management actions.

Opportunities-
Increasing demand of premium vehicles is one of the biggest opportunities that Mercedes
Bens and its management could grab and obtain all desire outcomes as well as use to achieve set
objectives. Company can beat high and target develop countries due to maximize in demand of
luxury and excellent public transportation system. This opportunity is quite beneficial for
organization in term of gaining attention of new target customers and fulfilling their demand
which in return increase sales, profitability and generates revenue more than last few months or
years.
Technology advancement is another opportunity that firm can grab and use to gain
further benefits while operating within automobile sector. By grabbing this chance company can
produce innovative and quality products which help to satisfy target market.
Threats-
Intense competition from other brands in automotive industry is the biggest threat possess
for Mercedes Benz as it put negative impact upon management practices and decision making
procedure (Fonseca, Fernandes and Ramos, 2019). Furthermore, due to this factor firm could not
be able to get success and grow its venture so easily. Presence of competitors such as BMW,
AUDI and VOLVO increasing competition level within segment and put a lot of pressure on
manager and overall administration in context of conducting and developing strategic
management plans.
Government regulations and policies like reduction in pollution and global warming by
considering utilize of personal transportation, volatility in fuel prices and eliminating road allow
validity and restricting entry of outside state cars are some of regulations or rules which are
already been implemented in region and is possessing as threat.
Reporting tools-
There are range of reporting tools and techniques are accessible that manager and
Mercedes Benz could use to for reporting purpose. For example, firm can conduct situational and
workplace analysis which allow management to identify issues in context of employee
performance. Furthermore, it can also help to examine where improvement is essential and what

resource could employees needs in order to achieve set objectives and business aims. Through
these reporting tools, organization can get information about everything which it can use in
current and further situations relate to strategic change, just like above one. Gather info through
these techniques can consider as useful and helpful data that use to handle in future conditions.
By determining each thing company can take better decision and action, which boost
productivity of staff and business performance in productive manner.
Overall tactic of Mercedes Benz considering current position, actions and choices available to
implement change
Range of methods and technique are available in corporate sector that Mercedes Bens and
its administration could use to consider its current market image and position within automotive
industry as opposite to rivals. In order to consider business position, management can choose the
best model or framework like Bowman’s strategic clock. It is one of the best models that
Mercedes Bens company can use to analyze and consider its current business position in market
which is quite effective and important to know (Fisher and Kordupleski, 2019). It is one of the
most common frameworks that use by several companies in context of similar purpose which
allow management to take further action when position is not much influencing and according to
desire. This model is especially used to explore options for strategic positioning of company. It
comprises 8 key elements that are mention below-
Low price and low added value-
It is one of the most common and competitive position for any company, because through
this firms could not offer differentiated items to consumers which he or she perceives little value.
It can be recognizing as bargain basement tactic; by using this strategy company needs to sell its
products as cheapest as it can as it allows to gain competitive benefits because no one else can
sell like this.
Low price-
Mercedes Bens can use this tactic in order to set its position within automotive sector as
low cost leader in a market, which can help to gain attention of new consumers and increase
sales even better than rivals. For this position, company needs to develop and adopt cost

minimization tactic that assist firm to get success. According to this position, profits margin on
each vehicle is low.
Hybrid-
This position and strategy includes certain important and useful components of low
prices, but also include product differentiation tactic that is beneficial in term of gaining attention
of consumers and increasing customer base. With this position company can persuade its target
market that there is better added value through combination of reasonable cost and acceptable
item differentiation. It is one of the most effective positioning tactics that firm can utilize.
Figure 1: Boman's Strategy Clock
(Bowman's Strategic Clock (Strategic Positioning), 2018)
Differentiation-
Mercedes Bens can adopt this positioning strategy which allow management to offer
buyers excellent degree of perceived added value. Furthermore, it can be analyzed that branding
is the best element that play vital role in differentiation tactic as does vehicles quality. This
strategy needs top quality goods with influencing brand awareness as well as loyalty, which can
assist to add value.

Focused differentiation-
It can use by several companies while operating its ventures within automotive sector and
other as well through that they could position its specific product at highest price degrees, where
target market can purchase it because of high perceived value. Mercedes Bens and its
management can use this tactic which permit to achieve set aims and objectives and gain further
benefits in many ways.
Risky high margins-
According to chosen model, it is one of the riskiest and complex positioning tactics that
company can argue is success to failure eventually. With risky strategy, organization needs to
sets high prices without planning and offering anything extra in forms of perceived value by
consumers. When target market continues to purchase vehicles at set prices then profitability of
firm could he higher.
Monopoly pricing-
When company consider and use this strategy then it needs to be show its consumers that
Mercedes Bens is the only one brand in automotive sector who offer luxury items which no one
can manufacture and sell. According to monopoly pricing tactic, firm could not need to focus on
about what value buyers perceive in goods.
Loss of market share-
This positioning strategy is the worst tactic and less beneficial because according to that
firm should set middle range price for its products with less perceived value in unlikely to reach
over several buyers who will have better options in market.
Management can use focused differentiation strategy that help to consider current
position of brand within its sector against competitors, which is really very important to
recognize in term of taking better actions. It can consider as procedure of determining current
reputation, image and position of firm through right action that directly influence consumers.
This tactic is effective in form of benefits, on the other hand complicated as well in term of
losing consumers when they would not consider it as value added because of high price levels.
Accessible choices-

In order to implement change Mercedes Bens could take better option and choice
accessible techniques. For instance, training is one of the best choices firm can use and it is
easily available in business world utilize in different manners. It is teaching or developing
approach that enhance abilities and capabilities of employees in context of implementing change
and working with new technologies while serving excellent services to consumers (Helseth and
et.al., 2018). It allows workers to enhance his or her skills even better and strengthen themselves
to provide better services by using mobility technology. There are a lot of benefits organization
could gain through this approach for example, it increases job satisfaction, morale among
workers, employee motivation, efficiencies in procedures and ability to adopt new method as
well as technologies. With this technique, company can improve and boost staff performance
that help to cater excellent services to target market in return which increase sales and
profitability. It effectively and systematically contributes in implementing organizational change
that in return bring a lot of advantages in term of achieving above objectives, gaining aims and
competitive edge as well.
Situational theory in context of this concept can be implemented by leader through that
he or she can analyze entire situation and make workers ready to except and then implement
change, which is essential for business, consumers and workers. As it permits to gain
competitive benefits and boost brand image within marketplace even better than other players.
Actions to implement organizational change-
Kurt Lewin model is the best strategic framework that can be used to implement change
within Mercedes Benz successfully and effectively, which is essential to increase profitability
and achieve all above business objectives. Through this concept company and its management
can take right actions. It comprises three different stages that has been mentioned below-
Unfreezing-
Before taking any action in regard to implement organizational change, leader and
manager should take better action, such as creating environment where workers are trying to
understand what change is and how it is essential for business growth and success as well.
According to this stage, leader must start creating and generating awareness of organizational