The Strategic Plan Paper

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Strategic Plan: Mercedes Benz
Otisha Baugh
University of Phoenix
Strategic Planning & Implementation
Professor Mark McClintock
February 20, 2022
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Where the Company is Going and How It Will Get There.
Mercedes- Benz is a German automotive brand with its headquarters in Stuttgart, Germany.
A Daimler- Chrysler Corporation division boasts car brands such as Maybach and Jeeps in their
catalog. The automotive company manufactures luxury and heavy commercial vehicles and has
been considered one of the leading automotive brands globally. The company faces significant
competition from BMW, Porsche, Audi, and Tesla with its prevalent global recognition. The
company strives to create sustainable mobility in the future. The company plans to re-evaluate its
manufacturing by developing concepts that meet current needs while accommodating future
inventions to achieve this goal. The automotive manufacturer continually advances its models
while putting future innovations in context. To make sustainable mobility a reality, the company
needs to ensure that their vehicles have minimal to zero carbon emissions and adaptable software
that can easily update without major functional interruptions.
The Organization’s External and Internal Environments
Internal environment means the factors within a company that influences working
processes. In contrast, External environment refers to the elements outside the company
categorized by technological, social, economic, and political factors. A company can identify the
factors that affect it internally and externally through SWOT analysis. Internal factors that affect
the company include the production process, organizational structure, and marketing strategies.
Mercedes has had to diversify its market by introducing different car designs and specifications to
meet the market demands. The company has also adopted an international marketing strategy
making it possible for people in developing and developed countries to purchase their brand.
Mercedes has adopted a vertically integrated organizational structure that fosters innovation
(Bulturbayevich, 2021). Different departments cater to different needs and, once consolidated,
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produce quality products. The interrelationship of all departments helps in the company’s success
as every employee understands their role in the company. The company uses a decentralized
management system where lower-level management has decision-making authority.
The external environment that affects Mercedes Benz is the competition from other brands,
for example, BMW and Audi. When it comes to market price, a Mercedes is expensive compared
to a BMW, making it cheaper for a consumer to purchase a BMW rather than a Mercedes Benz as
they both are luxury brands. Another external factor that affects the company is the political factors
when it doubles down to what the manufacturer can and cannot do in the countries they set up.
Political tensions and interference in businesses affect how they operate in different countries
(Cherunilam, 2021). Technological factors also affect the company as they try to keep up with the
dynamic market to keep up with their competition through advanced structures and software
upgrades.
People Plan and Achievement of a Diverse Workforce
The company needs to hire qualified personnel to make its company mission achievable.
Human Resource managers need to seek qualified and skilled persons for each task. A diverse
workforce will foster innovation and problem-solving skills, giving them a competitive advantage
in the market. Mercedes has adopted this diverse workforce and has created a culture-sensitive
workplace that accommodates all people of all races and religious beliefs. Suitable communication
protocols should be a key factor for consideration (Toksöz, 2021). The company also offers a
work-life flexibility structure which grows their employee’s productivity.
Corporate Social Responsibility and Environmental Sustainability
Mercedes Benz has included corporate social responsibility and environmental
sustainability by manufacturing electric cars that don’t pollute the environment with carbon
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emissions. The company has also demonstrated corporate social commitment by offering quality
education programs through scholarships to the underprivileged and providing clean drinking
water to the local communities they have set their factories in.
Conclusion
A company needs a strategic plan to have a competitive advantage. The strategy needs to include
steps that will make it feasible and propel the company to greater heights while maximizing its
strengths and opportunities. The company highlights factors that affect its performance and points
out its weaknesses, making it easier to highlight crucial external factors that affect the brand. It
creates a proactive business environment rather than a reactive one, enhances communication
between employers and employees, and increases market share and profitability. A market-oriented
strategic plan adapts goals and resources to the dynamics of market environments. The planning
analyzes market situations that provide the company with information on the product groups,
market prices, competitors, and suitable distribution channels.
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References
Bulturbayevich, M. B. (2021). Development of Innovative Activities of Enterprises On the Basis of
Vertical Integration Processes. Turkish Journal of Computer and Mathematics Education
(TURCOMAT), 12(10), 5020-5031.
Cherunilam, F. (2021). Business environment. Himalaya Publishing House Pvt. Ltd.
Toksöz, S. (2021). Effectiveness of Internal Communication in Managing Ethnically Diverse
Workforce: Case Study of Nakheel. OPUS Uluslararası Toplum Araştırmaları Dergisi,
17(34), 1-1.

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