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The Mercedes-Benz Strategic Plan
Strategic Planning & Implementation
Professor Mark McClintock
March 7, 2022
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Mercedes Strategic Plan
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Purpose of the strategic plan
Sustainability and environmental and climate protection are two of Mercedes-Benz’s
most pressing concerns. As a result, the strategic plan’s goal is to establish specifications for
future sustainable mobility (Roodbeen, 2018). According to the firm, personal mobility will
remain a crucial necessity, and the demand for sustainable luxury in the car industry will keep
growing. Furthermore, the firm expects that people and commodities transportation will be an
essential part of their economy.
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Key objectives
Mercedes-Benz intends to make mobility and commodities transportation more
sustainable as a core component of their sustainable business strategy, with a consistent focus
on CO2 neutrality. The firm also seeks to expand its core business and concentrate more on
client satisfaction. In addition, it works to foster this transformation by promoting a flexible
culture among staff members, which will boost their rate of innovation.
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Market development and how your ideas fit
Mercedes had to diversify its market by introducing various car designs and
specifications to meet market demands. In addition, the company has implemented an
international marketing strategy that allows people in both developing and developed
countries to purchase their products.
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Process improvement
To achieve its goal, the company intends to re-evaluate its manufacturing by
developing concepts that meet current needs while accommodating future inventions. The car
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manufacturer constantly improves its models and places future innovations into perspective.
The company ensures that its vehicles emit little to no carbon dioxide with adaptable software
without causing major functional disruptions to make sustainable mobility a reality.
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Development of people
Mercedes-Benz encourages and promotes the professional and individual growth of
staff members. HR development finds highly skilled staff to work within their team on
challenging jobs. Training, growth projects, and promotion initiatives are the critical aspects
of a person’s training and professional career track.
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Product/Service
To be order-winner quality compliant, the company should ensure that manufacturers
deliver vehicles that fulfill the best design specifications with defect-free vehicles. Moreover,
quality improvements should result in a reduction in the firm’s expenses. According to
Holgado et al. (2020), higher quality products lower the corporation’s cost due to increased
productivity.
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Key performance indicators (KPIs)
Key performance indicators should focus on the responsibility of the Customer
Service Advisor (known at Mercedes-Benz as Service Team Manager – STM) in the After
Sales repair and maintenance units of the passenger vehicle dealership. The firm should use
KPIs to evaluate the performance of STMs who interact directly with clients, handling
passenger vehicle repair and maintenance tasks from the first interaction with the client to the
safe return of the car.
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Recommended Initiatives
The new Mercedes-Benz strategy should enhance commercial effectiveness through
mix and pricing, improved product portfolio, and increased reoccurring revenues with its
redesigned outlook. When integrated with significant cost-cutting and manufacturing
footprint reductions, these changes should result in systemically higher profitability rates.
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Adapting to the Changing Business Environment.
Thanks to the company’s passion for inventions, Mercedes-Benz has been able to add
new outlooks to car production in recent years. With global emissions on the rise and green
practices gaining traction worldwide, the brand has increased its focus on environmentally
friendly automobile manufacturing. At Mercedes-Benz, electric mobility and sustainability
go hand in hand (Bohn, & Braun, 2021). Its all-new EQC design language includes recycled
plastic, renewable raw materials for upholstery, and more than 100 environmentally friendly
components.
Conclusion
Electromobility is undoubtedly the key future technology for effectively advancing
climate protection in the transport sector. As an innovation leader, Mercedes-Benz has made
it its mission to actively drive this change. To attain the overarching goal of sustainable
mobility, the company should focus on customer expectations. Their customers want cars that
set new technological standards with maximum efficiency and range. With this strategy,
Mercedes-Benz will be well equipped to master the challenges of a transformation to
electromobility and to assume a leading position in the marketplace.
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References
Bohn, S., & Braun, T. (2021). Field-configuring projects: How projects shape the public
reflection of electric mobility in Germany. International Journal of Project
Management, 39(6), 605-619.
Holgado, M., Macchi, M., & Evans, S. (2020). Exploring the impacts and contributions of
maintenance function for sustainable manufacturing. International Journal of
Production Research, 58(23), 7292-7310.
Roodbeen, N. (2018). Value-driven mobility design for future cities: a vision for 2040.
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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 culturesensitive 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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