daimler benz case study

Daimler-Benz Case Study

Group Members

AshwiniDeepaliSwapnilVikram

Batch: SMBA11University: ITM University. Vashi

CaseBenz & CieDaimler Motoren

AEG Industries

Mercedes-Benz Aerospace

Daimler-Benz

InterServices

CaseMergers & Acquisitions :

AEG

Dornier & MBB

Fokker

MTU (Propulsion Sys)

Daimler-Benz

CapGemini

SWOT

Strength

Automobile Manufacturing

Weakness

No Tunnel Eye Vision

Threats

Chinese & Japanese Automobile Manufacturers

Opportunity

Globalisation

Issues

AEG and Fokker was already in

Loss

Economic Crisis and

Defence Cuts

Fokker Selling Aircrafts @ 80% of Manufacturing

cost

Low Demand of Fokker Aircrafts

Outlook

Management’s Justification

a) Economic Crisis b) Defence Cuts by Dutch Govt.

Actual Reason

Acquisition Strategy was Wrong

Questions

Q. What is your assessment of Daimler-Benz Operations in many different fields?

Key Points:

a) Core Competency: Cars & Trucks (Mercedes Benz)

b) Diversification: Mercedes Benz| AEG Industries| DEBIS| Aerospace.

c) Company Faced Loss.d) No Tunnel Eye Vision Directives.

Questions

Q. Should the various Groups operate autonomously?

A. Yes.

Assertion: Develop each group as a separate Strategic Business Unit.

Q. What Kind of activities should be centralized? Centralization: Human Resource.

IT Department. Finance

Questions

Q. Daimler-Benz best know for its Mercedes-Benz cars. Why do you think Daimler-Benz bought AEG in the first place and why did the company venture in Aerospace and InterServices?

Key Points: What was AEG Into? AEG was almost Bankrupt. Daimler-Benz bought the Goodwill of the

company and to get entry into Asian & African markets. Diversification and Venture in to new field.

Questions

Q. Given the apparent mistakes in acquiring non-automotive businesses. What should Jurgen Schrempp do now?

Key Points: Core competency has to be redefined. Globalisation; setting local manufacturing plants in order to reduce

the cost and making it affordable. Decentralization; Develop each group as a Strategic Business Unit.

Thank You