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Daimler-Benz Case Study

Daimler benz case study

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Page 1: Daimler benz case study

Daimler-Benz Case Study

Page 2: Daimler benz case study

Group Members

AshwiniDeepaliSwapnilVikram

Batch: SMBA11University: ITM University. Vashi

Page 3: Daimler benz case study

CaseBenz & CieDaimler Motoren

AEG Industries

Mercedes-Benz Aerospace

Daimler-Benz

InterServices

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CaseMergers & Acquisitions :

AEG

Dornier & MBB

Fokker

MTU (Propulsion Sys)

Daimler-Benz

CapGemini

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SWOT

Strength

Automobile Manufacturing

Weakness

No Tunnel Eye Vision

Threats

Chinese & Japanese Automobile Manufacturers

Opportunity

Globalisation

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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

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Outlook

Management’s Justification

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

Actual Reason

Acquisition Strategy was Wrong

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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.

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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

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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.

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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.

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Thank You