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CASE STUDY 4

1) Prepare a profile of the potential buyer of the Lexus.
Target Customer Description
The target customer with Lexusʼ flagship hybrid design is seeking to present a bold image to
others. Price is therefore a secondary factor to the message their car portrays in their
purchasing
decisions. Potential customers are born within ten years of the “baby boomer” generation aged
forty-five and up. As a wealthy and image-conscious person he/she can spend money freely,
taking up hobbies and living a visibly envious life. He/she purchases this car for its “green”
status
to benefit his/her self-image. They choose to purchase hybrids either because they are
environmentally conscious, or they wish to appear to be. They combine extravagance and
excess
with environmental care by purchasing a car that is both “green,” and also features top-of-theline
technology, performance, and luxury.
--------------------------------------------------------------------------------------2) What should Mercedes and BMW do to counteract the Japanese threat in the United States
and Europe?
[BOTH MERC / BMW HAVE QUALITY PRODUCT/ PRODUCT POSITIONING. THEY NEED TO
STUDY THE MARKET AND DEVELOP A SEMI-LUXURY BRAND TO MATCH ‘’LEXUS’’
-----------------------------------------------------------------3) Why has the Lexus model been very successful in the U.S. but has not been marketed in
Japan? (Suggestion: Review the frequency of repair records of luxury cars. Also talk to
Lexus dealers or Lexus owners).
[ IN THE US CAR MARKET , THERE WAS A GAP BETWEEN MERC/BMW AND THE
LOCAL BRANDS.
THIS IS WHERE THE LEXUS FITTED IN WELL WITH THEIR PRICE/ PROFILE]
-----------------------------------------------------------4) Do you think Lexus will succeed in Japan? Why or why not?
LEXUS CAN SUCCEED IN JAPAN, PROVIDED
JAPANESE CAR MARKET.

IT IS POSITIONED PROPERLY IN THE

CASE STUDY 2
Answer
Answer
1) The reengineering efforts of P&G focused on the business process system. Do you think
other processes, such as the human system, or other managerial policies need to be
considered in a process redesign?
CATEGORY MANAGEMENT SYSTEM NEEDS TO BE SET UP
-policies
-procedured
-practices
Etc
======================
2) What do you think was the reaction of the brand managers, who may have worked under
the old system for many years, when the category management structure was installed?

DISADVANTAGES -low participation from the bottom line staff -------------------------BOTTOM UP ADVANTAGES -it clearly shows EMOTIONAL PARTICIPATION OF THE STAFF.000 employees worldwide. BRAND MANAGEMENT IS A STAFF FUNCTION . space systems. heavy diesel engines. would you have recommended a top-down or a bottom-up approach. or both. SUCH CHANGE NEEDS -change management drive -orientation programme.000 employees. consisted of four major groups: The first. and automation. to process redesign and organizational change? TOP DOWN APPROACH IS THE RIGHT APPROACH . ======================= 3) As a consultant. microelectronics. was Mercedes-Benz with about 200. ---------------------------------------------------------------------------The third was the Aerospace Group in the business of aircraft (the company has a more than one-third interest in the Airbus consortium). energy systems technology. [THIS BUSINESS UNIT HAS THE CORE COMPETENCE AND HENCE VERY SUCCESSFUL. defense and civil systems. there was the Inter Services Group consisting of systemshaus. financial services. It is best known for its passenger cars and commercial vehicles. ==================== 4) What are the advantages and disadvantages of each approach. marketing services.. WHILE THE CATEGORY MANAGEMENT IS A LINE MANAGEMENT FUNCTION. trading. TOP DOWN ADVANTAGES -it clearly shows the management intentions and drive. [THIS BUSINESS UNIT HAS MANY SUB-UNITS AND ARE INTEGRATED AND HAS THE CORE COMPETENCY / HENCE IS SUCCESSFUL. [THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE. . DISADVANTAGES -LACKS THE LEADERSHIP -------------------------======================== @@@@@@@@@@@@@@@@@@ CASE STUDY 3 ANSWER: 1) What is your assessment of Daimler-Benz's operations in many different fields? Daimler-Benz. and real estate management. mobile communications services. insurance brokerage. with more than 300. AS IT RELECTS -the management mission -the management objectives -the management strategies. by far the biggest and most successful group. ---------------------------------------------------------------------------Finally. and propulsion systems.-NEGATIVE REACTION FROM THE BRAND MANAGERS ARE EXPECTED. -------------------------------------------------------------The second was the AEG Daimler-Benz industries in the business of rail systems.

=========================================== 4) Given the apparent mistakes in acquiring non-automotive businesses. what should Jurgen Schrempp do now? [ RE-ORGANIZE / RESTRUCTURE THE BUSINESS UNIT AND HIRE COMPETENT TALENTS TO RUN THE SHOW] THE MISTAKES ‘’DAILMER ‘’ MADE IN ACQUIRING NON-AUTOMOTIVE BUSINESS IS -treat the business as an automotive business. -the talents who ran the business did not have the right competence for the business -this affected the performance. ========================================================== === 2) Should the various groups operate autonomously? What kinds of activities should be centralized? [THE BUSINESS UNITS SHOULD OPERATE AUTONOMOUSLY . .[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE. what should Jurgen Schrempp do now? [ RE-ORGANIZE / RESTRUCTURE THE BUSINESS TO RUN THE SHOW] UNIT AND HIRE COMPETENT TALENTS ########################################################## ######################## ---------. Why do you think Daimler bought AEG in the first place and why did it venture into the Aerospace and Inter Services businesses? [ BETTER USE OF TECHNOLOGY AND COMPETENCE PLUS SALES OPPORTUNITIES.FOLLOW-UP ---------QUESTION: Dear Sir 4th Answer is not cleared Please make it clear Answer 4) Given the apparent mistakes in acquiring non-automotive businesses. THE ACTIVITIES THAT COULD CENTRALIZED ARE -IT SYSTEMS -HR SYSTEMS KINDS OF -FINANCE ============================================ 3) Daimler-Benz is best known for its Mercedes-Benz cars.