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Challenge with Mercedes Leadership and Recommendations

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Mercedes is widely regarded as one of the most prestigious automobile manufacturers

globally, and its present Chief Executive Officer, Ola Kallenius, is tasked with steering the firm

through a period of significant change. Kallenius is confronted with the responsibility of

ensuring that Mercedes maintains a competitive edge in terms of novel and advanced technology,

as an increasing number of vehicles are transitioning towards electric, self-driving, and

interconnected modes (Ausman, 2017). To attain success, a leader must possess a sophisticated

and progressive leadership approach. However, Kallenius has not yet demonstrated these

qualities. Kallenius faces the major challenge of balancing short-term goals and long-term

objectives. Mercedes has typically prioritized achieving immediate success and profitability, but

Kallenius is responsible for ensuring the company is prepared for the long term. Investing in new

technologies like electric vehicles, autonomous driving, and connected vehicles is necessary.

Mercedes' traditional focus on profitability clashes with the need for a long-term commitment of

resources and capital, as stated by Cakir and Adiguzel (2020). The Mercedes-Benz Group AG

experienced a favorable financial quarter as a result of its capacity to raise prices in significant

markets. Nevertheless, the authors recognized that their business activities are significantly

impacted by the disturbances resulting from the conflict in Ukraine. As per the statement of

Mercedes CEO Ola Källenius, the organization achieved profitability during the second quarter,

notwithstanding the hindrances faced by its supply chain. As per the statement of Ola Källenius,

the Chief Executive Officer of Mercedes-Benz Group AG, the team at Mercedes-Benz exhibited

commendable performance during a quarter that posed significant challenges.

According to a press release that came with the quarterly financial report, Mercedes-Benz

had to take measures to protect its supply chain and explore ways to reduce or replace the use of

natural gas in vehicle production due to the increased geopolitical tensions caused by Russia's
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attack on Ukraine (Moore, 2021). Mercedes-Benz has found that in Sindelfingen, where they

manufacture the EQS, S-Class, and Mercedes-Maybach, the paint shop can function without a

gas supply in an emergency. Mercedes-Benz has reported that regional pooling can enable a

reduction in gasoline consumption of around 50% in Germany, without any adverse effects. As

per the official statement, the organization endeavors to shift its energy consumption from fossil

fuels to sustainable sources such as electricity and other renewable alternatives. The automakers'

suppliers are also at risk due to Russia's reduced energy supply. Russia used to be the primary

supplier of crude oil and natural gas to the European Union before the war in Ukraine began

(Patel, 2022). When it comes to automotive, it is not like having an object that always sits on

your desk at home at a stable temperature. This machine can move and shake constantly, even in

extreme temperatures ranging from -40 degrees Celsius to 60 degrees Celsius. According to Patel

(2022), making a computer suitable for automotive use is a significant challenge. However, it is a

challenge that we have been tackling for over 100 years.

Kallenius has the responsibility of ensuring that Mercedes remains competitive in the

market. According to Moore (2021), the company is experiencing more competition from other

automakers. These competitors have been quick to adopt the trend toward electrification and

autonomy. Kallenius is responsible for ensuring that Mercedes stays competitive and continues

leading the way in the industry. In order to accomplish this task, the individual needs to be open

to taking risks and making bold decisions. However, as noted by Moore (2021), this is an area

where the individual has not yet shown much evidence of proficiency. Kallenius need to make

sure that Mercedes keeps their customers happy and satisfied. The company has a reputation for

being dependable and producing high-quality products. Kallenius bears the responsibility of

upholding the organization's standing while navigating the shift towards novel technologies. In
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order to attain this objective, it is crucial to give precedence to customer feedback and maintain a

receptive attitude towards their apprehensions. It is imperative for Kallenius to ensure that

Mercedes exhibits prompt responsiveness and proactively addresses customer concerns and

needs. The task of guiding Mercedes through a period of unprecedented change presents a

formidable challenge for Ola Kallenius. According to Cakir and Adiguzel (2020), they must

strike a balance between achieving short-term goals and meeting long-term obonesAdditionally;

they must stay ahead of their competitors and make sure that their customers are satisfied. In

order to accomplish this, one must have the courage to take risks, pay attention to what

customers have to say, and be willing to make bold decisions. If Kallenius provides effective

leadership, Mercedes can maintain its position as a leader in the automotive industry.
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References

Ausman, J. (2017). A view of the future from Mercedes Benz. Surgical Neurology International,

8(1), 224. https://doi.org/10.4103/sni.sni_296_17

Cakir, F. S., & Adiguzel, Z. (2020). Analysis of leader effectiveness in organization and

knowledge sharing behavior on employees and organization. SAGE Open, 10(1), 1–14.

Sagepub. https://doi.org/10.1177/2158244020914634

Moore, K. (2021). Mercedes-Benz CEO On Leading A Tradition-Rich Company: How To

Successfully Evolve Your Strategy. Forbes.

https://www.forbes.com/sites/karlmoore/2021/02/10/leading-a-tradition-rich-company-

evolve-your-strategy-while-staying-true-to-your-roots/?sh=1e3cf2ad5cb5

Patel, N. (2022, June 21). How Mercedes-Benz CEO Ola Källenius is refocusing for an electric

future. The Verge. https://www.theverge.com/23172839/mercedes-benz-ceo-ola-

kallenius-electric-vehicles-self-driving-luxury-tech-g-class