Management information system

Week 1 Task

Ahmad Eissa, M00848854

Irshad Mohamed, M00867385

Mercedes Benz
Mission

We will inspire and create an exceptional place to work and to do business. One employee,
one customer, one vehicle at a time. Through our transparent atmosphere, premium auto
inventory, and individualized customer care, we create the luxury shopping experience that
our customers truly deserve.

Vision

Astorg Auto of Charleston holds a responsibility to foster an environment which empowers

employees, promotes innovation, relationships, and growth. We will continuously strive to
inspire consumer confidence by supplying a transparent atmosphere and offering a premium
automobile product with individualized customer care.

Porters five forces analysis of Mercedes Benz

1. Threat of new entrants: The danger of new entrants into the luxury car industry is
low. The requirements to enter such a business is very complicated and as a new
company it will need a huge capital and liquidity to invest. Second barrier is
overcoming legal and operational challenges before becoming a well-known and
popular company. We must mention that the existing brands have created a brand
 image and are a symbol of prestige, so customers might not be willing to switch to
new brands. So, the overall threat of new entrants into the industry is low.

2. Threat of substitutes: There are a variety of other options that can compete with
Mercedes Benz, for example public transportation and the sharing cars. There is an
increase of regulation and people supporting environmentally friendly options. we can
conclude that the threat of substitutes is medium.

3. Bargaining power of customers: competitiveness has all been linked to a growth in

buyer negotiating power. Individual buyers may have less bargaining power, but
Mercedes Benz produces premium and luxury vehicles, so personal purchases are
significant. Furthermore, fleet customers have more bargaining power. Overall,
clients have adequate bargaining power, and corporations like Mercedes Benz place a
priority on maintaining a positive brand image. Customers have a lot of information
about the product available in the market and compare a lot of cars before purchasing.
we can conclude that the bargaining power of customers is moderate.

4. Bargaining power of suppliers: Mercedes-Benz suppliers have the least amount

of bargaining power. Its suppliers are proliferated and lack advanced
integration skills because suppliers do not have the expertise and capital to set
up such large companies, which limits their bargaining power. Most suppliers
depend on giant companies like Mercedes-Benz for a large percentage of their
revenue, and if these huge organizations stop buying raw materials from them
on a regular basis, their revenue will drop. we can say that the bargaining power of
suppliers is low.
Pestle analysis of Mercedes Benz:

- Political Factors Affecting Mercedes-Benz: Due to the Russia-Ukraine

war, Mercedes had to impose sanctions on Russia. Such political instability
results in losses. another political factor that would affect Mercedes-Benz
would be the taxation policy adopted by the government. Mercedes-Benz
should review the industry-specific taxation policies to ensure that the
company is not overburdened with tax expenses.

- Economic Factors Affecting Mercedes-Benz: Economic factor play an

important role in automobile industry. During the financial crises economic
condition was not good, the economy had inflation which makes it difficult
for consumers to pay for luxury cars. furthermore, High inflation changes
consumer behavior and increases the cost of production for Mercedes.
Talking about interest rates, if a country’s banks offered high returns on
savings, people would save more and spend less.

- Socio-Cultural Factors Affecting Mercedes-Benz: The business that

wants to join the market must perform in-depth research to learn about local
consumers. This would enable them to comprehend the distinctive cultural
norms, values, and traditions of each nation and modify their services
accordingly. Being a multinational business, it can be difficult for
management at Mercedes-Benz to understand these nuances.
- Technological Factors Affecting Mercedes-Benz: businesses are moving
to e-commerce. Mercedes must stay updated about what technology its
competitors are using and what sorts of products they are offering to its
customers so that Mercedes can match or exceed their level.

- Legal Factors Affecting Mercedes-Benz: speaking about legal factors we

should mention employment laws because Mercedes is a brand image, it
needs to protect its employees with strong workplace legislation and have
employment rights like safety and fair treatment. When coming to
consumer laws, Mercedes-Benz depends on data protection laws to ensure
consumer privacy in its online transactions and other operations. in case of
violating any such law, strict actions can be taken against Mercedes,

resulting in financial losses and a damaged reputation.

- Environmental Factors Affecting Mercedes-Benz: Mercedes-Benz has to

adopt responsible production practices. Shifting to environmentally friendly
practices is no doubt costly, and this will decrease the profit margins of
Mercedes. Mercedes has held expertise in manufacturing engines that work
on fossil fuels. However, they now must shift to electric vehicles and
compete with the existing electric car manufacturer Tesla