Assignment

International University College ± Dobrich

Business Environment Company: Mercedes Benz Prepare by: Ferian Arben ± IBM 1st year Reviewer: Robert Stevenson

2011

1

Page of content: Introduction History of Mercedes Benz For what Mercedes is famous SWOT analysis Strengths Weaknesses Opportunities Threats PEST analysis Political factors Economic factors Social factors Technological factors Conclusion Advantages Disadvantages References 3 page 3 page 3 page 5 page 5 page 6 page 7 page 7 page 8 page 8 page 9 page 9 page 10 page 11 page 11 page 11 page 12 page 2 .

economic. 3 . The name of the company is thanks to the Karl Benz¶s daughter. And in 31 of March 1998. technological. For what Mercedes is famous McLaren F1 The production of this car listed seven years. strengths. and trucks and the first one who create petrol-powered car by Karl Benz's creation. It is the world market leader in the luxury segment which gives to their customers¶ excellent reputation. The Mercedes automobile was in the marketplace in 1901 by Daimler Motoren Gesellschaft. This includes the social. It was 6. which name is Mercedes. But even if it was produced under the name of Mercedes the engine in this car was from BMW. influencing decision making on resource use and capabilities. political. particularly in the area of safety technology. During that time this car was something like the car from future for the people. coaches. opportunities.1998 year and there were just 100 cars produced. From 1992. it set a record as the fastest road car in the world. The company is a German manufacturer of automobiles. Mercedes Car Group plays an essential role in the success of DaimlerChrysler.Mercedes & Co in Mannheim. following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company. Germany.Introduction The global business environment can be defined as the environment in different independent countries. social. Member of the DaimlerChrysler Group. buses. with external factors to the home environment of the organization.1 and it had 627 hp. The first Mercedes-Benz brand name motor vehicles were produced in 1926. weaknesses. threats environments. History of Mercedes-Benz In 1886 Karl Benz and Gottlieb Daimler had founded the most popular and famous worldwide nowadays company . one of the biggest automobile manufacturers in the world. Its design was perfect.

And till now it is still the fastest naturally aspirated car in the world. and is also the world's oldest automotive brand still in existence today. During the years Mercedes Benz introduce many technological and safety innovations and the company Mercedes-Benz is one of the most well-known and established automotive brands in the world. And the owners of Bugatti were impressed.000$. Because they thought that their car is the best one all over the world. And the price for this ³road monster´ 970.with a top speed 240mph (386km). In 2009 in the TV program ³Top Gear´ there was a made a race of Bugatti Vyeron and McLaren F1 on which McLaren take a first and second hundred kilometers faster than Bugatti. 4 .

Proved in the time with numerous advantages and style. the name Mercedes is on the top in the world charts.To have a successful F1 team is very good strategy for marketing development and makes brand name more preferred. F1 fans. here are some of them: y y y y y Strong brand name Successful F1 team Safety and Comfort (high quality) Modern and Innovative (High class) Strong competitor Strong brand name ± The name Mercedes Benz is one of the famous and strong brand names in the world. Their drivers are two of very popular men in the world . weaknesses. Mercedes can satisfy all customer needs and Mercedes GP Petronas F1 Team (the full name of F1 team) can prove it. owner¶s clubs the company can still maintain the interests of people with new products on the market. we see that young people and teenagers prefer fast and new cars which makes driving with high adrenaline and more memorable.SWOT (strengths. It discusses the strengths and weaknesses of a business . to give like presents cars. very good and well-known team which is always in top 3 or top 5. It also discusses the opportunities and threats coming from the external environment and that way states where the company should focus and what the potential threats might be. 5 . Successful F1 team ± Nowadays a lot of people prefer to drive fast cars. Strengths ± everyone can say at least five strengths of Mercedes.internal analysis. With many customers in seven continents. opportunities. threats) analysis of Mercedes Benz The SWOT analysis provides both internal and external analysis of the company.Michael Schumacher and Nico Rosberg .

If desired. The Speed Limit Assist is able to detect speed limit signs. Safety features ± As soon the brand will introduce new generation cars and functions. wheel speed and traction. Active Light System and Enhanced fog lamps). the driver can also control the shift range manually by moving the selector lever to the right or left (plus/minus). where drivers can take advantage of engine braking. Some of the well-know strong brands are BMW. best-in-class long service life and excellent fuel economy. accelerator pedal position. For a first time Mercedes shows Anti-lock braking system and celebrated its world premiere in the S-Class in 1978. Strong competitor ± As already mentioned above. Aston Martin. The optional PARKTRONIC . It the cockpit display then provides a schematic representation of the recommended parking maneuvers. quality the company gives a choice from 13 classes¶ cars. Weaknesses ± If you ask for weaknesses of Mercedes. Toyota (Lexus). well-spaced ratios. and it then communicates with the other control units to adapt all shift operations to both the driving situation and the comfort requirements. Here are some of them: The Intelligent Light System provides five lighting functions (Cornering light function. y Price 6 . This is particularly helpful on downhill gradients. The automatic transmission's electronic control unit continually processes signals relating to torque. With modern vision. The improved fuel economy can be attributed to a torque converter lockup clutch which engages in all forward gears.Parking Guidance supports the driver when parking. which are activated depending on the driving conditions. engine speed. Modern and innovative ± Mercedes have a long list of different types of cars ± from cheap to really expensive. high class.Most of the cars is equipped with a five-speed automatic transmission that offers maximum smoothness. Mercedes is one of the strongest competitors in automobile industry. Country mode. The background of the company can give a lot of examples for their achievements. from Mercedes Smart to Mercedes McLaren. Motorway mode.Safety and comfort . innovative. Audi. they will be just few but it did not make them less important.

y Lack of communication between the heads of office and the staff due to the method of communication they use y The costs of vehicles are much more higher than other vehicles in market which the majority of people cannot afford Germany's car makers produce a lot of beautiful. Treats y A tax increase for importing vehicles y Less educated employees in China. Mercedes Benz offer to their customers high quality. Luxury small car market with less expensive sub-compact model. BMW. we have to take seriously on the threats at first. Lexus (Toyota). and sustainable mobility y Providing fascinated vehicles for customers by the supportive of DaimlerChrysler Group y Professional sport sponsorship Before we go through the opportunities of the business. Although they have a lot of difficulties. comfort. Opportunities y Joint venture y Improving safety. comfort. Sales of Audi. but they are still one of the best on the market.Sticker prices 7 . Mercedes Benz is a global brand company and yet they are facing a lot of difficulties as well. but also very expensive to hire employees in Europe y Competitors that the Mercedes company had BMW (the most direct competitor). they still can handle them properly. Cadillac (GM)-Concentric diversification. Mercedes and Porsche were at record levels last year. even 15-20 years old cars. safety. class. The prices always was high and they are still high. Lincoln (Ford)Attract satisfied customers with improved products. the company make the price to convert in weaknesses. Apparently. luxury and why not new feelings when you drive. advanced cars that consumers around the world cannot wait to buy.

The cars and trucks are powered by engines running on fossil fuels i. Economy(side business. the green house effect . Social (demographic and cultural aspect of the external macro environment) and Technological factors(new technologies. the advantages have overweighed the disadvantages. PEST (political. new model cars ).e. loans). Euro 4 .considerably below other luxury cars It is very common that every company has its own weaknesses.the governments within the European Community have introduced various legislations to minimize the emission of such gases forcing the manufacturers to develop less polluting engines. economic. As Mercedes Company is a large company. Although the costs are very high. gasoline and diesels. research and develop. emitting carbon gases that pollute the environment. government legislations have been introduced to improve safety to car drivers as well as the users of public transportation Economic The Mercedes-Benz has manufacturing plants in many countries including Germany. Brazil. banks. thus there is the attractiveness which leading the people willing to buy. therefore it's quite obvious the business has the deficiency of communication in the organizations. Political factors It includes government regulations and legal issues and defines both formal and informal rules under which the firm must operate. duties). the United States. taxes. technological) analysis of Mercedes Benz From the various types of macro environmental analysis we focused our attention on the PEST analysis. As we know PEST stands for: Political(government legislations. South 8 . social.automobiles are also major causes of road accidents hence.

hiring. like BMW. Japanese Yen. religion. national origin. are of the top quality and with the most trendy style. therefore middle and low income level customers can also buy these cars and can feel rich. With such huge side business. movie stars. age. transfer and compensation . Social factors It includes the demographic and cultural aspect of the external macro environment. ancestry. earning these banks interest income and foreign exchange service fees and gains. young customers do not 9 . Social Mercedes cars are expensive and luxury cars by most people. a lot of money in various currencies. This is achieved through a lot of media promotions and advertising involving popular personalities like famous sportsmen. Due to the success and effectiveness of these promotions. promotion. Now the company has introduced low priced cars. singers and top fashion models. US Dollar. The Participation of Mercedes GP Petronas F1 Team in Formula 1 races also give wide television coverage to the brand. The company follows federal and state fair employment laws under that prohibit harassment and protect employees against discrimination on the basis of race. is involved and a lot of banks are partners of Mercedes-Benz. be they Japanese or European made. it affects the economic growth rate of the company as compare with other car companies. On the other hand. in the market. Economic factors It affects the purchasing power of the potential customers and firm¼Œs cost of capital. Owning a Mercedes-Benz is synonymous with being rich and successful. pregnancy. even a 5 year old kid knows that the 3-point star Mercedes-Benz logo represents quality and high class. marital status. sex. The immense size of its operations and its global presence also means that it also contribute significant amount to the various government in taxes and duties. The company also contributes a lot to the local economy through local out-sourcing of materials and parts. As there are many competitors. and disability in regards to selection.Africa and many more. Although most brands of cars. Euro. Mercedes-Benz has successfully promoted itself to be the best car. color. Its factories employ ten of thousands of people to make cars and distribute them globally. providing banking services including loans and foreign currencies support.

Conclusion in this case is the styling of the Mercedes-Benz is its most distinctive feature. American and Japanese cars. General Motors and Ford from the United States and Toyota and Honda from Japan. To realize the Mercedes-Benz bionic cars. become outdated within a couple of years after their introduction. and is more enduring than the styles of other cars. Moreover. In recent years. The company spent huge sum of monies on research to come up with a better car to meet customers demand. with the latest design and technology to increase sales. and its engines are stronger in 10 .show much interest in Mercedes cars as they think that these cars made for mature people and have old look. Companies keep introducing new models. but Mercedes styling remains consistent and attractive. Research & Development department of the company is quiet efficient and work continuously to meet the customers¶ demands. Hence. The company has shows the concept of bionic cars that uses a diesel engine that produces more than 120-horsepower and uses selective catalytic reduction (SCR) technology to reduce fuel consumption. the engineers at the Mercedes-Benz Technology centre have the first time looked for a specific example in nature which not only approximates to the idea of an aerodynamic. Mercedes was a pioneer of diesel technology. A lot of computer technologies have also been introduced to improve performance and safety. for example. a lot of monies have been spent to develop new engines to meet low pollutant emissions regulations introduced by governments. The interior styling of a Mercedes is particularly impressive. The Mercedes-Benz engine is almost as legendary as its styling. Technological factors Technological there are many large and well established automobile manufacturers in the world including. Its richly padded seats and dashboard and its precision instrumentation give drivers a feeling of security and luxury. the automobile industry is very competitive. Mercedes-Benz places driver and passenger comfort high on its list of priorities. taste and to be ahead of their competitors. many countries also have car manufacturing capabilities through their own development or through technology transfers from the established manufacturers. BMW and Audi from Germany. comfortable and environmentally compatible car. to name a few.

After a few years. Advantages 120 years old brand name. Because you are paying a lot but you takes all the best for this price. Conclusion Mercedes Benz is a strong brand name. Factories all over the world with a lot of dialers. modern technology and luxury cars. Or Jaguar is more luxury than Mercedes and they have the same prices. This make is famous all over the world and every year it becomes more and better. such as: BMW. Every year their team participates in the ³formula 1´ and takes good places. has a nice design a lot of modern technologies and has a powerful engine. 11 . Nowadays costumers wants to have and drive car which is well known in the world famous. But if you have money for Mercedes you take a test drive and tell after this:-´ no thanks ³and after this you will buy for example Deawoo a lot of people will tell that you are ³kamikaze´. So the biggest problem for Mercedes is the price for their cars. the Mercedes reveals another advantage that confirms its outstanding reputation. Jaguar. Disadvantages A lot of competitors. Mercedes is famous for its comfort. Audi. Good quality of cars. Of course Mercedes is not a cheap car but when you sit on its seat you feel all the power of its brand name.horsepower and last longer than those in other types of cars. For example the price for BMW is lower and the engine is more powerful.

com www.google.formula1.htm http://scholar.mercedes-gp.References: www.uk/catalog/tesco/pestle-analysis.com/scholar?q=swot+and+pest+analysis+academic+article&h l=en&as_sdt=0&as_vis=1&oi=scholart www.com www.com/teams_and_drivers/teams/5/ 12 .321books.mercedes-benz.co.

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