Mercedes-Benz Part - Lecture notes 12 PDF

Preview

Summary

The UN Global Compact, launched in 2000, is a United Nations initiative to encourage businesses worldwide to adopt sustainable socially responsible policies and to report in their implementation. The UN Global Compact is a principle-based framework for businesses stating ten principles in the areas ...

Description

Table of Contents

List of Tables.............................................................................................................................2 List of Figures............................................................................................................................3 History......................................................................................................................................4 Analyze.....................................................................................................................................7 Future of Vehicles Production.................................................................................................11 Vehicles Production Today......................................................................................................12 Our Strategies.........................................................................................................................12 Overview:............................................................................................................................12 Strategic areas of growth........................................................................................................14 Financial Reports....................................................................................................................19 Final Analysis..........................................................................................................................21 SWOT Analysis........................................................................................................................21 Recommendation...................................................................................................................23 References:.............................................................................................................................24

1 | Pa ge

List of Tables Table 1: Table show the global production of motor vehicles between 1997 and 2014...........8 Table 2: Show the 10 largest manufacturers by production in 2015.......................................10 Table 3: showing the number of sales in thousands in 2015..................................................17

2 | Pa ge

List of Figures Figure 1: Showing the motor vehicle production in different countries....................................8 Figure 2: Showing how the vehicle production affected through the years..............................9 Figure 3: Showing how the vehicles exports divided between countries. Source: Harvard Atlas of Economic Complexity.........................................................................................................10 Figure 5: Showing the financial statement of 2015 and comparing it with 2014....................20 Figure 4: Consolidating Income Statement showing the percentage change in revenue and net profit between 2013 and 2014.........................................................................................20

3 | Pa ge

The automotive industry is one of the largest industries worldwide in these days, and it’s contain a wide range of companies and organizations involved in designing, development, manufacturing, marketing, and selling of different models and sizes of motor vehicles. “The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. This term was proposed by SAE member Elmer Sperry”. The automotive industry does not include industries dedicated to the maintenance of automobiles such as automobile repair shops, and fuel stations. In addition, it’s one of the most important sectors in the worldwide economic by revenues.

History “Starting of the advanced 1700's, European engineers commenced tinkering along propeller powered vehicles. Steam, combustion, yet electric motors had whole been attempted by the mid 1800's. By the 1900's, it used to be unsure who type regarding apparatus would rule the automobile. At first, the electric vehicle was once the most popular, but at the day a battery did not live as would enable a auto in imitation of motion with a whole lot pace and upstairs a long distance. Even although partial over the before speed information have been set by using electric cars, they did no longer continue to be in manufacturing past the first decennial regarding the twentieth century. The steam-driven vehicle lasted of 1920's. However, the worth regarding dampness powered engines, both in conformity with build and maintain was once queer to the gasoline powered engines. Not solely was the value a problem; however the hazard regarding a boiler detonation additionally kept the damp instrument beyond becoming popular. The combustion instrument continuously strike outdoors the competition, or the shortly United States of America automobile pioneers kind of Ransom E. Olds and Henry Ford wrought reliable combustion engines, rejecting the ideas regarding air and electrified control beside the start. Automotive production concerning a commercial association started out within France within 1890. Commercial manufacturing in the United States began at the beginning on the 1900's and used to be even according to up to expectation about Europe's. In these days, the European industry consisted of younger independent 4 | Pa ge

companies so would turn out a little vehicles by using ability about particular engineering or handicraft methods. The American car plants were meeting row operations, which intended the usage of components done via unbiased suppliers or placing them together at the plant. In the promptly 1900's, the United States had touching 2,000 firms producing certain yet more cars. By 1920 the variety about corporations had reduced in imitation of about 100 then by using 1929 after 44 In 1976 the Motor Vehicle Manufacturers Association had only eleven members. The equal scenario took place within Europe then Japan. The forward automobile evolved because the masses between the US was the threehorsepower, curved-dash Oldsmobile; 425 concerning them were bought among 1901 or 5,000 in 1904--this model is still prized via collectors. The strong prospered, and such used to be spoke of by others, and, from 1904 in accordance with 1908, 241 automobile-manufacturing companies went among enterprise of the United States. One concerning this used to be the Ford Motor Company who was once geared up within June 1903, then bought its forward car on the consequent July 23. The organization produced 1,700 cars throughout its preceding perfect 12 months regarding business. Henry Ford resulted from the Model T in imitation of stay an economical car because the average American. By 1920 Ford sold upstairs a bags of cars. At the beginning over the century the car entered the conduction market namely a toy because the rich. However, it grew to become increasingly more popular amongst the basic population due to the fact such gave travelers the comfort after travel so she wanted to then the place she wanted. As a result, within North American or Europe the car became cheaper or greater handy in accordance with the center class. This was once facilitated by using Henry Ford whoever did twins essential things. captain he priced his automobile in accordance with keep namely low cost as possible then second, that paid his employees enough in imitation of stand capable according to buy the automobiles those have been manufacturing. This helped go about stipend then self-income upward. The convenience regarding the car freed humans beside the want to stay close to rail traces then stations; that could select places nearly anywhere among an urban area, as much long as like roads had been available in imitation of connect to them after vile places. Many states of the US installed propeller fuel taxes

5 | Pa ge

that had been old only to build yet hold highways supporting the auto highway system grow to be self-supporting. Popularity on the automobile has consistently uplifted including the ruler about the economy, flourishing in the course of the boom period below World War I and losing abruptly during the Great Depression, now unemployment used to be high. World War II noticed a tremendous amplify in matter transition because job was excessive or automobiles were scarce. The fast growth about car proprietors below World War II, particularly into the United States yet Western Europe validated the population's want closer to automobiles. During the war, vehicle motors, fuel, and then tires have been into quick supply. There used to be an unhappy call so the struggle ended then plenty about production potential namely factories turned aloof the fighting machine. Many human beings had protected cash due to the fact in that place was small after buy, beyond necessities, into the struggle years. Workers relied closely over mass transportation throughout the hostilities or longed because of the freedom yet give over the automobile. A historian has pointed out so Henry Ford freed frequent human beings out of the boundaries concerning theirs geography. The car constructed dynamism regarding a range on no account acknowledged before, and the aggregate effect regarding dwelling habits yet conventional customs is endless. In the days about horse-drawn transportation, the sensible rule concerning panel travel was once ten in conformity with 15 miles, then to that amount meant someone community or single farm extra than 15 miles from a city, a railroad, then a navigable waterway was removed from the mainstream over monetary or social life. Motor automobiles or paved roads bear narrowed the hole of country yet urban life. Farmers perform ship without difficulty and economically by means of exchange or perform pressure according to town so that is convenient. In addition, certain establishments so provincial faculties yet hospitals are nowadays handy through bus or car. Yet, the effect over metropolis life has been, condition anything, more prominent than the effect regarding the farms. The automobile has completely modified city life with the aid of accelerating the apparent enlargement regarding population of the suburbs. The suburban trend is emphasized by means of the truth up to expectation motorway transport encourages business then enterprise in conformity with move form in 6 | Pa ge

imitation of web sites where region is cheaper, where get admission to by way of automobile yet exchange is easier than within thick cities, and where area is on hand because of their some yet twain story structures. Better roads were constructed, who in addition elevated travel in the course of the nation. As with lousy automobilerelated phenomena, the vogue is near substantive of the United States but is hastily performing some other place into the world. Before the automobile, human beings each lived of the city or labored in the city, then lived of the United States then worked over a farm. Because over the automobile, the boom over suburbs has allowed human beings in accordance with live on the vicinity over the metropolis or remain capable after assignment into the metropolis by commuting. New jobs fit according to the have an effect on over the car such as speedy food, city/highway construction, administration patrol/police, amenities stores, gas stations, auto restore shops, self-shops, etc. enable extra employ because of the world's developing population.

Analyze Year

Production

Change

1997

54,434,000

1998

52,987,000

-2.7%

1999

56,258,892

6.2%

2000

58,374,162

3.8%

2001

56,304,925

-3.5%

2002

58,994,318

4.8%

2003

60,663,225

2.8%

2004

64,496,220

6.3%

2005

66,482,439

3.1%

2006

69,222,975

4.1%

2007

73,266,061

5.8%

2008

70,520,493

-3.7%

2009

61,791,868

-12.4%

7 | Pa ge

2010

77,857,705

26.0%

2011

79,989,155

3.1%

2012

84,141,209

5.3%

2013

87,300,115

3.7%

2014 89,747,430 2.6% Table 1: Table show the global production of motor vehicles between 1997 an d 2014

In the next paragraph we will show some graphs and statistics show the vehicles production through the years and how they affected by the global crisis and worldwide decisions taken by some large countries.

Figure 1: Showing the motor vehicle production in different countries

8 | Pa ge

In the figure above, we show the production of cars since 1950 till 2010 between many countries, and show how the production process affected by many crisis through that period, like the post war prepared in the 1960’s, Oil crisis and tighter safety and emission regulation in the 1970’s when the whole world affected by the energy power crisis, also when production started in NICs at the beginning of the 1990’s, and rise of China as top produce at the beginning of 2000’s, and the automotive industry crisis between the 2008 and 2010 in parallel with the economic crisis that affect almost the whole world. In the next figure, we show how the vehicle production affected by many situations that the world passes through it in the past 6 decades , starting it in the 1950’s when USA had produced more than 80% of motor vehicles and when UK, Germany and France restarted production. Next in the middle of 1960’s when Japan started production and increased volume through the 1980s. US, Japan, Germany, France and UK produced about 80% of motor vehicles through the 1980s. In addition, in the beginning of 1990s; when Korea became a volume producer. “In 2004, Korea became No. 5 passing France.” Passing by the 2000’s; China increased its production drastically, and 2009 became the world largest producing country. At the end, in 2013; the share of China became (25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA (12.7%), Japan, Germany, France and UK fell to 34%.

Figure 2: Showing how the vehicle production affected through the years

Overall, we can see that after all what happening in the world from economic crisis and worldwide wars, the vehicle production didn’t affected totally and it’s just affected in a small percentage as we seen in the table 1 above. Today the vehicle productions totally differ from its beginning and we can see in the two graphs below how the production and export of vehicles divided worldwide between the countries.

Figure 3: Showing how the vehicles exports divided between countries. Source: Harvard Atlas of Economic Complexity As production, the list differ from the one of exports, and in the table below we will show who are the largest manufacturers of vehicles in the world and in which countries they are available.

Table 2: Show the 10 largest manufacturers by production in 2015 10 | Pa ge

Rank

Group

Country

Vehicles

1

Toyota

Japan

10,083,831

2

Volkswagen

Germany

9,872,424

3

Hyundai

South Korea

7,988,479

4

General Motors

United States

7,485,587

5

Ford

United States

6,396,369

6

Nissan

Japan

5,170,074

7

Fiat Chrysler Automobiles

Italy/

8

Honda

Japan

4,543,838

9

Suzuki

Japan

3,034,081

10

Renault

France

3,032,652

United States 4,865,233

Future of Vehicles Production Now, and after what we see from the history of motor vehicles, they started with electric motors but due to lack of the technologies in that time they go to a substitute item, the combustion technology using the fuel or petroleum products. But nowadays, we see that the new technology help them in creating a long life-time electric motors and better than before, so we can see that in the next three years and with new innovations and technology entering the vehicle production industry, the new generation of cars will be exactly like the one they tried to create from almost 3 centuries the “electric car”. In addition we don’t have to forget the new Hyper-loop 11 | Pa ge

technology, in which will create a whole new world of transportation between cities, so the high-speed trains, and electric cars will be the next generation of the transport sectors, who will lead to a decrease in the production of our today cars.

Vehicles Production Today Today, and as we see in the above paragraph, Germany have the biggest share of the cars production and export, and in our project we choose two competitors using two different strategies and ways of production, we choose Mercedes-Benz, and BMW. Because the other team will talk about BMW we choose to define Mercedes-Benz, and show up their strategies, SWOT analysis, and show how their current strategies implemented in the market and display in numbers if these strategies work and attain its target. Mercedes-Benz is a global automobile manufacturer and a division of Daimler AG. Daimler AG is a German multinational corporation, headquartered in Stuttgart, Baden-Wurttemberg. Daimler owns and has shares in a many cars, trucks, buses, and motorcycle brands including Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, Smart Automobile, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta, in addition to shares in Denza, KAMAZ, Beijing Automotive Group. Also, Mercedes-Benz known for luxury vehicles, buses, coaches, and trucks. As we said above, Mercedes-Benz is a division or part of the Daimler group, so for the strategies and objectives they are set by Daimler, so we will talk about the strategies set for Mercedes-Benz by Daimler.

Our Strategies Overview:

e

“As the inventor of the automobile, we believe it is our mission and our duty to shape the future of mobility in a safe and sustainable manner - with trendsetting technologies, outstanding products and made-to-measure services.” That’s what Daimler said about the objectives and mission of Mercedes-Benz in their overview, and from that overview we can conclude how much they appreciate their work and customer, and how artist they are in creating a new world of transportation. As strategic objective; they are striving to be the number one or the leader of their business industry, also they trying to achieve sustainable and profitable growth in order to increase the value of their group. We will show below their objectives in the same order they put it on their business plan, and we put it as we take it with the permission of Daimler AG news and customer service online team. 1. Leadership in technology and innovation “We set standards in the areas of technology and innovation – from green technologies to autonomously driving passenger cars and commercial vehicles. Here, we utilize the potential generated by our cross-divisional research activities and use shared systems and solutions if possible. With respect to the use of digital technologies, we want to lead the industry with our products as well as in our contacts with customers.” 2. Delighted customers “We create value for our customers with leading brands in all divisions. We aim to finish at the top of all relevant customer satisfaction rankings and to continuously convince customers with the ou...