Corporate the same quality; the customer service is the

Corporate
culture is how a company, in this scenario Mercedes Benz, employs and handles
its business transactions. Cooperation culture refers to the management of
employees, the turnover of the business, employee benefits, and treatment of
clients.

The internal
impact of Mercedes – Benz would include its corporative culture and its
corporative social responsibility and ethics. The corporative culture of
Mercedes – Benz would include the internal values the company promotes. This
can be from the standards they set for their cars that they manufacture, all
the way to how they treat their clients. An example would be that, Mercedes has
extremely high standards for every car that they produce; this means that for
every car they manufacture, they have to be perfect. If there is the smallest
default, they will not allow it to pass through to their clients they will make
sure it is fixed and has no defaults.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Another
example would be there treatment towards their clients. Mercedes Benz is one of
the most respected car companies. This explains why it is crucial that they
have extremely high customer service. They have proven this time and time
again, they don’t just produce high quality cars, they also have amazing
customer service, and this is part of their cooperative culture which aligns
with their internal values. They make sure they have excellent customer service
where ever the company goes, in all the countries that the company operates the
cars keep the same quality; the customer service is the same. The company puts
high value on consistency.

Mercedes
Benz is very innovative, they are always coming up with new ideas for their
cars and how to grow there company. They take great care of their employees,
they value there employees highly as they are crucial to the company’s success.
They motivate there employees to continue to be creative and innovate.
Employees are rewarded well for their work. Mercedes Benz has very high
internal values.

Another part
of the internal environment of Mercedes Benz is the corporative social
responsibility and there ethics. This relates to what the company does
socially. Recently in 2015, Mercedes Benz teamed up with the Laureus Sport for
Good Foundation in China. Their goal is to improve the lives of disadvantaged
children and young people in China through joint sport projects.

Mercedes
Benz is involved in a lot of ethics. 
They take part in many charity evens they help many people around the
world. Recently in 2015, they put their focus on the Westside of Atlanta in the
United States. Reason being that the Westside of Atlanta has many small
deprived cities, so they decided to step in with their partner, Laureus sport
for good to utilize the power of sports to be able to provide safe afterschool
options to young children and to also be able to motivate young children to
stay within the educational structure.

 

External

The external
environment of Mercedes Benz would include a pest analysis. An analysis on the
political, environmental, social and technological effects on the organisation.
The pest analysis will be used to assess the external factors affecting the
organisation, which in this case is Mercedes Benz.

 

 

 

 

 

Political:

Why
Political will affect Mercedes Benz? Every country that Mercedes imports a car
to, they must pay import tax to the country. This is required by the
government. After the the tax is paid, the effect this will have on Mercedes
bens as a company is that there cars will be more expensive which means less
people will be able to afford their cars which will lead to a decrease in
sales. This is how politics can affect the organisation.  This is a threat to the imported car
industry. Another political factor would be government subsidies. This can
affect the car industry.  An example
would be Malaysia. Malaysia is ranked at number 23 as the crude oil exporting
country. Reason being is that the government subsidizes on crude oil from the
revenue of the PETRONAS, so this ranks Malaysia as number 16 in the world for
the cheapest crude oil. Crude oil and automobiles are complement, which means
Malaysia is not a big burned to own a car. This is great of automobile
manufactures like Mercedes Benz because it means they can target that market
with a good chance of success because owning a car in Malaysia is easy because
the expenditure is not very high.

Economic:

The economic
factors would directly affect the sales of the cars. For example exchange
rates. The exchange rate between euro and dollar, the euro is a stronger
currency which means selling the automobile in Europe would be more expensive
rather than selling it in the states. This can be a benefit to Mercedes Benz
when they are importing their cars intro the us, it means there costs will be
lower which means they can charge a better price for their automobiles which
will lead to more sales. Another factor that would affect the organisation
would be the economic growth of the United States. The USA is a very rich country
and its economy continues to grow. This is a huge benefit to the organisation,
this means that people have more money and are able to spend more. The GDP of
the USA has increased by 3% in the last third quarter of 2017. This shows a
strong growing economy. This will benefit Mercedes Benz because there company
will make more sales as a result of this.

Another
economic factor that would affect Mercedes Benz would be inflation. Inflation
is when prices of products rise. In the United States alone, inflation has not
gone up much, it rose by 1% from 2013 to 2016 but right now it remains at
1.28%. This means that the average American family will have money left over
after their monthly expenses, which would give them the freedom to purchase a
car. However, if inflation was to rise, they would have less money left over
which would not allow them to purchase a new car. This would negatively impact
Mercedes Benz because they would see a decrease in the sales of their cars.

 

Social:

The next
section of the pest analysis is social. Social relates to the growth of the
population and day to day life that people take part in. All these factors can
have a positive or negative effect on Mercedes Benz as an organisation.

A social
element that can have a huge impact on Mercedes Benz is the population. If the
population increases then this will have a good impact on Mercedes Benz,
because more population means there will be more people purchasing cars from
Mercedes Benz which will have a positive impact on Mercedes Benz.

Another
social factor that has a large impact on Mercedes Benz is income levels.
Different people have different incomes. There are people with a low income,
moderate income and a high income.

People with
a high income are able to buy a luxury car. Mercedes Benz know this and are
able to market their cars to high income individuals because they know that
they will buy them and these individuals will most likely buy the more
expensive models, so in returns this makes for good business for Mercedes Benz
because it allows that to make healthy profit and keep the organisation running
successfully.

On the other
hand, there are people with low incomes. Most of the time these people are not
able to afford a car like a Mercedes Benz, so Mercedes knows not to market its
cars to them because they not that they cannot make sales from these people.
Also, Mercedes would not open up a branch in an area where the majority of
people are on a low income. Because they would lose money and would not be able
to profit in a low income area.

On the other
hand, you have people with a moderate income. In the UK, the average income is
£47,000 per year. Mercedes Benz have cars that range in the prices from £20,000
to £100,000.

People with
an average income are able to purchase a Mercedes Benz because there are a lot
of options to do so. In most cases where the owner, a person with an average
income, would in most cases not be able to buy a Mercedes Benz in cash. Because
they have many expenses to pay for and most of the time do not have enough left
over to buy a Mercedes in cash. However, you have many finance options.
Mercedes Benz make it very affordable for the average class to afford one of
their luxury cars. An example, a brand new Mercedes Benz C-Class can be
financed for only £400 per month. This makes it very affordable for the middle
class to purchase a luxury car. However, there is a catch, this is normally
over a set period of time. By the time the the buyer has paid for the whole
car, it will actually be more expensive than if there were to just buy the car
cash. This is how Mercedes Benz makes a profit and benefits from the middle
class because they can actually charge more for their cars over a long period
of time.

Another
social element that can have a huge impact on Mercedes Benz is social change. A
big factor effecting many car manufactures today, not just Mercedes Benz. The
world today is going ‘greener’ because the world is trying to bring emissions
down to prevent our air from getting polluted. A massive factor effecting this
is the pollution caused from cars. So now there is pressure on car manufactures
to make cars that produces less emission or are electric. If they cannot do
this and keep up with the social change, then they risk going out of business
because they will still be contributing to the pollution which will be going
against people’s morals which is to reduce pollution and emissions. Mercedes
have already brought out an electronic range. So they have already adapted to
the market and social change. This benefits them hugely because this is a huge
factor affecting the company and they have made changes accordingly to allow
them to continue to run successfully.

 

Another
external social factor effecting Mercedes Benz is People’s attitudes to saving.
A good example of this would be Brexit. This is where the UK will be leaving
the European Union. This can have a huge effect on people’s attitudes to saving.

If people
think that Brexit is going to cause the economy to crash, then more people will
want to save their money rather than purchase a new car, in this case from
Mercedes Benz. Many people would much rather save their money rather than
purchase a car from Mercedes because a car depreciates in value, so people will
actually lose money after purchasing a new car because the value of the car
instantly drops. So not only will people be saving their money, they also won’t
be tempted to invest in a car that will lose value. So this can largely impact
Mercedes because it can cause Mercedes to have a drop in sales because of
people saving rather than spending.

On the other
hand, the opposite is also true. Peoples social attitudes to spending. If
people think the economy is going to stay stable or improve, then people will
be less cautious and will be more willing to spend their money which is good
for companies and the economy. More money circuiting helps everyone benefit. If
people think there will be more jobs, then they will be more willing to spend
their money. This benefits Mercedes as organisations because if people are
willing to spend more money, then they will benefit because Mercedes will make
sales and continue to run successfully.

People’s
social attitudes to debt can also have an impact on Mercedes. If people believe
that debt is bad, then people will not borrow and this will affect Mercedes
because people will then not have money to buy their cars. However is people
think debt is good, then people will be willing to borrow money and this will
positively affect recedes because then people will have money to buy their
cars.

Another
factor affecting Mercedes as an organisation is social responsibility. More and
more people are starting to donate to charities. More people are starting to
take more care for their environment and the world. An example would be
electric cars. People want electric cars because it helps the environment and
does not cause pollution, so if Mercedes does not produce electric cars then
this will show they do not care about the environment and rather are only
interested in profits, so this will cause people to not want to purchase cars
from them.

Social
demographic trends also influence businesses such as Mercedes Benz. Income
Levels can be a huge factor effecting Mercedes. Different people have different
income levels. People with a higher income have more of a disposable income,
those this allows them to have the freedom to purchase a car. This is good for
an organisation like Mercedes because it means people will have money to buy
their products. However Mercedes charge a premium for their cars so a lot of
their cars are marketing to individuals with higher income.

Another
social factor that can influence Mercedes Bens as an organisation is Consumers
tastes.  What product that is popular
today can die out tomorrow. Mercedes Benz has to make sure it keeps up with its
consumers taste to keep their customers satisfied so they can continue to
successfully do business. 5 years ago, many of the Mercedes models are no
longer in high demand or being produced. The reason for this is that consumer
preferences have changed. People want a more aggressive looking car, a car with
more prestige and luxury. If Mercedes were not to keep up with this want of
their customers, then they would lose business. However, Mercedes understood
how crucial this can be to their success, so now they product some of the most
luxurious and prestige’s cars on the market to keep their customers very happy.

Technological:

Technology
in today’s world plays a huge role in any business, not just Mercedes Benz.
Mercedes relies a lot on its technology. Mercedes use the internet to automate
a lot of their business. They have a website where customers can go to view the
cars they have, customers can view their prices, customers can find out more
about the company and even get in contact with them. This saves a lot of time
and helps keep customers satisfied.

Mercedes
Benz has a lot of their cars built mostly with machines. This helps with the
automation of the business and it ensures the highest quality each time because
a machine is doing the job, it also helps with replacing employees with
machines because then Mercedes can keep their costs and expenditures down. The
internet is growing with more and more people using it each day, so it is very
crucial that Mercedes stays online in order to be successful. The internet
ultimately is a great way for Mercedes to connect with their customers all
around the world to answer any questions they may have. The internet is a huge
benefit to Mercedes.

Another
technological factor influencing Mercedes Benz is Improved Communications. This
involves how a company, like Mercedes can speak to its customers, employees
from all around the world. For example, if Mercedes needs to contact a supplier
from the other side of the world, they can do so very easily with a simple
email or even use apps like skype which allows them to call them for free. This
has a huge influence on the company because it allows the company to run more
effectively and helps boost the productivity of the company.

Environmental:

Environmental
factors are all the external factors that have an effect on business. In this
case, Mercedes Benz.

There are
huge concerns for any businesses that is polluting and damaging the worlds
environment. Environmental activists are becoming more aggressive. Mercedes has
to make sure they manufacture cars that produce low CO2 emissions because many
people today consider this to be crucial before purchasing a car because more
and more people are caring more about their environment so they might only
purchase cars from a company that produces low CO2. Mercedes in this case, has
done an excellent job at adapting to this change because they have cars that
produce low CO2 emissions and they also have electric cars that don’t produce
any CO2 emissions.

Another
environmental factor affecting business is pollution. People are caring a lot about
their environment today than they ever were. People are trying to prevent their
towns from becoming more polluted. A lot of pollution is caused by cars. So Mercedes
has adapted to this by product low co2 emissions cars and electric cars which
massively decreases the amount of co2 emission their cars product which means
less pollution. This is good for Mercedes because it shows they care about the environment,
so this will keep customers happy and will ensure that they continue to run as
a successful car company.

Competitive
Environment:

The car
industry is a very competitive industry. There are many tough and aggressive players
within the industry that are constantly improving each day to get an edge and
beat the competition.

For Mercedes
Benz, local national & international competition is very high. An example
would be BMW, a big rival competitor. Where there is a Mercedes dealership,
close by there is also a BMW dealership. They not only compete locally but nationally
and internationally.  Mercedes Benz is
constantly competing with BMW to ty and get an edge.

Factors Influencing
Competitive Advantage:

Mercedes
Benz has created an outstanding name for itself. It is seen as a leader in the
industry for luxury motor vehicles. Mercedes Benz carry the most innovative and
mechanically engineered vehicles. There outstanding innovation is what makes them
stand out from there competitors. The main competitive advantage that Mercedes
has is its state of the art 4MATIC system. It is a unique 4-wheel drive system
that does a lot more than giving the driver increased traction. There is not a
car manufacturer in the world that has been able to replicate this which is
what gives Mercedes the massive competitive advantage.

Mercedes
Benz is a leader in the industry for auto mobiles. It has created such a strong
branded it is trust by millions of customers worldwide. They are one of the
main market leaders for luxury auto mobiles. Mercedes currently holds a 5.7%
market share within the EU alone.

Mercedes
Benz also have a completive advantage with their customer service, they are
known for having great communications with their customers. They pride
themselves in proving the upmost support and comfort for their customers to
ensure trust in their company.  

Mercedes
Benz does a very good job at cost control. They keep their costs down to be
able to charge a competitive price for their cars to keep customers happy and
to ensure more business.

 

Maintaining Competitive
Advantage:

Establishing
a competitive advantage is key to running a successful business and keeping a
business profitable. Mercedes have done this amazingly with their amazing 4matic
system and their amazing design and innovation.

Maintaining
a completive advantage is what allows a company to continue to success and stay
ahead of its competitors. Mercedes has done this beautifully because still to
this date no other competitor has been able to replicate there 4matic system.

It is
crucial to Mercedes that they maintain their competitive advantage because
there is so much competition that without a competitive advantage, it would be
near impossible for them to succeed. Mercedes continues to provide their
customers with the best value for price luxury motor vehicles, this satisfies
demand and keeps them ahead of the competition.

Situational
Analysis:

A
situational analysis includes a Swot analysis of Mercedes Benz:

The first
part of swot is strength. Mercedes has many different strengths. One of their
main strengths, is that they provide the upmost luxury and every car that they
product at the best price.  Mercedes is a
well-established brand and are part of the bestselling luxury automobiles in
the world.  Another strength is that they
have manufacturing facilities all over the world.