Vasty Owusu
Organization
Identify a strategy statement for an
organization (Use Figure 1.2 (p. 6 of the Book)
as a guide. You may use annual report or
website of organization.)
Analyze how does a strategy statement
correspond to organization’s performance (4-5
sentences)
Mercedes-Benz Group
Strategy is a combined and structured/pre-
planned plan of action designed to maximize core
competencies and gain a competitive advantage.
Horizon 1. Leading in technology and
innovation which is from green technologies to
autonomously driving passenger cars and
commercial vehicles.
Horizon 2. Focus on developing and
expanding their current market and their
product line by launching over 30 passengers
cars model, making partnership with institution
with global needs and differentiating
international business.
Horizon 3. Revenue growth from investment ,
owning the customer relationship and
leveraging our car parc and customer base
(Embrace customers and Grow recurrent
revenues), optimized organizational structure.
Strategic direction. To enable a seamlessly
integrated customer experience, strengthen our
core, driving ahead with digitalization and so on.
always focus on powers, giving more
horsepower, with higher torque, and best
performance in high-speeds. In order to
achieve these points, they work on lighter body
for the car, and using light weight parts who
will lead automatically on losing some of the
car luxury.
With its refocused approach, the new
Mercedes-Benz strategy should deliver an
improvement in commercial performance
via better mix and pricing, an improved

Map key issues for an organization relating to
strategic position, strategic choices and
strategy in action (Use the Exploring Strategy
Framework of Figure 1.3 (p. 12 of the Book),
7-8 sentences).
product portfolio and growth in recurrent
revenues. These developments, when
combined with the substantial actions on
costs and industrial footprint, should drive
a structurally higher level of profitability. By
2025, Mercedes-Benz AG is aiming for a
return on sales (RoS) level within a mid to
high single-digit range, even under
unfavorable market conditions. The
company's ambition is to achieve a
double-digit margin in a strong market
environment.
"We are set for profitable growth.
Additionally we have initiated
comprehensive measures to bring down
the breakeven point in order to right-size
our company and our operations. All
measures together are designed to make
our business weatherproof, address the
challenges of the transformation and lead
to solid profitability levels even in rough
weather, with significant upside in
favorable market conditions
Strategic position. One of the important
factors influencing Mercedes-Benz group
competitive advantage is Mercedes Benz has
adopted a positioning strategy as a
manufacturer of highly reliable and safe
automobiles, resulting in a price premium
relative to similar international competitors.
Today a Mercedes Benz offers exclusive new
breakthroughs to help make an accident less
severe, less damaging, or even less likely. Due
to their heritage, they’re engineered to protect
you in ways you might ever have imagined. 'A
replacement for the Horse', this is the slogan
Carl Benz used for advertisement of his 1886
Patent Motor Car.  Mercedes-Benz's
slogan is 'The best or nothing'. Mercedes Benz
must continue to protect their valuable
trademark and reputation. They must make
consumers feel that the products they use are
worth it.  The consumers should be able to sort
their specialty and unique innovative ideas.
Otherwise, they may lose the company’s
reputation.
Strategic choice. Mercedes-Benz decided to
focus on the profitable growth in the luxury
segment and target leadership in electric drive
and car software. Because in the recent year
they have done many thing right: design,
product engineering, brand rejuvenation and
sales growth. They are unlocking the full
potential of unique sub-brands-AMG,
Maybach, G and EQ. Mainly to avoid non-core
activities to focus on winning where it matters.
Strategy in action. Mercedes-BeCreating new
ways to deliver all their available products and
services to the whole markets. Availability of a
service just in the European or American
market will drive the Asian customer to start
finding another car fully available in their
region.
Working more on the hybrid cars. Because of
the increasing of the fuel price worldwide, also
the difference in prices between Mercedes-
Benz cars and any other cars manufacturers,

Carry out a PESTEL analysis and identify key
opportunities and threats (Use Illustration 2.1
(p. 33 of the Book) as a model (7-8
sentences)).
they have to find a new way to keep on their
customers and attract new ones, maybe by
making cars with lower fuel consumptions to
encourage the customers to buy Mercedes-
Benz cars.
Political Factors:
Mercedes Benz is the world’s most
popular luxury automobile brand. The
clearance of vehicles can develop in
twofold digits if legislative issues and the
economy permit. It isn't recognized what's
going on politically, yet that is a significant
weight that could keep India from
developing. The second is most likely the
interest in foundation. In the event that
interest in framework isn't immediately
done right. The sum contributed would
hamper development, which is the
situation in any event, for Mercedes Benz.
The laws that the nation completes,
particularly with respect to business, for
example, contract law, as they administer
what Benz is and isn't permitted to do.
Economic Factors:
The extravagance portion did more awful than
rest of the nation which is regularly strange in
India as it ordinarily beats the market. This
year started with negligible decrease in deals,
anyway the second quarter from April to June
saw the most exceedingly awful drop with
deals falling in excess of 30 percent from 6500
to 7000 units. In light of the equivalent,
Mercedes Benz a week ago detailed a 18
percent decrease in deals for the primary
portion of 2019 accusing large scale monetary
head twists, for example, high financing costs
rising import costs and a liquidity crunch that
has influenced the car credit advertise. At a
normal of 35000-40000 units over the most
recent three years or about 1.17% of the
general traveller vehicle showcase the
extravagance car market is the littlest among
the enormous economies. It is to be noticed
that India houses in excess of 350000 moguls.
Significant industry players recommend that
the business is taking a gander at its greatest
decrease in 10 years. A couple of them are
likewise stressed over the effect of India's work
day from Bharat arrange 4 emanation stanoto
BS-VI as the expanded expense related with
innovation change could dishearten more
purchasers.
Social Factors:
Mercedes Benz consistently attempts to
underscore on nearby issues where
networks are profited and supportability
can be rendered. Their key thought
processes are to improve nature of
training, give infrastructural offices, give
more advantageous lives to the
underestimated individuals and encourage
the nearby network with perfect and safe
drinking water frameworks. Despite the
fact that brand mindfulness is no test for
Mercedes Benz, separation is a ultra-
focused market which is helping it convey
a condition of craftsmanship driving
background. The German vehicle creators
Luxe Drive is an a valid example. An
exceptional client commitment activity, it
depends on adrenaline, gourmet and
music where brand spoils clients by giving
them a chance to enjoy sumptuous
experience. The occasion, held in urban
communities which might not have an
immediate business nearness furnishes
members an all encompassing brand
involvement with supporters getting a
chance to drive the scope of Mercedes
Benz vehicles on extraordinarily structured
tracks. While expert dashing driver exhibit
the brand's innovative ability and
extravagance remainder, playful music
sessions and luxurious joys from
prestigious culinary experts wow more
than taste buds. Organization's Brand Tour
activity is another offering planned for
arriving at potential purchasers who have
not gotten an opportunity to encounter
Mercedes Benz because of
nonappearance of a showroom in their
city. Others are dispatch of Mercedes
Benz circle Elite and Service on Wheels.

Technological Factors:
As the car space experiences huge
disturbances conventional vehicle creators
are constrained to keep pace with
changing client desires. Indeed, even a
brand related with extravagance and
quality like Mercedes Benz needs to
accomplish more to remain in front of
rivalry and this is the place test
showcasing is assuming a key job. The
organization adage gives a case of their
way to deal with promoting extravagance
vehicles-win big or bust. Obviously,
Mercedes Benz is perceived as the best in
advancement execution, structure, security
and ecological needs.
The association has set the standard in
development innovation that has helped it
arrive at the present achievement which is
clear today.

Legal Factors:
In wake of vulnerability over the eventual
fate of fuel after Supreme Court restricted
enlistment of new diesel vehicles in
National capital district in December 2015
and the NGT hearing an appeal to make
comparable move in 11 significant
metropolitan urban communities the nation
over, Mercedes Benz tended to that for
long haul they need to return to diesel to
address contamination concern. At the BS-
VI level particulate outflow in petroleum
 and diesel are comparative yet CO2
discharge in oil is higher. Given the
responsibility India has made in Paris
diesel innovation is the path forward to
display an answer for this issue.

Environmental Factors:
Securing nature is an essential corporate
goal of Mercedes Benz gathering.
Condition insurance isn't separate from
different goals at Daimler. Rather it is a
necessary segment of a corporate
procedure went for long haul esteem
creation. In the coming occasions, any
power source might be costly because of
its inaccessibility on account of the
changing natural factors, occasionally it
gets support from the association similarly
as from its client base, which might be
happy to pay a predominant cost for the
things that Mercedes Benz conveys.
To conclude, the above Mercedes Benz
PESTLE Analysis highlights the various
elements which impact its business
performance. This understanding helps to
evaluate the criticality of external business
factors for any brand.

1.

Recommendation

 Trying to make cheaper maintenance parts, because customers don’t just look over the
product but also want an acceptable after sales maintenances cost. If they find a substitute
product that satisfy their needs with cheaper maintenances cost will absolutely replace it.