Internal Environment

1 January 2017

The next one is the Human Resources, it’s primary aim to find, recruit and retain diverse and highly qualified workforce. IT department organizes and maintains the internal network infrastructure to support the collaborative processes, which are quick, efficient, and secure in the Mercedes-Benz. The legal one department is the General Counsel, which deals with all legal processes, such as obligations, rights and privileges. Marketing department mostly focuses its efforts on different promotional activities aimed to strengthen brand and product image.

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Promotional activities include some lifestyle events, , internet marketing , product placement, relationship marketing, and advertising. Marketing also develops the programs for product development and applies targeted marketing strategies. Sales department’s function primarily supports the dealer network with new and certified pre-owned sales. Additionally, the corporate sales group handles fleet sales. Now let’s focus on the last one but not the least, department of Finance. It’s responsible for effective and efficient management of the resources, managing and mitigates risks, control costs.

Corporate Culture. Mercedes-Benz tries to build honest and opened working environment. For achieving this goal they implemented the open layout of the workspaces, introduced the informal breakfast sessions with the company president, and in general we can conclude that the accessibility and sentiment of approachability is felt throughout the entire organization. Also the employees are empowered to make decisions, so they are by working with one another solving problems together and achieving new goals. The company pays significant attention to the professional development opportunities to expand skills.

They conduct quite often lunch and learn sessions that cover a range of topics from new technology implementation to savvy business tools. Also, internal mentoring program exists in the organization. The idea is that senior level employees provide guidance and assistance for newcomers. So, between big product launches, and the occasional picnic to foster a sense of community in the company, Mercedes-Benz organizes for the employees special events, such as product launches parties, promotional movie, sporting events and holiday parties.

To encourage the enthusiasm and hard-work best employees are recognized and rewarded for their efforts. Another way motivate employees, which Mercedes-Benz actively uses, is through the great benefits package: the offer top medical benefits, flexible working schedules, competitive salary offers and an attractive vehicle leasing program for employees. What about social responsibility? As it is written in the Mercedes-Benz’s core values, the company pays a lot of theirs attentions to the community activities.

Each employee is participating at least in one volunteer project annually. Also, each employee is given a paid-day off to volunteer at a nonprofit organization of his/her choice. Business Model. Mercedes-Benz is using the premium business model. “This is the concept of offering high end products and services appealing to discriminating consumers”. Brand image is an important factor in the premium business model, as quality is often a subjective matter. The main idea of such business model is that it seeks for a higher profit margin on a lower sales volume.

Value Chain. Primary Activities are presented on the bottom of the flowchart. Inbound Logistics is where goods are received from a company’s suppliers, and stored until they are needed on the assembly line. Interesting fact, that Mercedes-Benz purchases their raw material from all around the world. Because of maintenance of the good relationship with their suppliers, the company is using Just-In- Time approach for handling of raw material. The next primary activity presented on the picture is “Operations”. On this step goods are assembled.

Individual operations include organizing the parts to make new cars and the final tune for a new car’s engine. Outbound Logistics starts when goods are finished, and they sent along the supply chain to wholesalers or the final consumer. By the way, Mercedes-Benz manages own Showrooms in different countries using effective business tools, so it makes their product easily assessable. The next goes marketing and sales activities. This area focuses strongly upon marketing communications and the promotions mix to meet the needs of targeted customers.

Service includes all areas, such as final checking, complaints handling, after-sales service, training and etc. Support Activities. Procurement function, illustrated on the flowchart of the value chain just above the primary activities, is responsible for all purchasing of goods, services and materials. The primary purpose of the procurement is to provide the company with the lowest possible price for purchases of the highest possible quality. Technological development, which is the next support activity we are doing to discuss, is an important source of competitive advantage.

First of all it is due to the fact that “all companies need to innovate to reduce costs and to protect and sustain competitive advantage”. Focusing on the Mercedes-Benz example we can say, that they successfully technologically develop the company. Some of the recent implementations are: the new production technology, Internet marketing activities, lean manufacturing, Customer Relationship Management, and many other. As we all know, employees are an expensive and vital resource, human capital of the company.

HR management is one of the supportive activities, presented in the value chain. Mercedes motors manage recruitment and selection, training and development, and rewards and remuneration. Finally, let’s focus our attention on the “Firm Infrastructure” activity. It includes and is driven by corporate or strategic planning. Mercedes-Benz uses the very well organized Management Information System and many other mechanisms for planning, monitoring and control in different departments.

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