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Mercedes benz

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Mercedes benz

  1. 1. TURNAROUND OF MERCEDES – BENZ INDIA LTD.
  2. 2. INTRODUCTION  Karl Benz founder “ Benz & Co”.  1st October 1883.  1900,Benz & Co become world biggest automobile manufacturer.  First Mercedes was delivered on 22 December 1900.  On 28th June 1926 it get merged and to form Daimler- Benz AG.
  3. 3. IMPORTANT SAYINGS OF TURNAROUND Don’t Talk Don’t Organize Don’t Think Just Do It…….
  4. 4. BECOME A PLAYSTATION Stop all internal discussions and conflicts…. It is time to “roll-out” smooth and well rounded activities Your actions should be clear, well defined like a square And each one of us should reach the summit of his art
  5. 5. TURNAROUND MANAGEMENT  The present business scenario is one wherein constant change is the name of the game.  For any firm to survive in any industry, there has to be constant monitoring and improvement of its systems and operations  Process of bringing about a revival in the firm’s fortunes is what is termed as “Turnaround Management”.
  6. 6. 3 PHASE IN MB’z TURNAROUND MANAGMENT Phase I: Watching out for the danger signal Phase II: Choosing appropriate Strategy Phase III: Implementation of the change process
  7. 7. PHASE I : WATCHING OUT FOR THE DANGER SIGNAL • • • • • Decreasing constant sales Decreasing profitability Lack of planning Inflexible CEO A management team unwilling to learn from competitors.
  8. 8. PHASE II : CHOOSING APPROPRIATE STRATERY 1. Strategic Turnaround  A new way to compete in the existing business (Enter into a joint venture with Telco 1994).  A new way to compete in the existing business ( by launching Mercedes Benz E class) Under this the first choice  Increases market share  Making product market relationship
  9. 9. 2. Operating Turnarounds  Asset reduction strategies : below BEP they should reduce their assets so the fixed cost will reduce.  Revenue increasing strategies : Not extremely below BEP they should apply new strategy so can generate revenue.  Combination strategies : above BEP they should use cost reduction strategy so firm profit can rise, by unnecessary cost cutting down
  10. 10. PHASE III:IMPLEMENTATION OF THE CHANGE PROCESS  Implementation plays an important role in any turnaround management.  Identification of an appropriate strategy by itself will not guarantee success.  The success or otherwise of a Turnaround strategy depends on the commitment shown by the top management as also the operating management.  Likewise new CEO Mr. Juergen Ziegler of Mercedes – Benz India ltd has implemented the project with new strategies with help of his management. And achieved success.
  11. 11. TO Achieve a Turnaround, You will Generally Need To Have The Following Seven Things Present … • • • • • • • A Viable Business Time Cash Vision Management Stakeholder Support Confidence In The Process
  12. 12. Conclusion
  13. 13. THANK YOU

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