Karl Benz founded Benz & Co in 1883 in Germany, which became the world's largest automobile manufacturer by 1900. In 1926, Benz & Co merged with Daimler Motor Company to form Daimler-Benz AG. Mercedes-Benz India was struggling in the 1990s due to a lack of planning, inflexible management, and an unwillingness to learn from competitors. A new CEO, Juergen Ziegler, implemented a turnaround strategy in 1995 that included launching the Mercedes-Benz E-Class in India and forming a joint venture with Telco, leading to increased sales and profits by 1999.

2.  Karl Benz founding “ 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.  Customer expectation
 Product quality
 WTO import duties
 Localization target
 Administrative machinery
 Product strategy
 Retail dealer network
 Quality of inputs

4. Threats of
new
entrants
Rivalry
Bargaining Bargaining
between
power of power of
established
suppliers buyers
competitors
Competition
from
substitutes

5.  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. Phase I: Watching out for the
danger signal
Phase II: Choosing appropriate
Strategy
Phase III: Implementation of
the change process

7.  Decreasing constant sales
 Decreasing profitability
 Lack of planning
 Inflexible CEO
A management team unwilling to learn from
competitors.

8. 1. Strategic Turnaround
 A new way to compete in the existing business (Enter
into a joint venture with Telco 1994).
o 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. 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.  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.  A viable business-MB has future potential to
growth and they had shown by launching E class
car in India in 1995.
 Time: MB has not focused on time they had taken
long gestation period .so that why they gone in
losses.
 Cash:

12.  Vision: MB vision was cleared they had plan for
selling 10,000 cars Yearly. but due to lack of market
for luxury car in India they failed.
 Management: Mr. ziegler has new strategy for his
management .and management has adopted it then
its sales started increase in 1999.
 Stakeholder support- many people has supported
them like Telco with 10% share and Bajaj tempo
with17% etc.
 Confidence in the process- the stakeholder has
believes on MB .and MB has set plant in Pune with
their help.