CASE STUDY 4 1) Prepare a profile of the potential buyer of the Lexus. Target Customer Description The target customer with Lexusʼ flagship hybrid design is seeking to present a bold image to others. Price is therefore a secondary factor to the message their car portrays in their purchasing decisions. Potential customers are born within ten years of the “baby boomer” generation aged forty-five and up. As a wealthy and image-conscious person he/she can spend money freely, taking up hobbies and living a visibly envious life. He/she purchases this car for its “green” status to benefit his/her self-image. They choose to purchase hybrids either because they are environmentally conscious, or they wish to appear to be. They combine extravagance and excess with environmental care by purchasing a car that is both “green,” and also features top-of-theline technology, performance, and luxury. --------------------------------------------------------------------------------------2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe? [BOTH MERC / BMW HAVE QUALITY PRODUCT/ PRODUCT POSITIONING. THEY NEED TO STUDY THE MARKET AND DEVELOP A SEMI-LUXURY BRAND TO MATCH ‘’LEXUS’’ -----------------------------------------------------------------3) Why has the Lexus model been very successful in the U.S. but has not been marketed in Japan? (Suggestion: Review the frequency of repair records of luxury cars. Also talk to Lexus dealers or Lexus owners). [ IN THE US CAR MARKET , THERE WAS A GAP BETWEEN MERC/BMW AND THE LOCAL BRANDS. THIS IS WHERE THE LEXUS FITTED IN WELL WITH THEIR PRICE/ PROFILE] -----------------------------------------------------------4) Do you think Lexus will succeed in Japan? Why or why not? LEXUS CAN SUCCEED IN JAPAN, PROVIDED JAPANESE CAR MARKET.
IT IS POSITIONED PROPERLY IN THE
CASE STUDY 2 Answer Answer 1) The reengineering efforts of P&G focused on the business process system. Do you think other processes, such as the human system, or other managerial policies need to be considered in a process redesign? CATEGORY MANAGEMENT SYSTEM NEEDS TO BE SET UP -policies -procedured -practices Etc ====================== 2) What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the category management structure was installed?
-NEGATIVE REACTION FROM THE BRAND MANAGERS ARE EXPECTED. BRAND MANAGEMENT IS A STAFF FUNCTION , WHILE THE CATEGORY MANAGEMENT IS A LINE MANAGEMENT FUNCTION. SUCH CHANGE NEEDS -change management drive -orientation programme. ======================= 3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to process redesign and organizational change? TOP DOWN APPROACH IS THE RIGHT APPROACH , AS IT RELECTS -the management mission -the management objectives -the management strategies. ==================== 4) What are the advantages and disadvantages of each approach. TOP DOWN ADVANTAGES -it clearly shows the management intentions and drive. DISADVANTAGES -low participation from the bottom line staff -------------------------BOTTOM UP ADVANTAGES -it clearly shows EMOTIONAL PARTICIPATION OF THE STAFF. DISADVANTAGES -LACKS THE LEADERSHIP -------------------------======================== @@@@@@@@@@@@@@@@@@ CASE STUDY 3 ANSWER: 1) What is your assessment of Daimler-Benz's operations in many different fields? Daimler-Benz, with more than 300,000 employees worldwide, consisted of four major groups: The first, by far the biggest and most successful group, was Mercedes-Benz with about 200,000 employees. It is best known for its passenger cars and commercial vehicles. [THIS BUSINESS UNIT HAS THE CORE COMPETENCE AND HENCE VERY SUCCESSFUL. -------------------------------------------------------------The second was the AEG Daimler-Benz industries in the business of rail systems, microelectronics, heavy diesel engines, energy systems technology, and automation. [THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE. ---------------------------------------------------------------------------The third was the Aerospace Group in the business of aircraft (the company has a more than one-third interest in the Airbus consortium), space systems, defense and civil systems, and propulsion systems. [THIS BUSINESS UNIT HAS MANY SUB-UNITS AND ARE INTEGRATED AND HAS THE CORE COMPETENCY / HENCE IS SUCCESSFUL.. ---------------------------------------------------------------------------Finally, there was the Inter Services Group consisting of systemshaus, financial services, insurance brokerage, trading, marketing services, mobile communications services, and real estate management.
[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE. ========================================================== === 2) Should the various groups operate autonomously? What kinds of activities should be centralized? [THE BUSINESS UNITS SHOULD OPERATE AUTONOMOUSLY . THE ACTIVITIES THAT COULD CENTRALIZED ARE -IT SYSTEMS -HR SYSTEMS
KINDS
OF
-FINANCE ============================================ 3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first place and why did it venture into the Aerospace and Inter Services businesses? [ BETTER USE OF TECHNOLOGY AND COMPETENCE PLUS SALES OPPORTUNITIES. =========================================== 4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? [ RE-ORGANIZE / RESTRUCTURE THE BUSINESS TO RUN THE SHOW]
UNIT AND HIRE COMPETENT
TALENTS
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---------- FOLLOW-UP ---------QUESTION: Dear Sir 4th Answer is not cleared Please make it clear Answer 4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? [ RE-ORGANIZE / RESTRUCTURE THE BUSINESS UNIT AND HIRE COMPETENT TALENTS TO RUN THE SHOW] THE MISTAKES ‘’DAILMER ‘’ MADE IN ACQUIRING NON-AUTOMOTIVE BUSINESS IS -treat the business as an automotive business. -the talents who ran the business did not have the right competence for the business -this affected the performance.
