When Gottlieb Daimler and Karl Benz built their first car in 1886, neither of them would have imagined what a global company would arisen from their invention. The brands Maybach, Mercedes Benz, and Smart are known worldwide. They all belong to the subdivision Mercedes Car Group. In 1998, Daimler-Benz AG merged with the American Chrysler Corporation to form DaimlerChrysler AG. Since then, the well known brands Dodge, Chrysler, and Jeep were added as to the DaimlerChrysler AG as the Chrysler Group division. DaimlerChrysler bought Fuso, the truck division of the Japanese Mitsubishi Motors Company, for its Commercial Vehicles Division in March 2004. Also, Mitsubishi is DaimlerChrysler’s strategic partner and has already developed new engines and compact cars in several joint ventures. The company’s Commercial Vehicles Division also includes well-established brands such as Setra (buses), Freightliner (trucks), Sterling Trucks, Western Star Trucks, as well as Mercedes-Benz buses and trucks. Not only does DaimlerChrysler AG offer vehicles but it also offers various services through its DaimlerChrysler Services and DaimlerChrysler Bank divisions. The former offers services like insurance services or toll collection solutions while the latter specializes in leasing, financing, financial investment, and even offers three different VISA credit cards. [...]
Table of Contents
1. Conceptual Formulation
1.1. About DaimlerChrysler
1.2. Division into strategic business units
2. Analysis in accordance with the General Electric Model
2.1. Assessment of the Mercedes Car Group SBUs
2.1.1. Luxury Cars
2.1.2. C-class/SLK/CLK
2.2. Assessment of the Chrysler Group SBUs
2.2.1. Chrysler Group passenger vehicles
2.2.2. Chrysler Group SUVs
2.3. Assessment of the Commercial Vehicles Division SBUs
2.3.1. DaimlerChrysler Group trucks
2.3.1. DaimlerChrysler Group vans
3. Recommendations
3.1. Classification in the GE-Portfolio
3.2. Growth SBUs
3.3. Borderline SBUs
Project Objective and Thematic Focus
This project paper examines the application of the General Electric (GE) model to evaluate the various strategic business units (SBUs) of DaimlerChrysler AG, aiming to assess their market attractiveness and business strengths to derive strategic recommendations.
- Analysis of the organizational structure and division of DaimlerChrysler into strategic business units.
- Evaluation of the Mercedes Car Group using the GE Matrix.
- Assessment of the Chrysler Group’s passenger vehicles and SUV segments.
- Strategic review of the Commercial Vehicles Division, including trucks and vans.
- Derivation of future-oriented growth and maintenance strategies based on portfolio positioning.
Excerpt from the Book
1.2. Division into strategic business units
A strategic business unit is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. Additionally, it has its own business strategy and objectives.
The DaimlerChrysler AG is divided into four different divisions: Mercedes Car Group, Chrysler Group, Commercial Vehicles Division, and DaimlerChrysler Services. Within these divisions, certain brands, for example Smart, remain independent. Other brands are responsible to another brand management, for example Maybach, which is responsible to Mercedes-Benz.
The first SBU in the DaimlerChrysler AG contains Maybach and Mercedes Benz luxury cars. Maybach and Mercedes-Benz are both luxury car manufacturer. Maybach is under the management of Mercedes-Benz; therefore, it is possible to take this brand into this SBU. The difference between Maybach cars and high end Mercedes-Benz cars is that Maybach cars are not produced by using assembly lines, robots, and other machinery; they are entirely handmade. Through a computer simulation the customer can pick out his / her perfect car and follow it through the whole manufacturing process. Also, Mercedes-Benz offers high-end vehicles like the S-class, the E-class, and the CLS with any imaginable extras. However, these cars are mass produced.
Summary of Chapters
1. Conceptual Formulation: This chapter provides an overview of DaimlerChrysler's corporate history and defines the organizational breakdown into distinct strategic business units.
2. Analysis in accordance with the General Electric Model: The chapter evaluates the business units using the GE Matrix by assessing market attractiveness and internal competitive strengths for each segment.
3. Recommendations: The final chapter classifies the SBUs into a GE-Portfolio and provides strategic guidance for growth and maintenance to ensure future market success.
Keywords
DaimlerChrysler, General Electric Model, Strategic Business Units, SBU, GE Matrix, Market Attractiveness, Business Strengths, Mercedes Car Group, Chrysler Group, Commercial Vehicles, Strategic Planning, Automotive Industry, Portfolio Analysis, Growth Strategy, Market Share.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on applying the General Electric (GE) model to evaluate the strategic business units (SBUs) of DaimlerChrysler AG to determine their competitive standing and market potential.
What are the core themes addressed in this work?
The core themes include organizational structure, market attractiveness, internal business strength, and the strategic classification of automotive divisions.
What is the central research objective?
The objective is to analyze the various SBUs of DaimlerChrysler using the GE Matrix to provide actionable recommendations for their future development and strategic positioning.
Which scientific method is utilized?
The author uses the General Electric Model (also known as the Directional Policy Matrix), which evaluates business segments based on a weighted analysis of market attractiveness and competitive business strength.
What topics are covered in the main body?
The main body covers the assessment of the Mercedes Car Group, the Chrysler Group (passenger and SUV segments), and the Commercial Vehicles Division (trucks and vans).
Which keywords characterize this analysis?
Key terms include DaimlerChrysler, SBU, GE Matrix, market attractiveness, business strengths, automotive industry, and strategic planning.
How does the author categorize the Maybach brand within the SBU structure?
The author places Maybach within the luxury car SBU under the management of Mercedes-Benz, highlighting its handmade production process compared to mass-produced luxury models.
What specific strategic recommendations are made for the Chrysler Group?
The Chrysler Group segments are identified as "borderline" (proceed with care) and the author recommends protecting existing programs while increasing productivity and offering more diesel models to address market challenges.
- Quote paper
- Dipl.-Hdl. Katja Zimmerling (Author), 2005, Application of the General Electric Model to the strategic business units of the DaimlerChrysler AG, Munich, GRIN Verlag, https://www.grin.com/document/60447
