INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S.

MERCEDES-BENZ 1

Executive summary:

Trade liberalization creates growing opportunities for companies to enter foreign markets. Different motivations, means and mentalities consist of the origin and process of international expansion. Meanwhile, increasingly fierce competition pushes many multinational enterprises to pursue efficiency, flexibility and learning capability simultaneously through competitive sources of economies of scale, economies of scope and national differences. Hence, this tendency has an enormous impact on the selection of business strategies by multinational enterprises (MNEs). Both in the transition to the transnational mentality, BMW and Mercedes-Benz attempt to gain the leading position in the automobile industry through optimization of three objectives. Therefore, this report will compare these two companies international business strategies in their major markets in line with the transformation of three goals priority, followed by the introduction of their evolving social responsibilities. The benchmarking company will also be used to evaluate BMW and Mercedes-Benzs strategic performance in the individual work.

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

CONTENTS

Executive summary

------------------------------------------------------------------------1

1. Introduction

------------------------------------------------------------------------3 -----------------------------------------------------4

2. Goal Priority Transformation 2.1. Efficiency

------------------------------------------------------------------------4 -----------------------------------4

2.1.1. Centralized hub organizational structure 2.1.2. Globally coordinated management 2.2. Flexibility

------------------------------------------5

---------------------------------------------------------------------6 -----------------------------------------------------6 ----------------------------------------------7

2.2.1. Localized management 2.2.2. Cross-border collaboration 2.3. Learning and innovation 2.3.1. Learning 2.3.2. Innovation 3. Evolving global role 4. Individual part

-------------------------------------------------------------8

------------------------------------------------------------------------8 -----------------------------------------------------------------------9 ----------------------------------------------------------------10

-------------------------------------------------------------------------11 --------------------------------------------------------------11 ---------------------------------------------------------------12 ---------------------------------------------13

4.1.1 Efficiency: Toyota 4.1.2 Flexibility: Nestl

4.1.3 Innovation and Learning: Haier 5. Conclusion

-------------------------------------------------------------------------------15

Appendix

--------------------------------------------------------------------------------------17

References

------------------------------------------------------------------------------------19

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 3 1. Introduction

In the competitive landscape of automotive industry, BMW and Mercedes-Benz are two recognized giants with different motivations, means and mentalities for international expanding. Although most MNEs have general purposes of building economies of scale, seeking markets, accessing cheap endowments, broadening global insight, and developing learning capabilities (Hill, 2012), there is still slight difference. Mercedes-Benz considers going further in efficiency bringing them some advantages like low cost while BMW relatively emphasizes flexibility with local oriented.

The table below lists some basic comparative data of two companies.

However, to develop worldwide advantages, a successful company is supposed to simultaneously pursue three strategic objectives including global-scale efficiency, multinational flexibility and learning ability from international dynamic (Bartlett and Beamish, 2011). Being traditional industry leaders, Mercedes-Benz and BMW have been igniting their motors to set off on the road of transition to transnationality.
3

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

Therefore, this essay will compare Mercedes-Benz and BMW mainly based on these three goals from perspectives of organizational structure, human resource management, cross-border collaboration, and technology sharing and innovation. Corporate social responsibility of two companies is also included.

2. Goal Priority Transformation

2.1. Efficiency

2.1.1. Structural Integration

Both Mercedes-Benz and BMW are now in post-globalization stage, evolving from centralized hub model to integrated network model. Mercedes-Benz applies the global strategy, requiring high integration and low localization. While the main country of manufacture is Germany, Mercedes-Benz Cars has overall 17 production sites, such as the United States, China and South Africa (Daimler, 2013). The global strategy guarantees high quality and standards for Mercedes-Benz, and Mercedes-Benz in turn enjoys success because of the well-known quality and reliability of cars (Ireland et al., 2008). Moreover, its company-wide specific production system and standard R&D system jointly promote the achievement of global strategy. Corresponding to it, Mercedes-Benz adapted a centralized hub organization model in which most key assets and resource were centralized in headquarter, and so does decision making process. National units were only regarded as delivery pipelines to global markets (Bartlett and Beamish, 2011). Recently, Mercedes-Benz is trying to develop its organization structure into more transnational-oriented. Headquarters are still centralized, but top managerial staffs have been reduced from 500 to 300 to delegate power to subsidiaries. Consequently, business units become more self-responsible profit centers. Additionally, Mercedes-Benz goes further into integrated network

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 5 model as procurement of materials develops into globally coordinated for each group of materials (Morgan et al., 2003). In terms of BMW Group, it operates 24 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries, which aims to pursue global synergy and efficiency (ITS America, 2011). BMWs key knowledge was generally retained in center and strategies were not quite distinct among subsidiaries (Bartlett and Beamish, 2011). Although, recent decades, BMW is trying to be more flexible in some regions, such as China, by delegating some responsibility, it is still a challenge for BMW to ensure both efficiency and flexibility. To solve this problem, BMW is switching to integrated network model to achieve more coordination. It establishes worldwide network of production and development, ensuring that know-how can be consistently throughout all plants. Subsidiaries now have increasing autonomy to adjust strategies and design products based on local market conditions. Thus this integrated network allows BMW to react quickly and flexibly to the changeable demands of customers (US Auto Parts Network, Inc., 2007). Therefore, BMW seems go further on the way to transnational MNEs than Mercedes-Benz.

2.1.2. Globally coordinated management

Generally, BMW and Mercedes-Benz use similar HR strategies, which retain the core functions in headquarters and distribute some autonomy to subsidiaries. Since the top-level managers have responsibilities to connect and harmonize global activities to exploit potential benefits (Bartlett and Beamish, 2011), Mercedes-Benz spends abundant time and money rationalizing HR structure, and obtains general control in subsidiaries especially in China to achieve efficient management. For its HR structure, the total control is made by the Daimler board of management (Daimler AG, 2011), and the corporate HR department formulates and decides overall strategy and guidelines to subsidiaries. The divisional HR departments usually have limited autonomy to deal with the divisional and local activities. This clear and rational HR
5

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

structure represents a relatively strict hierarchy and provides a theoretic evidence for each level to check their responsibilities. In the Chinese market, Mercedes-Benzs sales are decreasing in recent years, hence it changed the management structure to obtain closer control for headquarter. Daimler board of supervisors assigned Troska to become a member of board of directors in the Chinese subsidiary in 2012 (Daimler, 2012). It was the first seat for Daimler board of supervisors, which helped them to convey and adjust the strategy implementations and business operation in China. With regard to BMW, though it also implements a global approach to executing general management and innovating teleworking technology to realize and convey technical guidance, specialist surveillance and the common corporate culture in subsidiaries (BMW Group, 2012), its conduct tends to be more elastic as explained in the next section.

2.2. Flexibility

2.2.1. Localized management

The dynamic environment requires diversified HR strategies especially in the regional level (Bartlett and Beamish, 2011). BMW applies different HR strategies across different markets based on diversified market conditions. For example, German subsidiaries use the ethnocentric HR strategy representing a significant level of interdependence with headquarter (BMW Group, 2012) while in other markets beyond the European areas, BMW pays more attention to maximize the localization degree in subsidiaries. In China, distinct national culture urge BMW to reshuffle the structure of management to get better understanding of consumer needs and consolidate competitive position in local market. Therefore in Chinese subsidiary, the talent localization strategy is applied by Stark-the CEO of Great China (Tong, 2011). He requires all foreign national managers to speak Chinese and most key positions to be occupied by the local talents. This deeper localization nurtures a harmonious

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 7 relationship between Chinese and foreign employees, and creates better conditions for subsidiary to grasp the market trend. This strategy is later imitated by Mercedes-Benz, although the main strategy for Mercedes-Benz remains to maintain efficiency through centralization. For instance, some key positions in Beijing Mercedes-Benz Sale and Service co. are occupied by China now. However, the domestic top manager proportion is still low compared to the German colleagues or people who have affinity to Germany by 2000(Morgan et al., 2001), indicating a long way for Mercedes-Benz to catch up with BMW in this aspect.

2.2.2. Cross-border collaboration

Although emerging countries attract foreign companies to stimulate local economy, some of them still preclude foreign ownership to protect local industrial benefits. Concerning about government policy, many foreign companies choose strategic alliance as an alternative to enter these markets, including Mercedes-Benz and BMW. These two companies also want to win the global competition in this way (Bartlett and Beamish, 2011). In 2003, BMW cooperated with Brilliance Auto to found BMW Brilliance Automotive Ltd (CBA) in China, which primarily supplied the local market (BMW Brilliance Automotive Ltd, 2013). Considering the enlargement of mid-class segments, CBA produces 3 series to cater to their demands. As a first mover, CBA has established an outstanding brand name with relatively low price but high quality in Chinese market. To compete with BMW and grab market share, in 2012, Mercedes-Benz and Beijing Automotive Industry Corporation (BAIC) established a 50:50 joint venture-Beijing Mercedes-Benz Sales Service Co., and the joint venture decided to establish plants to produce GLK series locally (Zhang, 2012). Mercedes-Benz also deliberates culture differences. Comparing with westerners, most local people prefer cars with larger size and luxurious automotive trim, which drives Mercedes-Benz to generate S300L-class exclusively for Chinese market (Choose Auto, 2012).
7

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

2.3. Learning and innovation

2.3.1. Learning

During the 1990s, both BMW and Mercedes-Benz have shifted from the center-for-global innovation model to the integration of locally leveraged and globally linked innovation models based on worldwide differentiated production networks.

BMW initiated Greenfield production site in Spartanburg, US, which focuses on an innovative hybrid production model by merging German product, quality and technical standards with organization mechanism of Honda transplant and US task-oriented management style (Pries, 2003). The goal of BMW is to use subsidiaries for experimentation to test and expand its new organizational forms and production methods. Consequently, completely new cars such as Z3 and X5 were made in Spartanburg plants and spread out worldwide (Morgan et al., 2001). Furthermore, BMWs globally linked innovation model emphasizes on managing businesses corporately by pooling the resources and capabilities of different entities (Bartlett and Beamish, 2011). For instance, important assembly components such as engine are supplied directly by BMWs German plant, while other parts like exhaust system majorly come from South Africa plants. It allows the intelligence developed in one area to be shared by the whole group and eventually flow the finished products internationally.

The Tuscaloosa plant of Mercedes-Benz was opened in 1994 with full responsibility for producing the M-class SUV (Renschler, 1995). Comparing with BMW, Tuscaloosa project relies on a mixture of German product technology and engineering capacity, Toyota-style lean production system and US high weight on economies of scale. It was based more on the application of Japanese production principle and less

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 9 on experimental learning than BMW due to different corporate business strategy. Also, referring to globally linked innovation, outsourcing has been dramatically increased in Tuscaloosa where more than 70% of model components come from foreign suppliers as a result of Mercedes-Benzs union-free site in the US (Morgan et al., 2001). Its key locally leveraged innovation model encourages experience gained from the Tuscaloosa to be summarized and extensively documented by the plant management to be transferred to the whole consortium. Being a challenge to traditional Mercedes-Benz operation principles, a proposal has been presented by Springer (1999) if the Tuscaloosa plant could prove it was possible to combine a flexible production style with a high standardization in the work processes, a type of backward learning from the periphery to the center could be achieved.

2.3.2. Innovation

Convincingly, a one-size-fit-all approach to capture the benefits of innovation will cease efficiency in large MNEs. The most effective way to exploit the innovation depends on the complexity of the technology itself and the understanding of focal market and customer preferences (Bartlett and Beamish, 2011). In practice, BMW pays more attention on market knowledge based on its consumer-centric approach while Mercedes-Benz moves information to where the technology is (Santos et al., 2005). The slogan BMW---Sheer driving pleasure delivers a message of concentrating on customers fun-oriented cars like Mini Cooper (Giebier, 2004). BMWs customer innovation lab provides a structured multi-media environment for participants to share their ideas about future innovative telematics, online services and driver assistance systems (BMW Group, 2003). In contrast to BMW, Mercedes-Benz is a pioneer using advanced technology in realizing efficiency improving objective. It supports green fleet management with blue efficiency, which places emphasis on sustainability and low emissions. The approach of optimizing vehicles with the up-to-date combustion engine technology has already been implemented successfully
9

1 0

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

in the S400 HYBRID and later the E200 CGI and E260 CGI. Moreover, Mercedes-Benz cooperated with its joint venture Beijing-Benz to expand a green luxury lineup in China, including the E-class Cabriolet and the C-Class Estate with purpose of contributing to a clean transportation mode (China Daily, 2010).

3. Evolving Global Role

There are four typical postures when MNEs responses to their responsibilities in developing world: exploitive, transactional, responsive and transformative. As BMW and Mercedes-Benz both established their first joint ventures in China in 21 century, the social environment forces two companies to seek a sustainable way of doing business instead of exploiting cheap production factors to maximize profit (Bartlett and Beamish, 2011), so two MNEs directly step to the latter two models in China. BMW uses its own financial resources to response to the problems in Chinese society making it a transformative MNE. For example, BMW devotes itself to social contribution program as providing funds and materials to the panic stations in China like disaster-affected regions, and encouraging its employees to return to the community (BMW China, 2013). Moreover, BMW has made significant investments in developing advanced environment-friendly technology such as intelligent lightweight construction and BMW Hydrogen 7 to diminish oil consumption and greenhouse gas emissions. In contrast, Mercedes-Benz is more likely a responsive MNE. The corporate focuses on satisfying Chinese customers needs by offering diversified products and international standard services. For instance, Mercedes-Benz designed Chinese-style cars like E300L by lengthening its wheelbase to cater to the preference of large vehicles (Choose Auto, 2012). Additionally, it gone further to be a responsible corporate citizen as it developed safety systems to ensure security for both drivers and pedestrians, and cooperated with the Road Traffic Safety Association of China to educate the public of traffic rules. Recently, Mercedes-Benz is also shifting

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 1 1 towards a transformative MNE by denoting funds to protect Chinese nature like effluent treatment and cultural heritage research and restoration (Mercedes-Benz China, 2013).

4. Individual part

In this part, three benchmarks will be introduced in terms of three goals respectively, and be compared with Mercedes-Benz and BMW to assess their effectiveness of strategies.

4.1.1. Efficiency: Toyota

Mercedes-Benz and BMW both think highly of efficiency as global companies. However, they are not the best players of this strategy in automobile industry, but Toyota is. Toyota, the Japanese automaker, ranked the first in unit production globally, and its profit margin was 8.3 times higher than industry average in 2003(OICA, 2011). Its success should mainly attribute to Toyota Production System (TPS) which is primarily concerned with making profits, and satisfying the customer with the highest quality at the lowest cost in the shortest lead-time, while developing the talents of its workforce through strict improvement routines and problem solving disciplines. Generally, TPS has twin production principles of Just in Time and Jidoka, as well as the notion of Kaizen, continuous improvement to gain competitiveness in the global market. Lean manufacture is the production control technique for eliminating the waste from manufacturing, which is derived mostly from the TPS (Asprova, 2008). It is estimated that, after applying lean manufacturing, overhead-operating costs could reduce 30%, and sales would double as well as profits would increase 4 times (Process Quality Associates, 2006). As mentioned above, Mercedes-Benz has already applied it and implemented well. Its lean production would create $300 million in cost
11

1 2

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

savings, which is more efficient than before (Automotive Intelligence, 2000). However, TPS or lean manufacturing is based on economies of scale, which would be difficult to implement customer order flexibility. Thus, BMW did not choose TPS or lean manufacturing, for they believe the future belongs to flexibility (WDS Group, 2011). Comparing their profit margin to some extent could be a way to assess their comparative efficiency. In 2010, Toyota owned 15.72% gross profit margin (Trinity University, 2011), while BMW had only 8.1% operating profit margin and Mercedes-Benz arrived 9.5% (Corrigan, 2010). In other words, Mercedes-Benz may be 80% as good as Toyota while BMW has lagged behind.

4.1.2. Flexibility: Nestl

Since Mercedes-Benz and BMW are trying to be more transnational, it is more essential for both to respond quickly to the increasingly sophisticated customer needs. However, many global companies may have the concern that flexibility will offset the advantage of efficiency. Nestl, a multinational food company, is trying to eliminate the drawbacks of localization strategy, which could be the benchmark for Mercedes-Benz and BMW in flexibility. The key to Nestls success is local responsiveness. In addition to customize products, Nestle also focusing on improving well-being in local society, foe example, enhancing the transportation system in Nigeria. Importantly, It knows how to tailor products to local niches while leveraging its size, which called "glocal" approach for combining global and local (Kowitt, 2010). Additionally, Nestl applies the matrix structure to integrate the activities under product groups and country-bases, rather than simple global-area structure they used before. Regional managers still have the authority to make business level decisions to some degree, but they should discuss with product-group executives on a global basis as well (Jones & Hill, 2009). AlsoNestl has two organizations GLOBE and GNBS to help the company leverage scale of operations to enable complexities in products and geographies across the globe (Nestle, 2006). Furthermore, Nestl notices

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 1 3 the increasing convergence of tastes and national regulations in many regions, and has developed coordinating mechanisms between its subsidiaries for some product groups based on regions. Therefore, it keeps valuing local responsiveness, while adapting where appropriate to the needs of globalization forces (Segal-Horn &Faulkner 1999). Compared to Nestle, BMW is weak in leverage its flexibility with efficiency, and ignores necessity in generating local support. In contrast, Mercedes-Benz may be only 30% good as Nestl, for it contributes little efforts in pursuing this goal.

4.1.3. Innovation and Learning: Haier

As explained above, Mercedes-Benz and BMW both highly value the importance of learning and innovation in the way of pursuing sustainable competitive advantage. In a range of MNEs, innovative managerial strategies have been put in priority, such as Haier, a Chinese multinational company with the largest market share in white goods industry over the world (Li & Chang, 2004). Haier has currently obtained 6,189 patented technology certificates (819 for inventions) and 589 software intellectual property rights (CCCME, 2010). Zhang Ruimin, the CEO of Haier, emphasizes that the continuous innovation and learning is the success formula. With the motto Every one is an innovator, everyone in Haier, from top managers to ordinary employees, should be innovative-minded (Liang, Zheng& Cu, 2006). A shining paradigm is the way Haier entered the US market. To enter into international market, Haier preferred to make new cakes with marketing innovation, rather than grabbing cakes with those giant enterprises (Liang et al., 2006). At the initial stage, Haier was unknown to fame with a limited sales volume in the USA. Nevertheless, after market analysis, they found most users of compact refrigerators were students who lived in dormitories and small apartments. Because of their limited living area, Haier designed a new smaller compact refrigerator with two wooden flaps on the sides that can be a computer table if folded out. The innovative and practical design was so popular among the Internet Generation that helped Haier improve their visibility with a 45
13

1 4

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

percent market share of compact refrigerators (Wu, 2003). Likewise, BMW emphasize the marketing innovation in China like the slogan BMW---Sheer driving pleasure, which is more cost saving than technology innovation with probably more return. Regarding to learning, Haier established Haier University in 1999 for employees from all subsidiaries to share and learn knowledge. Outstanding management and practical failures would be researched as cases in university. In this way, the learning capacity would emerge throughout the whole organization as the figure shows (Covin and Slevin, 2002).

Similarly, BMW had such institution in Tuscaloosa. As giant companies in automobile, Mercedes-Benz and BMW do well in innovation and learning, and both of them could be marked as 85%, compared to Haier. However, the innovative corporate culture in Haier is what these two companies lack, but important to develop sustainable innovation.

Summary of Benchmark comparison

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 1 5

5. Conclusion

Overall, this essay expounds Mercedes-Benz and BMW by classifying their strategies into three goals: efficiency, flexibility, and innovation and learning. They are both trying to develop into transnational model, and the goals of strategies will be changing along their development. Generally, BMW is becoming more flexible while Mercedes-Benz still insists efficiency as primary. In addition, benchmarks are provided for further comparison and suggestion.

15

1 6

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 1 7

Appendix

The exclusive car specially designed for the Chinese market: Benz E300L

Mercedes-Benz E300L is an exclusive car designed for the Chinese market. Its longer wheelbase is designed to meet the needs of domestic users, and its local manufacturing price will be more competitive than the imported version.

The tail logo on Mercedes-Benz E300L is the proof of new style. After the breakup of the partnership between Daimler and Chrysler, the logo on the tail of new generation of E-Class model changed from "Beijing Benz DaimlerChrysler" to "Beijing Benz". And E300L logo clearly shows that the new car is a lengthened model. Other parts of the car body are very close to the imported model.

On March 23th 2012, Beijing Benz launched Mercedes-Benz E-Class 2012 model and changed original 6 models to 5 models, turning MSRP down. According to different model configuration and displacement, the Price of Mercedes-Benz E-Class 2012 model is range from the original RMB 465,000 to RMB 710,000 adjusted to RMB
17

1 8

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

438,000 to 749,000. The MSRP of the E200L and E260L models dropped biggest with RMB 42,000.

Mercedes-Benz E-Class 2012 model adopted a whole system with a 7-speed, which is no difference to those plan to purchase E300L model but good to those want to buy E200L and E260L. the 7 speed automated manual transmission with more gear will not only shift the ride better, lower fuel consumption but also improve the acceleration of the vehicle. As for the 4 cm longer rear seat, it is useful for those often drive long distances and like to sit on back.

Dark gray interior with brown seat shows a feeling of luxury and young. The center of console is the large size GPS navigation screen, which makes the car look respectable. The middle part is the audio control buttons and the bottom part is the air conditioning control button.

The back seat of the car is as long as SUV, which is a forceful response of Benz to the Audi and BMWs extended war. The man as tall as 1.8 meters sitting in the back could easily cross legs and enjoy space on the head. The advantage of 5 meter wheelbase is obvious.

Mercedes-Benz E-Class 2012 model upgrade a lot of details, such as system-wide new SD card slot and USB interface, the dashboard screen from original monochrome screen display changes to the color stereoscopic display, the roof glasses box and rear windows black glass, etc.. In short, in terms of convenience, it is significantly improved.

As the main model of Mercedes-Benz, Mercedes-Benz E300L performs as luxury car

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 1 9 either for vehicle quality or for driving experience. Mercedes-Benz E-Class is popular for its luxurious feel, comfortable space and higher equipment.

Source from Chinese website:

http://auto.163.com/07/0727/15/3KDTOPSR000816HJ.html

Reference Asprova. (2008) Broadcasting the latest Lean Manufacturing Know-how from Japan [online]. Available at: <http://www.lean-manufacturing-japan.com/> [Accessed 25th April 2013].

Bartlett, C. A. and Beamish, P, W., (2011)., Transnational Management. New York: McGraw-Hill.

Bartlett, C. A. and Ghoshal, S., (1989), Managing across borders: The transnational solution. Boston: Harvard Business School.

BMW China., (2013), Social Contribution: Contributing to the community with true heart and warm actions [online]. Available at:

<http://www.bmw.com.cn/cn/en/insights/csr/community_contribution/introduction.ht ml> [Accessed 15th April 2013].

19

2 0

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

BMW China, (2013) Environmental Protection: Advanced technology in the service of the environment [online]. Available at:

<http://www.bmw.com.cn/cn/en/insights/csr/environmental/introduction.html> [Accessed 15th April 2013].

BMW Group (2013) Group Financial Statements [Online] Available at: <http://annual-report2012.bmwgroup.com/reports/bmwgroup/annual/2012/gb/English /3050/group-financial-statements.html> [Accessed 9th April 2013].

BMW

Group

(2003)

Customer

Innovation

Lab

[online].

Available

at:

<http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/forschung_entwicklung/s cience_club/veroeffentlichte_artikel/2003/news200318.html> [Accessed 28th March 2013].

BMW Brilliance Automotive Ltd (2013) Company Information [online]. Available at: <http://www.bmw-brilliance.cn/cn/en/com_waw_bba.html> [Accessed 20th March 2013].

BMW Group (2012) BMW Group announces strategic changes to Board of Management structure [online]. Available at:

<https://www.press.bmwgroup.com/pressclub/p/ac/pressDetail.html;jsessionid=GSGc RxzZ2WxJfG8Zdp2hTJm10hmGZDhqgh9KjTLPCtl12GfyVJJh!-670475517?title=b mw-group-announces-strategic-changes-to-board-of-management-structure&outputC hannelId=13&id=T0125514EN&left_menu_item=node__2201> [Accessed 2nd April 2013].

CCCME.

(2010)

About

us

[online]

Available

at:

<http://www.cccme.org.cn/shop/cccme0429/introduction.aspx> [Accessed 25th April 2013].

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 2 1

Chen, J. and Jiao, Z. (2008) Balancing the Paradox of Localization and Globalization: Research and Analyze the Levels of Market Involvement for Multinational Carmakers in Chinas Market. Kalmar: Baltic Business School.

Choose Auto (2012) The exclusive car specially designed for the Chinese market-Benz E300L [online]. Available at:

<http://www.51chexian.net/zhongdaxingche/benchiEji/20121206/7032.html> [Accessed 18th April 2013].

China Daily (2010) Auto Special: Mercedes-Benz lineup displays green luxury [online]. Available at: [Accessed

<http://www.chinadaily.com.cn/cndy/2010-04/22/content_9759811.htm> 3rd April 2013].

Corrigan, C., (2010) BMWs Profit Margins Are Something To Worry About [online] Available at:

<http://www.thetruthaboutcars.com/2010/11/bmws-profit-margins-are-something-toworry-about/> [Accessed 25th April 2013].

Daimler

AG

(2013)

Mercedes-Benz

Cars

[Online].

Available

at:

<http://www.daimler.com/company/business-units/mercedes-benz-cars> 11th April 2013].

[Accessed

Daimler AG (2011) Human Resource Management [online]. Available at: <http://sustainability.daimler.com/reports/daimler/annual/2011/nb/English/3050/huma n-resources-management.html> [Accessed 23th March 2013].

21

2 2

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

Daimler

(2012)

Sustainability

Report

2012

[online]

Available

at:

<http:sustainability.daimler.com> [Accessed 26th March 2013].

DAIMLER

AG

(2013)

Mercedes-Benz

Cars

[online].

Available

at:

<http://ar2012.daimler.com/divisions/mercedes-benz-cars> [Accessed 10th April 2013].

DAIMLER AG (2013) Daimler Annual Report 2012 [Online] Available at: <http://www.daimler.com/Projects/c2c/channel/documents/2287152_Daimler_Annual _Report_2012.pdf> [Accessed 10th April 2013].

Giebler, S., (2004) Analyzing and Comparing of Visions of BMW, AUDI and Daimler-Chrysler. Munich: GRIN Verlag.

Hill, C.W.L., (2012) International Business: An Asian Perspective. New York: McGraw-Hill. Ireland, R, D., Hoskisson, R, E. and Hitt, M, A. (2008) Understanding Business Strategy: Concepts and Cases. Singapore: Cengage Learning.

Jones, G, R., and Hill, C., (2009) Strategic Management: An Integrated Approach: Theory. Singapore: Cengage Learning

ITS

America

(2011)

Sponsor

Spotlight-

BMW

[Online].

Available

at:

<http://www.itsworldcongress.org/sponsor_bmw.html> [Accessed 11th April 2013].

Kowitt, B., (2010) Nestl: Tailoring products to local niches [online] Available at: <http://money.cnn.com/2010/07/02/news/companies/nestle_refreshes_brand.fortune/i ndex.htm> [Accessed 25th April 2013]

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 2 3 Morgan, G., Kristensen, P. E. and Whitley R. (2001) The Multinational Firm: Organizing across Institutional and National Divides. Oxford: Oxford University Press.

Mercedes-Benz China (2013) Mercedes-Benz in China: Social Responsibilities [online]. Available at:

<http://www.mercedes-benz.com.cn/content/china/mpc/mpc_china_website/enng/ho me_mpc/passengercars/home/passengercars_world/about_company/about_us/Social_ Responsibilities.0001.html> [Accessed 18th April 2013].

Nestle, (2006) Global Nestl Business Services Capturing Our Potential [online] Available at: <http://www.nestle.com/asset-library/Documents/Library/Presentations/Company_Str ategy/NBS_Jun2006_Paravicini.pdf> [Accessed 25th April 2013].

OICA., (2011) WORLD MOTOR VEHICLE PRODUCTION [online] Available at: <http://oica.net/wp-content/uploads/ranking-2010.pdf> [Accessed 25th April 2013].

Pries, L. (2003) Emerging production systems in the trans-nationalization of German carmakers: Adaptation, application or innovation? New Technology, Work and Employment 18(2): pp.49-65.

Process Quality Associate, (2006) Lean Manufacturing [online]. Available at: <http://www.pqa.net/ProdServices/leanmfg/lean.html#> [Accessed 25th April 2013].

Renschler, A. (1995) Standortplanung fr Mercedes-Benz in den USA. In Gassert, H. and Horvath, P. (eds.), Den Standort richtig whlen. Stuttgart: Schffer-Poeschl Verlag.

23

2 4

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ

Santos, J., Doz, Y. and Williamson, P. (2005) Is Your Innovation Process Global? MIT Sloan Management Review. 45(4): pp.36.

Segal-Horn,S., and Faulkner, D., (1999) The dynamics of international strategy. Singapore: Cengage Learning.

Springer, R. (1999) The end of new production concepts? Rationalization and Labor Policy in the German Auto Industry. Economic and Industrial Democracy. 20: pp.117-145.

Tong, N. (2011) Localized marketing strategy boosts BMWs China sales [online]. Available at: <http://en.ce.cn/Insight/201102/15/t20110215_22216863.shtml>

[Accessed 26th March 2013].

Trinity

University,

(2011)

Toyota

Motor

Co.

[online]

Available

at:

<http://www.trinity.edu/smf/inc/reports/fl2011/TM.pdf> [Accessed 25th April 2013].

US Auto Parts Network, Inc. (2007) The inside story of how BMW's are made [online]. Available at: <http://www.usautoparts.net/bmw/bmw/assembly/> [Accessed 10th April 2013].

WDS Group, (2012) BMW believes the future belongs to flexible manufacturing [online] Available at:

<http://www.manufacturingdigital.com/sectors/bmw-chooses-flexibility-over-lean-ma nufacturing> [Accessed 25th April 2013].

Zhang, M, D. (2012) Benz and BAIC set up joint venture and integrate sales channels [online]. Available at: [Accessed

<http://www.cnautonews.com/English/201212/t20121218_168310.htm>

INTERNATIONAL BUSINESS STRATEGY ANALYSIS: BMW V.S. MERCEDES-BENZ 2 5 15th April 2013].

25