Managing Business

(ABUS002-4-1)
UCDF1505ICT (SE)

Name: BOO KUOK JIAN

TP No: TP038810
Lecturer Name:
Mr Kantharow A/L Apparavu
Submitted date:10-8-2015
W/C: 1508
Contents
1.0 Introduction ....................................................................................................................... 3
2.0 Vision Statement, Mission Statement and Goals ............................................................ 4
3.0 Four functions of management......................................................................................... 5
4.0 Internal Stakeholder and External Stakeholder............................................................. 7
5.0 Conclusion ........................................................................................................................ 10
6.0 References ........................................................................................................................ 11
1.0 Introduction
In this assignment, we are going to explore Mercedes-Benz vision and mission
statement, goals, the four functions of management, internal and external
stakeholder. Before we start, let takes a brief on what is Mercedes-Benz.

Mercedes-Benz is a popular company that derived in German and is specialised

in producing different kinds of vehicles and is a division from its parent
company, Daimler AG, by Karl Friedrich Benz. It is a brand that is equivalent
with quality and luxury, and also it consider as one of the oldest automotive brand
and presence. Moreover, Mercedes-Benz had been considered a successful
company in producing compact city cars in the year of 2004.

Figure 1.1
2.0 Vision Statement, Mission Statement and Goals
Having a mission, vision and goals is the first step in laying a foundation for
making tactical and strategic decisions that will bring and move the business
forward.

2.1Vision Statement

Vision of Mercedes-Benz is simple but determined. Working closely with

automotive colleagues, want to be the primary choice supplier in mobility
services. Creating added value for clients, dealers, and vehicle brands.
Offering workers attractive possibilities for professional development and
accomplishing social responsibilities. (Services, 2015)

2.2Mission Statement

Mercedes Benz refer to as What Drives Us, which fulfil the intention behind
a formal mission statement. The six ideals that drive Mercedes-Benz are
rejecting compromise, instinct to protect what matters, commitment to honour
a legacy, considering every details, forethought to take responsibility and also
the ingenuity to beyond expectations (Farfan, 2015).Moreover, Mercedes-
Benz is continuously pushing forward to create best product possible and
make sure their customer satisfied with their new luxury product. In addition,
Mercedes-Benz also offer all employee to receive above average reward and
chances for progression within the organisation on skills and performance.

2.3 Goals

The overriding corporate goal of Mercedes-Benz is to achieve sustainable

profitable growth and thus increase the value of the Group. Mercedes-Benz
strive as much as possible to achieve the leading position in all their
businesses (Daimler, 2015). Be the first of the competition in terms of brand
image, product range, and unit sales and profitable is also Mercedes-Benz aim.
In order to achieve this goal, Mercedes-Benz want to sell more than 1.6
million cars within the year of 2015.
3.0 Four functions of management
Four overall functions include planning, organising, leading, and controlling.
Although the details of what each manager does varies considerably from
manager to manager, from organisation to organisation, and from time to time,
these basic functions have been useful over time to help understand the broad
functions that all managers carry out (Stephen H Goodman, Patricia M. Fandt,
Joseph F. Michlitsch, Pamela S. Lewis, 2007, p. 6). This four functions must
be performed appropriately and when done well, it will become the reason for
organisational success.

3.1 Planning
The first managerial function is planning. Planning includes setting goals
or targets and defining the actions necessary to achieve the goals.
According to The Wall Street, Mercedes-Benz plans to build the pickup in
cooperation with Nissan Motor Co. and using their factories to produce
vehicles (Boston, 2015). The rate of buying pickup is increasing these days
and are being used for private purposes as well as private users are more
and more asking for vehicles that have car-like specifications. With this
plan, they are responsible and need to be willing work hard so that the goals
can be achieved.
3.2 Organising
Organising is the second managerial function. This step requires the
managers of Mercedes-Benz to determine how he or she will distribute
resources and organise their employees according to plan. They need to
identify different roles and ensure that they assign accurate amount of
employees to carry out the proposal. Select people for various departments
according to their qualifications, skill and experience can help organisation
put the right man into the right job. They will also need to delegate authority,
provide direction and assign work to their employees so that the team can
work towards higher sales number or achieve targets and goals without
having blocks in their way.
3.3Leading
Leading is the next managerial function. The manager of the Mercedes-
Benz have to lead their employees to a direction or need to motivate them
to perform the specific task within the given time schedule and with the
materials or resources that had been given. The manager has to be more
effective in order to make their staff become more enthusiastic to the works
that had been given by superiors and this will affect the progress to achieve
the goals. Moreover, manager have to give their staff more motivation and
this could be energised them while working. Mercedes-Benzs manager also
use innovation to improve their organisational success. As an example, they
pioneered a system called Pre-Safe to detect an incoming crash and prepares
the cars safety systems to respond optimally. It has always been very
effective when it comes to using new innovations and improving their
products and organisation.
3.4Controlling
Controlling is the last managerial function. Controlling is a function of
management that includes setting and establishing standards to be achieved
within the organisation. Mercedes-Benz manager first establish objectives
and goals, then measure achievement of them, identify anything that is
keeping the company to achieve them and then provide means of correction
if necessary. Mercedes-Benz basically use four types of control in context
of overall strategic mission of the organisation. First, use pre-action control
which more focuses on material financial or human resources. Next, use
steering control which is monitor on going activities or works. Third, use
screening control or sometimes call as yes or no control. Last, post-action
as last action of making the product. (Nafeesa, 2013)
4.0 Internal Stakeholder and External Stakeholder
What is stakeholder? Stakeholder could be a person, a group or an organisation that
has interest in an organisation. Stakeholders could affect the organisation or be
affected. Creditors, directors, employees and so on are some example of
stakeholder. Basically, stakeholders can be divided into two types, one of it is
internal stakeholder and another one is external stakeholder. According to Mr. Rao,
internal stakeholder are those who are members of the business organization and
external stakeholder are not part of the firm but could still affect the organization.
(Kantharow, 2015)

4.1 Internal Stakeholder

As above mention, internal stakeholders are the ones who inside the
organisation and will affect organisation.
4.1.1 Suppliers
Suppliers are one of the internal stakeholder in Mercedes-Benz
and in the chain of production. For example, in supplying
material in order to build up a vehicle. Mercedes-Benz has their
own quality standard that are central to everything it does.
Mercedes-Benzs reputation depends on building high quality
product. If the quality of the material supply by the supplier is
low, Mercedes will not use them to build their vehicle and this is
how Mercedes achieve their goals by their high quality and
luxury product.
4.1.2 Managers
Apart from that, managers is also one of the internal stakeholder.
Managers are the one who could help to increase organisations
profit and growth. They are the one who fulfil objectives and
projects which they are responsible to. As an example, managers
of Mercedes-Benz have the formal authority over planning,
shape the commitment and also motivate their staff to reach their
goals.
4.2 External Stakeholder
As we all know, there is also external stakeholder beside internal
stakeholder. External stakeholder can exercise different types of power
over an organisation. They are customer, competitors, government and so
on.
4.2.1 Customers
A business would not exist without customer, else it is not a
business. They are the one who buy goods, service and products
from seller. Customers feeling or react will decide the future of
an organisation. If customer not feeling good about some
products, they would not purchase it and it will affect the
organisation. Mercedes-Benz responds to change in customer
views and seeks to anticipate future customer expectations. As
an example, when Mercedes decide to build a new product, the
new product will tend to what customer need and expect. The
more customer like the new product and buy it, the road to
achieve goals will be closer. This is what make Mercedes
achieve the goal and become a successful company in
automotive sector.
4.2.2 Competitors
Nobody could hold the business market alone, including
Mercedes-Benz. Audi and BMW are the example competitors of
Mercedes-Benz and they bring major affect to Mercedes. BMW
has a quality rival to Mercedes-Benz and also Audis car are
great but starting to get familiar. In the last few year, Mercedes-
Benz fended off growing competition from BMW to hold the
lead in U.S. luxury auto market, selling over 312,500 units in the
country. However, Mercedes-Benz aims to launch 30 new or
refreshed models through the year 2020 in order to achieve the
goals and try to win back the global luxury sales crown that had
lost to BMW in 2005. (Team, 2014)
Figure 1.2
5.0 Conclusion
As a conclusion, I clearly see what the vision statement, mission statement is and
goals and how Mercedes-Benz apply four functions of management to help them
to achieve its goals. The stakeholders play very important roles in a business they
could even decide the future of an organisation. An effective marketing plan
brings together all of the element to achieve organisations goals. Thus, the most
successful company will be those that can meet these needs most effectively.
6.0 References
Boston, W., 2015. The Wall Street. [Online]
Available at: http://www.wsj.com/articles/mercedes-benz-outlines-plan-to-
offer-luxury-pickup-truck-1427414204
[Accessed 27 March 2015].
Daimler, 2015. Daimler AG. [Online]
Available at: http://www.daimler.com/company/strategy/targets
Farfan, B., 2015. About.com. [Online]
Available at:
http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-
Statements/Mercedes-Benz-USA-Mission-Statement.htm
Kantharow, 2015. MBUS Chapter 2 [Interview] 2015.
Nafeesa, N., 2013. Prezi. [Online]
Available at: wwww.prezi.com
Services, D. F., 2015. Daimler Financial Services AG. [Online]
Available at: http://www.daimler-financialservices.com/dfs/vision-and-
mission
Stephen H Goodman, Patricia M. Fandt, Joseph F. Michlitsch, Pamela S.
Lewis, 2007. Management. In: Challenges For Tomorrow's Leader.
s.l.:Thomson South-Western, p. 489.
Team, T., 2014. Forbes. [Online]
Available at: ww.forbes.com/sites/greatspeculations/2014/06/17/daimlers-
mercedes-benz-faces-stiff-competition-from-bmw-and-lexus-in-the-u-s/