Mercedes Benz Case Study Solution

He believed that there should be a car that the public could all enjoy and be able to afford. The “Gospel of Wealth” states that an individual should contribute to the growth of social progress. The Model T was one way he contributed by creating a widespread market for automobiles. It was created to be a fair priced automobile that the public could invest in. Ford changed people’s lives completely because the addition of automobiles changed the way they lived.

They worked with suppliers to re-engineer the car parts to be used on different models and thereby to reduce the complexity and cost to manufacture their cars. Furthermore, Allegro Automotive is expanding their market reach by building a manufacturing facility in the United States to take advantage of new tax laws. They are expanding into new markets by building electric cars as well as traditional fuel platforms. In order to become more responsive to changes in the industry, Allegro found it beneficial to bring the design experts and the safety testing team together. This improved communication between the two groups and fostered a collaborative environment.

The American firms and banks also witnessed rapid growth as after the World War II there was not much competition left for them and they began to export goods and services all over the world. The labour was more productive after the World War II and they made more profits for their employers. In return the employers also offered incentives, medical facilities and established labour unions to make their voice reach the highest

The 1920’s brought an increase of convenience for the middle class. Products such as refrigerators and vacuum cleaners, that were earlier only available to the rich, were now affordable. They were mass produced using Henry Ford’s method of the assembly line. These products made life easier and gave people more leisure time, therefore altering the manner in which people lived their lives. The automobile also affected the social dynamics of cities.

Car companies are spending less money and producing subpar equipment hoping to become richer. Allen reports that Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division states that “car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors” (3). In turn, however, they are only having to spend more on recalled products and lawsuits against them. What would help improve the environment and their status is producing new and improved equipment to pass down to the consumers. Another way that our economy is taking a hit is because of all the proposed plans.

According to car enthusiasts, the 1949 Oldsmobile Rocket 88 is believed to be the very first Muscle car engineered ("What Is a Muscle Car?”). The middle of the 1960’s put a spotlight on the muscle cars, young drivers seeking the thrill of drag racing or everyday driving would purchase muscle cars. The cars well polished and appealing body frame along with its high-performance attracted buyers, though the popularity of the muscle car lasted for a short period of time. The 1970’s brought about overbearing changes for the muscle car with raised insurance rates and impossible governmental regulations; the muscle car market plummeted greatly over the years due to these factors ("What Is a Muscle Car?”). Nowadays, the muscle car has become a collector item for enthusiast looking for rare models ("What Is a Muscle Car?”).

The manufacturing business is a great example of this, “manufacturing in the U.S. grew by 250,000 jobs after NAFTA”(Marketplace). NAFTA has had a beneficial effect on the automotive business, “NAFTA helped the U.S. auto industry survive”(Hanson), without the help of this trade agreement cars would be produced at a much higher opportunity cost. Although now, the U.S. is able to trade with Mexico and Canada who are both making car parts at a lower price while still producing efficiently, “The U.S. auto industry designed a very efficient production network that spanned the U.S., Mexico and Canada.”(Hanson). The trade agreement made products from Mexico and Canada cheaper to import.,“NAFTA increased farm exports because it eliminated high Mexican tariffs”(The Balance). Finally, The North American Free Trade Agreement has caused the U.S. economy to “boost” as much as “.5% each year” (The Balance).

• Care must be given to the fact the Renault, the mother company is a prestigious symbol of French automotive prowess. The push to new frontiers should not come at the cost of Renault losing ground in its own playfield, France. The automotive industry in most of the advanced economies are struggling with shortage of skilled workforce and Renault is no different from this. Dacia, with its strong presence in several developing economies can help Renault by supplying additional workforce from its labour pool in developing economies. • The threat from the competitors is persistent and unavoidable.

Not only did he have an effect on society, he has also played a role on helping the country in times of need. Looking at his effect of allowing the average person to own a car, advancing the work force, growing the middle class, creating tourism, and allowing the United States to thrive during World War II, Henry Ford helped the middle class more than anyone. Henry Ford is the reason that the average American had the ability to own a vehicle. Before Ford started making vehicles, cars were a luxury item only owned by doctors and lawyers. Ford began making his Model T using a revolutionary idea, the moving assembly line.

Mercedes remains in the end a company that values of professionalism and business men lifestyle where all its advertisement show the owner of Mercedes as wearing suit and enormously wealthy in order to instill the psychology and idea of the market they are trying to reach. Marketing would not be profitable if the business didn’t segment the market into segments that they can then market accordingly to demographics as well as social lifestyle. With this in mind, a sustainable car would be better targeted to a segment with high income that can as well high social class that would be more prone to be active towards a certain goal. With business men being always on the travel in order to attend meetings and showcase products, a sustainable cars that can achieve a heavy millage might attract that