...Application of foresight in corporations 12th Session of the UNIDO General Conference EUR and NIS Regional Round Table Vienna, 5 December 2007 Dr. Frank Ruff Daimler AG Society and Technology Research Group Berlin, Palo Alto, Kyoto Agenda A Why Corporate Foresight? B A closer look at Corporate Foresight C Implications for UNIDO D Q & A, Discussion UNIDO 5 December 2007 / Dr. Frank Ruff 2 Why Corporate Foresight? History of Future Studies/Foresight Foresight embedded in enterprises First Think Tanks in enterprises (e.g. Shell, Toyota, Daimler-Benz) Corporate Foresight: Innovation and Technology Analysis Establishment of new (e.g. Daimler-Benz, variants and diffusion Siemens, Philips) of concepts of future studies and analysis Consumer and marketing-oriented trend research Future Consulting (e.g. Z_Punkt) Emergence of systematic resp. scientific future studies Journalists/Entrepreneurs/Expert-Networks/Consulting Warning future studies „Doom-Saying“ (e.g. Club of Rome, Robert Jungk) Economic and political future studies (e.g. Faith Popcorn, (e.g. Alvin Toffler, Trendbüro, John Naisbitt, Dan Coates, PROGNOS) Matthias Horx) „Premodern future view“ Delphic oracle Spiritual and religious foresight Outsider (e.g. Nostredamus) State-run/scientific/supranational institutions Military futurologic research MIT) Technology assessment Economic, political, Science and Technology resource-oriented (e.g. RAND Corporation...
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...DaimlerChrysler Merger: The Quest to Create “One Company” Tom Stallkamp, Chrysler president and executive in charge of accelerating integration of the recently merged Daimler and Chrysler companies, was feeling great frustration. Why couldn’t he move the integration process along more rapidly? He could see clearly the amazing potential for payoffs, but it just wasn’t happening. He wasn’t used to being unable to move the organization, and he hated the feeling of being able to visualize great things without being able to mobilize people to action. What else could he do? Maybe it was time to let the two cultures duke it out, and allow the stronger one to win. That would be one kind of integration, though not quite what he had been working for. Background At 4:00pm on November 12, 1998 as the final bell rang on the New York Stock Exchange, U.S. automaker Chrysler Corporation and German automaker Daimler-Benz ceased to exist. They emerged the next day as a new global conglomerate named DaimlerChrysler AG. With combined revenues of $130 billion and a market capitalization of $92 billion, DaimlerChrysler became the fifth largest automaker in the world in number of vehicles sold and third largest in sales. The $40 billion stock deal was the largest ever in the industrial world. Upon completion of the transaction Daimler stockholders owned 57 percent of the new DaimlerChrysler and Chrysler stockholders the remaining 43 percent. After ten months of discussions and negotiations between...
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...Executive Summary The Smart car has been around for over 10 years; it is currently being manufactured by Mercedes-Benz. The car is incredibly small; the two-person model is only 2.5 meters long from front to back (half a meter shorter than a Mini Cooper). The doors make up three quarters of the car's length. It's almost as wide as it is tall. The Smart car is obviously very easy to park. The plastic body panels on the car are replaceable. You can change them after an accident, or whenever you want, even with a different colour. The seats apparently are quite comfortable, with sufficient legroom, and headroom is adequate for most passengers thanks to the car's tall stance. Assessment and Diagnosis In the late 1980s, SMH (makers of the Swatch brand of watches) CEO Nicolas Hayek began developing an idea for a new car using the same type of manufacturing strategies and personalization features used to popularize Swatch watches. He believed that the automotive industry had ignored a sector of potential customers who wanted a small and stylish city car. This idea soon became known as the "Swatchmobile". Hayek's private company Hayek Engineering AG began designing the new car for SMH, with seating for two and a hybrid drive train. Analysis of Change Strategy: Nicolas Hayek, the CEO used a transformational Change strategy which involves radically rethinking and redesigning a major business process with the objective of achieving large-scale improvements in overall business...
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...CASE STUDY 3 CASE 10-2 The Smart Car by B. Renea Kosino 1. What is Smart’s competitive advantage? Its brand image? The Smart Car, made by DaimlerChrysler, offers a cost focus and focused differentiation. It brand image is very narrowly focused. Smart appeals to single people (or families with no children), who primarily do city driving and want a no frills automobile that is economical and eco-friendly. Some advantages that Smart brings to the table are as follows. First, the vehicle has an exceptional look that appeal to those who want to be unique. Next, this very small, but roomy vehicle makes city driving and tight parking easier. Subsequently, crash testing and safety experts consider Smart as an extremely safe vehicle. Moreover, its models are very fuel efficient at 35 mpg on average. In addition, this automobile’s low exhaust emissions earned an Ultra Low Emission Vehicle (ULEV) classification. These condition were essential in Smart being one of five automakers to receive Greenopia USA’s highest environmental rating (see attach1). Finally, the vehicle is very economical with the most basic vehicle starting at $12,000. 2. Assess the U.S. market potential for the Smart. Do you think the car will be a success? Why or why not? Smart Car is economical, unique, and eco-friendly. Generation Y (Gen Y) is a target market, which should be pursued because Gen Y’s, those born from 1977 to 1994 (1980-1995, depending on who you ask), is demographically...
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...Degree of Rivalry Despite the high concentration ratios seen in the U.S. market (see Appendix D), which typically signify that a lesser degree of competition is seen in the industry, rivalry in the U.S. and the global automotive industry is intense. Clearly, the concentration ratios do not tell the whole story. The automotive industry in the U.S. is no longer the playground of the Big 3 (GM, Ford, and Daimler Chrysler); global companies compete in the U.S. market, while U.S. companies have globalized themselves. In the 1980s, the Japanese car makers Honda and Toyota entered a fairly disciplined U.S. market and have been very focused in growing their shares of the market. The great diversity of rivals in terms of cultures and associated philosophies has intensified rivalry in the industry. Market growth is slow in the established markets of the U.S. and Western Europe, and companies must fight fiercely to eke out gains or prevent losses in market share. However, growth is potentially huge in the rapidly industrializing nations of China and India; in these booming markets, companies could take advantage of the opportunities to reap handsome rewards. The degree of rivalry in the automotive industry is further heightened by high fixed costs associated with manufacturing cars and trucks and the low switching costs for consumers when buying different makes and models. Threat of Substitutes The threat of substitutes to the automotive industry is...
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...INTRODUCTION The Mercedes – Benz Company began with the merger of Daimler Motor Company and Benz & Company in 1926. Since the merger, Mercedes – Benz has created and sustained a reputation for innovation and excellence by producing high-quality automobiles. An analysis of Mercedes – Benz would not be complete without an examination of the DaimlerChrysler Automotive Group, as the two industry leaders merged in 1998. The Mercedes – Benz Company is now owned and operated as part of the DaimlerChrysler Automotive Group. Throughout the paper, the guiding principles of DaimlerChrysler will be referred to, as their management decisions directly dictate those of their subsidiary, Mercedes – Benz. PART A: KEY MANAGEMENT ACTIVITIES There are several key management activities that the DaimlerChrysler group executives take part in that contribute to the company being considered a leader in their industry. One such activity is when the CEO and other board members meet with the European Works Council (EWC) and with the World Employee Committee (WEC) each year (.eurofound.europa.eu). These two committees are dedicated to building and fostering strong relations between employees and management. During committee meetings, concerned employees are encouraged to present their thoughts, ideas and suggestions for change to the management board (.eurofound.europa.eu). Through this interaction, a direct link is created between management and employees. DiamlerChrysler created the World Employee...
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...DaimlerChrysler/Nummi Case#4 Daimler-Benz considered one of the first manufacturing companies dedicated to the automobile industry in late 1920's, its line of production was luxury brands like Mercedes Benz, Smart & Daimler Trucks among others. Unfortunately the company was not having the acceptance expected in Europe; need of an evolution the way it did, business to be able to position itself in other markets like Asia and the United States. Chrysler Corporation is a vehicle manufacturer company with a base in the United States and is considered the third distributor of vehicles behind GM and Ford. Prior to the merge of General Motor, the company had many internal problems that wouldn't let it move forward in the industry; actually manufacture the following brands Chrysler, Dodge & Jeep among others. Prior to the merger both companies differentiate from each other specially the different management and operation styles. In 1995 Chrysler had many labor problems due to the reduction in quality, re-calls and consumers dissatisfaction over 220,000 employees were lay-off. On the other hand the Daimler-Benz had a highly skilled workforce, job satisfaction, good relationships with German labor unions and managers getting involved on daily problem solving. The strategy of the Daimler-Chrysler merger would create the fifth company in the world, in the industry by volume compared with GM, Ford, Toyota and Volkswagen. The company would take the name of Daimler-Chrysler and would be...
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...successful? 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? 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? 3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to process redesign and organizational change? 4) What are the advantages and disadvantages of each approach. 1) What is your assessment of Daimler-Benz's operations in many different fields? 2) Should the various groups operate autonomously? What kinds of activities should be centralized? 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? 4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? 1) Prepare a profile of the potential buyer of the Lexus. 2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe? 3) Why has the Lexus model been very successful in the U.S. but has not...
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...SWOT Analysis of Tesla Motors Strength – In the first part of SWOT analysis of Tesla Motors, Strength are discussed. * Energy efficiency: the most energy efficient car as it uses renewable energy such as solar power. * Supplier to other manufacturer: Tesla is a major supplier of car parts for Toyota. * Ability to manufacture environmental friendly cars: Tesla has pure and complete advantages over other companies in manufacturing environmental friendly cars. * Cost reduction advantages: they outsource secondary components to other companies which gave them acquiring cost reduction advantages. * Existing strong investors and partners: Tesla acquired strong investor’s partners in recent years such as Google, Daimler, Panasonic, and Toyota motors. Weakness – In second part of SWOT analysis of Tesla Motors, weakness are discussed. * Bad impact from Model X: Tesla recently launched high-tech car Model-X which price is expensive it compared with that of other cars. * Time consuming to make a delivery: Tesla says if you order a car, you will have it delivered after one year which cannot be a strong distribution process. The manufacturing capacity is so limited. * Bigger Debt Portion: Tesla has large portion of debt (and a negative $455 million cash flow) in its financial statement which makes it vulnerable. * Short story of experience: As Tesla has established in the year 2003, it does not have sufficient experience comparing to other car manufacturers...
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...Masters Programmes Assignment Cover Sheet Submitted by: Date Sent: Module Title: Module Code: Date/Year of Module: Submission Deadline: Word Count: Number of Pages: Question: Student ID: 1267016 17 December 2012 Economics of the business environment IB9710 December 2012 17 December 2012 3000 words (Including in-text referencing) 27 Mercedes Benz Cars and its economics “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of W arwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” Mercedes'Benz' ' ' ' Content 1' Introduction of the Firm and its market ............................................................................2' 2' Macroeconomic exposure and protection ..........................................................................3' 3' Market Exposure................................................................................................................6' 4' Non economic exposure .....................................................................................................9' 5' Vulnerability..................................................
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... communications and misunderstanding in a lot of aspects. Besides that, is the merger between these two massive companies is the best strategies? 3.0 TOOL USED CAGE analysis is used in this problem solving. CULTURE Different personalities appeared because basically, after the recent aggressive change The Board of Management, Daimler can be said as a assertive and committed company where totally unlike Chrysler that tend to be little less rigid and sometimes can be flexible and go off on tangents. Their working lifestyle also showed obviously different for Daimler which they embraced formality and hierarchy while Chrysler favored open collars, and free-form discussion. There were also language barriers that happened between the affiliations when practically all the German executives spoke English while none of the Americans spoke German. In an effort to improve the chances of integration triumph, Chrysler invited employees to take culture training as they consider that culture training is more crucial than language training. Besides that, the distinction in business culture specifically in power distance also occur when Daimler-Benz managers were rewarded based primarily on the profit...
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...Cannstatt, Germany, were startled to see Paul Daimler, son of Gottlieb Daimler, roll away from No.14 Taubenheimstrasse on a wooden-spoked two-wheeler powered by a fraction of a horsepower four-cycle internal combustion engine. That belt driven motorcycle (actually a four-wheeler as it had two eight-inch diameter outrigger wheels to keep it stable when at a standstill) was the forerunner of all automobiles. Gottlieb Daimler was the first man to harness with any true degree of success a combustion engine into a road vehicle. Granted there were horseless vehicle predecessors to Daimler's motorcycle but Daimler's was the first recognized internal combustion vehicle and the first to incorporate a practical transmission system. Shortly after Daimler applied for his combustion motor patent, Carl Benz of Mannheim, Germany was granted a German patent covering a three-wheel motor car he constructed in 1844. This single cylinder, 3/4 hp, benzene fueled motor car had a combination of belts, chains and gears to transmit power to the rubber tired rear wheels but no gear change was possible. Daimler's first four-wheeler, a Victoria-type motor driven carriage, was built in 1886. By 1890 demands for Daimler's engine made expansion necessary and a corporation was formed, the Daimler Motoren Gesellschaft. or Daimler Motor Company as it was known in English. Benz, with several associates formed another corporation, Benz & Company, at Mannheim. Daimler continued his automotive research and prior...
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...(diminished by competitors increase in quality, technology, and innovation): i. Daimler – felt pressure to merge, ranked 15th largest automaker (only above Volvo & Porsche) ii. Chrysler – lack management depth, new products, and has small oversee market penetration c. Avoid consolidation due to global overcapacity d. Cope with changing marketplace and technology, such as the Internet e. Remain competitively priced by reducing cost (implementing “platform” design across DaimlerChrysler) f. Was it really “a merger of equals”? What went wrong? (see table and reference #2 – Muller, 2001) Issues faced by DaimlerChrysler after 1998 merger: a. How to leverage “soft” assets, such as Intellectual Capital in the form of Knowledge Management? b. How to resolve cultural differences between Daimler and Chrysler c. How to convince executives, managers, and staff to be open and remain loyal d. How can knowledge management be used to smooth the merger process * See reference #4 (Robb, 2003) for similarities between related KM acquisitions and mergers e. Is there enough resources or reason to adopt Knowledge Management * See Table A for comparison of companies that adopted KM Transfer of resources and capabilities: a. Economies of Integration: reduce costs and improve quality b. Economies of scope: obtaining synergies from transfer of core competencies i. Chrysler – known for innovation in design and marketing knowledge ii. Daimler – has brand equity and state-of-the-art engineering in R&D iii. Sharing...
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...MARKETING MANAGEMENT MIM Programme M1 ACADEMIC YEAR 2013-2014 TUTORIAL 1 ANTIOCO Michael GUERREAU Olivier GUINTCHEVA Guergana Course Structure Phase 1: analyzing external and internal environment Phase 2: Marketing strategy Planning Phase 3: Marketing Mix Tutorial 1 Detailed • • • • (Mission) & Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example Daimler AG Mapping the Business • Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, MercedesBenz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the global market leader of heavy- and medium-duty trucks as well as busses. The Daimler Financial Services division has a broad offering of financial services, including vehicle financing, leasing, insurance and fleet management. Daimler AG Corporate Mission • As the inventor of the automobile, we have shaped mobility to a great extent with groundbreaking innovations and outstanding vehicles. We aim to continue playing our pioneering role with the ongoing development of mobility – especially in the areas of safety and sustainability. What type of Corporate Objectives are formulated by Organizations? Tutorial 1 Detailed • • • • (Mission) & Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example What is a market? • A group of individuals or organizations (i.e., buyers) having...
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...Chrysler and Daimler merger case 1) in 1998 the worldwide car market is growing (from 46 million in 1993 to 52 million in 1997), but more and more competitor are present in this business market in a worlwide level. In the 90's the incumbent competitors are threatening by the emergence of Korean manufacturers ( Hyundai, Kia ), because the firm are offering cheap and good quality cars. the emerging firms in the 90's are from Asia, where the work force is cheaper than in westerners country, in this way these firms can offering a high quality product ( Lexus, Infinity, etc) for an affordable price. Thus High end firms as Mercedes, BMW, are threatened by those firms. In this way to face with the competition most of companies are shifting their production toward developing countries for reducing their cost and compete in a better way with these emerging firms. Moreover according to some analysts there would be a reduction from 39 current producers to 20 major companies. That would be because of the high competition that would be especially due to present in the market. Furthermore each year the plant capacity exceeded demand of cars by15 million vehicles, thus the profitability of the firms is reduced, and that affect on the long term financial health of the different firms. Finally the industry is stroke by several mergers and acquisitions, which reinforce the competition in the markets. 2) In my point of view the merger make sense, because in a competitive market firms face...
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