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The launch of the Mercedes‐Benz A‐class in 1997 was greeted with enthusiasm by the international motoring community until the Swedish “elk‐test” was performed. A spate of toppling cars was not how Mercedes‐Benz had pictured the launch of their new, safe supermini. Early public relations activity only succeeded in exacerbating the crisis. This case study highlights the mistakes made in the initial stages of the crisis, before examining the strategy employed by Mercedes‐Benz to recover the situation. This article concludes that a more open, honest and proactive approach to crisis communication might have saved Mercedes‐Benz a great deal of money and embarrassment.
The case of the Mercedes-Benz Arena in Shanghai, China raises an important issue with respect to transnational venue management corporations embedding and operating in…
The case of the Mercedes-Benz Arena in Shanghai, China raises an important issue with respect to transnational venue management corporations embedding and operating in foreign markets. The purpose of this paper is to examine how Anschutz Entertainment Group (AEG) has implemented social embeddedness strategy to influence the management structure and enhance operational performance of the Mercedes-Benz Arena.
A case study approach was chosen to examine the social embeddedness of AEG through the Mercedes-Benz Arena in Shanghai. An in-depth interview was conducted with John Cappo, the President and CEO of AEG China, in April 2016. In addition, the relative news and interviews of leaders from AEG and AEG China over the past ten years was also collected. Qualitative content analysis of the data was conducted through a coding approach. All the materials were coded into three main categories based on three aspects of social embeddedness: local stakeholder relations, reputation and trust-building, cultural and institutional adaptation.
AEG has demonstrated how a transnational venue management corporation can successfully integrate social embeddedness strategy with the management structure and operational procedures of the Mercedes-Benz Arena in three ways. First is through the relationship between AEG and its partners in the joint venture, OPG in terms of the enforcement of the contract, the clear division of responsibilities, and the mutual understanding and use of relationship building. Second is the relationship between AEG and the local government in Shanghai. Third was adapting the structures of AEG to fit within local culture and institutional contexts.
The unique multi-stakeholder relationship inherent to venue management in China raises important questions with respect to transnational venue management corporations operating in foreign markets. The adaptation to the local context, as a moderating factor to the institutional exposure of a venue management company involves more challenging obstacles for non-local firms, compared to firms which are familiar with their institutional context. Understanding the key solutions in building relationships and trust with partners in joint venture and local government, as well as the key methods to adopt in local contexts, have applications across any number of sport industries.
The purpose of this research is to explore the practical implications of brand management decisions, particularly those involving the combination of luxury and mass‐market…
The purpose of this research is to explore the practical implications of brand management decisions, particularly those involving the combination of luxury and mass‐market brands within the same organization through merger or acquisition. The aim of the paper is to expand brand theory by linking it to administrative heritage in the context of the increasingly integrated global automobile industry.
Integrated case studies of Jaguar, Mercedes‐Benz, and Saab illustrate the effects of brand extension and dilution through the lenses of brand development, luxury brands, and administrative heritage theories. The recent history of acquisitions and mergers involving luxury automobile brands provides background to the in‐depth examination of these three specific instances. Conclusions are reached by comparing and contrasting the experiences of these firms relative to their mass‐market siblings.
The blending of luxury and mass‐market automobile brands in one corporate portfolio engages advantages of scale and scope economies, but induces potentially fatal brand corrosion. Consumer perceptions of luxury brands are influenced by the degree of commonality with the associated mass‐market brands, independent of whether the luxury brand or the mass‐market brand is the dominant corporate vehicle.
The paper provides insights useful to practitioners as well as academic researchers. The novel juxtapositioning of the concepts of luxury brands, administrative heritage, and global strategic management through mergers/acquisitions demonstrates the unintended consequences of complex interactions in a dynamic industry. The paper concludes with suggestions for further research.
Introduces the traditional German apprenticeship training approach which has been received favourably in US governments (federal and state) and in industry, but suggests…
Introduces the traditional German apprenticeship training approach which has been received favourably in US governments (federal and state) and in industry, but suggests that certain conditions in America do not favour heavy investment in such training. Shows that the educational transfer of the apprenticeship model may be facilitated by German firms investing and operating in the United States, as proved by the electronic giant Siemens which is committed to implementing the proven apprenticeship model in its US subsidiaries. Shows that the apprenticeship model alone may be insufficient, and may need to be supplemented by a higher level, dual system education which integrates theory and practice. Proposes that the Vocational Academy programme, illustrated by the Mercedes‐Benz experience, may fill this gap ‐ not to supplant the apprenticeship training, but to supplement it. Suggests that both the apprenticeship model and the Vocational Academy model, may fill an important need for an educational joint venture approach, not only in the United States but also in other countries, by making business and government organizations more competitive in the global market.
Looks at total quality management at Mercedes‐Benz. Briefly describesthe importance of TQM in the motor industry today. Highlights thevarious internal and external factors…
Looks at total quality management at Mercedes‐Benz. Briefly describes the importance of TQM in the motor industry today. Highlights the various internal and external factors which influence the activities involved in product planning and control and describes how a TQM programme can co‐ordinate these activities. Outlines the three fields of responsibility which a TQM system must incorporate in order to plan, monitor and promote the quality of products and processes in all departments of the company, i.e. quality planning, quality controlling and quality promotion. Concludes by concentrating on the essential requirements of a TQM programme if it is to be successful in any organization.
THE Mercedes‐Benz Model DB‐601A aero‐engine is a development of the Daimler‐Benz Aktiengesellschaft of Stuttgart, Germany, a firm which lias been engaged in the…
THE Mercedes‐Benz Model DB‐601A aero‐engine is a development of the Daimler‐Benz Aktiengesellschaft of Stuttgart, Germany, a firm which lias been engaged in the manufacture of automotive and aero‐engines for over fifty years. During the first World War the Daimler Motorcn Gesellschaft of Stuttgart produced the famous Mercedes aero‐engines iii three 6‐cylindcr types with ratings of 160 horse‐power, 180 horse‐power, and 260 horse‐power. Equally renowned were the 160 horse‐power and 230 horse‐power 6‐cylindcr aero‐engines built by Benz and Company in Mannheim. After the war, and as a result of the economic and financial crisis which brought almost complete stagnation to the automotive industry in Germany during the early twenties, these two companies were practically forced to combine their activities in order to survive. Accordingly in 1926 a merger was consummated between the Daimler and Benz organizations. Thus came into being the firm of Daimler‐Benz A.G. and their product, the Mercedes‐Benz line of automotive vehicles and aircraft power plants.
This paper describes the challenges being faced by different participants in the automobile sector value chain during Mercosur market consolidation. This is an extended…
This paper describes the challenges being faced by different participants in the automobile sector value chain during Mercosur market consolidation. This is an extended case study that analyses in depth, actions that the different companies carried out both in their operations management and with their customers and suppliers. The research highlights several aspects of the Argentine automotive value chain: difficulty in managing relative development speeds within the value chain; uncompleted regulatory framework development in order to gain synergy in a regional context; different operation strategies followed by assemblers to cope with market pressures (“green field” versus resources improvement); and weak links in the value chain, especially suppliers and dealers. Future efforts by assemblers should be oriented to work in the calibration of the development speeds of all the value chain in order to improve their competitiveness.
DURING the first two and a half years of this war the principal acro‐engine of the German Luftwaffe was the Mercedes‐Benz DB.601. Until recently this was the only engine…
DURING the first two and a half years of this war the principal acro‐engine of the German Luftwaffe was the Mercedes‐Benz DB.601. Until recently this was the only engine used in fighter aircraft—it was installed in the principal German fighter the Mcsserschmitt Mc.109 and also in several bomber aircraft. In the latest fighter version, the Me.l09G, the new DB.605 Al engine, which is based on the DB.601, is installed