Mercedes Benz India Case Study Solution

Business is presently one of the most significant food chains worldwide. It was founded by Henri Mercedes Benz India in 1866, a German Pharmacist who first introduced "FarineLactee"; a combination of flour and milk to feed infants and reduce mortality rate.
Business is now a global business. Unlike other multinational companies, it has senior executives from various countries and tries to make choices considering the entire world. Mercedes Benz India presently has more than 500 factories worldwide and a network spread across 86 countries.

Purpose

The purpose of Mercedes Benz India Corporation is to improve the quality of life of individuals by playing its part and providing healthy food. It wishes to help the world in forming a healthy and better future for it. It also wishes to motivate individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a much better and healthy future

Vision

Mercedes Benz India's vision is to supply its consumers with food that is healthy, high in quality and safe to consume. Business pictures to establish a trained workforce which would help the company to grow
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Mission

Mercedes Benz India's mission is that as currently, it is the leading company in the food industry, it believes in 'Excellent Food, Excellent Life". Its mission is to offer its consumers with a variety of options that are healthy and finest in taste. It is focused on providing the best food to its consumers throughout the day and night.

Products.

Mercedes Benz India has a wide range of items that it uses to its clients. In 2011, Business was listed as the most gainful company.

Goals and Objectives

• Remembering the vision and objective of the corporation, the business has set its goals and objectives. These goals and objectives are noted below.
• One objective of the business is to reach absolutely no garbage dump status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Mercedes Benz India is to squander minimum food throughout production. Usually, the food produced is squandered even prior to it reaches the clients.
• Another thing that Business is dealing with is to improve its product packaging in such a way that it would help it to reduce the above-mentioned issues and would also guarantee the shipment of high quality of its items to its consumers.
• Meet global requirements of the environment.
• Construct a relationship based on trust with its customers, organisation partners, staff members, and federal government.

Critical Issues

Just Recently, Business Company is focusing more towards the method of NHW and investing more of its earnings on the R&D technology. The country is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not attained as the sales were anticipated to grow higher at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business technique is based on the principle of Nutritious, Health and Health (NHW). This technique deals with the concept to bringing modification in the customer choices about food and making the food things healthier worrying about the health problems.
The vision of this method is based upon the secret approach i.e. 60/40+ which simply suggests that the products will have a score of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be made with additional nutritional worth in contrast to all other items in market gaining it a plus on its dietary content.
This technique was embraced to bring more yummy plus healthy foods and beverages in market than ever. In competitors with other companies, with an intent of maintaining its trust over consumers as Business Business has actually gotten more trusted by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing real amount of costs shows that the sales are increasing at a greater rate than its R&D spending, and allow the business to more invest in R&D.
Net Revenue Margin is increasing while R&D as a portion of sales is declining. This indicator also reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of financial obligations. This increasing debt ratio posture a hazard of default of Business to its financiers and could lead a declining share prices. In terms of increasing financial obligation ratio, the firm needs to not invest much on R&D and should pay its present debts to reduce the threat for financiers.
The increasing risk of investors with increasing debt ratio and decreasing share rates can be observed by big decrease of EPS of Mercedes Benz India stocks.
The sales growth of company is also low as compare to its mergers and acquisitions due to slow perception building of consumers. This slow development also hinder business to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of estimations and Graphs given up the Exhibits D and E.

TWOS Analysis

2 analysis can be used to derive various strategies based on the SWOT Analysis given above. A short summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative products by big quantity of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the profit margins for the business. It might likewise supply Business a long term competitive advantage over its competitors.
The worldwide growth of Business should be focused on market recording of establishing countries by expansion, drawing in more consumers through customer's loyalty. As developing countries are more populated than industrialized countries, it could increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Mercedes Benz India ought to do careful acquisition and merger of organizations, as it might impact the client's and society's understandings about Business. It needs to acquire and merge with those companies which have a market reputation of healthy and healthy business. It would enhance the understandings of customers about Business.
Business ought to not only spend its R&D on innovation, rather than it should likewise concentrate on the R&D costs over assessment of cost of different nutritious items. This would increase expense effectiveness of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not only establishing however likewise to industrialized countries. It must expands its geographical growth. This wide geographical growth towards developing and developed nations would lower the threat of possible losses in times of instability in different nations. It must expand its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must obtain and merge with those nations having a goodwill of being a healthy business in the market. It would also make it possible for the business to utilize its possible resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW technique development.

Segmentation Analysis

Demographic Segmentation

The group segmentation of Business is based on 4 aspects; age, gender, income and occupation. For instance, Business produces a number of items related to children i.e. Cerelac, Nido, and so on and associated to grownups i.e. confectionary products. Mercedes Benz India items are rather inexpensive by nearly all levels, but its significant targeted consumers, in regards to earnings level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in almost 86 countries. Its geographical division is based upon 2 main factors i.e. typical income level of the consumer as well as the environment of the region. Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic segmentation of Business is based upon the character and lifestyle of the consumer. Business 3 in 1 Coffee target those clients whose life style is rather busy and do not have much time.

Behavioral Segmentation

Mercedes Benz India behavioral segmentation is based upon the attitude understanding and awareness of the customer. For example its highly nutritious products target those consumers who have a health mindful attitude towards their intakes.

Mercedes Benz India Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand, there are 2 options:
Option: 1
The Company ought to spend more on acquisitions than on the R&D.
Pros:
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Nevertheless, costs on R&D would be sunk expense.
2. The business can resell the acquired systems in the market, if it fails to execute its method. However, amount spend on the R&D might not be revived, and it will be thought about totally sunk cost, if it do not provide prospective outcomes.
3. Investing in R&D supply slow development in sales, as it takes very long time to introduce an item. Acquisitions supply fast results, as it supply the company currently established item, which can be marketed soon after the acquisition.
Cons:
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to face misconception of customers about Business core worths of healthy and nutritious products.
2 Large spending on acquisitions than R&D would send out a signal of business's inadequacy of developing ingenious items, and would results in customer's discontentment.
3. Large acquisitions than R&D would extend the line of product of the company by the items which are currently present in the market, making business not able to introduce brand-new ingenious products.
Alternative: 2.
The Business must invest more on its R&D instead of acquisitions.
Pros:
1. It would enable the company to produce more ingenious products.
2. It would offer the business a strong competitive position in the market.
3. It would allow the business to increase its targeted consumers by introducing those items which can be used to a totally brand-new market segment.
4. Innovative items will offer long term benefits and high market share in long run.
Cons:
1. It would reduce the earnings margins of the company.
2. In case of failure, the entire costs on R&D would be thought about as sunk cost, and would impact the business at big. The risk is not in the case of acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the investors, and might result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Pros:
1. It would allow the business to present new innovative products with less risk of transforming the spending on R&D into sunk expense.
2. It would supply a positive signal to the investors, as the overall properties of the company would increase with its considerable R&D costs.
3. It would not impact the earnings margins of the business at a large rate as compare to alternative 2.
4. It would provide the business a strong long term market position in terms of the company's general wealth as well as in regards to innovative items.
Cons:
1. Threat of conversion of R&D spending into sunk expense, higher than alternative 1 lesser than alternative 2.
2. Danger of mistaken belief about the acquisitions, higher than alternative 2 and lower than option 1.
3. Intro of less number of ingenious items than alternative 2 and high variety of innovative items than alternative 1.

Mercedes Benz India Conclusion

Business has remained the top market gamer for more than a decade. It has actually institutionalised its techniques and culture to align itself with the market changes and consumer habits, which has actually ultimately allowed it to sustain its market share. Though, Business has actually established considerable market share and brand identity in the city markets, it is recommended that the company should concentrate on the rural areas in terms of establishing brand loyalty, awareness, and equity, such can be done by creating a particular brand allocation method through trade marketing tactics, that draw clear difference in between Mercedes Benz India products and other rival items. Moreover, Business must utilize its brand picture of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will allow the company to develop brand name equity for freshly presented and already produced products on a higher platform, making the efficient usage of resources and brand image in the market.

Mercedes Benz India Exhibits