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Transcript of T.1-2 DESCRIPTION OF GENERAL DETAILS OF THE FIRM AND ORGANIZATION CHART T. 3 STRATEGY FOLLOWED TO...
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DESCRIPTION OF GENERAL DETAILS OF THE FIRM AND
ORGANIZATION CHART
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• Headquarter: Stuttgart, Germany• Production: Argentina, Austria, Bosnia and
Herzegovina, Brazil, Canada, Egypt, Ghana, Hungary, India, Indonesia, Iran, Malaysia, Mexico, Nigeria, South Africa, South Korea, Thailand, Turke, United Kingdom USA
• Products: Passenger cars, Trucks, Buses and vans, Utility vehicles
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• 1886 the first car was developed• Foundation: 1887• Founders: Gottlieb Daimler
Karl Benz• 1894 first serial production• Cooperation of: Mercedes (Daimler) and
Benz because of bearing the crisis, until the 1926’s unification.
• 1928 the first formula 1 car(“Silber Pfeil”) was built
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• Cars for middle and upper class. They try to offer high quality cars at good relation price-quality. Prices vary depending on the model you are to buy.
• Their cars are always on the edge from a technological point of view since they have been produced with the best technological tools.
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COMPETITORS
Their strongest competitors come from the luxurious car’s market.
Mercedes is supposed to be the strongest one in its field.
Main Competitors: - BMW
- Audi
- VW- other car manufacture companies (Jaguar,
Opel (GM) Porsche...
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STRATEGY FOLLOWED TO GET A COMETITIVE
ADVANTAGE
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THE STRATEGY FOLLOWED BY MERCEDES BENZ TO BECAME LEADERS IN THE CAR MARKET ARE:
DIFFERENTIATION VERSATILITY BROAD SCOPE
THE PORTER’S GENERIC STRATEGIES:
THE DIFFERENTITATION STRATEGY (horizontal axis) THE COST LEADERSHIP STRATEGY (horizontal axis) STRATEGIC FOCUS AND SCOPE (vertical axis)
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Vertical axis:
FOCUS
Horizontal axis:DIFFERENTIATION // COST LEADERSHIP
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1. DIFFERENTIATION
INVOLVES MAKING OUR PRODUCT DIFFERENT AND MORE ATTRACTIVE THAN THOSE OF OUR COMPETITORS.
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1. DIFFERENTIATION TO MAKE A SUCCESS OF A
GENERIC DIFFERENTIATION STRATEGY, WE NEED:
1. Good research, development and innovation.
2. The ability to deliver high-quality products or services.
3. Effective sales and marketing
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REASONS:
1. Reduce costs (labor, taxes, tariffs, etc.)
2. Improve supply chain
3. Provide better goods and services
4. Understand markets
5. Learn to improve operation
6. Attract and retain global talent
GLOBALIZE DIFFERENTIATION
DRAWBACK:HANDICAP
BEING UNIQUE
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2. THE COST LEADERSHIP STRATEGY REDUCING ITS ECONOMIC
COSTS BELOW ITS COMPETITORS
THE ABILITY OF A VALUABLE COST-LEADERSHIP COMPETITIVE STRATEGY TO GENERATE A SUSTAINTED COMPETITIVE ADVANTAGE DEPENDS ON THAT STRATEGY BEING RARE AND COSTLY TO IMITATE.
VERSTILTY
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THIS DIMENSION IS NOT A SEPARATE STRATEGY PER SE, BUT DESCRIBES THE SCOPE OVER WHICH THE COMPANY SHOULD COMPETE BASED ON COST LEADERSHIP OR DIFFERENTIATION.
THE FIRM CAN CHOOSE TO COMPETE IN:
THE MASS MARKET WITH A BROAD SCOPE, A DEFINED, FOCUSED MARKET SEGMENT WITH A
NARROW SCOPE.
MERCEDES BROAD SCOPE
3. FOCUS OR STRATEGIC SCOPE
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QUALITY FUNCTION DEPLOYMENT (QFD)
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Customer Room (What customers want)
This is the “voice of the customer” Done With focus groups Must be what customers want and not
what builder wants
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Engineering Room
This is the HOW room, How can each customer attribute be measured and evaluated by the company.
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Integrator room
These are the What's’ in rows and How's in columns
This s the relationship room Described in 3 ways:
Strong moderate and weak
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Competitors room
This room assesses how well we are meeting customers requirements
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Tester Room
Technical priorities Relationship and importance to customer
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The Attic
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About quality cost analysis
(http://www.kaner.com/qualcost.htm
)
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Content Definition quality cost Different types of Quality cost analysis
○ Prevention costs○ Appraisal costs○ Internal failure costs○ External failure costs
Benefits by analysis cost of quality Risks by analysis cost of quality
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Definition
• Quality Cost:
- It is represented by the costs encountered in:- preventing - finding - correcting the defective work
- They represent in general a significant amount
- It is affected (reduced) by Total Quality Control.
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Prevention costsThe costs encountered in the activities
preventing poor quality.
Examples:
Staff trainingEarly Prototyping/Requirements analysisClear Specification/unambiguous documentationEvaluation of the development tools that will be usedCoding errorsDesign errorsMistakes in the user manualsDadly documented or unmaintainably complex code
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Appraisal Costs:• The Costs encountered in the activities
aimed at revealing quality problems.• Examples:
Design reviewTesting the raw materialsQuality controlTraining testersTest automationUsability testingPre-release out-of-box testing by customer service staff
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Internal Failure
Failure costs are Costs that result from poor quality:
•Bug fixes•Regression testing•Wasted in-house user time•Wasted tester time•Wasted writer time•Wasted marketer time•Wasted advertisements •Direct cost of late shipment •Opportunity cost of late shipment
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External Failure Costs Customer service costs Cost of patching a released product distributing the
patch Examples are:
Lost sales Lost customer goodwill Discounts to resellers to encourage them to keep selling the
product Warranty costs Preparation of support answer books Investigation of customer complaints Refunds and recalls Coding / testing of interim bug fix releases Shipping of updated product
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Risks
• Implementation Risks– Not being realistic and trying to achieve too much
too soon.– Controversial costs should be left aside, especially
the first few times the company is trying to implement the quality-costs analysis
• Other risks:– Looking only from the point of view of the
company, not looking at the customer’s costs – Might result in other types of risk:
• Customer Dissatisfaction• Litigation
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Benefits• The goal is to reach minimum quality costs at the desired outgoing quality
level. • It’s a feed-back mechanism: quality costs data is used by the management to
make decisions that will impact the quality costs.• Applications of Quality Costs
– Measurement Tool:• Quality costs provide comparative measurements for evaluating
quality programs– Process-Quality Analysis Tool
• Quality costs can serve effectively as an analysis tool and point out where the problems are
– Programming Tool• Quality costs determine how the available resources to be divided
– Predictive Tool• Quality costs can also be used to evaluate and assure performance in
relation to the goals and objectives of the organization.
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Operations technology in Mercedes Benz
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Operations technology in Mercedes Benz
Products Technologically innovators
Technology used to manufacture these products
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CAD in Mercedes Benz
Two kinds of softwareMechanical and engineering orientated
softwareDesign in itself software
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Production Technology
The cad design has to be integrated in the machine.
Numerical controled Robots
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Internet & more corporative Software
Web page informing aabout their services, new releases and news.
www.mercedes-benz.com
In 1995 they firmed aa contract with IBM to support all the corporative software. (accounting, net, design)
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DESCRIBE A PROCESS IN OUR FIRM USING ANY OF THE
TOOLS FOR PROCESS DESIGN.
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