Mercedes Benz Organization Behavior

Topics: Mercedes-Benz, Luxury vehicle, Daimler AG Pages: 7 (2121 words) Published: April 15, 2013
Part A (Ari):
Mercedes-Benz is a division of Daimler AG, manufacturing luxury vehicles, buses, and trucks. Mercedes-Benz organization has been around for well over a decade, submitting their first patent for the first car invented by the organization in 1886. Since the creation of the first car, "Mercedes-Benz has set the pace for what all cars might someday become" (M-BUSA). The company's first vehicle not only changed the way people moved about, but it also sparked a future of innovation that Mercedes-Benz still boasts about today. Until 1931, Mercedes-Benz devoted its resources to the production of a three-wheeled vehicle. However, in 1931 Mercedes released details of the four-wheel independent suspension; the first-ever fully independent suspension. By this time, Mercedes was capturing a large part of the upper-class European market but still hadn't made its impact on the American market quite yet. As Mercedes shifted their focus to adapt to the American wants and needs, safety became a major factor in producing reliable and classy cars. In 1978, Mercedes added ABS (antilock braking system) to its line of vehicles. In the midst of fully capturing the American market, Mercedes got caught up with the rapid influx of sales, just before the recession hit. Poor decisions were made to expand during a time of a fragile economy. In the early part of 2000's, customer complaints and media scrutiny hit Mercedes-Benz organization hard. In fact, in the middle of the decade, consumer reports rated some of the company's vehicles as a zero; the lowest possible score. At this time, Mercedes management spent hours with their engineering people to find a solution to the quality issues. In addition, Mercedes failed to merge with Chrysler, and to make matters worse, the economic recession had begun to effect sales.

Mercedes overcame these issues and recovered from the scrutiny in a matter of only a few years. Mercedes introduced a Ernst Lieb as the new President and CEO of its USA division. Mr. Lieb envisioned some necessary steps to "improve the company and its culture" (GPtW Institute). Mercedes-Benz has continued to rely on its innovation as a key successor for the firm. In addition, Lieb implemented a fitness self-awareness survey that allows colleagues to understand who they really are while finding practical solutions. Retrospectively, Mercedes-Benz continually updates its processes as new innovations often require slight deviations. Likewise, Mercedes-Benz has adapted design and innovation through the likes of the fashion and technology industries. “In addition elegance and design have been the major factors of success for the brand Mercedes-Benz," stated by Mercedes-Benz Middle East Corporate division. In the end, CEO, Ernst Lieb continues to support his theorem enforcing his employees to be fully committed to 'staying on the course'.

"About Mercedes-Benz USA | Mercedes-Benz." Mercedes-Benz USA. N.p., n.d. Web. 18 Feb. 2013. .

Kiley, David. "Mercedes-Benz Scores Zero in Consumer Reports. Ouch!" Consumer Reports. N.p., 20 Mar. 2007. Web. 17 Feb. 2013. .

"Leading through Innovation." Mercedes-Benz USA. N.p., n.d. Web. 18 Feb. 2013. .

"Mercedes-Benz Middle-East and Levant - News & Events - ExpressYourStyle."Mercedes-Benz Middle-East and Levant - News & Events - ExpressYourStyle. N.p., n.d. Web. 19 Feb. 2013. .

"Mercedes-Benz USA's Turnaround." Mercedes-Benz USA's Turnaround. Great Place to Work Institute, n.d. Web. 18 Feb. 2013. .

Part B (Scott):

The Mercedes-Benz brand has set the standard for luxury cars since 1886. According to, Mercedes business model is crafting vehicles that are cutting edge in safety, luxury, refinement and a symbol of status. Status is a big deal in the world today. Mercedes has branded itself as the benchmark of success. People do not react the same way if someone says they own a Kia or Hyundai. According to a...
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