CASE STUDY 4

1) Prepare a profile of the potential buyer of the Lexus.

Target Customer Description
The target customer with Lexus flagship hybrid design is seeking to present a bold image to
others. Price is therefore a secondary factor to the message their car portrays in their
purchasing
decisions. Potential customers are born within ten years of the baby boomer generation aged
forty-five and up. As a wealthy and image-conscious person he/she can spend money freely,
taking up hobbies and living a visibly envious life. He/she purchases this car for its green
status
to benefit his/her self-image. They choose to purchase hybrids either because they are
environmentally conscious, or they wish to appear to be. They combine extravagance and
excess
with environmental care by purchasing a car that is both green, and also features top-of-theline
technology, performance, and luxury.
--------------------------------------------------------------------------------------2) What should Mercedes and BMW do to counteract the Japanese threat in the United States
and Europe?
[BOTH MERC / BMW HAVE QUALITY PRODUCT/ PRODUCT POSITIONING. THEY NEED TO
STUDY THE MARKET AND DEVELOP A SEMI-LUXURY BRAND TO MATCH LEXUS
-----------------------------------------------------------------3) Why has the Lexus model been very successful in the U.S. but has not been marketed in
Japan? (Suggestion: Review the frequency of repair records of luxury cars. Also talk to
Lexus dealers or Lexus owners).
[ IN THE US CAR MARKET , THERE WAS A GAP BETWEEN MERC/BMW AND THE
LOCAL BRANDS.
THIS IS WHERE THE LEXUS FITTED IN WELL WITH THEIR PRICE/ PROFILE]
-----------------------------------------------------------4) Do you think Lexus will succeed in Japan? Why or why not?
LEXUS CAN SUCCEED IN JAPAN, PROVIDED
JAPANESE CAR MARKET.

IT IS POSITIONED PROPERLY IN THE

CASE STUDY 2
Answer
Answer
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?
CATEGORY MANAGEMENT SYSTEM NEEDS TO BE SET UP
-policies
-procedured
-practices
Etc
======================
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?

-NEGATIVE REACTION FROM THE BRAND MANAGERS ARE EXPECTED.

BRAND MANAGEMENT IS A STAFF FUNCTION , WHILE THE CATEGORY MANAGEMENT IS
A LINE MANAGEMENT FUNCTION.
SUCH CHANGE NEEDS
-change management drive
-orientation programme.
=======================
3) As a consultant, would you have recommended a top-down or a bottom-up approach, or
both, to process redesign and organizational change?
TOP DOWN APPROACH IS THE RIGHT APPROACH , AS IT RELECTS
-the management mission
-the management objectives
-the management strategies.
====================
4) What are the advantages and disadvantages of each approach.
TOP DOWN
ADVANTAGES
-it clearly shows the management intentions and drive.
DISADVANTAGES
-low participation from the bottom line staff
-------------------------BOTTOM UP
ADVANTAGES
-it clearly shows EMOTIONAL PARTICIPATION OF THE STAFF.
DISADVANTAGES
-LACKS THE LEADERSHIP
-------------------------========================
@@@@@@@@@@@@@@@@@@
CASE STUDY 3
ANSWER: 1) What is your assessment of Daimler-Benz's operations in many different fields?
Daimler-Benz, with more than 300,000 employees worldwide, consisted of four major groups:
The first, by far the biggest and most successful group, was Mercedes-Benz with about
200,000 employees. It is best known for its passenger cars and commercial vehicles.
[THIS BUSINESS UNIT HAS THE CORE COMPETENCE AND HENCE VERY SUCCESSFUL.
-------------------------------------------------------------The second was the AEG Daimler-Benz industries in the business of rail systems,
microelectronics, heavy diesel engines, energy systems technology, and automation.
[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND
LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE.
---------------------------------------------------------------------------The third was the Aerospace Group in the business of aircraft (the company has a more than
one-third interest in the Airbus consortium), space systems, defense and civil systems, and
propulsion systems.
[THIS BUSINESS UNIT HAS MANY SUB-UNITS AND ARE INTEGRATED AND HAS THE
CORE COMPETENCY / HENCE IS SUCCESSFUL..
---------------------------------------------------------------------------Finally, there was the Inter Services Group consisting of systemshaus, financial services,
insurance brokerage, trading, marketing services, mobile communications services, and real
estate management.

[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND WIDE DIVERSIFICATION AND
LACKS CORE COMPETENCY IN SOME WHICH AFFECTS THE OVERALL PERFORMANCE.
==========================================================
===
2) Should the various groups operate autonomously? What kinds of activities should be
centralized?
[THE BUSINESS UNITS SHOULD OPERATE AUTONOMOUSLY . THE
ACTIVITIES THAT COULD CENTRALIZED ARE
-IT SYSTEMS
-HR SYSTEMS

KINDS

OF

-FINANCE
============================================
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?
[ BETTER USE OF TECHNOLOGY AND COMPETENCE
PLUS SALES OPPORTUNITIES.
===========================================
4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen
Schrempp do now?
[ RE-ORGANIZE / RESTRUCTURE THE BUSINESS
TO RUN THE SHOW]

UNIT AND HIRE COMPETENT

TALENTS

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---------- FOLLOW-UP ---------QUESTION: Dear Sir

4th Answer is not cleared Please make it clear
Answer
4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen
Schrempp do now?
[ RE-ORGANIZE / RESTRUCTURE THE BUSINESS UNIT AND HIRE COMPETENT TALENTS TO
RUN THE SHOW]
THE MISTAKES DAILMER MADE IN ACQUIRING NON-AUTOMOTIVE BUSINESS
IS
-treat the business as an automotive business.
-the talents who ran the business did not have the right competence for the business
-this affected the performance.