MERCEDES BENZ INDIA LTD.
Karl Benz founder Benz & Co.
1st October 1883.
1900,Benz & Co become world biggest
First Mercedes was delivered on 22 December
On 28th June 1926 it get merged and to form
Daimler- Benz AG.
IMPORTANT SAYINGS OF TURNAROUND
Just Do It.
BECOME A PLAYSTATION
Stop all internal discussions and conflicts.
It is time to roll-out smooth and well rounded activities
Your actions should be clear, well defined like a square
And each one of us should reach the summit of his art
The present business scenario is one wherein constant change is the name of the game.
For any firm to survive in any industry, there has to be constant monitoring and improvement of its systems and operations
Process of bringing about a revival in the firms fortunes is what is termed as Turnaround Management.
3 PHASE IN MBz TURNAROUNDMANAGMENT
Phase I: Watching out for the danger signal
Phase II: Choosing appropriate Strategy
Phase III: Implementation of the change process
PHASE I : WATCHING OUT FOR THE DANGER SIGNAL
Decreasing constant sales
Lack of planning
A management team unwilling to learn from competitors.
PHASE II : CHOOSING APPROPRIATE STRATERY
1. Strategic Turnaround
A new way to compete in the existing business (Enter into a joint venture with Telco 1994).
A new way to compete in the existing business ( by launching Mercedes Benz E class)
Under this the first choice
Increases market share
Making product market relationship
2. Operating Turnarounds
Asset reduction strategies : below BEP they should reduce their assets so the fixed cost will reduce.
Revenue increasing strategies : Not extremely below BEP they should apply new strategy so can generate revenue.
Combination strategies : above BEP they should use cost reduction strategy so firm profit can rise, by unnecessary cost cutting down
PHASE III:IMPLEMENTATION OF THE CHANGE PROCESS
Implementation plays an important role in any turnaround management.
Identification of an appropriate strategy by itself will not guarantee success.
The success or otherwise of a Turnaround strategy depends on the commitment shown by the top management as also the operating management.
Likewise new CEO Mr. Juergen Ziegler of Mercedes Benz India ltd has implemented the project with new strategies with help of his management. And achieved success.
TO Achieve a Turnaround, You will Generally Need To Have The Following Seven Things Present
A Viable Business
Confidence In The Process