You are here:ManagementConsultingAll AnswersAnswers by Expert:Ask ExpertsVolunteerLeo LinghamExpertisemanagement consultingprocess, managementconsulting career,management development,human resource planning anddevelopment, strategicplanning in human resources,marketing, careers inmanagement, productmanagement etcExperience18 years working managerialexperience covering businessplanning, strategic planning,corporate planning,management service,organization development,marketing, salesmanagement etcPLUS24 years in managementconsulting which includesbusiness planning, strategicplanning, marketing , productmanagement,human resourcemanagement, managementtraining, business coaching,counseling etcOrganizationsPRINCIPAL -- BESTBUSICONPty LtdEducation/CredentialsMASTERS IN SCIENCEMASTERS IN BUSINESSADMINSTRATIONHome Jobs/Careers Management Consulting Management Consulting International Case : Global CarIndustryAdvertisementManagement Consulting/International Case : Global Car IndustryExpert: Leo Lingham - 3/16/2013QuestionInternational Case : Global Car IndustryHow the Lexus Was Born-and Continued Its Success in the United States, but will Lexus Succeed in Japan?One of the best examples of global competition is in the car industry. As the Japanese gained market share inAmerica, U.S. car makers required the Japanese to self-impose quotas on cars exported to the United States.This encouraged Japanese firms not only to establish their plants in the United States but also to build biggerand more luxurious cars to compete against the higher-priced U.S. cars- and the expensive European cars suchas the Mercedes and the BMW.One such Japanese car is the Lexus, by Toyota. This car is aimed at customers who would like to buy aMercedes or BMW but cannot afford either. With a sticker price of $35,000, the Lexus is substantially lessexpensive than comparable European imports. In 1983, Toyota set out to develop the best car in theworldmeasuredagainst the Mercedes and the BMW. The aim was to produce a quiet, comfortable, and safe car thatcould travel at 150 miles per hour and still avoid the gas guzzler tax imposed on cars getting less than 22.5miles per gallon. This seemed to be an idea of conflicting goals: cars being fast seemed irreconcilable withcars being at the same time fuel-efficient. To meet these conflicting goals, each subsystem of the car had to becarefully scrutinized, improved whenever possible, and integrated with the total design. The first version of the32-valve V-8 engine did not meet the fuel economy requirement. The engineers applied a problem-solvingtechnique called "thoroughgoing countermeasures at the source." This means an attempt to improve everycomponent until the design objectives are achieved. Not only the engine but also the transmission and otherparts underwent close scrutiny to make the car meet U.S. fuel requirements.Toyota's approach to achieving quality is different from that of German car manufacturers. The latter userelatively labor-intensive production processes. In contrast, Toyota's advanced manufacturing technology aimsat high quality through automation requiring only a fraction of the work force used by German car makers.Indeed, this strategy, if successful, may be the secret weapon to gain market share in the luxury car market.Questions:1) Prepare a profile of the potential buyer of the Lexus.2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?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 Lexusowners).4) Do you think Lexus will succeed in Japan? Why or why not? AnswerQuestions: 1)Prepare a profile of the potential buyer of the Lexus.Target Customer DescriptionThe target customer with Lexus flagship hybrid design is seeking to present a bold image toothers. Price is therefore a secondary factor to the message their car portrays in their purchasingdecisions. Potential customers are born within ten years of the baby boomer generation agedforty-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 statusto benefit his/her self-image. They choose to purchase hybrids either because they areenvironmentally conscious, or they wish to appear to be. They combine extravagance and excesswith environmental care by purchasing a car that is both green, and also features top-of-the-linetechnology, performance, and luxury. ---------------------------------------------------------------------------------------2)What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?[BOTH MERC / BMWHAVEQUALITYPRODUCT/ PRODUCTPOSITIONING. THEYNEED TO STUDYTHEMARKETANDDEVELOPA SEMI-LUXURYBRANDTOMATCHLEXUS------------------------------------------------------------------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).Leo LinghamMark EichingerBrowse Answers:About Us Tell Friends How to Ask How to Volunteer FAQ Tech Support Top Experts Expert LoginBy Category AlphabeticallyManagement Consulting: International Case : Global Car Industry, gas guzzler tax, u s cars 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-global-car.htm 1 / 8[ INTHEUSCAR MARKET , THEREWAS AGAPBETWEEN MERC/BMW AND THE LOCALBRANDS.THISISWHERETHE LEXUSFITTEDINWELL WITHTHEIR PRICE/ PROFILE]------------------------------------------------------------4)Do you think Lexus will succeed in Japan?Why or why not?LEXUSCANSUCCEEDINJAPAN, PROVIDED ITISPOSITIONEDPROPERLYINTHEJAPANESECARMARKET.###########################################Questioner's RatingRating(1-10) Knowledgeability = 10 Clarity of Response = 10 Politeness = 10Comment Thanks Sir JiAdd to this Answer Ask a Question2015 About.com. All rights reserved.User Agreement Privacy PolicyManagement Consulting: International Case : Global Car Industry, gas guzzler tax, u s cars 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-global-car.htm 2 / 8You are here:ManagementConsultingAll AnswersAnswers by Expert:Ask ExpertsVolunteerLeo LinghamExpertisemanagement consultingprocess, managementconsulting career,management development,human resource planning anddevelopment, strategicplanning in human resources,marketing, careers inmanagement, productmanagement etcExperience18 years working managerialexperience covering businessplanning, strategic planning,corporate planning,management service,organization development,marketing, salesmanagement etcPLUS24 years in managementconsulting which includesbusiness planning, strategicplanning, marketing , productmanagement,human resourcemanagement, managementtraining, business coaching,counseling etcOrganizationsPRINCIPAL -- BESTBUSICONPty LtdEducation/CredentialsMASTERS IN SCIENCEMASTERS IN BUSINESSADMINSTRATIONHome Jobs/Careers Management Consulting Management Consulting international case : therestructuring of daimler-benz and global car industryAdvertisementManagement Consulting/international case : the restructuring ofdaimler-benz and global car industryExpert: Leo Lingham - 10/4/2012QuestionQuestions:1) What is your assessment of Daimler-Benz's operations in many different fields?2) Should the various groups operate autonomously? What kinds of activities should be centralized?3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first placeand why did it venture into the Aerospace and Inter Services businesses?4) Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now?Questions:1) Prepare a profile of the potential buyer of the Lexus.2) What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?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 Lexusowners).4) Do you think Lexus will succeed in Japan? Why or why not ? AnswerQuestions: 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 thebiggest and most successful group, was Mercedes-Benz with about 200,000 employees. It is best known for itspassenger cars and commercial vehicles. [THISBUSINESSUNITHASTHECORECOMPETENCEAND HENCEVERY SUCCESSFUL.--------------------------------------------------------------The second was the AEG Daimler-Benz industries in the business of rail systems, microelectronics, heavy dieselengines, energy systems technology, and automation. [THISBUSINESSUNITHASTOO MANY SUB-UNITSANDWIDEDIVERSIFICATIONANDLACKSCORE COMPETENCYIN SOMEWHICHAFFECTSTHEOVERALLPERFORMANCE.----------------------------------------------------------------------------The third was the Aerospace Group in the business of aircraft (the company has a more than one-third interest inthe Airbus consortium), space systems, defense and civil systems, and propulsion systems. [THISBUSINESSUNITHAS MANY SUB-UNITSANDAREINTEGRATED ANDHASTHE CORECOMPETENCY/ HENCEIS 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. [THISBUSINESSUNITHASTOO MANY SUB-UNITSANDWIDEDIVERSIFICATIONANDLACKSCORE COMPETENCYIN SOMEWHICHAFFECTSTHEOVERALLPERFORMANCE.=============================================================2) Should the various groups operate autonomously? What kinds of activities should be centralized? [THEBUSINESSUNITSSHOULDOPERATEAUTONOMOUSLY. THE KINDS OFACTIVITIESTHATCOULDCENTRALIZED ARE-ITSYSTEMS-HRSYSTEMS-FINANCE============================================3) Daimler-Benz is best known for its Mercedes-Benz cars. Why do you think Daimler bought AEG in the first placeand why did it venture into the Aerospace and Inter Services businesses? [ BETTERUSEOFTECHNOLOGYANDCOMPETENCEPLUSSALES OPPORTUNITIES.Leo LinghamMark EichingerBrowse Answers:About Us Tell Friends How to Ask How to Volunteer FAQ Tech Support Top Experts Expert LoginBy Category AlphabeticallyManagement Consulting: international case : the restructuring of daimler-benz and global car industry, mercedes benz cars, jurgen schrempp 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2012/10/international-case-restructuring-daimler.htm 3 / 8===========================================4)Given the apparent mistakes in acquiring non-automotive businesses, what should Jurgen Schrempp do now? [ RE-ORGANIZE / RESTRUCTURETHEBUSINESS UNITANDHIRECOMPETENT TALENTSTORUNTHESHOW]##################################################################################Questions: 1)Prepare a profile of the potential buyer of the Lexus.Target Customer DescriptionThe target customer with Lexus flagship hybrid design is seeking to present a bold image toothers. Price is therefore a secondary factor to the message their car portrays in their purchasingdecisions. Potential customers are born within ten years of the baby boomer generation agedforty-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 statusto benefit his/her self-image. They choose to purchase hybrids either because they areenvironmentally conscious, or they wish to appear to be. They combine extravagance and excesswith environmental care by purchasing a car that is both green, and also features top-of-the-linetechnology, performance, and luxury. ---------------------------------------------------------------------------------------2)What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?[BOTH MERC / BMWHAVEQUALITYPRODUCT/ PRODUCTPOSITIONING. THEYNEED TO STUDYTHEMARKETANDDEVELOPA SEMI-LUXURYBRANDTOMATCHLEXUS------------------------------------------------------------------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).[ INTHEUSCAR MARKET , THEREWAS AGAPBETWEEN MERC/BMW AND THE LOCALBRANDS.THISISWHERETHE LEXUSFITTEDINWELL WITHTHEIR PRICE/ PROFILE]------------------------------------------------------------4)Do you think Lexus will succeed in Japan?Why or why not?LEXUSCANSUCCEEDINJAPAN, PROVIDED ITISPOSITIONEDPROPERLY.###########################################Questioner's RatingRating(1-10)Knowledgeability = 10 Clarity of Response = 10 Politeness = 10Comment i support mr.lingham with all my heart. but i want to mention one flaw. the answer i received is notcomplete, mr.lingham is given complete ansers. but who ever ouploaded it dit not properly, on theright side of the answer page was cut,some words are missing. it is very difficult to get completeansers. once again mr.lingham's knowledge is stunning in these feilds.Add to this Answer Ask a Question2015 About.com. All rights reserved.User Agreement Privacy PolicyManagement Consulting: international case : the restructuring of daimler-benz and global car industry, mercedes benz cars, jurgen schrempp 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2012/10/international-case-restructuring-daimler.htm 4 / 8You are here:ManagementConsultingAll AnswersAnswers by Expert:Ask ExpertsVolunteerLeo LinghamExpertisemanagement consultingprocess, managementconsulting career,management development,human resource planning anddevelopment, strategicplanning in human resources,marketing, careers inmanagement, productmanagement etcExperience18 years working managerialexperience covering businessplanning, strategic planning,corporate planning,management service,organization development,marketing, salesmanagement etcPLUS24 years in managementconsulting which includesbusiness planning, strategicplanning, marketing , productmanagement,human resourcemanagement, managementtraining, business coaching,counseling etcOrganizationsPRINCIPAL -- BESTBUSICONPty LtdEducation/CredentialsMASTERS IN SCIENCEMASTERS IN BUSINESSADMINSTRATIONHome Jobs/Careers Management Consulting Management Consulting International Case : Reengineeringthe Business Process at Procter & GambleAdvertisementManagement Consulting/International Case : Reengineering theBusiness Process at Procter & GambleExpert: Leo Lingham - 3/15/2013QuestionInternational Case : Reengineering the Business Process at Procter & GambleProcter & Gamble (P&G), a multinational corporation known for products such as diapers, shampoo, soap, andtoothpaste, was committed to improving value to the customer. Its products were sold through variouschannels, such as grocery retailers, wholesalers, mass merchandisers, and club stores. The flow of goods in theretail grocery channel was from the factory's warehouse to the distributors' warehouses before going to thegrocery stores where customers selected the merchandise from the shelves.The improvement-driven company was not satisfied with its performance and developed a variety of programsto improve its service and the efficiency of its operation. One such program was electronic data interchange,which provided daily information from the retail stores to P&G. The installation of the system resulted inbetter service, reduced inventory levels, and labor-cost savings. Another approach, the continuousreplenishment program, provided additional benefits for P&G as well as for its retailer customers. Eventually,the entire ordering system was redesigned, with the result of dramatic performance improvements. Thereengineering efforts also required restructuring of the organization. P&G had been known for its brandmanagement for more than 50 years. But in the late 1980s and early 1990s, the brand management approachpioneered by the company in the 1930s required rethinking and restructuring. In a drive to improve efficiencyand coordination, several brands were combined with authority and responsibility given to category managers.Such a manager would determine overall pricing and product policies. Moreover, the category managers hadthe authority to withdraw weak brands, thus avoiding conflict between similar brands. They were also heldresponsible for the profit of the product category they were managing. The switch to category managementrequired not only new skills but also a new attitude.Questions: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?2) What do you think was the reaction of the brand managers, who may have worked under the old system formany years, when the category management structure was installed?3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to processredesign and organizational change?4) What are the advantages and disadvantages of each approach. Answer1) The reengineering efforts of P&G focused on the business process system. Do you think otherprocesses, such as the human system, or other managerial policies need to be considered in a process redesign? CATEGORYMANAGEMENTSYSTEM NEEDSTOBESETUP-policies-procedured-practicesEtc======================2) What do you think was the reaction of the brand managers, who may have worked under the old system formany years, when the category management structure was installed? -NEGATIVEREACTIONFROMTHEBRANDMANAGERSAREEXPECTED.BRANDMANAGEMENTIS ASTAFFFUNCTION , WHILE THECATEGORYMANAGEMENTISALINEMANAGEMENT FUNCTION.SUCHCHANGENEEDS-changemanagementdrive-orientationprogramme.=======================3) As a consultant, would you have recommended a top-down or a bottom-up approach, or both, to processredesign and organizational change?TOPDOWN APPROACHISTHERIGHTAPPROACH , ASITRELECTS -themanagementmission-themanagementobjectives-themanagementstrategies.Leo LinghamMark EichingerBrowse Answers:About Us Tell Friends How to Ask How to Volunteer FAQ Tech Support Top Experts Expert LoginBy Category AlphabeticallyManagement Consulting: International Case : Reengineering the Business Process at Procter & Gamble, dramatic performance improvements, electronic data interchange 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-reengineering-business.htm 5 / 8====================4) What are the advantages and disadvantages of each approach.TOP DOWNADVANTAGES-it clearlyshowsthemanagementintentionsand drive.DISADVANTAGES-lowparticipationfromthebottomlinestaff--------------------------BOTTOM UPADVANTAGES-it clearlyshowsEMOTIONALPARTICIPATIONOFTHESTAFF.DISADVANTAGES-LACKS THELEADERSHIP--------------------------========================@@@@@@@@@@@@@@@@@@Questioner's RatingRating(1-10) Knowledgeability = 10 Clarity of Response = 10 Politeness = 10Comment Thanks SirAdd to this Answer Ask a Question2015 About.com. All rights reserved.User Agreement Privacy PolicyManagement Consulting: International Case : Reengineering the Business Process at Procter & Gamble, dramatic performance improvements, electronic data interchange 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-reengineering-business.htm 6 / 8You are here:ManagementConsultingAll AnswersAnswers by Expert:Ask ExpertsVolunteerLeo LinghamExpertisemanagement consultingprocess, managementconsulting career,management development,human resource planning anddevelopment, strategicplanning in human resources,marketing, careers inmanagement, productmanagement etcExperience18 years working managerialexperience covering businessplanning, strategic planning,corporate planning,management service,organization development,marketing, salesmanagement etcPLUS24 years in managementconsulting which includesbusiness planning, strategicplanning, marketing , productmanagement,human resourcemanagement, managementtraining, business coaching,counseling etcOrganizationsPRINCIPAL -- BESTBUSICONPty LtdEducation/CredentialsMASTERS IN SCIENCEMASTERS IN BUSINESSADMINSTRATIONHome Jobs/Careers Management Consulting Management Consulting International Case : Carrefour Which Way to Go?AdvertisementManagement Consulting/International Case : Carrefour WhichWay to Go?Expert: Leo Lingham - 3/11/2013QuestionInternational Case : Carrefour Which Way to Go?Wal-Mart's biggest global competitor is the big French retailer Carretour, a firm that has hypermarkets, bigstores offering a variety of goods. It has made large investments around the globe in Latin America and China.But not all is well as competitors taking market share its home market, for instance. There has been evenspeculation of a takeover by Wal-Mart or Tesco, an English chain. Mr. Barnard has been ousted after headingthe company for 12 years; he was replaced by Jose Luis Durant who is of German-Spanish descent. Althoughthe global expansion is cited by some as success, it may be even a big mistake. It withdrew from Japan andsold 29 hypermarkets in Mexico. Carrefour also had problems competing with Tesco in Slovakia and theCzech Republic. In Germany, the company faced tough competition from Aldi and Lidle, two successfuldiscounters. On the other hand, it bought stores in Poland, Italy, Turkey, and opened new stores in China,South Korea, and Columbia. Carrefour has become more careful in selecting markets. But. the company iseager to enter the Indian market, but found out in late 2006 that Wal-Mart will do so as well.In France, where Carrefour is well established, the company made the big mistake in its pricing policy. Itprobably started with the 1999 merger with Promodes, the French discount chain. Carrefour confused theFrench clientele by losing its low-cost image; whether the image can be changed remains to be seen. Mr.Durant, the new CEO since 2005, embarked on the new strategy by offering 15 percent new products in itshypermarkets and 10 percent in its supermarkets. Moreover, he wants to employ more staff, extend theoperating hours in certain hypermarkets, cutting prices, trying small stores, and pushing down decisionmaking. Mr. Durant aims to stay only in countries where Carrefour is among the top retailers.Questions:1. How should Mr. Durant assess the opportunities in various countries around the world?2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage ordisadvantage of such a strategy?3. How could Carrefour differentiate itself from Wal-Mart?4. Identify cultures in selected countries that need to be considered in order to be successful? Answer1. How should Mr. Durant assess the opportunities in various countries around the world? [IN EVERYCOUNTRY, -THECOMPANYSHOULDASSESSTHEMARKET .-DEFINETHESOCIO-ECONOMICPROFILE.-IDENTIFY THEPRODUCTSDEMANDWHICH MATCHESTHEMARKET.-THEN POSITIONTHECARREFOURRETAILOUTLETS.=======================2. Should Carrefour adopt Wal-Mart's strategy of "low prices everyday"? What would be the advantage ordisadvantage of such a strategy? [NOCARREFOURSHOULDNOTFOLLOWBLINDLYTHEWAL-MART.ADVANTAGES-itwillgainsomelimited gaininthemarketentry.DISADVANTAGES-itwill notbeabletomatch thesupplychainstrengthofwal-mart.======================3. How could Carrefour differentiate itself from Wal-Mart? CARREFOUR SHOULDPOSITIONITSELFAS MIDUPMARKET RETAILERANDOFFERPRODUCTS ACCORDINGLY.======================4. Identify cultures in selected countries that need to be considered in order to be successful?JAPANIt is widely known for its traditional arts as well as its contemporary pop culture. -onemustunderstandthebuyingbehaviorsanddecisionmakingoftheindividuals.@@@@@@@@@@@@@@@@@@@Leo LinghamMark EichingerBrowse Answers:About Us Tell Friends How to Ask How to Volunteer FAQ Tech Support Top Experts Expert LoginBy Category AlphabeticallyManagement Consulting: International Case : Carrefour Which Way to Go?, competitors taking market share, global competitor 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-carrefour-way.htm 7 / 8Questioner's RatingRating(1-10) Knowledgeability = 10 Clarity of Response = 10 Politeness = 10Comment Great Answer Sir. Thanks a lotAdd to this Answer Ask a Question2015 About.com. All rights reserved.User Agreement Privacy PolicyManagement Consulting: International Case : Carrefour Which Way to Go?, competitors taking market share, global competitor 08-08-2015http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-carrefour-way.htm 8 / 8