This document contains a case study on Daimler-Benz. It discusses Daimler-Benz's acquisitions of companies like AEG, Dornier, MBB, Fokker, and MTU. It analyzes Daimler-Benz's strengths in automobile manufacturing and weaknesses in lacking long-term vision. It also addresses issues the acquired companies faced, and questions regarding Daimler-Benz's diversification strategy and how it should redefine its core competencies going forward.

1. Daimler-Benz Case Study

2. Group Members
Ashwini
Deepali
Swapnil
Vikram
Batch: SMBA11
University: ITM University. Vashi

3. Case
Benz & CieDaimler Motoren
AEG
Industries
Mercedes-Benz Aerospace
Daimler-Benz
InterServices

4. Case
Mergers & Acquisitions :
AEG
Dornier & MBB
Fokker
MTU
(Propulsion Sys)
Daimler-Benz
CapGemini

5. SWOT
Strength
Automobile
Manufacturing
Weakness
No Tunnel Eye
Vision
Threats
Chinese & Japanese
Automobile
Manufacturers
Opportunity
Globalisation

6. Issues
AEG and Fokker
was already in
Loss
Economic
Crisis and
Defence Cuts
Fokker Selling
Aircrafts @ 80%
of Manufacturing
cost
Low Demand of
Fokker Aircrafts

7. Outlook
Management’s Justification
a) Economic Crisis
b) Defence Cuts by Dutch Govt.
Actual Reason
Acquisition Strategy was
Wrong

8. Questions
Q. What is your assessment of Daimler-Benz Operations in
many different fields?
Key Points:
a) Core Competency: Cars & Trucks (Mercedes Benz)
b) Diversification: Mercedes Benz| AEG Industries|
DEBIS| Aerospace.
c) Company Faced Loss.
d) No Tunnel Eye Vision Directives.

9. Questions
Q. Should the various Groups operate autonomously?
A. Yes.
Assertion: Develop each group as a separate Strategic Business Unit.
Q. What Kind of activities should be centralized?
Centralization: Human Resource.
IT Department.
Finance

10. Questions
Q. Daimler-Benz best know for its Mercedes-Benz cars. Why
do you think Daimler-Benz bought AEG in the first place
and why did the company venture in Aerospace and
InterServices?
Key Points:
 What was AEG Into?
 AEG was almost Bankrupt. Daimler-Benz bought the Goodwill of the
company and to get entry into Asian & African markets.
 Diversification and Venture in to new field.

11. Questions
Q. Given the apparent mistakes in acquiring non-automotive
businesses. What should Jurgen Schrempp do now?
Key Points:
 Core competency has to be redefined.
 Globalisation; setting local manufacturing plants in order to reduce
the cost and making it affordable.
 Decentralization; Develop each group as a Strategic Business Unit.

12.    Thank You   