Contemperary issues in business Essay Example | Topics and Well Written Essays - 2500 words

Contemperary issues in business - Essay Example The report would also address the various ways of responding to the turbulent changes in the business of the company. The company that has been chosen for this work is Mercedes Benz. Mercedes Benz is a multinational automobile company that is headquartered in Stuttgart, Germany. The company is the automobile distribution of the German automobile producer Daimler AG. The business of Mercedes Benz has its roots way back in the patent of Daimler in 1901 and the patent of Benz in 1886. The model first emerged in 1926 under the name of Daimler-Benz. The restructuring of the organization resulted in the change of name of the business model and is today referred as Mercedes Benz. The products of the company are the luxury automobiles in the categories of various cars, coaches, trucks and buses. The customers served by the Mercedes Benz automobile business comprises of mainly the luxury market segment and its customers. However, the company has also launched lower price model from the year 2 011 which included the B-class, C-class and the M-class automobile products. The roadster model has also gained popularity among the customers in the market. This has led to the increase in market share of Mercedes Benz over the years as compared to its competitors in the world market, namely Audi, BMW, etc. The growth of market share for Mercedes Benz from the year 2006 to 2011 has been represented below in graphical form. The market share of Mercedes Benz has increased from 12.96% in 2006 to 16.59% in 2011. The business of Mercedes Benz could be termed as an open business which is open to the challenges and opportunities of the macro-economic environment in the world market. The business has been able to identify the changing market environment in various economies over a period of last five years for which the company has been able to operate efficient as an open system (Phillips, 1983, p.185). 2.0 Today’s drivers of change The business of Mercedes Benz has been an open sy stem to the prevailing conditions of the several markets in which it has ventured. The company is influenced by the drivers of change in today’s market. It is therefore, important for the company to identify the drivers of change in today’s automobile market in order to be prepared for the challenges to be faced in future course of business (Cameron and Green, 2012, p.88). The drivers of change in the business of Mercedes Benz could be analysed by reviewing the political, economic, social, environmental, legal and technological environment in which it operates. 2.1 Political The political environment in the markets of operation of Mercedes Benz has varied due to the policies of the government that are driven by the political motives. The governments in US, UK, France, etc. have showed concerns over the quality of models launched by Mercedes Benz in order to ensure safety and protection of the customers. The political interferences in the merger and acquisition of Merce des Benz with the other companies like Studebaker and Packard Corporation