mercedes in brazil

Clara Sarah, Gilang Hredaya, Hamza Lasri, Hakim

International Business 2013

MERCEDES-BENZ TRUCKS IN BRAZIL

International Business Presentation Group L2

OUTLINE

1. Background

• Daimler AG Profile

• Daimler Trucks Profile

2. Problem

3. Analysis

• PESTEL Analysis

• Disadvantages

4. Conclusions and Suggestions

BACKGROUND

Daimler AG

1. Daimler AG is German multinational automotive

corporation

2. Headquartered in Stuttgart, Baden-Württemberg,

Germany.

3. It has several divisions, including Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans,

Daimler buses and financial services.


Daimler Trucks

1. Daimler trucks develop and produce vehicles in a

global network under several brands.


2. Market Share

Daimler Trucks


3. The division’s 27 production facilities are in the NAFTA region, Europe, Asia,

South America and Africa.

CASE

7


Mercedes-Benz to Expand Brazilian Production Units

• Mercedes-Benz Actros to also be produced in Brazil starting 2011.

• It is necessary to open another production because Mercedes Benz main facility in Sao Bernardo do Campo will reach production

capacity limit in 2012.

• High qualification of employees and the modern installations of the Juiz De For a plant encouraged Mercedes-Benz to open production

there.

ANALYSIS

9

PESTEL Analysis

Political Factor


Economic Factor

Political Risk Level Chart 2010


PESTEL Analysis

Social Factor Technological Factor

PESTEL Analysis

Legal Factor


Environmental Factor

Brazil climate varies. In Juiz De Fora, the climate is classified as humid subtropical climate, with two distinct seasons, one hotter and rainier (Oct-Apr), and one cooler and drier (May-Sept).

Brazil is a civil law country in which

environmental, health and safety laws are

based derived from its Constitution.

Disadvantages

Cultural and Language Barrier Potential Natural Disaster


According to Economist Intelligence Unit, 74%

of Brazilian company suffer financial losses

due to failed cross border transaction.

With its climate and weather, Brazil’s most

common natural disaster is flood.

Disadvantages

Lack of Local Engineers


1. There are approximately 20.000 annual

deficit of engineers in Brazil.

2. In 2011,only 5.1% of Brazilian college

students choose engineering as their career

path

Conclusions and Suggestions

Titel der Präsentation in CorpoS Regular 9pt | Abteilung | Datum15

Conclusions

Brazil is a potential place for Daimler Trucks

to expand their production units.

Daimler has made a very successful expansion in

terms of profit. However, they should also emphasize

more on the social benefit of local benefit.


Suggestions

For cultural and language barrier For Potential Natural Disaster


1. Top level managers should acknowledged Brazilian Culture.

2. Assign local people for certain positions.

3. Face to face in giving instructions.

4. Expressive emotion during meeting even anger is normal because it shows interest and commitment.

1. Provide Insurance for the facilities and workers.

2. Outsource training course for a comprehensive disaster management.

Suggestions

For Lack of Local Engineers

1. Outsourcing.

2. Daimler can expand their social responsibility

programs in terms of education such as

Daimler Knowledge College and Daimler

Young College Community.


ADDITIONAL


Daimler Nowadays

In 2012, Daimler Trucks remains the world’s biggest

manufacturer of trucks above 6 metric tons gross

vehicle weight.

In Latin America, a substantial worsening of the

overall economy and the introduction at the

beginning of the year of tougher emissions

standards in the region’s main market, Brazil, caused

sales to drop considerable.


THANK YOU


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