Management Consulting: International Case : Global Car Industry, gas guzzler tax, u s cars

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International Case : Global Car

Industry

Management Consulting/International Case : Global Car Industry

Expert: Leo Lingham - 3/16/2013
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Leo Lingham
Expertise
management consulting
process, management
consulting career,
management development,
human resource planning and
development, strategic
planning in human resources,
marketing, careers in
management, product
management etc

Experience
18 years working managerial
experience covering business
planning, strategic planning,
corporate planning,
management service,
organization development,
marketing, sales
management etc
PLUS
24 years in management
consulting which includes
business planning, strategic
planning, marketing , product
management,
human resource
management, management
training, business coaching,
counseling etc
Organizations
PRINC IPAL -- BESTBUSIC ON
Pty Ltd
Education/Credentials
MASTERS IN SC IENC E
MASTERS IN BUSINESS
ADMINSTRATION

Question
International Case : Global Car Industry
How the Lexus W as Born-and Continued Its Success in the United States, but w ill Lexus Succeed in Japan?
One of the best examples of global competition is in the car industry. As the Japanese gained market share in
America, 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 bigger
and more luxurious cars to compete against the higher-priced U.S. cars- and the expensive European cars such
as the Mercedes and the BMW .
One such Japanese car is the Lexus, by Toyota. This car is aimed at customers w ho w ould like to buy a
Mercedes or BMW but cannot afford either. W ith a sticker price of $35,000, the Lexus is substantially less
expensive than comparable European imports. In 1983, Toyota set out to develop the best car in the
w orldmeasured
against the Mercedes and the BMW . The aim w as to produce a quiet, comfortable, and safe car that
could travel at 150 miles per hour and still avoid the gas guzzler tax imposed on cars getting less than 22.5
miles per gallon. This seemed to be an idea of conflicting goals: cars being fast seemed irreconcilable w ith
cars being at the same time fuel-efficient. To meet these conflicting goals, each subsystem of the car had to be
carefully scrutinized, improved w henever possible, and integrated w ith the total design. The first version of the
32-valve V-8 engine did not meet the fuel economy requirement. The engineers applied a problem-solving
technique called "thoroughgoing countermeasures at the source." This means an attempt to improve every
component until the design objectives are achieved. Not only the engine but also the transmission and other
parts underw ent 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 use
relatively labor-intensive production processes. In contrast, Toyota's advanced manufacturing technology aims
at high quality through automation requiring only a fraction of the w ork force used by German car makers.
Indeed, this strategy, if successful, may be the secret w eapon to gain market share in the luxury car market.
Questions:
1) Prepare a profile of the potential buyer of the Lexus.
2) W hat should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?
3) W hy 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
ow ners).
4) Do you think Lexus w ill succeed in Japan? W hy or w hy not?
Answer
Questions:
1) Prepare a profile of the potential buyer of the Lexus.
Target Customer Description
The target customer w ith Lexus flagship hybrid design is seeking to present a bold image to
others. Price is therefore a secondary factor to the message their car portrays in their purchasing
decisions. Potential customers are born w ithin ten years of the baby boomer generation aged
forty-five and up. As a w ealthy 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 status
to benefit his/her self-image. They choose to purchase hybrids either because they are
environmentally conscious, or they w ish to appear to be. They combine extravagance and excess
w ith environmental care by purchasing a car that is both green, and also features top-of-the-line
technology, performance, and luxury.
---------------------------------------------------------------------------------------

2) W hat should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?
[BOTH MERC / BMW HAVE QUALITY PRODUCT/ PRODUCT POSITIONING. THEY NEED TO STUDY THE MARKET
AND DEVELOP A SEMI-LUXURY BRAND TO MATCH LEXUS
-----------------------------------------------------------------3) W hy 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 ow ners).

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Management Consulting: International Case : Global Car Industry, gas guzzler tax, u s cars

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[ IN THE US CAR MARKET , THERE W AS A GAP BETW EEN MERC/BMW AND THE LOCAL BRANDS.
THIS IS W HERE THE LEXUS FITTED IN W ELL W ITH THEIR PRICE/ PROFILE]
------------------------------------------------------------

4) Do you think Lexus w ill succeed in Japan? W hy or w hy not?

LEXUS CAN SUCCEED IN JAPAN, PROVIDED IT IS POSITIONED PROPERLY IN THE JAPANESE CAR MARKET.

###########################################

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Management Consulting: international case : the restructuring of daimler-benz and global car industry, mercedes benz cars, jurgen schrempp

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international case : the

restructuring of daim ler-benz and global car industry

Management Consulting/international case : the restructuring of

daimler-benz and global car industry
Expert: Leo Lingham - 10/4/2012
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Leo Lingham
Expertise
management consulting
process, management
consulting career,
management development,
human resource planning and
development, strategic
planning in human resources,
marketing, careers in
management, product
management etc

Experience
18 years working managerial
experience covering business
planning, strategic planning,
corporate planning,
management service,
organization development,
marketing, sales
management etc
PLUS
24 years in management
consulting which includes
business planning, strategic
planning, marketing , product
management,
human resource
management, management
training, business coaching,
counseling etc
Organizations
PRINC IPAL -- BESTBUSIC ON
Pty Ltd
Education/Credentials
MASTERS IN SC IENC E
MASTERS IN BUSINESS
ADMINSTRATION

Question
Questions:1) W hat is your assessment of Daimler-Benz's operations in many different fields?
2) Should the various groups operate autonomously? W hat kinds of activities should be centralized?
3) Daimler-Benz is best know n for its Mercedes-Benz cars. W hy do you think Daimler bought AEG in the first place
and w hy did it venture into the Aerospace and Inter Services businesses?
4) Given the apparent mistakes in acquiring non-automotive businesses, w hat should Jurgen Schrempp do now ?

Questions:1) Prepare a profile of the potential buyer of the Lexus.

2) W hat should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?
3) W hy 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 Lexusow ners).
4) Do you think Lexus w ill succeed in Japan? W hy or w hy not ?
Answer
Questions:
1) W hat is your assessment of Daimler-Benz's operations in many different fields?

Daimler-Benz, w ith more than 300,000 employees w orldw ide, consisted of four major groups: The first, by far the
biggest and most successful group, w as Mercedes-Benz w ith about 200,000 employees. It is best know n for its
passenger cars and commercial vehicles.
[THIS BUSINESS UNIT HAS THE CORE COMPETENCE AND HENCE VERY SUCCESSFUL.
-------------------------------------------------------------The second w as the AEG Daimler-Benz industries in the business of rail systems, microelectronics, heavy diesel
engines, energy systems technology, and automation.
[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND W IDE DIVERSIFICATION AND LACKS CORE
COMPETENCY IN SOME W HICH AFFECTS THE OVERALL PERFORMANCE.
---------------------------------------------------------------------------The third w as the Aerospace Group in the business of aircraft (the company has a more than one-third interest in
the Airbus consortium), space systems, defense and civil systems, and propulsion systems.
[THIS BUSINESS UNIT HAS MANY SUB-UNITS AND ARE INTEGRATED AND HAS THE CORE COMPETENCY /
HENCE IS SUCCESSFUL..
---------------------------------------------------------------------------Finally, there w as the Inter Services Group consisting of systemshaus, financial services, insurance brokerage,
trading, marketing services, mobile communications services, and real
estate management.
[THIS BUSINESS UNIT HAS TOO MANY SUB-UNITS AND W IDE DIVERSIFICATION AND LACKS CORE
COMPETENCY IN SOME W HICH AFFECTS THE OVERALL PERFORMANCE.
=============================================================
2) Should the various groups operate autonomously? W hat kinds of activities should be centralized?
[THE BUSINESS UNITS SHOULD OPERATE AUTONOMOUSLY . THE KINDS OF ACTIVITIES THAT COULD
CENTRALIZED ARE
-IT SYSTEMS
-HR SYSTEMS
-FINANCE
============================================
3) Daimler-Benz is best know n for its Mercedes-Benz cars. W hy do you think Daimler bought AEG in the first place
and w hy did it venture into the Aerospace and Inter Services businesses?
[ BETTER USE OF TECHNOLOGY AND COMPETENCE
PLUS SALES OPPORTUNITIES.

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Management Consulting: international case : the restructuring of daimler-benz and global car industry, mercedes benz cars, jurgen schrempp

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===========================================
4) Given the apparent mistakes in acquiring non-automotive businesses, w hat should Jurgen Schrempp do now ?
[ RE-ORGANIZE / RESTRUCTURE THE BUSINESS UNIT AND HIRE COMPETENT TALENTS TO RUN THE SHOW ]

################################################################################
Questions:
1) Prepare a profile of the potential buyer of the Lexus.
Target Customer Description
The target customer w ith Lexus flagship hybrid design is seeking to present a bold image to
others. Price is therefore a secondary factor to the message their car portrays in their purchasing
decisions. Potential customers are born w ithin ten years of the baby boomer generation aged
forty-five and up. As a w ealthy 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 status
to benefit his/her self-image. They choose to purchase hybrids either because they are
environmentally conscious, or they w ish to appear to be. They combine extravagance and excess
w ith environmental care by purchasing a car that is both green, and also features top-of-the-line
technology, performance, and luxury.
---------------------------------------------------------------------------------------

2) W hat should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?
[BOTH MERC / BMW HAVE QUALITY PRODUCT/ PRODUCT POSITIONING. THEY NEED TO STUDY THE MARKET
AND DEVELOP A SEMI-LUXURY BRAND TO MATCH LEXUS
-----------------------------------------------------------------3) W hy 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 ow ners).
[ IN THE US CAR MARKET , THERE W AS A GAP BETW EEN MERC/BMW AND THE LOCAL BRANDS.
THIS IS W HERE THE LEXUS FITTED IN W ELL W ITH THEIR PRICE/ PROFILE]
------------------------------------------------------------

4) Do you think Lexus w ill succeed in Japan? W hy or w hy not?

LEXUS CAN SUCCEED IN JAPAN, PROVIDED IT IS POSITIONED PROPERLY.

###########################################

Questioner's Rating
Rating(1Knowledgeability = 10
10)
C omment

C larity of Response = 10

Politeness = 10

i support mr.lingham with all my heart. but i want to mention one flaw. the answer i received is not
complete, mr.lingham is given complete ansers. but who ever ouploaded it dit not properly, on the
right side of the answer page was cut,some words are missing. it is very difficult to get complete
ansers. once again mr.lingham's knowledge is stunning in these feilds.

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Management Consulting: International Case : Reengineering the Business Process at Procter & Gamble, dramatic performance improvements, electronic data interchange

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International Case : Reengineering

the Business Process at Procter & Gam ble

Management Consulting/International Case : Reengineering the

Business Process at Procter & Gamble
Expert: Leo Lingham - 3/15/2013
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Leo Lingham
Expertise
management consulting
process, management
consulting career,
management development,
human resource planning and
development, strategic
planning in human resources,
marketing, careers in
management, product
management etc

Experience
18 years working managerial
experience covering business
planning, strategic planning,
corporate planning,
management service,
organization development,
marketing, sales
management etc
PLUS
24 years in management
consulting which includes
business planning, strategic
planning, marketing , product
management,
human resource
management, management
training, business coaching,
counseling etc
Organizations
PRINC IPAL -- BESTBUSIC ON
Pty Ltd
Education/Credentials
MASTERS IN SC IENC E
MASTERS IN BUSINESS
ADMINSTRATION

Question
International Case : Reengineering the Business Process at Procter & Gamble
Procter & Gamble (P&G), a multinational corporation know n for products such as diapers, shampoo, soap, and
toothpaste, w as committed to improving value to the customer. Its products w ere sold through various
channels, such as grocery retailers, w holesalers, mass merchandisers, and club stores. The flow of goods in the
retail grocery channel w as from the factory's w arehouse to the distributors' w arehouses before going to the
grocery stores w here customers selected the merchandise from the shelves.
The improvement-driven company w as not satisfied w ith its performance and developed a variety of programs
to improve its service and the efficiency of its operation. One such program w as electronic data interchange,
w hich provided daily information from the retail stores to P&G. The installation of the system resulted in
better service, reduced inventory levels, and labor-cost savings. Another approach, the continuous
replenishment program, provided additional benefits for P&G as w ell as for its retailer customers. Eventually,
the entire ordering system w as redesigned, w ith the result of dramatic performance improvements. The
reengineering efforts also required restructuring of the organization. P&G had been know n for its brand
management for more than 50 years. But in the late 1980s and early 1990s, the brand management approach
pioneered by the company in the 1930s required rethinking and restructuring. In a drive to improve efficiency
and coordination, several brands w ere combined w ith authority and responsibility given to category managers.
Such a manager w ould determine overall pricing and product policies. Moreover, the category managers had
the authority to w ithdraw w eak brands, thus avoiding conflict betw een similar brands. They w ere also held
responsible for the profit of the product category they w ere managing. The sw itch to category management
required 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) W hat do you think w as the reaction of the brand managers, w ho may have w orked under the old system for
many years, w hen the category management structure w as installed?
3) As a consultant, w ould you have recommended a top-dow n or a bottom-up approach, or both, to process
redesign and organizational change?
4) W hat are the advantages and disadvantages of each approach.
Answer
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?
CATEGORY MANAGEMENT SYSTEM NEEDS TO BE SET UP
-policies
-procedured
-practices
Etc
======================
2) W hat do you think w as the reaction of the brand managers, w ho may have w orked under the old system for
many years, w hen the category management structure w as installed?
-NEGATIVE REACTION FROM THE BRAND MANAGERS ARE EXPECTED.
BRAND MANAGEMENT IS A STAFF FUNCTION , W HILE THE CATEGORY MANAGEMENT IS A LINE MANAGEMENT
FUNCTION.
SUCH CHANGE NEEDS
-change management drive
-orientation programme.
=======================
3) As a consultant, w ould you have recommended a top-dow n or a bottom-up approach, or both, to process
redesign and organizational change?
TOP DOW N APPROACH IS THE RIGHT APPROACH , AS IT RELECTS
-the management mission
-the management objectives
-the management strategies.

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Management Consulting: International Case : Reengineering the Business Process at Procter & Gamble, dramatic performance improvements, electronic data interchange

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====================
4) W hat are the advantages and disadvantages of each approach.
TOP DOW N
ADVANTAGES
-it clearly show s the management intentions and drive.
DISADVANTAGES
-low participation from the bottom line staff
-------------------------BOTTOM UP
ADVANTAGES
-it clearly show s EMOTIONAL PARTICIPATION OF THE STAFF.
DISADVANTAGES
-LACKS THE LEADERSHIP
-------------------------========================
@@@@@@@@@@@@@@@@@@

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Knowledgeability = 10

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Management Consulting: International Case : Carrefour Which Way to Go?, competitors taking market share, global competitor

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International Case : Carrefour

W hich W ay to Go?

Management Consulting/International Case : Carrefour Which

Way to Go?
Expert: Leo Lingham - 3/11/2013
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Leo Lingham
Expertise
management consulting
process, management
consulting career,
management development,
human resource planning and
development, strategic
planning in human resources,
marketing, careers in
management, product
management etc

Experience
18 years working managerial
experience covering business
planning, strategic planning,
corporate planning,
management service,
organization development,
marketing, sales
management etc
PLUS
24 years in management
consulting which includes
business planning, strategic
planning, marketing , product
management,
human resource
management, management
training, business coaching,
counseling etc
Organizations
PRINC IPAL -- BESTBUSIC ON
Pty Ltd
Education/Credentials
MASTERS IN SC IENC E
MASTERS IN BUSINESS
ADMINSTRATION

Question
International Case : Carrefour W hich W ay to Go?
W al-Mart's biggest global competitor is the big French retailer Carretour, a firm that has hypermarkets, big
stores offering a variety of goods. It has made large investments around the globe in Latin America and China.
But not all is w ell as competitors taking market share its home market, for instance. There has been even
speculation of a takeover by W al-Mart or Tesco, an English chain. Mr. Barnard has been ousted after heading
the company for 12 years; he w as replaced by Jose Luis Durant w ho is of German-Spanish descent. Although
the global expansion is cited by some as success, it may be even a big mistake. It w ithdrew from Japan and
sold 29 hypermarkets in Mexico. Carrefour also had problems competing w ith Tesco in Slovakia and the
Czech Republic. In Germany, the company faced tough competition from Aldi and Lidle, tw o successful
discounters. 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 is
eager to enter the Indian market, but found out in late 2006 that W al-Mart w ill do so as w ell.
In France, w here Carrefour is w ell established, the company made the big mistake in its pricing policy. It
probably started w ith the 1999 merger w ith Promodes, the French discount chain. Carrefour confused the
French clientele by losing its low -cost image; w hether 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 its
hypermarkets and 10 percent in its supermarkets. Moreover, he w ants to employ more staff, extend the
operating hours in certain hypermarkets, cutting prices, trying small stores, and pushing dow n decision
making. Mr. Durant aims to stay only in countries w here Carrefour is among the top retailers.
Questions:
1. How should Mr. Durant assess the opportunities in various countries around the w orld?
2. Should Carrefour adopt W al-Mart's strategy of "low prices everyday"? W hat w ould be the advantage or
disadvantage of such a strategy?
3. How could Carrefour differentiate itself from W al-Mart?
4. Identify cultures in selected countries that need to be considered in order to be successful?
Answer
1. How should Mr. Durant assess the opportunities in various countries around the w orld?
[IN EVERY COUNTRY,
-THE COMPANY SHOULD ASSESS THE MARKET .
-DEFINE THE SOCIO-ECONOMIC PROFILE.
-IDENTIFY THE PRODUCTS DEMAND
W HICH MATCHES THE MARKET.
-THEN POSITION THE CARREFOUR
RETAIL OUTLETS.
=======================

2. Should Carrefour adopt W al-Mart's strategy of "low prices everyday"? W hat w ould be the advantage or
disadvantage of such a strategy?
[NO CARREFOUR SHOULD NOT FOLLOW BLINDLY THE W AL-MART.
ADVANTAGES
-it w ill gain some limited gain in the market entry.
DISADVANTAGES
-it w ill not be able to match the supply chain strength of w al-mart.
======================
3. How could Carrefour differentiate itself from W al-Mart?
CARREFOUR SHOULD POSITION ITSELF AS MID UPMARKET RETAILER AND OFFER PRODUCTS
ACCORDINGLY.
======================
4. Identify cultures in selected countries that need to be considered in order to be successful?
JAPAN
It is w idely know n for its traditional arts as w ell as its contemporary pop culture.
-one must understand the buying behaviors and decision making of the individuals.
@@@@@@@@@@@@@@@@@@@

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08-08-2015

Politeness = 10

Great Answer Sir. Thanks a lot

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