International Case: the Restructuring of Daimler-Benz

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International case: The Restructuring of Daimler-Benz 1. What is your assessment of Daimler Benz’s operations in so many different fields? Daimler Benz ventured into different fields to become an integrated high tech group. Since the organisational structure was centralized it became increasingly difficult to control these four groups and their subunits. Hence restructuring became necessary. The new organisation structure was simplified and decentralised so that the organisational units could respond faster to environmental change. The structure was goal driven, performance based reward system designed to promote cooperation Mercedes Benz: Daimler Benz’s first by far the biggest and the most successful group was Mercedes Benz with about 2 lakh employees. Mercedes Benz is most popularly known for its passenger cars and commercial vehicles. This business unit is the most competitive and it is very successful. AEG Daimler Benz Industries: It is was the second group of Daimler Benz which was in the business of rail system, microelectronics, heavy diesel engines, energy systems technology and automation. This business unit has many sub units and wide diversification. It lacks core competency in some which affects the overall performance. Aerospace Group: this industry was in the business of aircraft, space system, defence and civil system and propulsion system. This business unit has many sub units and are integrated. It has the core competency and it is successful. Interservices Group: This was in the business of systemshaus, financial services, insurance brokerage, trading, marketing services, mobile communication services and real estate management. This unit also has many sub units and wide diversification. It lacks core competency in some which affects the overall performance. 2. Should the various groups operate autonomously? What kind of activities

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