Mercedes in Brazil
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This presentation discusses about Mercedez in Brazil, specifically the trucks. There's brief overview on Daimler AG and Daimler Trucks. The analysis theory that we use is PESTEL analysis.
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Mercedes in Brazil
- 1. MERCEDES-BENZ TRUCKS IN BRAZIL Clara Sarah, Gilang Hredaya, Hamza Lasri, Hakim International Business 2013
- 2. OUTLINE 1. Background • Daimler AG Profile • Daimler Trucks Profile 2. Problem 3. Analysis • PESTEL Analysis • Disadvantages 4. Conclusions and Suggestions 2 International Business Presentation Group L
- 3. BACKGROUND
- 4. 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 andfinancial services . 4 International Business Presentation Group L
- 5. Daimler Trucks 1. Daimler trucks develop and produce vehicles in a global network under several brands. 5 International Business Presentation Group L 2. Market Share
- 6. Daimler Trucks 3. The division’s 27 production facilities are in the NAFTA region, Europe, Asia, 6 International Business Presentation Group L South America and Africa.
- 7. CASE 7
- 8. 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. 8 International Business Presentation Group L
- 9. ANALYSIS 9
- 10. PESTEL Analysis Political Factor 10 International Business Presentation Group L Economic Factor Political Risk Level Chart 2010
- 11. PESTEL Analysis 11 International Business Presentation Group L Social Factor Technological Factor
- 12. PESTEL Analysis Legal Factor 12 International Business Presentation Group L 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.
- 13. 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. 13 International Business Presentation Group L With its climate and weather, Brazil’s most common natural disaster is flood.
- 14. 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 14 International Business Presentation Group L
- 15. Conclusions and Suggestions Titel der Präsentation in 15 CorpoS Regular 9pt | Abteilung | Datum
- 16. 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. 16 International Business Presentation Group L
- 17. 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. 17 International Business Presentation Group L 1. Provide Insurance for the facilities and workers. 2. Outsource training course for a comprehensive disaster management.
- 18. 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. Titel der Präsentation in 18 CorpoS Regular 9pt | Abteilung | Datum
- 19. ADDITIONAL Titel der Präsentation in 19 CorpoS Regular 9pt | Abteilung | Datum
- 20. 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. 20 International Business Presentation Group L
- 21. THANK YOU Titel der Präsentation in 21 CorpoS Regular 9pt | Abteilung | Datum
Notas del editor
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- Profile about Daimler Truck Daimler Truck is the division of Daimler AG. Daimler Trucks’ product range includes light, medium and heavy trucks for local and long-distance deliveries and construction sites, as well as special vehicles for municipal applications, the energy sector and fire services. Daimler Truck sells under several brands, including mercedes-benz
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- Political Factor: Political Risk Level chart shows that Brazil has low risk level in Political Stability Index, which measures the level of threat posed to governments by popular protest. It combines measures of economic distress and underlying vulnerability to unrest. Economic Freedom. The political and economic background of Brazil allows the country to enjoy a credit rating of A- (by S&P), BBB by Fitch and Baaa2 by Moody’s, which indicates a relatively stable environment to invest and do business in. In 2013, Brazil scored a mere 57.7 over 100 on the Index of Economic Freedom. The corruption level in Brazil is still very high as assessed by the poor Freedom from Corruption score: 38/100. The scores for Trade Freedom, Investment Freedom and Business Freedom are respectively 69.7, 50, and 53. This means that the foundations for long-term economic prosperity are not yet fully established and much work has to be done by the government through launching reforms. Furthermore, the judiciary system is still inefficient and not independent from political and economic influence; contracts however are considered safe and secure by foreign investors. Economic Factor: According to World Bank, Brazil is the largest national economy in Latin America. It is estimated Brazil economy will grow 3.1% (point to picture 1) Brazil has GDP per capita $ 12,594 in 2011 which ranked as the 58th position according to World Bank. It is also predicted that Brazilian economy will become a top 5 largest economy for the next decade. (point to picture 2) Brazil has strong performance in industrial and agricultural sector. Brazil labor force are ranked as 6th worldwide and unemployment rate is 6.2% (economy of Brazil, 2008)
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- Environmental Factor (Affect how company operates and the product it offers):
- From PESTEL Analysis, besides advantages, there are several disadvantages that may affect Mercedes Benz production. Mercedes may have cultural and language barrier. Brazil official language is Portuguese.