Essay About Swot Analysis And Daimler Ag

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1 Executive Summary
This business report aims to analyze the primary internal and external
influences an organization is subject to. The chosen organization for this
report is the Daimler AG. The main focus of this report is to evaluate and
critically analyze the ecological influences the company is facing and looking
at the measurements the company undertakes in order to cope with the
steadily growing influence of ecological factors in the business environment.
At last, the report aims to critically reflect the success of measurements taken
by Daimler AG and showing areas of improvement in the field of
environmental protection.
1.1 Company Profile
By revenue the Daimler AG is the largest company in Germany, attaining
total revenue of € 47.2 billion in first half-year 2007 [Homepage Daimler AG,
2007]. The company was founded in 1998 forming the first transatlantic
corporation with Chrysler. In May 2007 DaimlerChrysler announced to sell
the American automaker Chrysler to a private equity firm. The Extraordinary
ShareholdersÐÒ Meeting in October 2007 approved the renaming of the
company into Daimler AG.
The company has a long tradition in the automotive industry, being the
pioneer-firm in car manufacturing. The Daimler AG has a wide product range,
its major brands being Mercedes-Benz and Mercedes-AMG. Other brands of
the company are Maybach, Smart, Western Star and Freightliner. This
product portfolio enables Daimler to be active in nearly all countries of the
world.
The company employs 271,486 people (at June 30, 2007) and has 17
manufacturing facilities all over the world. In the first Half-Year 2007 591,209
units of passenger cars and 385,438 units of commercial vehicles were sold
[Homepage Daimler AG, 2007].
1.2 Growing Ecological Importance in today’sÐÒ Business World
The impact of ecological influences on organizations is steadily growing,
forcing organizations to take measurements. Particularly German legislation
alleges a number of laws concerning environmental protection. These laws
aim for a reduction of environmental impairment [WĶhe, 2002, p.438].
Ð* Federal Immission Control Act (Bundesimmisionsschutzgesetz)
Ð* Air Pollution Control (Luftreinhaltung)
Ð* Waste Water Levy Act (Abwasserabgabengesetz)
Ð* Nuclear Radiation Act (Atomgesetz — radioaktive Strahlung)
Ð* Control of exhaust emission (Abgasgesetz)
Ð* Waste Avoidance and Management Act (Abfallgesetz)
Ð* Regulation on packaging and recycling (Abfallbeseitigung)
These directives aim to guide organizations leading to a reduction of
environmental pollution. A growing ecological awareness is also seen on the
supranational level of legislation. There are a number of EU-directives that
aim for reduction of environmental pollution [Homepage European Union,
2007].
2 Assessment of Internal and External Influences
This chapter tries to assess the primary internal and external influences
Daimler is facing. The SWOT analysis “encompasses both the internal and
external environments of the firm” [Hollensen, 2003, p.265]. In this case a
focus of a particular part of Daimler is more effective due to the size of the
organization. Therefore this SWOT analysis will focus on the business in
Germany. The SWOT analysis is then followed by the PESTLE tool (Chapter
3.1). This tool looks at influential factors that affect the business as a whole
(UoS, 2005, p.4). With respect to the theme of growing ecological influences,
the focus of the PESTLE analysis will only lie on the eco-environment.
2.1 Internal Influences on the Daimler AG
Strengths
Product Portfolio
The Daimler AG has a wide range of products reaching from personal
vehicles to trucks. Daimlers’ product range enables to reach different target
groups worldwide. The principle of producing high quality products is
complied throughout the company’sÐÒ product range. The strong product
portfolio also enables Daimler to compete on local and international markets.
Brand-Image
Daimler is one of the pioneers in the automotive engineering and is a wellknown
brand worldwide. The research analysis of the consultant company
BBDO showed that the brand “Daimler” is the most valuable brand in
Germany with a brand value of € 25,299 billion [BBD0,