Case for Critical Thinking

1101IBA Tute Case Analysis – Preparation Sheet

Week 7 Tutorial

Case for critical thinking: Quality can endure despite environmental shocks

1. What elements of the general environment would have most impact on Mercedes cars and Haines Signature boats?

Mercedes and Haines would receive the most impact from technological, economic and social/cultural changes. In manufacturing industries competitivity is reliant on quality and efficiency which is driven by technology. If either company is unable to innovate and stay current with technology their revered reputation for quality and superb quality will damage the brand. The high quality and standards of Mercedes and Haines come with a hefty price tag. Any economic turmoil will lower the demand for luxury products and their revenues will decrease. Finally the companies need to adapt to consumer social/cultural changes. Values and demands of consumers usher in changes in product desire. If organisations aren’t able to adapt and predict future cultural trends then they will no longer be relevant and competitive.

1. What do you feel the organisation cultures of these companies would be like?

Haines’ and Mercedes’ dedication to innovation, technical knowledge and quality has developed a core culture founded upon these traits. This is observed in the achievements and recognition obtained by both organisations.

1. What strategic and dynamic capabilities would you imaging these companies and the brand possess in order to keep ahead of the competition and thrive in changing economic environments?

Much like in the previous question’s answer the companies are able to be competitive and thriving thanks to their innovation, technical knowledge derived from decades of experience and high quality which has branded their organisations as superior to rival companies. Such is the branding and consistency of Mercedes in particular that it has been ingrained in Western culture as a pop culture standard.