DAIMLER CHRYSLER Essay Example | Topics and Well Written Essays - 2000 words

DAIMLER CHRYSLER - Essay Example The differences between Daimler and Chrysler provided the two companies a good opportunity for merger in order to streamline their operations. Daimler-Benz had specialized in production of luxury cars for sale in the upper market segments. The company had invested heavily in research and development and had long term technological experience that positioned it well in the industry above its competitors. According to Maielli (2005, p. 251), Daimler practiced mass production and focused on strengthening its technology to achieve a higher level of creativity. Although the company had an international market for its car models, it focused on a particular market segment hence the produced quantity did not enable the company to realize economies of scale. As a result of specialization in production of luxury cars the company was not able to utilize its technological capacity fully. Furthermore, the company had a lot of bureaucracy in its management that slowed down decision making processe s hence limiting the company’s potential for expansion (Slack, Stuart & Robert, 2007, p. 164). Daimler had a capacity of producing one million units of its products while Chrysler had a capacity of three million units. ... 316). The company had flexible work and time management that enabled employees to work even during the weekend and overtime in order to increase output. The company introduced a performance based rewarding system that recognized each individuals input in the company in order to motivate the workers. In addition, the company advocated teamwork with stakeholders in order to streamline their operations. For example, the company collaborated with its suppliers in order to reach the international market efficiently. Chrysler was less bureaucratic in nature (Kohler, 2005, p.314). Individual workers were allowed to make decisions on their own without having to consult senior managers. This managerial flexibility nurtured creativity in the company and simplified decision making process. The company engaged in developing new product designs for different market niches. The efficient and flexible management of Chrysler company enabled the company to come up with new car designs hence increased its market share (Maielli, 2005, p.258). The company had not focused much on research and innovations although it was producing different varieties of car models for various market segments. This created a potential risk of losing creativity and becoming technologically obsolete (Slack, Stuart & Robert, 2007, p. 197). The company lacked good base for foreign market since it focused on production for the domestic market, especially North America. However, the company enjoyed economies of scale due to large scale production for local market. The company had efficient manufacturing process that Maielli (2005, p. 251) describes as lean production. 2. What were the main differences between the Mercedes and Chrysler production processes and how did

Operations Management Essay Example | Topics and Well Written Essays - 2500 words - 9

Operations Management - Essay Example The manner of creating these goods and services is the purview of operations management. As a field of endeavour, operations management â€Å"deals with the design and management of products, processes, services, and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.† (MIT Sloan School of Management, 2009) It may be said that the operations function is the heart and soul of business. It is that organizational activity which actually gives birth to the good or service which is the reason for the firm’s existence. The operations manager stands at the helm of the operations department, and plans, organizes, directs and controls its performance. He determines, in line with the organization’s overall goals, the strategic, tactical, and operational activities undertaken. Strategic issues involve the implementation of long-term goals of the corporation, and are usually decided upon by the corporation’s board of directors, or the owner or proprietor of the small firm. Issues decided by the operations manager that are within the scope of strategic management are those that yield decisions of a relatively permanent nature, and usually require substantial capital outlay. They include determining the size of the manufacturing plants or the capacity of the equipment, as well as their location, deciding which telecommunications networks to have installed, and designing technology supply chains. Should the operations manager make a mistake in planning and implementing strategic issues, it would profoundly compromise the company’s survival. The operations manager also deals with tactical issues the operations manager. These decisions involve the relatively medium-term prospects of the business, and while not as far-ranging as strategic issues, could also entail a substantial loss for the