1. TURNAROUND OF
MERCEDES – BENZ INDIA LTD.

2. INTRODUCTION
 Karl Benz founder “ Benz & Co”.
 1st October 1883.
 1900,Benz & Co become world biggest
automobile manufacturer.
 First Mercedes was delivered on 22 December
1900.
 On 28th June 1926 it get merged and to form
Daimler- Benz AG.

3. IMPORTANT SAYINGS OF
TURNAROUND
Don’t Talk
Don’t Organize
Don’t Think
Just Do It…….

4. BECOME A PLAYSTATION
Stop all internal discussions and conflicts….
It is time to “roll-out” smooth and well
rounded activities
Your actions should be clear, well defined like a
square
And each one of us should reach the summit of
his art

5. TURNAROUND MANAGEMENT
 The present business scenario is one wherein
constant change is the name of the game.
 For any firm to survive in any industry, there
has to be constant monitoring and
improvement of its systems and operations
 Process of bringing about a revival in the
firm’s fortunes is what is termed as
“Turnaround Management”.

6. 3 PHASE IN MB’z TURNAROUND
MANAGMENT
Phase I: Watching out for the
danger signal
Phase II: Choosing appropriate
Strategy
Phase III: Implementation of the
change process

7. PHASE I : WATCHING OUT
FOR THE DANGER SIGNAL
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Decreasing constant sales
Decreasing profitability
Lack of planning
Inflexible CEO
A management team unwilling to
learn from competitors.

8. PHASE II : CHOOSING
APPROPRIATE STRATERY
1. Strategic Turnaround
 A new way to compete in the existing business (Enter
into a joint venture with Telco 1994).
 A new way to compete in the existing business ( by
launching Mercedes Benz E class)
Under this the first choice
 Increases market share
 Making product market relationship

9. 2. Operating Turnarounds
 Asset reduction strategies : below BEP they should
reduce their assets so the fixed cost will reduce.
 Revenue increasing strategies : Not extremely
below BEP they should apply new strategy so can
generate revenue.
 Combination strategies : above BEP they should
use cost reduction strategy so firm profit can rise, by
unnecessary cost cutting down

10. PHASE III:IMPLEMENTATION
OF THE CHANGE PROCESS
 Implementation plays an important role in any turnaround
management.
 Identification of an appropriate strategy by itself will not
guarantee success.
 The success or otherwise of a Turnaround strategy depends
on the commitment shown by the top management as also
the operating management.
 Likewise new CEO Mr. Juergen Ziegler of Mercedes
– Benz India ltd has implemented the project with new
strategies with help of his management. And achieved
success.

11. TO Achieve a Turnaround, You will
Generally Need To Have The
Following Seven Things Present …
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•
•
•
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A Viable Business
Time
Cash
Vision
Management
Stakeholder Support
Confidence In The Process

12. Conclusion

13. THANK YOU