Contemporary Developments In

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

ShareholdersÐ'Ò' 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].

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1.2 Growing Ecological Importance in today’sÐ'Ò' 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 [WÐ"¶he, 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 вЂ" 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.

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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’sÐ'Ò' 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,