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Managing Innovation and Growth of Business

University: Bucks New University London

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 10 / Words 2549
  • Paper Type: Assignment
  • Course Code: BM627
  • Downloads: 1010


Innovation can be mentioned to as creation of something new in the market. It can be considered to be an activity through which an organisation changes itself and its environment. This assignment focuses on the innovation practices which are being carried out by Mercedes-Benz. This auto mobile manufacturer is a division of Diamler AG which is known to deliver luxury vehicles throughout the world (Leading through innovation, 2018). This assignment will make attempt previous and future innovation to articulate to set the future innovations and growth of business. Entire these business aspects in this assignment that require to maintain through organisation for generating suitable opportunities or options.


Organisation and industry overview with innovations


History of automate industry lies decade back to 80th century. The first auto-mobile was initially invented and structured in France and Germany in 1800s. Henry Ford is considered as the pioneer of mass production innovation and techniques that catered the company in whole “Big Three” along with General Motors and Chrysler , Ford by 1920s. Where, nowadays, the segment in each nation faces wide range of altering components certain to their individual conditions including main pronounced developed markets like India, Brazil, Argentina, Russia etc. Hence, industry has modified their innovation in cars from steam engine to auto-functioning digitalised hybrid cars. are you worried about online assignment help at an affordable budget.


Mercedes Benz is one of largest and most celebrated company among luxury automate brand across the world. It is now operated by Daimler-Benz and is headquarter in Stuttgart, Germany. Origin of company traces back to 1886, when Carl Benz made Benz Patent-Motorwagen as pioneer of Gasoline powered automate to Daimler-Motoren-Gesellschaft's 1901 as Mercedes (Antikainen and Valkokari, 2016). Company manage their equity with their message “the best or nothing” from “a replacement for the horse”. In 1901, the company first marketed their products and initial brand brand name was given in 1926. Here are discussed major innovations of organisation evolved with generation:

  • 1886 Mercedes-Benz Benz Patent-Motorwagen
  • 1928-1932 Mercedes-Benz SSK
  • 1954-1963 Mercedes-Benz 300 SL
  • 1964 Mercedes-Benz 600 Pullman
  • 1990 Mercedes-Benz 190E 2.5-16 Evolution II
  • 1991 Mercedes-Benz C111
  • 1991-1994 Mercedes-Benz 500E
  • 1998-1999 Mercedes-Benz CLK GTR
  • 2009 Mercedes-Benz SLR McLaren Stirling Moss
  • 2008-2011 Mercedes-Benz SL 65 AMG Black Series


To explore possible advancement in the auto-mobile structure by Mercedes-Benz, 4P's models is one of suitable techniques that can assist in managing innovation and highlighting major changes within company.

  • Product Innovation: From the first petrol car, the organisation has developed hybrid cars with PRE_SAFE anticipatory occupant safety system and DISTRONIC PLUS adaptive control framework with Magic Body Control framework within their products.  
  • Process Innovation: Company has recently formed their fourth Lab1886 incubator internationally as first innovation centre to provide ideas and technological knowledge (Archibald and Archibald, 2016). With co-creation techniques and MBUSA assistance,m recruitment is being done in company including concept of inclusion and diversity within workplace,.
  • Paradigm Innovation: For professional fleet administration, company use Mercedes PRO connect with cutting-edge telematics cure, advanced quality and electric mobility (eVito & eSprinter). Also, Mercedes is using advanced media tools and campaign management for promoting their services.
  • Position Innovation: e-drives and adaptability has created new positioning as company is pursuing commercial fleet electrifying. Digital technologies are more accident-free and emission-free with green driving system i.e. created pleasing and satisfactory recognition of brand among people.

PESTLE Analysis

Hence, in regard of considering major components, this is fundamental for business innovation, PESTLE analysis of Mercedes-Benz discussed here:

Political Factor

  • Government favouring low emission vehicles.
  • State policies are affecting growth.
  • Innovation in governmental process due to technical advancement.

Social Factor

  • People's preferences and higher demand of SUV.
  • Popularity of company's products and higher innovations.

Technological Factor

  • Low emission and environmental friendly auto-mobiles.
  • Hybrid and auto-navigation car system.

Economical Factor

  • Demand of luxury vehicles negatively affected due to crisis.
  • Market development increase purchasing power and higher revenues due to its offered technologies.

Legal Factor

  • Strict emission laws regulated by state.
  • Follows safety structure, and environmental laws at global market. 

Environmental Factor

  • Green Driving system and emission-free cars.
  • Focus over pollution control.

Hence, due to its rapid technological advancement and innovation in products, the company faces numerous positive influence in market.

Organisation existing innovation and performance capability

Entire auto-mobile industry and associated companies consider and set through company's management which aims over the goals attainment and efficient operations functioning (Archibald, 2017). Mercedes-Benz is the pioneer in car manufactures that include digital transformation and networked mobility in services to clients. In order to understand the performance capabilities, Mercedes-Benz Company need to understand their existing innovation in the present era i.e. improvising their abilities and their recognition in global market. Here are discussed major recent innovation in present market:

  • Auto-mobile Change Inventor: Company led to globalisation and digitalisation introducing the term “Industry 4.0” also considered as the pioneer of development. It has present the Intelligent Aerodynamic Automate Concept (Concept IAA) fascinating opportunities of development.
  • More Precision, Speed and Diversity: Digital prototyping acceleration is constantly made in Mercedes-Benz since 1970 to present era which modified 80million elements ad still rising (Chen, Jiao and Zhao, 2016). Numerous technologies are added such as Traffic Jam Assist, Distronic Plus Active Cruise Control, Magic Body Control, Also, for efficient control, Ingenious aerodynamics is assisting for efficient production of Mercedes-Benz creating comfortable and flexible digitalisation within company.
  • More Interaction and Personalised Brand: Online stores, digitalised marketing and sales are creating interactive framework to connect with their people. Company is including digital element design in products including Plasma screens, multi-touch monitors, Cam-Touch-Pad HMI etc. to form connectivity. They have also appointed Online portal  for consumer services and individual networking individually along with Car2go lifestyle app to brand their firm globally.

Hence, through understanding latest activities of innovation, company can assess their innovation capabilities which can be identified through SWOT analysis that influence their strategic development. Beneath, SWOT analysis of Mercedes-Benz is discussed:



  • Strong brand presence and global leader.
  • Assembles and production in approximate 20 nations.
  • Pioneer of marketing and promotion through online ad, TV and print ads etc.
  • Innovation leader and is liable for intrinsic air bags and combustion engine etc.
  • Intense market competition i.e. limited share growth of market for Mercedes.
  • Being a global company, proportion is affecting brand image from minor issues.


  • Enter to emerging markets or economies.
  • Strong brand presence leveraging consumer.
  • Company can aims over fuel efficient and hybrid cars.
  • Increasing fuel costs.
  • Intense automate brand competition.
  • State policies are leading to business loss.

On the grounds of this, this can be state that dynamic and strategic capabilities outlines through Mercedes-Benz position themselves above their rivals (de Zubielqui, Jones and Statsenko, 2016). The innovation, technical knowledge and quality assurance make their engineering more qualified and better. Their cars are classified through trademarked safety and branding features making their imitate impossible. In regard to consider this, numerous resources needed to evaluate which is discussed as below:


Mercedes-Benz include innovation within their resources functioning and management as well that keep modifying with the period of time.

  • Physical Resources: Organisation has highly qualified and technological production machinery with more than their production infrastructure in more than 20 countries as well as expanded in globally (Prokop and Stejskal, 2017). Also, they provide e-stores that is also assisting in individual branding.
  • Financial Resources: Company has wide financing and leasing range to their consumer and functioning their operations. Company has  â‚¬217.2billion revenues overall with 35% current liabilities. Company invest approximate  â‚¬20billion in R&D division to gather information and new innovation requirement.
  • Human Resources: Company prefer inclusion and workplace diversity concept to deliver better creative ideas of innovation. Company has most qualified and skilled worker allotting sophisticated system and better wage according to their skills.
  • Intellectual Capital: Mercedes has unique identity which is first petrol and gasoline cars patent its invention. Now, organisation has trademarked and copyrights over their innovation of emission free and digitalisation system of their products.

Therefore, on the grounds of this, strategic capabilities can be determined of Mercedes-Benz which depicts the innovation and its management within the working environment within the company.

Related Services: Relationship Between Variables and Evaluating Data


It can be referred as the ability of business that organise competitive strategies which allow them to increase and survive with value over time. Through employing VRIN framework, management and identification of strategic capabilities can be done which are discussed here:

VRIO Framework:

This is an intrinsic analysis tool in business management context which manage their value and capabilities on the grounds of these four elements:

  • Valuable: Company created their values through efficient dynamic. Technological advancement and strong brand portfolio etc. which is creating distinct value.
  • Inimitable: Their emission-free and green technologies along with advancement is unique and diverse from other companies.
  • Rare: Their framework and technologies are rare that is creating distinct recognition within the industry.
  • Organised to Exploit: Mercedes-Benz is structured, advanced and viable to exploit their capabilities and resources.

Hence, this can has better performance and inimitable resources and organisation capabilities that is earned through managing and adopting suitable innovation methods accordingly.

Industry in future

After analysing numerous innovation aspects and managing innovation, different possibilities can be measure and executed in the organisation each and every day to retain as leading organisation globally (Van Lancker, Wauters and Van Huylenbroeck, 2016). Numerous challenges are posing in 2018 in the automate industry which is leading business to the boom beginning. Here are discussed major trends in 2018 carried in entire auto-mobile industry:

Sales Slowdown: According to the 2017, 17.1million vehicles were sold which is increased 20 million annually. But due to great recession and dealers, sales are predicated to decrease to 16.6 million.

  • Electric Vehicle: Sales of electric vehicles are on boom increased to 30% that has been predicted to grow rapidly by 2020 as companies like BMW, Ford etc. are producing these extensively to go green.
  • Air Compressor: This technologies create fuel cell stack which accelerate which is trending in 2018. It is supposed to increased rapidly in future.

Hence, among numerous methods and technologies, Mercedes-Benz is developing various technologies i.e. popularising each and every day. Here are discussed some major Mercedes-Benz trending on the grounds of SWOT:

  • Expansion in Emerging Markets: the company has emerged and deployed their business in the international markets including developing nations such as India, South Africa etc.
  • Safety Features: S-class had numerous autonomous features of driving along with latest model including Traffic Sign Assist, Attention Assist, Crosswind Assist etc. These framework can aid in managing innovations and various modifications can lead to more working practices.
  • Advancement in Technologies: Numerous models were launched in 2018 that are revolutionising such as MFA platform (E-cars), AMG GT, C-class, E-Class, S-Class, G-Classes, SL Classes etc.

In previous few decades, advancement and evolvement in the technologies has disrupted which is manufacturing and managing innovation widely. Through the  assistance of digitalisation, companies are aiming high technologies and artificial intelligence have catered drastic development opportunities in this segment to develop. Here are discussed some major trend predication that can drive in future by Mercedes-Benz and other automate organisation:

  • Machine learning as well as artificial intelligence functioning can be disrupted in car companies as well making the process of consumer management and manufacturing units easier at numerous level.
  • Industrial Automation and Digital Twins are helping in the creation of virtual copes which is creating efficient machinery, opting operations and reducing costly prototypes.
  • Smart industrial robots rendered by cutting-edge software as well as vision framework are predicted in future leading to flexible manufacturing.
  • 2.0 Hybrid cars framework have enabled in market produced or developed by numerous organisation. Hence, industry will drastically be improving such models in future as the idea is highly appreciated in market.


This can affirm from the above states notions that innovation management is crucial for improvisation and development of organisation. This is significant for increasing sustainability and reflects the required and demanded changes which carries with time in future. It is significant to make alternation and modifications within organisation to refrain with time and rule the entire industry in terms of technologies and advancement.

Read more - Business Strategy Objectives and Goals of Organisation


  • Antikainen, M. and Valkokari, K., 2016. Framework for sustainable circular business model innovation. Technology Innovation Management Review. 6(7). pp.5-12.
  • Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every Executive Team Must Know about Project, Program, and Portfolio Management. CRC Press.
  • Archibald, R. D., 2017. Leading and Managing Innovation: What Every Executive Team Must Know about Project, Program, and Portfolio Management. Auerbach Publications.
  • Chen, J., Jiao, H. and Zhao, X., 2016. A knowledge-based theory of the firm: managing innovation in biotechnology. Chinese Management Studies. 10(1). pp.41-58.
  • de Zubielqui, G. C., Jones, J. and Statsenko, L., 2016. Managing innovation networks for knowledge mobility and appropriability: A complexity perspective. Entrepreneurship Research Journal. 6(1). pp.75-109.
  • Prokop, V. and Stejskal, J., 2017. Different approaches to managing innovation activities: An analysis of strong, moderate, and modest innovators. Engineering Economics. 28(1). pp.47-55.
  • Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
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