What is the competitive environment faced by MB?
MB’s competitive environment consists of other brand manufacturers producing all-utility vehicles, a new market for automobile manufacturers in the 1990s. Competitors were also produced vehicles that conformed to consumer safety demands (airbags, etc.) and that were cost-efficient. By the time MB entered into the AAV market, consumers were moving towards more luxury brand automobiles, which conformed more to MB’s aim.
How has MB reacted to the changing world market for luxury automobiles?
It has accommodated consumer demand for more safety — as the sampling of consumers showed this to be the most common demand in vehicles with a “relative percentage rating of 41%” (Albright, 2000, p. 3). But, of course, most significantly, it has expanded its luxury class to include production of the AAV — a new type of vehicle for MB, never before produced. Its purpose is to combine the SUV phenomenon with the luxury brand stylings of MB for a new vehicular experience.
3) Using Cooper’s cost, quality, and functionality chart, discuss the factors on which MB competes with other automobile producers such as Jeep, Ford, and GM.
Using Cooper’s cost, quality and functionality chart, the factors that MB uses to compete with its competitors are related to production expenses — MB produces parts in-house by bringing in teams to manufacture whole systems. Its MB-style chassis is most important to the company because this is what delivers the typical quality smooth MB drive, but safety is number one on the importance list for consumers. Thus, MB achieves balance between price and functionality by being aware of costs that competitors are maintaining and also providing the functions important to consumers. For example, it discovers consumer costs by purchasing competitors’ vehicles and breaking them down to discover how they were put together and at what price. Surveys of consumers were also conducted in order to discover functions that they preferred and these were combined with functions MB preferred to still maintain. Because the market for the consumer interested in the luxury AAV was primarily in the U.S., MB decided to build and manufacturer the cars right in the U.S. so as to reduce shipping costs and also be closer to consumer (helpful for getting important consumer input).
4) How does AAV project link with MB strategy in terms of market coverage?
In terms of market coverage, MB’s AAV strategy helped the manufacturer reach a new audience of consumer — the driver seeking a larger luxury vehicle that conformed to the AAV trend. Because the market for this driver was primarily in the U.S., MB decided to be as close to the consumer as possible — so it manufactured in the U.S. This allowed American consumers to give direct input and ideas about what they would like to see, which enabled MB to understand more clearly and effectively its target audience. The AAV project was thus designed to conform to every wish of the consumer while meeting cost guidelines of the corporation as well as class guidelines of the MB standard.
5) Explain the process of developing a component importance index. How can such an index guide managers in making cost reduction decisions?
There are 5 steps to the development of the component importance index: 1) consumer importance categories must be ranked, 2) the target costs and percentages must be identified according to each function group, 3) a category-function group matrix must be constructed — this allows the company to see what the contribution of the function group is to mission of meeting customers’ demands/wishes, 4) the function groups are placed in order of importance, and 5) the target cost is indexed.
Overall, the index enables the company to visualize and quantify otherwise abstract concepts that would be hard to assess without taking these steps. These steps enable the manufacturer to bring together numerous ideas, assess their relation, and give guidance on how to achieve the aim. Thus, these steps help the manufacturer reduce costs by giving clear analysis of cost-benefit ratios.
6) How does MB approach cost reduction to achieve target costs?
It utilizes suppliers to deliver whole-systems ready to go, works both with engineers and cost-experts to keep all aspects of the operation within the agreed-upon parameters. Thus, it uses value engineering and ensures that actual cost is lower than target cost.
7) How do suppliers factor into the target costing process? Why are they so critically important to the success of the MB AAV?
Suppliers play a large role in the manufacturing process and can quickly drive up costs. For the AAV, suppliers essentially became partners in the process, so it was a win-win for both them and MB. Suppliers helped to design the whole-systems with MB that would be used in the AAV, which helped keep prices low.
8) What role does the accounting department play in the target costing process?
In this process, the accounting department is important for overseeing cost control in both the developmental stage and the production stage. By giving guidance on cost, they are able to assist MB in keeping actual costs below target costs and ensuring that the project is not derailed because of going over-budget.
Albright, T. (2000). Case I: Mercedes-Benz: All-Activity Vehicle (AAV). NJ:
Institute of Management Accountants.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!