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Abstract

This is the second of a three-case series (399-024-1 to 399-026-1). The new Board of Management of Daimler-Benz AG, set up after Jurgen E Schrempp became chairman in May 1995, pushed forward a radical restructuring programme with enormous determination from the outset. It had set itself the task of ringing out the age of the integrated industrial group inaugurated by the former Chairman of the Board of Management, Edzard Reuter and returning this well-established company to the path of success. The Board of Management saw the group''s future in terms of a return to the original focus, ie the transport of goods and passengers and associated services. By restructuring the high-cost and oversluggish group headquarters at the start of its period of office, the Board of Management gave a clear sign of its intentions and thus added extra dynamism to the subsequent stages of the restructuring process. It then went on to subject all 35 business units to intense scrutiny in order to determine their profitability, core skills and strategic fit. This strategic filtering process resulted in the group portfolio being reduced to 23 business units, which will form the basis of the group in future. The third main stage in the restructuring process was the process optimization stage. It was first of all necessary to restructure planning and reporting procedures. Both operational and strategic planning took much too long on the one hand, and decision-making was hampered by the innumerable control and co-ordination mechanisms on the other. This case study finally looks at Schrempp as an individual and investigates the change in his management style and his public demeanour. When he had single-mindedly restructured the group as a relentless ''terminator'' and the work of the Board of Management was showing the first signs of success, there was a sort of change in the image of the Chairman in the press and other media. ''Schrempp as Rambo'' was transformed.
Location:
Industry:
Size:
Large
Other setting(s):
1995-1997

About

Abstract

This is the second of a three-case series (399-024-1 to 399-026-1). The new Board of Management of Daimler-Benz AG, set up after Jurgen E Schrempp became chairman in May 1995, pushed forward a radical restructuring programme with enormous determination from the outset. It had set itself the task of ringing out the age of the integrated industrial group inaugurated by the former Chairman of the Board of Management, Edzard Reuter and returning this well-established company to the path of success. The Board of Management saw the group''s future in terms of a return to the original focus, ie the transport of goods and passengers and associated services. By restructuring the high-cost and oversluggish group headquarters at the start of its period of office, the Board of Management gave a clear sign of its intentions and thus added extra dynamism to the subsequent stages of the restructuring process. It then went on to subject all 35 business units to intense scrutiny in order to determine their profitability, core skills and strategic fit. This strategic filtering process resulted in the group portfolio being reduced to 23 business units, which will form the basis of the group in future. The third main stage in the restructuring process was the process optimization stage. It was first of all necessary to restructure planning and reporting procedures. Both operational and strategic planning took much too long on the one hand, and decision-making was hampered by the innumerable control and co-ordination mechanisms on the other. This case study finally looks at Schrempp as an individual and investigates the change in his management style and his public demeanour. When he had single-mindedly restructured the group as a relentless ''terminator'' and the work of the Board of Management was showing the first signs of success, there was a sort of change in the image of the Chairman in the press and other media. ''Schrempp as Rambo'' was transformed.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1995-1997

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