MAN Diesel and Turbo case

Thèmes abordés

Spares, boat

Résumé du document

Founded in 1758, the MAN Group is one of Europe's leading manufacturers of commercial vehicles, engines and mechanical engineering equipment. The head office is situated in Augsburg Germany.

This German group is divided into two main strategic business areas:

Our project focuses solely on the operations at MAN Diesel & Turbo after sales division. This division is the market leader in the production of large diesel engines designed for ships and power stations. Present in 150 countries, MAN Diesel & Turbo employs 12,500 people globally and they have established themselves as one of the three leading suppliers of turbo machines in the world.

In the fields of energy and transport, MAN Diesel & Turbo offers a wide range of products and services thanks to its strategic units. In addition, the strategic units have got different product areas, geographical locations and customers segments. The first three strategic units manufacture 2- and 4-stroke engines, different types of turbines, compressors and turbochargers as well as chemical reactors. The last unit purchases, manufactures and provides spare parts for ship engines. In Copenhagen, the Danish branch is in charge of developing new ship engines and running the after-sales service with the PrimeServ brand.

The financial figures of MAN Diesel & Turbo shows us that their turnover was worth about €2 billion and the EBIT was about €300 million in 2007. We can also notice that the after-sales is one of the most profitable division of MAN Diesel & Turbo In fact, 35% of the turnover and 74% of the EBIT of MAN Diesel & Turbo are generated by the after-sales department. Moreover, the after-sales department constitutes one of the most important priorities of the MAN group.

Extraits

[...] MAN Diesel & Turbo S.E. normally needs two years to prove and integrate a new supplier and it costs a lot. Another threat is the trade barriers of the countries in South-East-Asia. For example goods cannot be shipped directly between China and Taiwan. None of the countries in South- East-Asia have specific import/export regulations that involve any spare part products. Every official procedure of importing or exporting the goods is recorded and associated with a high effort of time, costs and paperwork. [...]

[...] These regulate the quality of goods, but are also used on aspects like health, safety and protection at the workplace. High rising insurances costs are the result of the social regulations. Sociocultural-Forces: There are no difficulties in communication. English is well spoken in every western European country. Punctuality and exactness of agreements are highly important for the reputation of MAN Diesel & Turbo S.E. and it could be a reason to purchase from European supplier. There are also no high cultural differences. It is useful to understand the mentalities and business minds of your business partner. [...]

[...] Conclusion Of course, all of these performance objectives are important for MAN Diesel & Turbo. But for this Project, to find a proper supplier strategy, the performance objectives Quality, Speed and Dependability are the most important and will have the most impact on the final decision. PESTEL-Analysis PESTEL-Analysis describes a framework of macro-environmental factors. It consists of Political, Economic, Sociocultural, Technical, Environmental and Legal Forces. It is an external analysis and gives an overview of the different macro-environmental factors that the company has to consider. [...]

[...] The general feeling among customers is that MAN Diesel & Turbo has got a good understanding of their needs. They know what is needed to be done to ensure and provide the customers with the most convenient options and results. Many of the customers value the relationship between them and MAN Diesel & Turbo and consider that to be a strong point of the company. Good experiences from working together and the knowledge of how both parties operate, brings a feeling of security and trust to the relationship. [...]

[...] In order to successfully achieve competitive advantage one should always focus on bringing delight to the customers. Especially in this case, understanding the needs of the customers is crucial. Feedback from the current operations helps us to define objectives and guide our decisions towards them. When comparing different options with the expectations of the market, we get an outcome that guides us towards the perfect solution The current situation MAN is a multinational company with a wide range of customers all around the world. [...]