Modern Management Case Study: Daimler Chrysler Essay

Modern Management Case Study: Daimler Chrysler Essay

  1. List four areas in which standards should be developed at Daimler Chrysler. Why would standard in these areas be important to company success?

The four areas that Daimler Chrysler would need to standardize in order to effectively deploy and use the Fast Car technology include standardization of the design process, the standardization of the procurement process, standardization of the documentation for equipment and the standardization of communication within the company as well as with its stakeholders.

Standardize the Design Process: The design process needs to be standardized in order to ensure that everyone who has access to the Fast Car option can read the resultant design and comprehend the data. Proper standardized placement of the designed sections of the cars will need to be set for the car designs along with a useable legend or key for those having low level of technical knowledge about car design.

Standardize the Procurement/Order Placement Process: The procedure for placing orders for equipment, and parts will need to be standardized so that all the connected suppliers and company representatives can follow the same process to place orders and fulfill them accordingly. This will reduce wastage as well as the time taken to place orders and receive shipment for the parts. Moreover the management would be easily able to understand all the orders that are being placed instead of following different order placement procedures for different suppliers.

Standardize Documentation: The documentation related to the products, parts, and the car design that are put online will need to be standardized in order to ensure that all stakeholders can review the information and comprehend it without having to indulge in the technical jargon. The writing in the documentation and the graphs all would need to be standardize din their requirements

Standardize Communication and Support: In order to ensure that the Fast Car option is successful the company will have to ensure that the communication between the stakeholders and the company through is standardized for Fast Car. This is important as non standardized communication can lead to communication gaps and loss of control. The standardization for communication can be ensured by setting up a dedicated WAN based link between the stakeholders and the company over which to communicate the Fast Car. The system requirements for the IT technology needed at the communicating party ends would need to be standardized along with the software requirements.

  1. Assume that Daimler Chrysler has a controller. From what the case tells about this company describe five important duties of this controller. Be as specific as you can about how the activities relate to this particular company

The controller for the Fast Car system from the perspective of Daimler Chrysler would be a perso0n who would be responsible for interacting with the various parties and stakeholders using Fast Car, as well as providing support and access rights to them. The controller would have access to all aspects of the Fast Car system in order to ensure fluid operation, look out for maintenance as well as perform reviews. The five important duties of the controller would include the following:

    1. Ensure fluid and undisrupted communication between the stakeholders of the company and Daimler Chrysler. This role is crucial as the controller would be overseeing the needs of the stakeholders in order to build relationships with them. Additionally the controller will also be responsible for creating documentation on the Fast car option and preparing reports on the initiative to provide to the management for review of the efficiency and success of the Fast car

    2. The Controller will have to be knowledgeable about the system based, software based as well as the technical barriers that can be faced by the stakeholders and the Daimler Chrysler company using Fast car. The controller will have to work towards solving these issues relating to these barriers in order to ensure proper distribution of control.

    3. It would be the responsibility of the controller to be highly informed about the system and to know which strategies can be implemented to increase the quality and the efficiency of the Fast Car web based initiative with time and usage.

    4. The controller will have to be responsible for all the accounting of the costs associated with the Fast car option. All costs of standardizing, operation and future investments will have to be projected by the controller along with the management of discretionary expenses related to the Fast Car option.

    5. Managing the deployment of control and authorization of the rights to the various categories of the users for the Fast Car option will also be the duty of the controller.

  1. Would power be important for DaimlerChrysler management to possess in ensuring the success of new programs aimed at reducing production costs? Explain

The Daimler Chrysler management would essentially need to possess power in order to be able to deploy programs like the fast Car initiative highlighted in the case. The presence of positional power as well as personal power in this regard would be important as the management will have to convince the board to provide for investing in an internal control system which can help the company connect with its employees, designers, suppliers, customers, and other stakeholders. The presence of power will result in more of a chance to get budget approval for investment in such a project which will provide returns on its operations in terms of efficiency through its ongoing operation. The lack of power however can lead to chance of such initiatives getting rejected on both a large and a small a scale. With the presence of power, the management of the Daimler Chrysler can invest on such projects on their own therefore increasing management effectiveness and efficiency.


Certo, S.C., Certo, S.T., (2006), Modern Management, 10th Ed, Prentice Hall

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