Case study analysis and research methodology

MBUSA Case Study

Selection of one of the two options (listed on page two of the case) for MBUSA to pursue. In your answer, be sure to consider issues associated with the alignment and support of DaimlerChrysler's corporate strategy, as well as the competitive state of the industry.

In making the decision as to which option is the best for MBUSA to pursue, the most critical issues are those that involve DaimlerChrysler and their extensive distribution network of dealers, the orders-of-magnitude greater supply chain and greater number of models. Taken together, all these factors, in addition to the rapid training schedules required, make the decision to adopt emerging streaming media and distance technologies the best possible option to pursue. The exponential increase in content and hours of training necessary for MBUSA to continually attain the level of quality training, and more importantly, hold onto their high level of service, is crucial as a key competitive advantage in this industry going forward. The scalability of in-person training would break down over time and there would be the difficulty of getting enough qualified candidates through the STARMARK program, accumulating the hours necessary to be certified. When the individualized training requirements by level and class of technician are taken into account, it also becomes clear that in-person training where even a larger teacher-to-student ratio pervades of 1:50 or greater MBUSA will still face the challenge of recruiting enough trainers to make an exclusive in-person training program effective. Compounding the scalability in terms of face-time between students and instructors is the intensive level of documentation delivered to each student. The case refers to these documents changing rapidly over time as well, making their electronic distribution all the more cost- and time-efficient and economical. Additional factors include the growing in-house expertise of Microsoft Windows Server operating systems and software, in addition to administrative-level expertise in managing the integration of Windows Media Player with the existing training systems the case refers to. Technologically the Microsoft Windows Server operating system is specifically designed to allow for multi-user, concurrent, memory-intensive sessions, which will be well-suited for the build-out of the DaimlerChrysler dealership and service centers throughout the U.S.

Over and above all these factors of scalability of teaching resources, ability to keep training materials updated, and the growing expertise of using the Microsoft Server operating system in conjunction with Microsoft Windows Media Player is the urgency of being able to quickly train Chrysler service representatives to the quality levels that MBUSA requires for certification into the STARMARK program. There is just not enough time to get the entire Chrysler service organization trained through traditional means, even if another building or even buildings were completed. The best approach is to get the training materials, courseware, sessions and training all online and then hold the new service representatives accountable for passing the more stringent tests from MBUSA. For MBUSA's training staff the challenge is formidable. Getting 1,500 additional technicians trained while also taking into account the many new car models from the merged company as well. Given how critical time-to-market is in this industry, automating the training process and making it available on a 24/7 basis is the only viable, scalable strategy they can adopt.

Appropriate justification for your recommendation. You should consider it materials on Topics like it Economics and Risks, it Security, Planning for Information technology, it Strategy Business Intelligence and Corporate Performance Management and it Strategy and Planning. You should focus on providing a quantitative justification, but do not neglect qualitative issues. You may find it helpful to develop a simple spreadsheet to explain your quantitative justification. If you use a spreadsheet, the results from it can be included as an appendix and not in the body of the paper. Be sure the logic of any spreadsheet is clear.

The evidence in the case as to why MBUSA needs to pursue Web-based distance learning is overwhelming. Starting with the most crucial fact of having to scale training to encompass the technicians at Chrysler, compensate for the many new models from the DaimlerChrysler merger, and the lack of available facilities to manage training for the 700 more technicians, Web-based training is the best option. This is accentuated by the fact that there are going to be significantly greater distances between dealers and training locations, and as a result even the most conservative estimates of travel costs will be low. Take into account he lost productivity of technicians having to not only take time off of work for a week to get certified, but also lose days of travel, and the unseen and unquantifiable, yet very real, costs start to add up. There are also the costs of having to re-issue training materials and content, and this also makes the Web-based learning system more efficient and far more economical. Lastly, the support of the strategic initiative on the part of MBUSA of having the highest quality service delivered via its STARMARK program is also essential to keep the Mercedes Benz brand solid and the reputation of the company for exceptional service intact. All of these factors need to be taken into account as the customers' day-to-day experiences with MBUSA will dictate its JD Power ratings which are mentioned in the study, and over the long-term, impact its brand as well. MBUSA must align its strategies to support line-of-business objectives if the company is to be successful. A critical area of this is the developing of agile, responsive it architectures that can align with the needs of MBUSA employees, and in this case, the training and certification departments. From the standpoint of Corporate Performance Management, the ability of MBUSA to monitor, evaluate and quantify the savings of creating a Web-based learning system are shown in Appendix a of this document. At a minimum, even with the minimum amount for travel expenses and the lower range of technicians needing to be trained, MBUSA will save $4.2M in travel and training costs. When the upper range of the number of technicians needing to be trained is taken into account, the figure jumps to $5.25M. In addition, MBUSA will also be able to save on tape duplication expenses, a cost taken into account for this calculation. The Total Cost of Ownership (TCO) of acquiring a server and installing Windows Server operating system is also taken into account in these calculations. The costs of the Corporate Intranet, NetSTAR, already incurred, the business case becomes more compelling that MBUSA needs to undertake a Web-based learning system in order to reduce travel costs and the time spent on the road by technicians on their way to trainings. There is also the opportunity to save on training across the merged companies, further adding operating efficiencies and more effective training quality, further supporting the STARMARK standards of support and their integral role in the MBUSA branding strategy as well.

Assessment of the risks associated with each of the two options. For the option you select, you should discuss the steps you would take to mitigate the risks associated with it.

Inherent in both options are major financial and operational risks for MBUSA. To build additional teaching facilities also assumes the capital budgeting process of the company, and with it, top-line revenue growth will continue at existing levels. As the car business can be sporadic in nature when it comes to consumer spending, it is advisable that MBUSA look first to cost savings with minimal outlays of cash or capital. Beyond this risk of making the incorrect financial decision, the far greater risk is not aligning it processes and platforms to align with the specific requirements and needs of the training department. Not supporting their core process areas is by far the greatest risk.