When Daimler-Benz AG, the premier German-based transportation, communication and service company, became listed on the New York Stock Exchange in 1993, it marked a new era for the company. It also necessitated a change in their financial reporting system to meet certain US GAAP system requirements. The transition at Daimler-Benz, however, went beyond a purely financial reporting structure and the company embarked on a process of reorganization. “In the process”, says Axel Weber, project manager Value Based Management, “we actively sought to improve shareholder value, not just through financial factors, but through all other areas of the company as well.”
Daimler-Benz embarked on a process of reorganization that included the sale of business units that were not central to its core group of products and services, and realigned its business operations in order to reduce managerial levels and improve the efficiency of internal administrative and planning processes.
Celemi, which had enjoyed a business relationship with Daimler-Benz for several years, was asked to prepare a customized version of Apples & Oranges®, its business simulation that helps people understand the flow of resources through an organization and gives them a sense of the “big picture.” This learning process would become the main venue for communicating the concepts inherent in a value-oriented management program. It would also be used to help everyone discover how they could apply the concepts in their daily routines.
This learning process communicates the basics of business management as well as important background information unique to DaimlerChrysler
– Mr. Mildenberger
Want to read the whole case? Please find below.