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Interpreting Financial Statements For Business Acquisition

795 words - 4 pages

STRATEGIC POSITION
_ THE IMPACTS ON ITS MANUFACTURING TECHNOLOGY AND MANAGEMENT PRACTICES
the advancement in the technological sector has led to the discovery of alternative cheaper and faster ways of manufacturing, such discovery has inspired daimler over the past years and has also led to its success. modern manufacturing technology practiced by Daimler include the used of production plan of a prototype technology which is approved by a function of the group and later processed for inspection then improvement are subsequently implicated for the MSD (Mercedes Benz Development System) phase. All vehicle manufacturing plant are equipped with automated robotic systems which is used in the ...view middle of the document...

In 2007 the two automakers in incurred a decline in the share price which led to demerger within the corp and also the abrupt change of direction from preservation to absorption mode following the disappointing first six-month earnings introduced another problem in the case of “merger of equals” as declared pre-merger. other reasons leading to the demerger was chrysler's rapid growth in inefficiency, the production cost were outstandingly sky rocketing and also lacking diversification of product associated with overcapacity which led to the lost of market to competitive automakers such as Nissa and Honda. in efforts to retain its position on the global market, opted to ditch chrysler and refocus on its core traditional product. The market responded positive experienced a sharp increase in the share market in comparison with BMW its major competitor, the introduction of new innovative products such as hybrid E-class, smart automobile with green technology and fuel cell drive satisfying customers comfortable fuel efficient cars thus exhibiting in the success of the company.
MANAGEMENT ACCOUNTING SYSTEMS
PRODUCT COST DETERMINATION
Daimler AG does not have a specific management accounting techniques that are universal to all it's subsidiaries however its major subsidiary Mercedes-Benz Cars takes into account the management accounting technique of the Activity Based Costing which is determines the cost of producing a single unit in order to suggest the selling price per unit with minimal cost and...

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