ContentsIntroduction 3The central question 3The management objectives of Mercedes-Benz 3Management constraints 3Alternatives for managing management constraints 4Implementation plan 5Conclusion 5References 6Introduction(Albright, 2008, p. 1) conducted a case study on the Mercedes Benz All Activity Vehicle (AAV) that the company developed as one of the new vehicle models it introduced to the market to counter the results of negative performance that it displayed following the recession of the early 1990s which led to a drop in its sales and resulting losses. The central questionThe central question that (Albright, 2008, pp. 1) intends to raise highlighted in the case study is how a company like Mercedes-Benz can overcome the problems of decreasing market share and high production costs to ultimately increase its vehicle sales by developing new vehicle models, aimed at emerging market segments and niches while ensuring that product development costs are minimized. Following the Great Recession of the early 1990s, Mercedes posted losses for the first time in its history. It was therefore necessary to develop a new strategy to reverse the results and return to historic profitability. Objectives of Mercedes-Benz ManagementAccording to (Albright, 2008, pp. 1), the objectives of Mercedes-Benz management are to increase its market share through the identification of new market segments and customer niches and target them with new models in the most cost-effective way while maintaining their internal standards of quality and customer satisfaction. They intended to achieve these goals through globalization and establishing manufacturing plants as close as possible...... middle of paper ......companies must take bold steps to meet the challenges present in the environments in which they operate. It is also important to incorporate consumer participation in product design and specifications by explaining product concepts and ideas to them and seeking their ideas and suggestions. This ensures that the final product is acceptable to them, as they will feel ownership of the product and thus be encouraged to purchase it. It is also important to develop harmonious relationships with suppliers of components and product systems and ensure that they are involved from the early stages of new product development so that they understand and jointly own the process production costs to avoid deviations from production cost projections and targets. References Albright, T. (2008). Mercedes-Benz all-activity vehicle (AAV). IMA Educational Case Journal, 1(1), 1-4.