Cultural Diversity in the Workplace | Literature Review

Cultural Diversity in the Workplace | Literature Review In todays increasingly globalized world, the phrase diversity in the workplace tends to pop up everywhere. The main reason being that modern technological advances in transportation have shrunk the globe to such an extent that it is no longer a problem to move to any part of the world be it for entertainment, studies and especially work. This paper explicitly focuses on literature that relates to cultural diversity in an organization and its implications on employee performance and the performance of a corporation as a whole. It will also take a look at cultural diversity from either side of the mirror, that is, the positive as well as the negative aspects and how to manage such an employee base. Please also note that, while there has been some debate on whether race and culture should be thought as the same thing, this paper regards them as inter-usable so as to avoid confusion. So what exactly is cultural diversity? It has been described as the composition of work units (work group, organization, occupation, establishment or firm) in terms of the cultural or demographic characteristics that are salient and symbolically meaningful in the relationships among group members (DiTomaso, Post, Parks-Yancy, 2007) .The time has gone by when you expect an employee from a different cultural background to just blend in and start producing results (Amaram, 2007). Organizations have realized that a multi-cultural workforce can prove to be a great asset especially if the business is to be expanded to international markets. So the focus has somewhat shifted to come up with strategies to handle such an employee base and how to sustain that program. In his assessment of the value of a multi-cultural workforce, (Konrad, 2003) states three reasons why companies are changing their attitudes and strategies regarding recruitment of employees with different backgrounds. Firstly, the best talent is not always local; you need to look globally to recruit the best minds in the business. Secondly, he talks about market share, that is, a culturally diverse workforce can better cater to an increasingly diverse customer base, hence increased market share. The insight that a local can provide into the workings of the local market and also of the mindset of the local consumer is invaluable. Finally, he states that each culturally different individual brings with him something different to the table, and when you combine all these different attributes, it results in making the organization more competitive. In a non-business related argument, (Jayne Dipboye, 2004) suggest that increasing workforce diversity is the ethically right thing to do an d also that it is a better way to address race and gender issues. This argument may seem insignificant considering that the current competitive environment means companies care more about capital than the right thing to do. But (Amaram, 2007) brings up a very interesting argument about why corporations are moving to diversity programs. In addition to ethical and social responsibilities, he says that these programs have become necessary to avoid legal problems namely due to civil rights laws. Furthermore he states that to gain competitive advantage corporations have been forced to bring forward new strategies to bring out the best from a diverse workgroup and avoid conflicts. Even at the Govt. level it has been realized that effectively managing cultural diversity is vital to economic success. One example is the Australia Govt. policy, where diversity management is governed by a state policy namely, Productive Diversity. The aim of this policy is to make full use of the experiences and skills of people raised overseas, therefore gaining priceless Intel on international markets. (Leveson, Joiner, Bakalis, 2009) However what has been discussed above is based on theories and rhetoric. Is there any solid evidence that cultural diversity leads to a prosperous organization? The answer is a big maybe. Countless research and studies have looked at this issue from many different angles, each with their own differing conclusions. After reviewing various researches on this issue Jayne Dipboye (2004) came up with four conclusions regarding the relationship between cultural diversity and organizational performance. Increased diversity does not necessarily improve the talent pool Increased diversity does not necessarily build commitment, improve motivation, and reduce conflict Increased group-level diversity does not necessarily lead to higher group performance. Diversity does not necessarily improve organizational performance A study (Choi Rainey, 2009) suggests that it all comes down to the type of diversity i-e race, gender, religion etc. The findings were consistent with previous research (Milliken and Martins, 1996; Williams and OReilly, 1998) that suggest that racial diversity is inversely proportional to organizational performance due to less cohesion within the group and more conflict. It should be noted however that this study was specifically based on US federal agencies so it cannot be considered to represent the global business environment trend or even the national business environment of the US as a whole. Various other studies on the subject matter provide some very interesting results. McMahon (2010) in her article surveys the more recent studies on diversity. Here I would like to talk about two of them. First, (Richard, 2000) carried out a research on the US banking industry. He chose 63 banks from 3 states based on 3 different factors: California (high racial diversity), Kentucky (low racial diversity) and North Carolina (financial wealth). The study showed that there was no direct relationship between diversity and performance instead it depended more on the firms business strategies. When the strategy was more focused on growth there was a positive relation between diversity and performance but the result was opposite when the strategy shifted towards downsizing. Again, the above study, even though regarded as valuable information, only included the US banking industry so it cannot be said to depict the complete picture, (Richard, Murthi, Ismail, 2007) therefore widened the scope to other industries and studied the relationship between racial diversity and intermediate as well as long term firm performance and the role that environmental context plays in this. The results showed that at high as well as low levels of racial diversity, there was a curvilinear positive relation between racial diversity and intermediate firm performance. The result also showed a positive correlation between racial diversity and long term firm performance. But these results were dependent on the type of industry and environmental stability, meaning that the U-shaped relationship between racial diversity and firm performance would be weaker in unstable environments compared to a stable one. Till now I have reviewed how cultural diversity affects businesses and also related the theoretical assumptions to actual studies done on this very important issue. In the next portion I will try to review literature that primarily focuses on the best practices for managing diversity. Effective management of diversity is based on recognition of commonalities and awareness of differences (McMahon, 2010). Managing cultural diversity involves identifying the best practices. A best practice is a technique, method, process, activity, incentive, or reward that is believed to be more effective at delivering a particular outcome than any other technique, method, process, etc. when applied to a particular condition or circumstance (Wikipedia, 2010). So what are these best practices that I referred to? Amaram (2007) gives a few suggestions about them. He gives particular importance to diversity training programs, giving managers diversity related goals and making sure they are met and finally, giving respect to people of all races, that is, making room for religious holidays, diet preferences etc., because sometimes its the little things that matter the most. Jayne Dipboye (2004) suggest conducting a thorough needs assessment so that the diversity initiatives are tailored to the situation. Another suggestion is to develop a strategy keeping in mind the environmental context of the organization thereby echoing the results of the research carried out by Richard, Murthi and Ismail (2007). One more point that they touched in their paper was the need for inventing a system to evaluate the effects of diversity management strategies developed by organizations so that new and improved strategies can evolve by learning the mistakes from previous ones. CONCLUSION The increasingly diverse workplace is consistently posing newer challenges for an organization. Therefore there is a need for organizations to realize the importance of devising diversity management strategies. These strategies require thorough planning and looking at all aspects as well as the resulting consequences that will arise from a particular strategy because a good strategy can do wonders for an organization. At the same time these strategies could backfire if there is a lack of planning or research before implementation. After reviewing the above mentioned literature, one can see that cultural diversity is a complex phenomenon. Its role in improving organizational performance depends on various factors, for example, the environmental context, the type of industry, organizational strategies, etc. Furthermore cultural diversity alone does not guarantee immediate, tangible improvements in organizational, group, or individual performance. Nevertheless, achieving a culturally di verse workforce and effectively managing this workforce can yield huge benefits. Audi And Lamborghini: Analysis Audi And Lamborghini: Analysis The study aims at understanding the Companys position in relations to its competitors, as well as working to identify a firms core competencies and other competitively distinct company resources. Also analyze the profits the firm is generating from various product lines and customer accounts. Also a study of competitive strategy to analyze the industry context in which the firm operates. These include Porters five forces, SWOT analysis, analysis of strategic groups of competitors and others. Depending on the industry, the regulatory context is also examined in detail. In Competitor analysis, profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis is done using the benchmarking which also includes examining competitors Product differentiation, Present Sales, Future Sales, Marketing and Promotion Strategies, Technologies and other key factors. Introduction Audi AG is a German manufacturer of automobiles marketed under the Audi brand. The company name is based on the surname of the founder August Horch, the name itself an English cognate with the English word hark, meaning listen which, when translated into Latin, becomes Audi.(Wiki 2010) The Audi Group with the two brands Audi and Lamborghini is one of the worlds most successful car manufacturers in the premium segment. Sporty, sophisticated and progressive the premium vehicles from the Audi brand Customers are delighted by Audis technological innovations, pioneering, and design and build quality. The companys main aim is to satisfy the customer by providing world class technology, designs, safety and comfort. Sales of Audi vehicles by region 2009 Share in percent Germany 228,844 24.1% Europe without Germany 390,010 41.1% China (incl. Hong Kong) 158,941 16.7% USA 82,716 8.7% Other 89,218 9.4% Summary 949,729 100.0% Audi AG today Volkswagen AG is the largest shareholder of Audi AG which holds over 99 percent of the share capital. (Viknesh 2006) Audis saw a dramatic growth since 2000s, by delivering 653000 to 1003000 in 2008. The sales increase came globally specially 19.3% from Eastern Europe, 17.2% from Africa, 58.5% from Middle East with China coming into action in 2009 with a numerous increase to 108000 vehicles. Audi Vision Audi is a manufacturer of exquisite cars beautiful, sophisticated machines that embody technological perfection. Our success is built on our core values of creativity, commitment and enthusiasm, and keeping our customers desires at the heart of everything we do. We strive to lead the way through constant innovation, setting new standards that define Vorsprung durch Technik.(Anon, 2008) Mission: To delight customers worldwide This is companys core strategy for the year 2020 and therefore mission statement: We delight customers worldwide. Audi defines the delight in terms of not only its customers innovativeness but also its emotional products which turn out to be highly efficient models providing an unmistakable experience that are particularly noted for the familiar attributes of sophistication and reliability. Investor Relations Corporate strategy Audi: the number one premium brand Keeping in mind the future availability of the natural resources, Audi has kept in mind its future mission and vision of being a premium brand by actually reinforcing the emotional pull and continuing to delight the customers in long term. (Investor Relations 2010) Present Financials Performance Audi starts New Year with big results surge Audi achieves a new sales record of 360,760 deliveries in the January to April period First-quarter operating profit up more than 30 percent to à ¢Ã¢â‚¬Å¡Ã‚ ¬478 million Audi has made a successful start to the 2010 fiscal year. The Ingolstadt-based carmaker sold 360,760 units in the first four months of the year a new record for the Company making very good progress with full throttle. Audi also achieved a double digit growth in all of its sales regions all over the world in the first quarter of the year with unit sales up by 23.7% on comparative period last year. (Quarterly Report, 2010) Future Plans for 2010 After being interrupted by the global crisis in recent years Audi is trying to get back to increase their deliveries by double along with the aim to increase to the operating profit more than that of the revenue and continuing to pursue its goal of becoming the most successful premium brand. In addition to the efforts made to achieve the long-term goals Audi has planned 12 launchings which are very interesting for the customers which includes a mix of performance, luxury, environment friendly and hybrids Situation Analysis Macro Environment PESTEL framework for Audi Political Scrappage scheme for cars 10 years older (United Kingdom) A government funded voluntary scheme in which the cars older than 10 years could be traded for a new vehicle and a discount of  £2000 is given on the new vehicle purchased. Emissions target of 130gm/km CO2 All car manufacturers are required to meet an average of CO2 emissions of 130gm/km by 2015 across all their products as a standard.( Alan 2009) Economical Cost of oil likely to go up, which may in turn have an effect on consumer buying behaviour. UK still trying to come out of recession, July- September 09 Economic Report shows a fall of 0.4% in GDP. (BBC News) Lowest interest rates in years, 0.5% set by Bank of England, affects consumer savings since March 2009.(Bank of England) Social Estimated UK population of 70 million by 2029. Population shift to an increasing older generation. People have a more active lifestyle, related to improved life expectancy. Technology Constantly Changing Environment Turbo Technology This impressive technology marks a departure from the noisy, thirsty diesel engines of the past. The TDI diesel engine delivers power, performance, low fuel consumption and reduced CO2 emissions. (Audi 2010) Recuperation While decelerating, the energy created is lost. Brake energy recuperation recycles this energy to lighten the load on your engine. It can reduce fuel consumption by up to 3% and CO2 emissions. (Audi 2010) Aerodynamics Aerodynamic performance plays a vital role in reducing fuel consumption. Streamlined for efficiency, the cars produce less air resistance, improved handling, better stability and lower CO2 emissions. (Audi 2010) S-tronic The revolutionary S-tronic transmission combines the agility and responsiveness of a manual gearbox with the convenience and smooth, uninterrupted power of an automatic. Fewer revs per minute and shorter gear changes mean greater fuel efficiency and lower CO2 emissions. (Audi 2010) Strong Research and Development culture and facilities with high expenditure. Lack of natural resources hence moved to hybrid cars. Global shift to cut CO2 emissions, Kyoto Agreement to work towards reduce green House gases. More Greener lifestyle now. Legal Health and safety, Euro NCAP safety test on all cars. Road Tax brackets Insurance Groups Micro Analysis SWOT Analysis Strengths Diverse ranges of Products Audi and Lamborghini Great Cash Flow Position Increase turnover and trading profits Sound Balance Sheet Leading quality manufacturers Brand Awareness Human resources Abilities to turn resources into advantages Audi boosted quality more than any other carmaker in the past five years, cutting defects by 60% Weaknesses Perception of High Prices Frequency of the interest of the customer may deteriorate Pollution: A major issue for the environment Knowledge of the purchaser with sophistication Alternate products and technology Opportunities New products with better technology Globalisation Innovation Alliances Change of customers preference to cheap and comfortable cars Diversification New horizons in Technologies Threats Old and New competition Fluctuations in Price of Fuel New rules and laws Result of the oil crisis Economic recession Market shift to globalisation Extremely high competition for customers and resources Porter Five Forces Model Porter explains that there are five forces inherent in a market, which will jointly determine the intensity of competition and profitability of Audi and the automobile industry. The five forces analysis gives an improved understanding of the frequency of competition within the business area. The analysis shows that the industry is highly competitive, with buyers having a very powerful influence to the massive number of alternate brands available to them. Bargaining Power of Customers Looking at the current situation when UK is trying to get out of the recession and the economy is also becoming stable, the buying power of the individuals will also increase and thereof the consumers will also look upon the various alternatives available in the market along with good bargains. Therefore the buying power force is gradually getting stronger. Bargaining Power of Suppliers This force is strong for both Audi and the entire automobile industry which possess a massive amount of substitute suppliers therefore use the aggressive pricing strategy. This results in a very strong competition in the industry. This is a result of very lesser degree of differentiation in the product offered. Finally the threats from the suppliers power to bargain which is fairly very low in the automobile industry because of multiple sourcing strategies and use of alternative supply sources for the spares and parts. Degree of Rivalry The degree of rivalry is the main point of concern for the company now as all the major competitors (BMW, Mercedes) are doing all their possible bits in terms of new product development, advanced technology, better services and providing wider choices etc. to bring customers under their umbrella. Threat of Substitutes There are a number of models of many brands like Mercedes Benz, Jaguar and BMW which can result in a little threat but they dont possess a great degree of threat as such because it depends on the relation of price-performance of the product. And an AUDI is a name for the people who love technology with luxury. Also changing to a substitute is possible if the substitution cost is low and that is not a valid factor here. Therefore a frequency of threats from the substitutes is low. Threat of New Entrants For the new entrants, the customer loyalty is a very important factor to be considered because it is very difficult to convince the customers in this era even if you possess a better than the best peoples product. But also the entry of the one who manufactures cheap cars does pose a significant threat. So, the frequency of the threat from new entrants is on a very lower scale. Competitive Advantage Audis competitive advantage is in their engineering of building their engines. They are able to fetch maximum power out of the minimum resources along with great fuel efficiency. A V6 engine is available, but 9 out of 10 buyers choose the 211 horsepower turbocharged 2.0 liter 4-cylinder, and thats the A4s competitive advantage. The Audi is the only German luxury sedan available with a 4-pot motor. While a smaller engine may not be a traditional selling point for a sports sedan, the A4 pulls off the inconceivable combination of being the most fuel efficient and quickest entry-level model of the bunch.(Anon, 2009) Benchmarking Benchmarking is the process of comparing ones business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper. Benchmarking involves management identifying the best firms in their industry, or any other industry where similar processes exist, and comparing the results and processes of those studied (the targets) to ones own results and processes to learn how well the targets perform and, more importantly, how they do it. Benchmarking allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices.(Anon 2008) Benchmarking Criteria: Sales between Audi, Mercedes and BMW in U.S markets BMW sold 109,043 vehicle in North America may which was better than that of the previous but still lagged a 27% when compared to the last year. The sales decrease of a -18.3% gave them a fair chance to stand better in the second half of the year. Top Seller Position of Luxury Vehicles Company May 2008 Numbers Percentage Year-To-Date Percentage BMW 90,643 -18.1% 408,370 -20.9% MINI 18,348 -19.1% 79,260 -22.6% Rolls-Royce 51 -53.6% 276 -27.6% BMW Group 109,042 -18.3% 487,906 -21.1% Mercedes-Benz 86,300 -12.1% 383,000 -22.3% Smart 11,000 -14.9% 50,100 -9.9% MB Cars 97,300 -12.4% 433,100 -21.1% Audi AG 82,800 -6.1% 374,750 -12.1% BMW as a brand was down by 18.1% in May by selling 90,643 vehicles which further decreased to 20.9% to 408,370 vehicles. In Germany, Mercedes-Benz increased sales by 11% and sold 25,600 with furthermore sales boosts on models such as A-class, B-class and C-class which in turn helped Mercedes-Benz in gaining western European Market Share namely Spain, France and UK. Another sales boost of 59% was seen in China where Mercedes Benz grew fastest than to Brazil where it was 39% and Canada 17%. Whereas Audis sales were down by just 6.1% from the previous results and 12.1 from January to May 2008 which was 426,194. In Western Europe, the brand further reduced the gap to last years record result by giving just a -10.9% which was 52,650 vehicles in May. Also, they sold about 243,250 vehicles with a -14.6% which was 284,656 vehicles. Despite generally shrinking markets, Audi was able to sell more vehicles Europe namely Italy with a 7.1% increase, Belgium with a 7.3%, Switzerland with a 7.6% which resulted in the brands premium market share by 3.9%. Audi also increased their market share in US by 2% to attain 8.8% share in the High Import Group by posting a small decline of 12.1% to 7,503 vehicles. In the Asia-Pacific region, Audi achieved strong growth of 24.1% by selling 15,650 vehicles which further went up by 5.4% more. In China also sales in May rose by 27.8% in the consecutive month which was earlier up by 6.8% resulting in Audi confirming its position in the global market in the Australia and South Korea. (Global Sales 2009) Growth strategy Audis Growth Strategy Outlined Auto Shows Intensive hard work in key metropolitan areas Strong Dealer network Increasing the number of successful dealers who can sell 2000 cars annually. With a strong dealer network, a capable organization, and with excellent products in the future, AUDI will grow. It has ambitious plans in terms of the product portfolio, and further more interesting launchings.(Stadler 2010) Additional Capacity Plant Decision in view of US markets BMW- Have a manufacturing plant in US Mercedes- Have a manufacturing plant in US Audi- planning to set up a plant in states but keeping everything in mind, the hedging effect in taking the engine and its parts from Europe to America and on the contrary taking a large number of manufactured parts from America to Europe and then paying a 10% tariff is of no use. So, AUDI has to think strategically on this issue, not that it is taking its hands out but has to consider a lot many factor than one can image before setting up a plant in America, no wonder American has a large growing market and huge potential. Basis BMW AUDI MERCEDES Growth Strategy Identifying potential growth. Recognising where our strengths lie Make the best use of every opportunity. Following a clear strategy Intensive hard work in key metropolitan areas Strong Dealer network Capable organization, Excellent products in the future, More product portfolio and launchings premium price to our competitors To offer customers the best value To keep the incentives to a minimum, To reduce incentives further by focusing on attractive vehicles and customer service Analysis of Growth Strategies BMW is following a very straight growth strategy where they work in the direction where they have faith in themselves to do it best, they do the best of whatever they start, utilize all the resources possible which is their strengths without leaving their roots. Audi follows a growth strategy by increasing their product portfolios, management capabilities, ambitious plans and distribution network so that they can cater to the larger markets as well as groups by increasing their dealer networks. Mercedes has all the more different perspective on their growth strategy where they aim at being the most premium and luxurious brands out of the three and aim to sell cars at their own premium prices and focus on the consumer by providing incentives in the form of an extra-ordinary customer service which they think is their unique selling proposition. Audi can do a blend of their competitors strategies and give their future an excellent shape because all the three companies have different approaches towards their future which makes them different from one another. By doing this AUDI can improve on a wide perspective be it their production, technology, distribution, management or their human resource or even the customer groups. Forecasted Sales in 2020(based on CAGR) Assuming the American market, a large market for the Bimmers and the Mercs remains bad and Audi continues to perform well since. Audi have fairly good chances to overpower Mercedes by 2010. Looking at the CAGR, its pretty sure that Audi will be selling more cars in 3-4 years if everything goes the way it is. Looking at the previous figures it seems that Audi will pass on BMW as well by 2014, but practically speaking it should be around 2016 if it may happen. In the year 2008, Audi had a luxury market share of 9 in the world which was achieved without any incentives when the competitors cars were resting in the lots. It is one thing which the others are not doing or are not being able to do which is Innovation which started from Quattro to FSI to TDI, they have been very smart as to where to spend money intelligently in the racing and then bring them to the live world cars which would mark the growth of technology. Basis BMW AUDI MERCEDES Sales in 2020(in CAGR) Growing fluently with a CAGR of 4.1 percent for last 4 years. Audi is even quicker to achieve this at the CAGR of 6.51% in the last 4 years Its been a stand still for the Mercedes with (combined annual growth rate) of 1.4% in the last 4 years Technology Basis BMW Audi Mercedes Technology Efficient Dynamics Hydrogen 7 Dynamic Drive Clean Energy Night Vision- Infrared Vision at night Valvetronics xDrive Dynamic Stability Control(DSC) Quattro Asymmetric/dynamic torque distribution Recuperation- charging the batteries with the brake force energy Audi Space Frame TFSI engines were the first to combine petrol direct injection and turbo charging to provide greater power with reduced fuel consumption DIS with Gear Shift technology International standard ISO 14062 Design for Environment Use of water-based paints with less than 10% solvent and the use of solar energy to heat industrial water BlueEFFICIENCY ECO start-stop function F-Cell Hybrid Technology Analysis of technology BMW with a wide variety of technologies namely Efficient Dynamics, Hydrogen-7 work on the performance of the car in view of the environment with many useful cosmetic technologies that work in the interior of the car and its drivability with a very unique safety feature such as Infrared Vision at night. Audi on the other hand works on its Quattro technology which makes the car the best thing to drive in any road condition with its complete traction, safety features such as an extra-ordinary Space Frame which is Audi trademark and tested in a wind tunnel at their testing research and development centre along with other technologies for making a fuel efficient vehicle keeping environment in mind. Mercedes has made a little more effort than the AUDI or BMW by reaching the International Standards ISO-14062 for the design of environment by which they take care of all the products used in making their cars till the final disposal of them. Also working towards state of the art F-Cell Hybrid concept technology which can make a vehicle spit zero emissions. Looking at a wide perspective, all the three majors are doing their best to cope up to the changes in the environment and also provide more and more innovations whether its performance, safety driveability or joy. Keeping everything in mind they are laying their growth strategies. Advertising with analysis BMW AUDI Mercedes Advertising Marketing This article is an analysis of BMWs current global promotional strategy which places huge emphasis on Joy. For very many years, BMW branding centred on Drive, and the manufacturer proudly promoted itself as the Ultimate Driving Machine. This tagline became synonymous with BMW, but in 2008 it began to shift its emphasis on to Joy. We are a car company, but we dont just make cars. We, we make joy Thats the story we want to tell the World now. This Audi ad from across the pond stops short of dancing around and singing Audis rule, BMWs drool, but only just. The reason for the gloating, so the ad says, is Audis run of three straight victories over BMW in comparison tests in American car magazine Car and Driver. Wed love it if there was something similar over here.. But what we really cant wait for is BMWs response will it remain aloof and keep a dignified silence, or take the bait and slag Audi off in response. Mercedes Benz understands that its customers are not simply buying a car to get from point A to point B, so before they actually sell a car they must first sell an idea about that car. Mercedes Benz sells their ideas through promotion and advertising. Mercedes Benz wants to change the perception of their brand at the personal level and reposition their brand so that they are more appealing to young professional men of all ethnicities. Secondly, Mercedes Benz is communicating to its target market the idea that they are a more approachable, personal, fun, and energetic brand. Unique selling Proposition or Differentiation Basis BMW AUDI Mercedes .Unique Selling Proposition or Differentiation BMW is able to distinguish its self from its competition because it is more then just a luxury car. It has met the demands of customers craving luxury while also offering versatility to customers. An Audi feeling that communicates convenience and comfort to the driver. In view of the high quality claimed for Audi models, everything has to match: the shape of the door handles, the sound of the doors closing, the hand wheel for adjusting the back restraints, the indicator lever or the surface quality of the gear lever knob. Mercedes Benz differentiation once centred on the safety, luxury, and precision engineering of its cars, but due to increase competition in the luxury car industry and changing consumer attitudes about the Mercedes Benz brand, that strategy has changed. Now their strategy is more life style oriented and is focused more on presenting the more fun loving, approachable, and energetic side of Mercedes Benz.