IndexIntroduction 3The Central Issue 3Management Objectives of Mercedes-Benz 3Management Constraints 3Alternatives for Managing Management Constraints 4Implementation Plan 5Conclusion 5References 6Introduction(Albright, 2008, pp. 1) ha conducted a case study on Mercedes Benz's All Activity Vehicle (AAV) which the company developed as one of the new vehicle models introduced to the market to counter the negative performance results recorded in the wake of the recession of the early 1990s which led to a decline in sales and subsequent losses. The central question The central question that (Albright, 2008, pp. 1) intends to emerge in the case study is how a company like Mercedes-Benz can overcome the problems of a decreasing market share and high production costs for ultimately increase its vehicle sales by developing new vehicle models, targeted at emerging market segments and niches, while ensuring that product development costs are kept to a minimum. Following the great recession of the early 1990s, Mercedes recorded losses for the first time in its history. There was therefore a need to develop a new strategy to reverse the results and return to the profitability that made history. market shares by identifying new market segments and customer niches and targeting them with new models in the most cost-effective way, while maintaining its internal standards of quality and customer satisfaction. They intended to achieve these goals through globalization and setting up manufacturing facilities as close as possible… to the middle of the paper… Operators must take bold steps in addressing 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 that they own the product and therefore will be encouraged to purchase it. It is also important to develop ongoing relationships with suppliers of product components and systems and ensure that they are involved from the early stages of development of a new product so that they understand and co-own the manufacturing process to avoid deviations from projections and objectives in terms of production costs. References Albright, T. (2008). Mercedes-Benz All Activity Vehicle (AAV). IMA educational case diary, 1(1), 1-4.