Int' Business Trip to Magna Steyr

After a 4 day travel weekend where students again visited all corners of Europe, student Monica Rust reports on their business trip to Austrian Car Manufacturer, Magna Steyr:

The International Business students ventured out on their first business trip to Magna Steyr in Graz, Austria on Wednesday, March 10^th. The trip was successful in prompting questions from students and in increasing understanding of business concepts. Seven students, along with Dr. Rüsch, piled into a university van at 6 a.m.—just as a fire alarm threw everyone else out of their beds. There was some surprise by the rest of the student body to see the business students looking spritely at such an hour. Yes, we business students are always prepared for the unexpected. J

Upon arriving in Graz, we took a tour around the manufacturing facility of Mercedes G-Class vehicles which Magna Steyr has been assembling by hand since 1979. As Americans, we were shocked at the lack of automation. Where are the robots? The first answer by our tour guide came in a question: “Why change a working system?” This reply took a few of us by surprise, but may just sum up the difference in mentality between Americans and Europeans. Many Americans are used to constantly looking for the improvement, progress and greener grass. Anything, no matter how good, can always be better. The second response by our tour guide was more acceptable by our standards: in order for automation to make sense, Magna would have to be making at least 100,000 parts per year. Instead, only about 25 Mercedes G-Class vehicles are assembled by the end of each day. I enjoyed watching cars be transformed as they moved through the assembly line.

After lunch, we were taken on a tour around the schools founded by Magna. After experiencing a shortage in qualified workers, Magna thought it to be in their best interest to support a few institutions that would increase the number of mechanical/automotive engineers in the area. We were able to see some experiments in action, and the room where crash tests took place. Luckily for us, all classes are taught in English which made it easier for us to talk with the students.

Also in the afternoon, we were able to talk with professionals in marketing and purchasing. It was a wonderful opportunity to apply textbook knowledge to real situations, and to personalize key aspects of business. When talking about the purchasing department, we had to guess the euro amounts of car parts that were recently purchased. We were surprised to learn that a one cent increase in a steel bolt could increase the total cost of an order up €350,000.

We enjoyed learning about the process of assembling cars and the unique position Magna faces as their competitors are also their customers. After a quick walking tour around Graz in the snow and grabbing a Kebab for dinner, we were ready to take the three hour drive back to Gaming.