...BMW AG; Financial Performance Analysis This paper is prepared by: Asif Ahmed BBA 13th Batch Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka, Bangladesh E-mail; asif.ahmed0001@yahoo.com Cell Phone; +8801922939126 BMW AG; Financial Performance Analysis (Asif Ahmed) 1 of 24 Executive Summary: The world is just recovering from a big recessio n. Various big corporations became bankrupt because of this. Many of the automaker giant posted loss during the last 2 or three years, like – Toyota and the biggest corporation of the world General Electric (GE) became bankrupt. More or less all the big corporations are affected by it. BMW, one of the automaker giant, could retain its’ profitability over last three years when the global recession take place. It also affected by the recession but cannot lose the profitability. This interesting thing inspires me to conduct research on the financial performance of BMW AG. In the beginning of my paper I give an overview on the BMW. Later I analyze the net profit, sales revenue, costs and assets base of the corporation for the last 10 years. Then I go for ratio analysis to judge the financial health of the organization. In ratio analysis I use Return of Assets (ROA), Return on Equity (ROE), Basic Earning Power (BEP), Liquidity ratio, Profitability Ratio, Divided Payout (DP) Ratio and Du Pont Chart to conduct my analysis. The findings on the analysis are discussed along...
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...At this time, buyers viewed BMW an unworthy car because of high car price, and poor communication to the customers. To solve this problem, BMW should target its customers to each of the series, and deal with the price and specification to attract and maintain its customers. The problem was that BMW was viewed by the current and prospective customers an unworthy car. The current loyal customers could not buy a new BMW car because of the increasing price of BMW car. The prospective customers decided not to choose BMW car because they couldn’t find any advantages over other brand. Moreover, some of other brands are better off so they bought others instead. There are three reasons for this problem. First, buyers decided to choose a cheaper car because of 1987 Tax Reform Acts and stock market crash of October 1987. Buyers had to consider more than they previously did to get the most fit and valuable car. Furthermore, comparing to other car manufacturers, BMW was ranked lower in customer’s satisfaction. This showed that there was a problem in communication to the customers. Finally, BMW’s competitors, newly established Japanese luxurious brand, were famous for reliable service. Two steps should be implemented. First, BMW should target each car’s series to its specific customers. 3-series, the cheapest car, should be targeted to working people with middle income. 7-series, the most expensive car, should be targeted to luxurious high-end buyers. Next, BMW should adjust retailed price...
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...Chaudhary Charan Singh University ,Meerut. (DEPARTMENT OF FOREIGN LANGUAGE) PROJECT ON GERMANY AUTOMOBILE INDUTRY CERTIFICATE OF PROFICIENCY IN GERMAN LANGUAGE SUBMITTED TO: DEPARTMENT OF FOREIGN LANGUAGE SUBMITTED BY: SHIVANK KAUSHIK ROLL NO. - 111754 INTERNAL EXAMINER EXTERNAL EXAMINER INDEX 1.GERMANY 2.GERMAN GEOGRAPHY 3.AUTOMOBILE INDUSTRY HISTORY 4.PRESENT DAY 5.CURRENT MANUFACTURERS(MAJOR/ MINOR) 6.REFRENCE/SOURCES GERMANY Germany officially the Federal Republic of Germany is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate. With 81.8 million inhabitants, it is the most populous member state and the largest economy in the European Union. It is one of the major political powers of the European continent and a technological leader in many fields...
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...Semester 1, 2006 BMW Automobiles [pic] Group Members Daniel Smentek, 13264679 Melanie Bernroitner, 13264682 Marie-Charlotte Neumann, 13264640 Submitted on, May 16, 2006 Table of Contents Executive Summary 4 Introduction 5 BMW and the Automobile Industry 6 Aspects of the Automobile Industry 6 Historical Background of BMW 6 BMW in the Global Environment 9 General Environment of the Automobile Industry 9 Five Forces of the Automobile Industry 14 Competitive Structure of the Automobile Industry 17 BMW’s Direct Competition 22 BMW’s Resources and Capabilities 25 Tangible Resources 25 Intangible Resources: 28 Capabilities 29 Core Competencies 30 Potential Action Steps for BMW 33 BMW’s Strategy towards Success 37 References 41 Appendices 45 List of Illustrations Figure 1: Report's Course of Action 5 Figure 2: Labour Costs in EU Countries 2005 11 Figure 3: Outcome of General Environment Analysis 14 Figure 4: Evaluation of Porter's Five Forces of Competition 17 Figure 5: Strategic Map 20 Figure 6: Profit Margins 26 Figure 7: SWOT Analysis BMW 2006 33 Executive Summary The following report analyses the automobile operations of the BMW group in regard to its competitive position in the automobile market. BMW is a German premium car manufacturer comprising the three brands BMW, Mini and Rolls-Royce. The...
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...Financial Statement Analysis – BMW Group ------------------------------------------------- ------------------------------------------------- Yuliya Bondarchuk 27991 ------------------------------------------------- Academic Year 2014/2015 ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- I hereby certify that this paper is the result of our work and that all sources we used have been reported. ------------------------------------------------- ------------------------------------------------- -------------------------------------------------- Signature ------------------------------------------------- © Kozminski University 2014 Executive Summary The aim of this analysis is to decide whether to grant a loan to BMW Group. BMW is one of the biggest car producers in the world. The company produces also motorcycles and offers the financial services. In the ‘Conclusions’ section it is presented, that the company is stable and well-performing. Also the ratios are growing and its position on the market is strong. The Company BayerischeMotorenWerke AG (BMW) is a German holding company and automobile manufacturer that focuses on the production of luxury cars and motorcycle. It divides its activities into the three main segments : Automobiles, Motorcycles and Financial Services. The company owns three brands: BMW, MINI and Rolls-Royce. BMW being also a Financial...
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...NOVEMBER 1, 2001 STEFAN THOMKE BMW AG: The Digital Car Project (A) “Looks great,” thought Chris Bangle as he walked by a picture of the new BMW 3-Series which was about one year away from its scheduled 1998 launch in Germany. Bangle, a former Wisconsin native, who became the company’s director of worldwide design at age 35, glanced at his watch. In just 30 minutes, he would meet with other senior managers about project recommendations that might revolutionize the way cars had been designed over the past eight decades at BMW. The meeting was in the inner sanctum of BMW’s research and engineering building, the Forschungs-und Ingenieurszentrum, known locally as the “FIZ” (pronounced “fits”). Built in 1987, this massive building centralized the work of 40 facilities previously scattered through Munich. All work from product concept to pilot production occurred in the FIZ. But only a privileged few out of the five thousand who worked in the building had ever visited this corner of the company where the meeting was to be held. Bangle pulled out his card key that would let him pass through a sleek space-age security system that resembled an oval chamber. After negotiating a push card entry system, a set of doors slid close behind him and another set opened up to reveal the styling area—a world of future visions, inhabited by many life-size clay models of cars under development that would eventually come to life on roads of the next millennium. BMW had weathered several storms over...
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...assembling BMWs at its factory in Rosslyn. 1973: BMW acquires Praetor Monteerders and establishes BMW South Africa. The South African plant is the first to be established outside Germany. 1986: Unique to South Africa, the BMW 333i, with its sport suspension, low profile tyres, aerodynamic styling and 6-cylinder 3.2 litre engine, quickly becomes known as South Africa's most agile streetwise performer. 1994: BMW South Africa becomes the only local motor manufacturer to achieve ISO 9002 certification. The certification proves that BMW South Africa is capable of producing cars and components within a quality management system that meets the highest international standards. 1996: BMW AG invests R1 billion on the upgrade of the Rosslyn production facility, bringing the plant in line with motor manufactoring facilities worldwide and earning it the title of "BMW World Plant, Rosslyn". 1998: BMW celebrates 25 years in South Africa. 1998: Then Deputy President, Thabo Mbeki, visited the upgraded World Plant Rosslyn. 1998: BMW South Africa launches the new 3 Series built at the Rosslyn Plant. 1999: BMW South Africa's Vehicle Distribution Centre - the central holding and distribution area for all BMW vehicles - opens in May. 1999: BMW South Africa becomes the first motor manufacturer in the world to achieve certification for its integrated (Quality, Health and Safety and Environmental) management system. (ISO 9001, ISO 14001 and BS 8800). 1999: BMW South Africa...
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...Bayerische Motoren Werke (BMW) is a multi-national holding company and automaker company headquartered in Munich, Germany. BMW is a global leader in the premium automotive sector. BMW also markets MINI and Rolls Royce. Rolls Royce is a wholly-owned subsidiary. From its 2015 Annual Report, the BMW Group is comprised of three business segments: Automotive, which includes BMW, Mini, and Rolls Royce as their three brands, Motorcycles segment, and Financial Services segment. BMW’s financial services segment includes car leasing, fleet business, retail customer and dealer financing, customer deposit business, and insurance activities. In 2015, BMW Group sold 2,247,485 units of automobiles and 136,963 units in their motorcycles segment. Revenues totaled...
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...nizational Word Count [1,458] BMW-Organisational Structure History Bayerische Motoren Werke AG, commonly known as BMW or BMW AG, is a German automobile, motorcycle and engine manufacturing company founded in 1916. BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to cease aircraft-engine production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted followed by automobiles in 1928–29. BMW is now headquartered in Munich, Bavaria, Germany. Span of Control Span of control is a term used in business management and it refers to the number of subordinates a supervisor has. The span is influenced by many different factors such as nature of nature of work, type of management, types of organization and type of workers. Just like any other organization BMW has its own span of control. At 31 December 2011, the BMW Group had a workforce of approximately 100,000 employees (BMW Group. (2012). It is very likely that BMW Group employs many managers as it is suggested that a manager should only be supervising from 1-10 subordinates at the same time. This is due to the fact that technology helps managers a lot when trying to present their ideas to the workers. Hierarchy Hierarchy structure refers to the pyramid shaped chain of command...
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...BMW AG originated with three other manufacturing companies, Rapp Motorenwerke and Bayerische Flugzeugwerke (BFw) in Bavaria, and Fahrzeugfabrik Eisenach in Thuringia. Aircraft engine manufacturer Rapp Motorenwerke became Bayerische Motorenwerke in 1916. The end of the war hit BFw hard, since military demand for aircraft collapsed. The company’s management was forced to find new products in order to survive. Because aircraft were largely built from wood at that time, BFw was equipped with the very latest joinery plant and held enough stock of materials to build about 200 aircraft, which was worth 4.7 million reichsmarks. The company used the machinery and the materials in the production of furniture and fitted kitchens. In addition, from 1921 onwards, The company also built a motorized bicycle called the Flink and a motorcycle called the Helios. The Helios used a BMW M2B15 engine. In the autumn of 1921 the Austrian financier Camillo Castiglioni first announced his interest in purchasing BFw. While most of the shareholders accepted his offer, MAN AG initially held on to its shareholding in BFw. By the spring of 1922, Castiglioni bought MAN's shares in BFw, so that the company belonged exclusively to Castiglioni. In May of the same year, when Castiglioni acquired BMW’s engine business from Knorr-Bremse, he merged the aircraft company BFw into the engine builder BMW. The name Bayerische Flugzeugwerke AG was revived in 1926 when Udet-Flugzeugbau GmbH was changed into a joint-stock...
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...innovation across the retail industry. From pioneering the concept of designer partnerships to consistently being best in class in store design, Target remains focused on not only meeting, but exceeding, its guests' needs. To remain relevant to its guests over time, Target continually reinvents its stores, including layout, presentation and merchandise assortment, to create an engaging shopping experience. BMW Summary BMW can trace its roots back to Karl Rapp and Gustav Otto. In 1916, the Flugmaschinenfabrik Gustav Otto Company had merged into Bayerische Flugzeug-Werke AG (BFW) at government behest. Elsewhere, in 1917, the Rapp Motorenwerke Company morphed into Bayerische Motoren Werke GmbH, which was duly converted into an AG (public limited company) in 1918. BMW AG subsequently transferred its engine construction operations – including the company and brand names – to BFW in 1922. The date of BFW’s founding, 7 March 1916, has therefore gone down in history as the birth-date of Bayerische Motoren Werke AG. BMW embarks on a new era of electric mobility. With the BMW i3, the new BMW i brand presented the...
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...Motor Works (BMW) | Rasheeda PaigeDeVry UniversityProfessor Michael Mcgivern Introduction to International Business03/27/2016 | | Table of contents Name, history, and ownership pg. 2 Country or countries where the business operates pg. 2 Stock exchange identifier and listing pg. 3 Description of the products and services (4 P’s) pg. 3 & 4 SWOT analysis pg. 5 & 6 BMW Competitors pg. 6 Demographics of consumer’s pg. 7 Organization structure pg. 7 & 8 Entrance and exit strategies pg. 8 Government structure and economic indicators pg. 8&9 BMW stands for Bayerische Motoren Werke, an automobile manufacturing company that is based in the country of Germany. BMW is a publicly traded and multinational company in the automotive industry. BMW headquartered is located in Munich, Germany and is well known as one of the best luxury brands in the automotive market. BMW logo is a blue-and-white circle in alternating quarters is represented of an airplane propeller on a blue sky, which is the color of the Bavaria flag. Karl Friedrich Rapp is a German engineer who founded Rapp Motorenwerke in 1913, which was an airplane manufacturing company. After realizing the company was struggling, Rapp reconstructed the company as the Bayerische Motoren Werke GmbH, which was the first use of BMW as a corporate logo. Gustav Otto was the second aircraft engine maker who merged with BMW, a founder of Bayerische Flugzeugwerke AG (BFW) in 1916...
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... | |Company Name: |Bayerische Motoren Werke AG (BMW) | |Mission Statement. | |The BMW group is a world leader in providing premium products and services to allow individual mobility. | |Summarize the company’s mission (what does it mean?). | |The mission of BMW is to provide individuals with the option of transportation. | |History of company up to present day. | |BMW was founded in 1916. | |In 1922 the company relocated to Munich, where they are still located today. | |In 1941, BMW supplied the German air force with aircraft engines....
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...| BMW Strategic Analysis | | | | Management 452.301 | Table of Contents Executive Summary 2 Introduction of Company and Current Situation 3 External Environment Analysis 4 General Environment 4 Industry Environment 6 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 10 Financial Analysis 12 Conclusion of Internal Analysis 15 Strategy 16 Identification of Key Problems 20 Recommendations and Implementations 21 References 24 | Executive Summary BMW is known for its manufacturing of premium-brand cars and off-road vehicles under the BMW, MINI, and Rolls-Royce labels, as well as motorcycles under the BMW and Husqvarna brands. Many manufactures such as BMW, Mercedes, and Audi produce cars in foreign markets. The three car makers that are BMW’s main competitors in the luxury auto industry are Lexus, Mercedes-Benz, and Audi. The companies are worried most about the exchange rate fluctuations that threaten their profits if the euro starts appreciating against other currencies. With that, BMW is trying to come out with new technology that keeps them ahead of the competition. To do so, they released what is called Efficient Dynamics to ensure a noticeable reduction of consumption and emissions while simultaneously increasing the performance and driving pleasure of the vehicle (BMW EfficientDynamics). The company has also discovered such items as the BMW ActiveHybrid...
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...BMW Marketing strategy!! Well how many of you know the abbreviation of BMW??? To be frank, when I am writing this for you, I have got to know that and I swear I don’t actually know it before writing this article. My rigorous researches have told me that, BMW is Bayerische Motoren Werke AG and for the comfort of people like me, it is read in English with the name, Bavarian Motor Works. Yes, here we are to analyze the marketing strategies followed by this beautiful car selling company but before that lets hunt what is its past.. Ready people??? A German automobile, motorcycle and engine manufacturing company, BMW!! It was founded in 1916 by Franz Joseph Popp in Germany restructuring a Rapp Motorenwerke aircraft manufacturing firm. Owing to the terms of Versailles Armistice Treaty after the end of World War I in 1918, BMW has had to stop producing the aircraft engine and so it sliced its world of manufacturing into the motorcycles and automobiles. The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixie, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England. Since then there was no stopping for the productions and giving a feast to the eyes of the world for their newer and newest beautiful productions as well. How was this company so successful?? This is the most common question one would have when he/she get to listen about the company because...
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