...| BMW Strategic Analysis | | | Amanda King, Zachary Conner, Chris Miller, Sulaiman Alsayyari | 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 7 Competitor Environment 7 Conclusion of External Environment Analysis 8 Internal Analysis 10 VRIN Analysis 11 Financial Analysis 12 Conclusion of Internal Analysis 16 Strategy 17 Identification of Key Problems 20 Recommendations and Implementations 21 References 25 | 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...
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...Running Head: Business Term Paper on BMW Name Course: Business Tutor: Date: 02/13/2012 BMW is one of the largest car and motorcycle producing company based in Germany and exporting to markets all over the world. To maintain high productivity and a large market share, the department concerned with business at BMW must create policies whose objective is to maintain good and profitable business. One of the business policies of BMW is customization of all parts of the cars. This has seen to the development of efficient processes and technology to allow manufacture of cars to the ordered requirements and on time. BMW group knows that it can take quite a while for business management to prove its success. They also know that it requires a lot of effort, energy and resources to support the operations departments in optimization of the production and marketing processes (Scheer et al., 2006). These issues must be taken into account by the business experts in the company when formulating policies. This paper focuses on the business policies and strategies employed by the BMW Company in making sure that they retain their hold on the market through production of quality goods. Mass customization is one of the business strategies employed by BMW in pursuit of profitability. This has allowed the company to develop high technology and efficiency in car production. The company has mastered logistic planning and management from production of cars...
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...The BMW Group - Bayerische Motoren Werke AG (English: Bavarian Motor Works) was found in 1916 and today with its brands BMW, Mini, Rolls-Royce and BMW motorcycles is one of the largest car manufacturers in the World. As part of being leader in luxury car manufacturing, BMW group provides services such as Finance services for leasing its cars, BMW performance Insurance, BMW Teleservices, Apps, car servicing, airplane and train design. In this project we will be focusing just on production aspect of the company. BMW group long time management strategy includes growing number of brand models from 24 in 2005, to 46 in 2015 and 60 models by 2020. It is known as luxury brand, all range of products has innovative technologies build in. Company has Research Innovation Centre, called FIZ in Germany, where more than 9000 scientists works to develop new technologies and adopt it to new vehicles. As for example the new “The BMW i3 is 100% emission-free and characterized by the use of high-quality and sustainable materials. In addition a BMW i3 car can be recycled for 95%.” (http://www.between-us.com/1048/sustainable-innovation-business-lessons.htm). BMW group supports Kyoto targets and works constantly to reduce its engines fuel consumption by “highly efficient engine generations, active aerodynamics, the use of innovative lightweight materials and intelligent energy management within the vehicle.” (http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/forschung_entwicklung/innovation_netzwerke/effiziente_dynamik/effiziente_dynamik...
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...the pricing and distribution of their products. However, there are not that many small parts manufacturers in this market and therefore, the majority of suppliers to major automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and distribution. Power of Buyers - Medium While buyers are individuals and are not grouped together, they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW. Competitive Rivalry - Extremely High Any competitor in this market is generally a global company with billions of dollars in assets and can compete on any level that BMW can. Furthermore, there is intense competition on all fronts in the car market in general, not to mention the luxury car market. Major manufacturers such as Toyota and Honda are pinching BMW with their luxury segments (Lexus & Acura) in terms of quality product and reliability.ces...
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...Running head: BMW SWOT Analysis BMW Motor Corporation SWOT Analysis Name Affiliation Date Abstract A SWOT Analysis is used to develop strategies that capitalize on an organization’s strengths, minimize the effects of any weaknesses, exploit available opportunities and defend against threats. In this report, I discuss SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis of the BMW Motor Corporation. BMW Motor Corporation SWOT Analysis BMW Motor Corporation is world-renowned luxury car manufacturer that has obtained a status of superb automotive engineering. BMW Motor Corporation has achieved its status through successful business planning, strategies, and vision by offering new and innovative features to their products. As a car manufacturer, there are numerous external influences that can positively or adversely affect the outcomes of BMW Motor Corporation. Some factors include but are not limited to the state of the current economy, the current and future supply of fuel resources, the supply and demand of automotive parts- and the most demanding of all- the needs and wants of the consumer. If we recall, the United States was hit by a recession that affected many industries including the automotive industry. In fact, the automotive industry appeared to be one of the hardest hit areas during times of recession. In response, The United States implemented a program called the car allowance rebate...
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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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...March 7, 1916 and even though this company, which specialized in aircraft engines, was acquired by BMW in 1922, the BMW Group considers BFW’s establishment as a point of its own foundation. World War I really helped the small company grow so that in 1918, it was converted into a stock corporation with share capital of 12 million Reichsmarks. Franz Josef Popp, the General Manager of the former limited liability company, was appointed General Director. After the war, the company turned its attention to rail vehicle brakes and built-in engines because of the production ban on aircraft engines. In 1922, the company moved its factory and established its name as BMW AG. During World War II, the company sustained serious damage but it was granted permission to repair US army vehicles as well as to manufacture motorcycles. The motorcycle business started growing slowly and by 1950, about 18% of bikes were being exported. In 1970, the company appointed Eberhard von Kuenheim as its new chairman of the Board of Directors and he turned the company into an international, highly respected brand. In 1972, the BMW established a motor sport division in order to get back into that area of business and also built its famous office building, which symbolized prosperity and technical perfection. Following years were prosperous for the company and in 1992, the BMW expanded into the USA. In the 90’s, BMW also acquired Rover Group and Rolls-Royce brand. In 2000, Rover was sold and the company has established...
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...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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...This case is based in the 90’s era when BMW decided to reinvigorate its sales and brand, make the BMW brand global and penetrate into the US market. The key challenges that lie in front of James McDowell, VP Marketing at BMW (NA) to launch a Phase II program for BMW Z3 Roadster are: a. Design a marketing campaign to create a sustained product excitement, continuing what was generated from Z3 Phase I program, until product is available at dealer stores b. Attract consumers based only the demand that can be met with production c. Choosing between Non-Traditional and Traditional media 1. Was the Z3 Phase I launch successful? In order to understand whether Z3 Phase 1 launch was successful, we need to look at different pieces TG, Objective, Creative Strategy, tactics and end-result first and then combine them to view the holistic success. Target Group and its need: NA consumer who is Luxury/Performance driven, has lover of life mindset and propensity to seek unique expression of individuality. Further he/she is looking for ultimate driving machine that provides excitement similar to what can be derived from driving a motorbike. Includes everyone from aspirational GenX to nostalgic baby boomers. For this target group, the communication objective of the Z3 Phase 1 Launch were as follows: a. Get people talking and excited about BMW Z3 in the context of American culture b. Stimulate the dealer network c. Build an order bank to enable the Spartanburg plant to build specification...
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...Works (BMW): An Analysis on its Success as a Multinational Enterprise Introduction BMW Group manufactures products under three brands: BMW, MINI and Rolls-Royce Motor Cars. BMW is a Multinational Enterprise that has been manufacturing and marketing luxury products for about a century. The company is currently the largest premium car maker in the world, followed closely by Mercedes-Benz and Audi. Their headquarters are located in Munich, Germany, and the building itself is also a well-designed masterpiece allowing visitors a glimpse inside the techniques utilized to keep BMW a true competitor on the global scale. This Multinational Enterprise is made up of twenty three production and assembly plants in thirteen countries, forty one sales subsidiaries all over the world, and ten locations in the Research & Development network in five countries. According to the company's current annual filing, it had FYE 12/31/2011 revenue of $90.9 billion and employs one hundred thousand and three hundred and six people (Bayerische). These values ensure its positions as one of the ten largest cars manufactures in the world. Bavarian Motor Works has been able to sustain its position as a successful Multinational Enterprise by adapting to the changing global marketplace through adopting environmentally friendly policies, smarter spending, relevant marketing and partnering with other automobile companies to continuously strengthen its brand and technology. History The history of the BMW dates...
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...Organisations, Analysis and Policy REPORT To: Senior Management From: Group Accountant Date: 2nd May 2005 Subject: BMW Organisational Analysis andHuman Resources Policies This report will provide a detailed analysis of BMW'scurrent corporate appraisal analysis. This will help to identify the company'scurrent strength, weaknesses, opportunities and threats. This will help thecompanies decision makers understand where the organisation is now. The reportwill also critically evaluate BMW's human resources policy as a key area of theorganisation. We will highlight how BMW has strategically responded to thedrivers for change in terms of its structure, conduct and performance. Finally,offer recommendations for the future development and improvements in humanresource management, and how those will impact on its organisational structure,conduct and performance. Struggling with your business essay(s)? Did you know that we can help you with your SWOT analysis essay and any other business essays? We can help you! Place an order with us and you'll get: * An exact, 100% original answer to your essay question * From a graduate writer, qualified in your subject area * Delivered confidentially by email, in 3 hours - 10 days (you choose) Stop struggling and get the help you need from the UK’s favourite student support company, right now. Learn more about our custom essay writing service, or place your order using the box below: Company Background The BMW Group is the only...
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...To: Gdansk (GDN) V4D22F NO PRIORITY M1SCHOTT/MAREK V4D22F SVGGDNW6 1748 362Y000 0088 100 BOARDING PASS MR Marek Schott (ADT) ONLINE CHECKIN Flight number Flight date SMALL CABIN BAG Gate closes 088 Departure time W6 1748 From SVG 28 DEC 2014 (28/12/2014) 21:00 To 21:30 Stavanger GDN Gdansk ONLY 1 PIECE OF CABIN BAGGAGE PER PASSENGER Small Cabin Bag Large Cabin Bag Boarding card: You must print this boarding pass and take it with you to the airport. If you do not have a boarding pass, you will be charged the applicable airport checkin fee. Documents: Each passenger must present their valid travel documents. Driving licenses are not accepted. Baggage dropoff: Passengers travelling with checked baggage must present themselves at the baggage drop desk no later than 40 minutes before the scheduled departure time of the flight. Prebooked assistance: Passengers with assistance must arrive at the airport 2 hours before departure. OR Free 42x32x25cm or smaller Pay a fee 56x45x25cm or smaller You must be able to place your bag in the overhead bin compartment unassisted. Your cabin bag will be checked at the gate. If you arrive at the gate with more than one item or it exceeds the above dimensions/weight, we reserve the right to collect the large cabin baggage fee or the checkedin baggage fee (and carry your baggage in the hold) or to cancel your reservation and to deny your boarding. Please note that if you purchase baggage related service at the airport, you may be required to pay an additional...
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...Economy Anonym PESTEL-Analysis of BMW Seminar paper Bachelor Business Administration Seminar paper Strategic Management Topic: PESTEL-Analysis for BMW Course of studies: Business Administration Table of Content Table of Content ............................................................................................ I Table of Figures............................................................................................ II 1. Introduction ........................................................................................ 1 2. Automotive industry in the 21st century ........................................... 1 3. PESTEL Analysis for BMW ................................................................ 2 3.1 Political ................................................................................................. 3 3.2 Economical........................................................................................... 3 3.3 Social ................................................................................................... 4 3.4 Technological ....................................................................................... 5 3.5 Environmental ...................................................................................... 6 3.6 Legal .................................................................................................... 7 4. Conclusion...
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...Financial Analysis This section of the paper will discuss the financial components of BMW’s business operations. To do this we will discuss the several different financial ratios concerning liquidity, leverage, activity, and profitability. We will begin by giving a brief overview of what the ratio tells an investor or creditor about the company. Next, we will examine how BMW’s performance has progressed over the past five years compared to itself. Finally, we will look at BMW’s ratios against their direct competitors. Considering the fact that BMW creates luxury automobiles and does not merely make basic vehicles, we felt that it would not be fair to compare them to simple automotive industry averages. Therefore, the direct competitors that we will be comparing BMW to will be Toyota (more specifically their Lexus line), Mercedes, and Audi because of their direct relation to making luxury automobiles in the high end of the automotive market. Liquidity Liquidity ratios simply show how much of current resources a company has to be able to cover currently maturing liabilities or debts (Hill). For example, does a company have enough cash on hand to pay the current payments on their equipment? These ratios then, inherently look at items on the balance sheet that are classified as current which typically means that they are maturing in less than one year. The first ratio that we use to evaluate BMW’s liquidity is the current ratio. This ratio is calculated by dividing current...
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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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