...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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...We recommend 3-series touring wagon development project as a target of Digital Car Project. The ultimate objective of the project is to halve lead time of product development in BMW from 60 months to 30 month. As a result, the firm can incorporate reflect fickle customers’ tastes and the latest technology to their product development quickly and it enable them to fit the market needs strategically. If this change is successful, the experience and knowledge can be transferred to 7-series and all other new projects. It will make BMW in front of the competition. And it will save huge money and time of the firm. 1-2. Digital technology, such as CAD, is considerably effective to reduce product development lead time even in other competitors. Considering digital technology as hardware, its directions and capability of staff operating the technology, however, might be critical issue on product development using digital technology. Moreover we should not ignore the fact that the capability and experience would be brought as a result of learning and accumulated experience and knowledge. 1-3. 3-series touring wagon will inherit platform and basic design concept from 3-series sedan. Fortunately the current 3-series sedan has been developed through computer design process. Therefore, it can be thought that there is some accumulated experience of product development using computer design. Additionally, the staff had realized its untapped potential as strategic product development tool....
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...1. Recommendation 1-1. We recommend 3-series touring wagon development project as a target of Digital Car Project. The ultimate objective of the project is to halve lead time of product development in BMW from 60 months to 30 month. As a result, the firm can incorporate reflect fickle customers’ tastes and the latest technology to their product development quickly and it enable them to fit the market needs strategically. If this change is successful, the experience and knowledge can be transferred to 7-series and all other new projects. It will make BMW in front of the competition. And it will save huge money and time of the firm. 1-2. Digital technology, such as CAD, is considerably effective to reduce product development lead time even in other competitors. Considering digital technology as hardware, its directions and capability of staff operating the technology, however, might be critical issue on product development using digital technology. Moreover we should not ignore the fact that the capability and experience would be brought as a result of learning and accumulated experience and knowledge. 1-3. 3-series touring wagon will inherit platform and basic design concept from 3-series sedan. Fortunately the current 3-series sedan has been developed through computer design process. Therefore, it can be thought that there is some accumulated experience of product development using computer design. Additionally, the staff had realized its untapped potential as strategic product...
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...CASE STUDY OF BMWi INTRODUCTION: BMW start their work as a business entity in 1917. They entered in automobiles in 1928-29. They first significant aircraft engine then they shift their business to motorcycle and then automobile industry. They unveiled two new models, they launch their electric motoring division BMWi. This i3 is an electric small car and on the other hand i8 is a very powerful sports car. They combine the electric motor with the three cylinder combustion engine. For the reduction of weight the car is constructed with the light weight aluminum, in their structure and body from the strong but light carbon fiber. They also have small batteries. BMW are very much cautious about predicting that there will be a demand of electric car in the future. TASK 1 (1a,1b): Reason behind this decision: The reason behind this decision of BMW to make BMWi is that, they have taken preventive measures to reduce the impact of automobiles on the environment. They want to design less polluting cars by making their existing models into the more efficient along with the environmental friendly fuels as vehicles if future. The possibilities of which are as: electric power, hybrid power (combustion engine and electric motors) hydrogen engine. Now the BMWi has all this, it is relatively simple in production process. It does not involve any press shop, welding shop and the paint work is also in a very small quantity. Mr. Robertson insists that it means, “it is much easier to ramp up production...
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...Introduction to Project Management Systems _________________________________ Week 9 Case Study Report Recommendations for BMW _________________________________________ Contents 1. Recommendations 2. Rationale 3. Implementation 4. Alternatives 5. Metrics Report by: Lee Matthews Venugopol Puddipeddi Kai Zhou Miyake Yasuhiro Fan Wang 1. Recommendations 1.1 We recommend the 3-series Touring station wagon is used as the pilot for the Digital Car Project. Given that there is less pressure in terms of work load and less financial risk in the 3-series project, a more experimental attitude can be adopted by the project stakeholders. If the project is successful, the new processes can be transferred to the 7-series and all other new projects. 1.2 The adoption of a philosophy of ‘kaizen’ i.e. incremental ‘continuous improvement’ during the project. The key issue in this case is the development of capabilities such as inter-group collaboration on design and such capabilities are developed incrementally, not overnight, and there is no guarantee of success. 1.3 Benchmark other companies that have attempted to develop similar capabilities to those desired. This will...
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...The competitive challenges in the automotive industry and how was BMW affected by it? The case was written by PROF Stefen Thomke and research associate Ashoke Nimgade during the late 1990’s. Hence we shall concentrate on the changes that occurred in the automotive industry during this period, the kind of competitive challenges it created and the effect it had on BMW. Firstly this decade saw Globalization, regionalization and market convergence in the automotive industry– Due to the effects of liberalization, national markets became increasingly globalized. Though this gave companies a chance to expand to new markets, but it also increased the threat of new entrants or increased competition in traditional markets. Hence all car manufacturers were experiencing the boons and banes of the biggest buyer market in history. Next we see the emergence of increasingly diversified consumer aggregate patterns of behaviour – Consumers were no longer accepting standardized products, but wanted products that satisfied their individual requirements and tastes. Target groups thus had to be downsized by companies to attract customers by the products offered. However, because of the increased global competition with a stronger focus on price and not on brand loyalty, consumers generally did not reward companies only for their more individualized products irrespective of price. In other words the customers became price sensitive, were not ready to pay a premium for more innovative products...
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...1. BMW differentiates with Mini BMW Group is a leading global provider of premium products and services for individual mobility. Revenues are generated through three business divisions: automobiles, financial services and motorcycles. BMW focuses on the premium segments of the global passenger car and motorcycle market. The automobiles division develops, manufactures, assembles and sells passenger cars and off-road vehicles under the brands BMW, Mini and Rolls-Royce. BMW acquired the Mini brand in 2001. Since this acquisition sales grew from 25,000 units in 2001 to over 232,000 units in 2008. The Mini, which is sold in more than 70 countries, is even a hit in countries that have strong local auto industries. The top five markets are Britain, with around 45,000 cars sold in 2008; the United States with 41,000; Germany 29,000; Italy 22 000; and Japan 13, 000. BMW has consistently positioned its Mini line as more than just a car. Instead it is marketed as a lifestyle brand, with a range of driver accessories and other miscellaneous branded items such as key fobs and clothing lines giving the brand more meaning to customers than being simply a car. In addition, in Mini has its own online social network, or "urban initiative", called Mini Space. A host of other marketing initiatives, both on and offline, are all designed to play on the car's perky appeal. Mini buyers have a broad and in-depth choice for their car's specification, with 372 interior configurations, including...
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...IBM Business Consulting Services Challenges for the automotive industry in an on demand environment Seven areas of strategic action Executive brief ibm.com/bcs Contents 1 1 1 3 4 7 Introduction The automotive industry is facing new and pressing challenges. Globalisation, individualisation, digitalisation and increasing competition are changing the face of the industry as we know it. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry will also contribute to the changes ahead. Size is no longer a guarantee of success. Only those companies that find new ways to create value will prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and highlight challenges facing the industry. Based on this perspective, we will discuss strategic levers enabling OEMs to transform to on demand enterprises. Introduction Methodology The evolving automotive landscape The on demand challenge Brand management Customer relationship management 10 Core competency management 13 Software management 15 Quality management 17 Product development management 20 Expansion management 22 Strategic steps toward the on demand business 25 Conclusion 25 About the authors 26 About IBM Business Consulting Services 26 References Methodology The information, data and opinions presented in this paper are based on a series of interviews that IBM Business Consulting Services held with...
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...Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . INFORMS is collaborating with JSTOR to digitize, preserve and extend access to Interfaces. http://www.jstor.org This content downloaded from 195.229.156.147 on Mon, 23 Dec 2013 16:01:50 PM All use subject to JSTOR Terms and Conditions Interfaces Vol. 36, No. infjffiHJL 2006, pp. 194-208 DOI i0.l287/inte.l050.0187 ISSN 0092-21021 EissN 1526-551X1061360310194 @ 2006 INFORMS 3, May-June Strategic Planning Production Bernhard and Logistics, Germany, of BMW's Network Fleischmann University of Augsburg, Global of Production Department D-86135 Augsburg, Universit?tsstra?e 16, bernhard.fleischmann@wiwi.uni-augsburg.de BMW AG, D-80788 Sonja Ferber, Peter Henrich M?nchen, Germany (sonja.ferber@bmw.de, peter.henrich@bmw.de) We sites cars developed over a to the a strategic-planning planning markets. model horizon. It determines 12-year assembly, improved Key words: global and paint shop, the transparency to BMW's allocation of various optimize as well It includes...
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...BMW: Redefining Premium Brand Identity BMW: Redefining Premium Brand Identity MGMT 8700 Strategic Management MBA Trimester 2, 2011 |Patrick Gallagher |20805458 | |Sion Karta |20182345 | |Mark Lim |10468237 | |Wei Zhe Poh |20605321 | |Jackie Tran |20597931 | |Janifer Yap |20841177 | BMW: Redefining Premium Brand Identity |Table of Contents | | | List of Tables and |4 | |Figures............................................................................................................... | | | BMW Case Study |5 | |........................................................................................................................... | | | Introduction ...
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...Luxury Car Retailing & Trends Executive Summary A luxury car is indeed a status symbol that is a reflection of one’s personality and power in society. There is a steady increase in luxury car customers globally as there is a rise in income, wealth and urbanization. It is more of a dream come true of the rising middle class to purchase and own a luxury car. After the global financial crisis (Reyneke et al., 2012) hit the luxury auto market, it was interesting to find that the younger generation maintained their spending habits and joined the baby boomers who were already major consumers of luxury cars. However, the concept of cars being a boy toy has certainly evolved with the emergence of female consumers . These women are driven by their need to showcase their power and independence. The finest example are the Chinese and Middle Eastern women who have come out of their cocoons and protested against a male dominated culture and purchasing luxury cars were a part of that change. As the younger generation have become more environmentally conscious, luxury car retailers have adopted the ‘go green’ concept by bringing out diesel run and electric cars. Another trend that is picking up is the customization of cars. Luxury car retailers have chosen to customize their car for their customers providing them exclusivity and satisfaction as the customers get what they exactly want. The sales for luxury cars from 2012 to 2014 have been forecasted to increase steadily but there are...
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...PART II: – THE CHANGE ANALYSIS – IMAGES OF CHANGE This part of the project is presenting to readers an analysis of the images of change found in the two companies – Royal Philips Electrical and BMW. A review of the said companies is made and comparison based on their change stories. The image of change possessed by any manager is determined by how best he/she is able to plan, direct and control the organization's resources (human, finances, materials/equipment and time) in the best possible way. Rodger Dean Duncan (2013), maintained that managers of change should be gardeners as he presented it in a sub-heading “ Be a Gardener, Go for Growth; A first tendency of many business people is to fix things. But successful leaders invest energy in growing rather than fixing. They know the organization is a living organism with many interrelated elements capable of extinction or growth. Successful leaders are gardeners, they create a nurturing environment and they cultivate with care.'' The above quotation has given us a clear picture of how managers of change should look like and what they need to do in order to keep the organizations in continuous growth. Therefore, it is necessary to present a critical analysis of change images in organizations which may apply to any situation of management and not limited to any specific organization. 2.1 Review of the changes in each of the case study organizations: 2.1.1 Royal Philips Electronics Company: ...
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...Business Information Analysis | Table of Contents Electronic Cover Sheet………………………………………………………………………1-2 Introduction………...................................................................................................................4 1. Key business issues and challenges……………...................................................................5 1.1 Globalisation, regionalisation and market convergence...........................….......................5 1.2 Increasingly diversified consumer aggregate patterns of behaviour...................................5 1.3 Accelerated modification and diversification of the product portfolio………………..….6 1.4 Pervasion of automobiles with digital technology..............................................................6 1.5 Increased pressure for innovation and flexibility in development and manufacturing…...6 1.6 Strategic levers……………………….................................................................................7 1.6.1 Brand management...........................................................................................................7 1.6.2 Customer relationship management……………..............................................................7 1.6.3 Core competency management…………………….........................................................7 1.6.4 Software management.......................................................................................................7 1.6.5 Quality management.....
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...1. What happened to Pirelli in the recent years? PEST analysis (only Technology and Economic Factor Declining market share Data? Why Pirelli left behind its main competitors? 1. Their main operation: only limited to passenger car, truck, and motor tires (general product), lack of specialized product or we can say that they are underutilized their advanced and innovative technology Main competitors? Michelin they have more diversified market segment: including passenger cars, vans, trucks, farm equipment, earthmovers and handling equipment, bicycles, motorcycles and aircraft. Goodyear Goodyear also applies the same approach with Michelin. Their range of product includes the following product: Automobiles, Trucks, Buses, Aircraft, Motorcycles, Farm Implements, Earthmoving and Mining Equipment, Industrial Equipment, and Various other applications Randy search for fuckin picture like pictures above Bridgestone Bridgestone also has more variety product compared to Pirelli. The production including passenger car, commercial tire, aircraft, offroad tires, motorcycles. Continental Similar to Pirelli in market segment passenger tire, Light truck & SUV, Commercial Tires (Bus & Truck Tires) 3. Economic Slowdown in Emerging Markets which are the main contributors for Pirelli Revenue Economic Volatility (Russia) (4% contribution) Irrespective of the wider politico-economic environment, the Russian tire market is known for being something of a roller-coaster...
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...Recanati Business School Tel Aviv University Master in Business Administration Autumn Semester – Module 1 High-Technology Acquisitions Lecturer: Students: Dr. Nir Brueller Hans-Peter Huber Daniel Ammar Ziv Livne Guillaume Lesouhaitier Date: 11 December 2013 Group Assignment December 2013 High-Technology Acquisitions DAIMLER | TESLA MOTORS -i- Contents Page 1 2 3 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5 5.1 5.2 6 6.1 6.2 6.3 7 8 8.1 8.2 INTRODUCTION ............................................................................................................. 1 ACQUIRER OVERVIEW | DAIMLER ............................................................................. 1 TARGET OVERVIEW | TESLA MOTORS ..................................................................... 3 STRATEGIC APPROACH AND SYNERGIES EVALUATION ...................................... 5 THE ELECTRIC VEHICLE MARKET ................................................................................... 5 DAIMLER'S MOTIVATION TO ENTER THE MARKET............................................................. 6 DAIMLER'S MOTIVATION TO ACQUIRE TESLA ................................................................... 6 DAIMLER ADVANTAGE TO ACQUIRE TESLA OVER COMPETITORS ........................................ 7 MOVE FROM PARTNERSHIP WITH TESLA TO ACQUISITION ................................................ 7 TESLA'S MOTIVATION .........................................................................
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