...BMW Company study Abstract: BMW is one of the leading luxury car makers in the market today. This study provides an insight into the company’s history and background. Also it contains an examination of BMW’s quality system, six sigma’s application and an observation of the quality control process throughout the different stages of the production phase. In addition, detailed information is presented on the number of employees and the training they receive before and during their work time in BMW. This project also reveals BMW’s customers relation policy: sharing customer’s feedback, meetings with customers and the adopted strategies in order to assure customers retention. It reveals the company’s place in the automobile market and its position among its competitors. Finally, at the end of the paper, a brief summary is found. It discusses the company’s strengths and weaknesses along with some proposals on how to deal with them. Purpose: The purpose of this thesis is to analyze BMW’s quality systems and quality control procedures. Also it aims at identifying BMW’s place in the market today and its relationship with its customers, employees and suppliers. Methodology: Primary and secondary Data used in this study had been collected from different sources: essays, books, articles and BMW’s annual reports. Results and conclusion: BMW is a well known and highly valued brand and has a high diversity in the products portfolio. It possesses high internal competence and a...
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...Jakub Vozarik Company profile Short History Bayerische Flugzeug Werke was founded on 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...
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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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...| 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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...the ever increasing competition in today’s business environment, strategy plays a very critical role in ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in...
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...developing economies aware of the value of their prospective growth auction off their market share to the highest bidders, like BMW, this investors hoping to increase manufacturing capacities so as to build their intended market bid away their economic returns and in so doing multiply the overcapacity problem on a large scale (Griffin & Pustay 2009). Risks involved in venturing into new markets weigh in and most companies aware of the consequences of losing a market place bid, this either plays out in the company over bidding or throwing in the towel and losing the market. Differentiation Successful ECO-Specialties must emphasize their differentiation. Differentiation means that the marketing mix is distinct from and better than what is available from the competitor; product differentiation is the core to a healthy market share. An abundance of option for the vehicle buyers exists with vehicle models with almost similar functional characteristics, BMW is now forced to manufacture unique products for a particular region at a point in time, and this is to cope with tastes and fickle needs of consumers. This differentiation wanes on their budget heavily since financial consequences of missing a market are disastrous (Prahalad & Hamel 1990). Innovation Commitment to innovation and product variety has brought on the greatest challenge in the companies history, the intricacy and complexity of the functions offered in BMW’s premium luxurious cars has burgeoned making...
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...Strengths BMW is a company with high status branding in the world . For this few year, BMW was have a lot of advertised on their car to the consumers by the way from media to greatly to showing the car that their built for all the car classes. Beside that , BMW group have a high budget to provide for their labour , services or all of the Research And Development . That’s mean that BMW was a company who has enough of fund to invest for the whole company . Moreover , they also have a good skilled of labour to make their products to be more better , if they have lack of skilled of the labour to produce poor products for the company , they can loose the customers . The more they invest, more profit they get it . Weaknesses Everyday BMW is work hard to produce and develop for new technology to the new classes of the car to satisfy for the customers . In long time , who know that if these develop new technology car are going to be a big hit or might be wasting their time and invest for the model that will not to be worth for the future . So , the development and produce cars is the important part whether or not the car will become famous on market . Another weakness of BMW factory is to getting customers to buy the BMW cars at others country . The new technology ‘Hybrid’ , this Hybrid technology will give vehicles save more fuel , but this technology will be more expensive that getting harder to find the customers to buy their product such a high price . Beside that , the...
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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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...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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...the graph may represent the styling attractiveness of the model along x-axis and technical superiority along y-axis. Then each of the model to be plotted on this graph according to the assessment of customer perception in respect of these two characteristics. Positioning map can help a company classify existing market products in different position categories. This insight can be used by the company in several ways. For example, it shows identifies the product which are the closest competitors of the company's product and the strength and weaknesses of the company's product in respect of its competing products. It can also help company to identify market segments with specific product requirements where new products may be launched by the company. The image that a brand represents is very important in the luxury division of the motoring industry because consumers are not just buying a luxury car, but the image that a particular car holds. The different brands in the luxury division of the motoring industry are likely to hold different positions within the minds of consumers. I will analyze specifically 5 brands in the luxury vehicle market. These brands are: Volvo, Lexus, Mercedes-Benz, BMW and Audi. The 4 most important attributes in selecting a brand of luxury vehicle are reliability, safety, comfort...
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...Vikash Nahar The New king of Indian Roads: Mercedes and BMW Since the time of its invention, automobiles and more specifically the luxury cars have always captured the fancies of men and the Indian consumers are no exception to this. The Indian luxury car market over the years has evolved from being a humble consumer of a handful of the so called dream machines in the early 1950s to becoming the fastest growing market for luxury cars in the world, in 2010. Two companies that can be distinctly identified in race for supremacy in the Indian luxury car market would be BMW and Mercedes Benz. Baggonkar, S (2011, Dec 02) writes that “Though ballooning inflation and dipping growth prospects are slowing the economy, Germany’s BMW and Mercedes-Benz are betting big on Indians’ voracious appetite for luxury cars.” Though of the same origin, the strategic positioning and performance of both this auto-makers can be categorized into the following: (1) Product innovation, (2) Adaptation to Indian conditions, (3) Customer service and brand image. Though historically,considered conservative and easy to please, the Indian auto consumers of today are becoming increasingly discerning about their tastes and preferences. In addition to design and quality, product innovation is appreciated and preferred. Krishnan, N of Business Standard Moroting, explains in his article,Mercedes enjoyed monopoly in the luxury car segment for 12 years till BMW rocked its foundation by driving past its annual sales...
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... Celine (Ji Shishi) 1155066295 May (Wang dan) 1155069733 The article mainly introduced the re-launch of the New MINI based on different geographical spheres. By a series of campaigns, CP+B has successfully built the brand of New MINI. The case analyzes the unique brand strategy and strategic marketing techniques of BMW Company. Q1 What is the brand strategy of New Mini? According to the article, four brand strategies are concluded as followed: (1) Brand repositioning: Before BMW bought the MINI, MINI was a traditional British auto brand positioned as “a fuel-efficient economical car capable of carrying four adults with their luggage in spirited fashion”. In order to avoid being fads and fashion, BMW repositioned MINI as a distinctive lasting new brand and maintained brand sustainability. Brand positioning consists of target customer and differentiation value. For target customers, BMW did not restrict MINI’s target customer to MINI...
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...By a raise of hands, how many of us today have done any foreign trade with another country? Nobody, well that’s what I figured. Today I will be informing you about some of the customs of Germany and how you would go about doing business with someone or a German company. I will also talk a little about the luxury car industry in Germany and I’m sure everyone here is familiar with which brands these are. First of all, German is the official language of Germany, who figured. It is spoken as the first language by 95% of population of nearly 83 million people according to Kwintessential. The average German is not very welcoming to tourists because they usually don’t have a clue how to speak German. Germans are often considered the masters of planning. Germans like to always know what they are going to be doing at any certain time of the day. When the business day ends, you are expected to leave the office. If you must stay after normal closing, it indicates that you didn’t plan your day properly. German’s take their days off work very seriously and there is a law that assures no unnecessary noise is made on Sundays and Holidays. No one is seen working outside. That means no washing your car or even hanging up your laundry to dry. Not only are you required to be quiet on Sundays and Holidays, but you are also required by law to be quiet during the posted “Quiet Hours”. Germans take a lot of pride in their homes. They are kept clean and tidy at all times with everything...
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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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...1 Question 1 - Success of the BMW Group 1. Introduction The BMW Group was founded in 1917 and today is one of the leading. automobile and motorcycle manufacturers worldwide with a workforce of more than 100,000 associates in over 100 countries (BMW Group 2012). The company possesses three of the stron gest premium brands in the car industry, BMW. MINI and Rolls-Royce, as well as holding. a strong market position within the motorcycle sector (Innovation Leaders 2011). According to Linkedln (2012) the company aims to create profitable growth and returns that are above-average by focusing on the premium segment of the automobile market internationally. 2. Approptiate Measures for Success 2.1 Revenue and Profit According to the BMW animal report (2011), the company sold 1_668.982 automobiles and the overall revenue for the compan y was e68.8 billion at the end of the 2011 financial year, with the net profit standing at 64_9 billion, Furthermore the report shows that the 2011 fiscal year was the best in the history of the company, with sales volumes, revenues and profits reaching, new highs and exceeding annual targets set by the BMW Group. This is reinforced when comparing current profits to those before the worldwide economic recession; net profit in 2007 was E3,14 billion, meaning 2011 showed a 51_7% increase in profit from that year. This is a clear indication of the recent success of the BMW Group on a financial basis, as the company is outperforming their set targets...
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