...Executive Summary BMW is an acronym for Bayerische Motoren Werke AG or in English: Bavarian Motor Works. It is a German automotive company brand founded in 1917 with its headquarters in Munich, Bavaria, Germany and is amongst the worlds best automakers known for it’s intriguing - one of the kind designs, quality of engineering, performance and elegance in its fleet of vehicles. BMW Group is also a manufacturing company for motorcycles and engines for aircrafts, bullet- trains and has won the award for the best engines a numerous times in the worldwide automotive industry. The BMW Group also owns and produces vehicles under the brand MINI marquee, motorcycles under BMW Motorrad and Husqyarna and is also the parent company of Rolls-Royce Motor Cars, which are known to be the most luxurious, expensive and hand built vehicles baring not only a heavy price tag but specifically known to have a prestigious status symbol. To insure the company’s stability and expansion, BMW Group has a strong management control that ensures an edge over its competitors in the automotive market. The Group faces constant demands for cost, quality and productivity improvements within shorter product lifecycles, but also face the new challenge of building cars to customer order in short order lead-times and numerous other external and internal environmental factors. This report focuses on BMW’s flexible production and the process of technologies that enable the shift towards achieving a higher market...
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...2010 Valuation of BMW - Financial & Strategic Analysis Authors Rasmus Ramshøj Pløen Exam no. 282821 BSc (B/IM) Mikkel Kronborg Olesen Exam no. 283755 BSc (B) Academic Advisor Nicolai Borcher Hansen ASB Aarhus School of Business TABLE OF CONTENTS 1 PREFACE ................................................................................................................................................................ 4 1.1 1.2 1.3 1.4 1.5 1.6 2 EXECUTIVE SUMMARY ................................................................................................................................................ 5 BRIEF INTRODUCTION ................................................................................................................................................. 6 PROBLEM STATEMENT ................................................................................................................................................ 8 STRUCTURE .............................................................................................................................................................. 9 DELIMITATIONS AND ASSUMPTIONS ............................................................................................................................ 10 METHODS .............................................................................................................................................................. 12 HISTORICAL FINANCIAL ANALYSIS....................
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... 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 analysis of the external...
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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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...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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...A Company Analysis Department of Business Administration Autumn 2006 Authors: Hiba Larsson and Christian Falkemark Thesis Adviser: Thomas Polesie Master Thesis, 10 points Abstract Master Thesis in Business Administration School of Economics and Commercial Law Gothenburg University Autumn 2006 Authors: Hiba Larsson and Christian Falkemark Thesis Adviser: Thomas Polesie Title: BMW – A Company Analysis Thesis Language: English Background: The automotive industry is distinguished by a highly competitive market. Thus, the actors on the market struggle with increasing cost of production, development and mature markets. With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are some companies, which use the same components in different car models and car brands. These companies have in other words succeeded in synergising research and development effects within the company despite car model and business area. By a contrast, BMW, an individual actor, has yearly shown strong financial results and has retained its market shares. This becomes of interest to study more profoundly, in order to find the factors behind a successful company and a strong brand. Purpose: The purpose of this thesis is to analyse the development of BMW during the past five years. Not only are the financial statements taken into consideration. In addition, a comparison to competitors and the market situation is also made. Delimitation and assumptions: This thesis is delimited to...
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...171 a 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...
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...sluggish 2009 sales performance. II. Objectives (Situation Analysis) Introduction Specialized in the production of automobiles, Bayerische Motoren Werke commonly known as BMW Group is globally considered one of the most successful companies in the world. BMW continues to be one of the best players in the luxury automobile sector, growing despite the European markets’ crisis. The group is well positioned in worldwide market with 24 manufacturing facilities in 13 different countries, and it can count on a distribution network in more than 140 countries. Long term thinking, ecological and social responsibility in the value chain, strong investment in research and development, and an effective speed and agility in sustaining the changes in the market, are some on the key reasons for BMW success. The company has always promoted high-performing product trough a high-profile brand since the early stage; this perception is still present and evident in the company’s culture and has always been the guideline to narrow the strategic path of the group. Competitor analysis The German automaker experienced a steady increase in sales in the last few years, as it has always been able to respond to the attacks of its competitors with an increasing level of technology and innovation that characterizes its products. The design is also a fundamental and integrant part of the competitive advantage of BMW. As far as competitors concern, the BMW has always faced the competition of the compatriots manufacturers...
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...A Fundamental Valuation of the BMW Group Authors: Jalpesh Madlani – MSc Applied Economics and Finance Jens Chr. Ulvestad – MSc Applied Economics and Finance Supervisor: Jeppe Schoenfeld, Deloitte Number of Pages and Total Characters: 120 pages, 254.877 characters Submission Date: October 22nd 2012 Master Thesis – Copenhagen Business School 2012 Resumé This thesis conducts an in-depth analysis of the BMW Group in order to determine the fair value of the Group’s share price and to conclude whether it is over- or undervalued. The BMW Group is one of the largest automotive manufacturers that focus on the premium segment, producing both automobiles and motorcycles. The Group is headquartered in Munich, Germany and its business operations are divided into three segments: Automotive, Motorcycle and Financial Services, where the Automotive segment provide by far the largest source of revenue. The BMW Group is analyzed by conducting a strategic and financial analysis, where several models are applied and financial drivers thoroughly analyzed from a historical perspective. The findings from these analyses act as a foundation for forecasting the future performance of the Group. The share value is estimated by utilizing the discounted cash flow (DCF) valuation model on the forecasted figures. A multiple valuation model (EV/EBITDA) is also conducted in order to triangulate the value derived from the DCF valuation with a relative valuation based on market multiples...
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...* Factor of success in BMW Group BMW “The ultimatedriving machine” DESISLAVA DIMITROVA STOYAN STOYANOV VICTOR CHIKUNOV * •http://www.youtube.com/watc h?v=-QCD1ybgWPU * 5 continents100,306 3 1 associates automobile brands 2 motorcycle brands BMW GROUP * 1. Brief History 1916 1923 1981BMW (Rapp Modern the fist BMW motorcycle BMW becomes the firstWerke) is founded as an leaves the Munich European carmaker toaircraft-engine factory in production line. establish a subsidiary inMunich. In 1917, changed Japan.to BMW. * 1. Brief History• In 1970 BMW moved its headquarter to Munich. The building looks like the four cylinder of cars. * 1. Brief History Introduction• BMW (Bayerische Motoren Werke AG) became an automobile manufacturer in 1929 founded by Franz Josef Popp. * 1. Brief History * Product Diversification 1. Brief History Motocycles Cars * 1. Brief History• The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industry leader in the Dow Jones Sustainability Indexes for the last seven years. * 2. Corporate culture Growth Access to technology Strategy №1 Shaping the and customers future Profitability * 2. Corporate culture Board of Management BMW AG Annual• BMW Compliance Committee ReportingGroup Investigation...
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...Introduction: BMW is a famous company in the word. It owned many brand like Rolls-Royce, mini. BMW created by Karl Rapp in 10/1993 Analysis Task1: Objectives of BMW: Up to the year 2020, BMW Group intends to strengthen its position within the global motor vehicle market by increasing sales to more than two million automobiles per year. BMW’s strategic objective is to ensure that: The BMW Group is the leading provider of premium products and premium services for individual mobility. (http://www.ukessays.com/essays/marketing/the-corporate-strategies-and-objectives-of-bmw-marketing-essay.php) 1: PIRO 2: Value chain Processes are the ways that an organization uses it resources to generate value. These stem from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product and service. For instance, BMW has implemented a corporate finance structure with an international focus to reduce its exposure to local and foreign capital market fluctuation. As explained through the value chain, BMW's process are illustrated Process has been the development of technology and innovation across multiple section of the BMW business. This has been assisted through strategic alliances formed with suppliers to increase BMW's purchasing and manufacturing competency. Furthermore, research and development has been able to take advantage of the market research and analysis with regards to customer behavior and purchasing patterns to...
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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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...5 2.2. Goals 5 2.3. Core competence/sustainable competitive advantage 6 3.0. ANALYSIS OF THE BUSINESS INTERNAL AND EXTERNAL ENVIRONMENT 7 3.1. Micro Environment (C3SPM ) 7 3.2. Macro Environment (SLEPT) 12 4.0. KEY CRITICAL SUCCESS FACTORS 15 5.0. SWOT 17 6.0. BASIC STRATEGIC THRUST 23 6.1. Proposal 1: Innovation 25 6.2. Proposal 2: Differentiation 26 6.3. Proposal 3: Focus 27 6.4. Proposal 4: Synergy 28 6.5. Proposal 5: Branding 29 7.0. MARKETING GOALS 30 7.1. BMW 3 Series Sales 30 7.2. BMW 3 Series Life Cycle 30 8.0. PRODUCT-MARKET INVESTMENT STRATEGIES 31 8.1. Ansoff’s Product- Market growth strategies 31 8.2. Target market selected and why? 31 9.0. STRATEGIC MARKET MIX (Medium Term 3-5years) 32 9.1. Product 32 9.2. Price 33 9.3. Place 34 9.4. Promotion 36 10.0. SALES FORCAST AND FINANCIAL PROJECTIONS 37 11.0. GANTH CHART 39 12.0. REFRENCE 39 13.0. APENDIX 40 1.0. EXECUTIVE SUMMARY This report takes its starting point in the evaluation of the BMW Group through a strategic Market analysis of its best selling model the BMW 3 Series. The outlook obtained from the evaluation is used to create a strategic market plan for the BMW 3 Series. The analysis was divided into two parts: External and internal. The external analysis started with outlining the macro environment which was described using the SLEPT analysis. After the external analysis was finished off, the internal environment was analyzed, this was analyzed according...
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...Assignment Development of BMW into the leading car company in the UK for luxury class cars Abstract: The following report will examine the story of the German car producer BMW. Initiating from its inception to the modern day where BMW is a multinational concern. This report will highlight the internal and external circumstances to which BMW owes its current place as market leader for luxury cars in the UK. The subsequent analysis is based exclusively on sources collated from secondary research data. Research data consisted of chronicles and literature from BMW, domestic and foreign journals, marketing and market statistics, as well as published company reports. To reveal the success story of BMW, we will explore the concern with the aid of the SWOT-Analysis and of course using the 5-Forces according to Porter, to compare BMW with their competitors in the same product category. Furthermore we will use the PEST Analysis to scan the external macro-environment in which the company is operating. In addition to the outline above we will examine several important findings of our research. For example the strong dependency of BMW to foreign markets, these markets contribute 81% of the total turnover. (Schmid, Grosche et al., 2008, p. 16) Also, we can examine the reasons leading to a 4% increase in sales in the trading year 2012, operating within the premium segment of the UK to which they already had a lead (BMW Group, 2013). We will discover why the strategy of BMW is superior to their...
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...KOZMINSKI UNIVERSITY ------------------------------------------------- Financial Statement Analysis ------------------------------------------------- Financial Report ------------------------------------------------- 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...
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