...BMW Case Study A. The BMW customization program “Dream It.Build It.Drive It.” for X3 series compact SUV model had driven sales across North America. Joseph Wierda, BMW product manager was contemplating using the same marketing strategy to drive sales across all BMW product lines. He was particularly interested in using this customization strategy for flagship brand X5 and a new model X4 launching in 2015. The major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It...
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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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...------------------------------------------------- CASE 2-1 BMW Taps the Emerging Chinese Luxury Markets ------------------------------------------------- MAR 4503 Consumer Behavior FIU JEREMIAS CUADRA, CHARLES KETTEL Abstract BMW is one the largest automobile industries in the word, when you think of BMW you can surely say it's a high quality luxury car. The focus is to re-position itself in a new market. Which is the Chinese luxury market. How does a powerful company like BMW get ahead start in this un-tapped market with so much potential for growth? Leading to more global exposure and also more revenues. (JEREMIAS CUADRA) Q1. There is often a natural tendency to assume that in collectivist cultures such that in China, luxury products would not be popular. a. Explain how luxury products such as the BMW automobile might fulfill needs even within the traditional collectivist value set of China. I believe by growing this economy will give Chinese citizens more opportunity and more purchasing power to one-day own a luxury vehicle. Also social status is something that can represents that you’re doing well. I also believe it can lead to a showing off culture. b. Explain other factors that might be driving the desire for luxury in China. Well we all want what we can’t have, I believe that's human nature, but in China I other factors could play a role such as advanced luxury shopping experiences. More options would be available theirs a perfect gift for everyone...
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...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 a few challenges that these retailers are faced with. The booming of luxury car rentals makes luxury accessible to all but hampers the exclusivity and uniqueness that luxury cars provide to their loyal customers. Furthermore, the tax policies placed on luxury cars pose as a challenge especially in Australia where there are taxes in place for the car and also import taxes. Despite these...
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...com/shop/busn620-week-1-assignment/ Title: Week 1 Due Date: End of Week 1 1. Read weekly announcement 2. Participate in the weekly forum. 3. Review weekly assignments in the syllabus. 4. Please complete the following for your week 1 written assignment: Read Case #16- BMW of North America and answer the following questions (each question a subsection): 1. What is fueling BMW's Growth? 2. How is BMW Doing in the U.S? Compare the following 3 years (2012, 2013, & 2014) in terms of annual revenue, car sales, gross margins and end year stock sales (outside research required). 3. Is the "Dream It. Build It" program a sustainable advantage in the long term? Do you see any room for further improvement? (link to other companies to add depth; i.e. Ikea, etc.) 4. Do you think customers really need "millions of combinations" for their car? Can they be happy with available standard options? What are the downsides of mass customization? 5. How does this case study link to the topics presented in Chapter 1, Chapter 2 & Chapter 3? 6. submit your responses to the Weekly Assignment Folder: Additional resources for Case Study: • https://www.youtube.com/watch?v=8Ddq6O_QAz0 • http://www.anthonymonahan.com/BMW-Dream-It-Build-It-Drive-It Post/submit homework to the assignment folder for grading. Make sure you provide substantive graduate level answers. Review examples in resource section, grading rubric and APA guide prior to final submittal. Make sure you use adequate, credible...
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...How would you describe the culture at BMW? 2. What model of leadership is illustrated at BMW? How does this impact BMW’s culture? 3. Using the concepts illustrated in the job characteristics model, analyze why employees derive high job satisfaction at BMW. 4. What attributes of organizational creativity are fostered at BMW? SOLUTION 1. BMW has an entrepreneurial culture that is characterized by high levels of risk taking and creativity. There is a commitment to experimentation, innovation, and being on the leading edge. Effectiveness means providing new and unique products and rapid growth. Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded BMW’s entrepreneurial culture is rare in corporate Germany where management in Germany is usually top-down. BMW’s 106,000 employees are a network of committed associates with few hierarchical barriers to hinder innovation. From the moment they set foot inside the company, associates are overcome with a sense of place, history, and mission. BMW’s human resources department receives more than 200,000 applications annually. Those who make it to an interview undergo elaborate daylong drills in teams that screen out big egos. For the lucky few who are hired, a Darwinian test of survival ensues. Individuals from all levels of BMW work side by side. 2. BMW uses self-managed teams with team leaders...
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...Although, it’s considered to be one of the smaller companies in the U.S auto world, BMW generates more than $60billion dollars in sales. It seems as though some of the bigger auto companies could learn a lot from this smaller company. BMW’s management system is flat, flexible, entrepreneurial, and fast. This system has been working for years. BMW’s success stems from an entrepreneurial culture. This particular type of culture is very rare in most corporate Germany. Having 106,000 employees that are a network of committed associates that has fewer hierarchical barriers to help hinder innovation. Each employee gets a sense of history and the mission of the company as soon as they come aboard. Individuals from all levels work side by side, creating an informal network. This definitely makes BMW’s culture unique. BMW has a sense of history as well as making each and every one of their employees feel like a family. Each new employee learns about the history of the company. Letting each employee know about the beginning of the company in 1959 when BMW was once nearly bankrupt, and would have been taken over by Mercedes if it had not been for Germany’s wealthy Quandt family that bailed the company out. The 1959 story that is told at each employee, during a new employee orientation, gives the employee an understanding on how the company was rebuilt on the power of the workforce. BMW tells this story so that each employer can understand that they are valued and...
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... Login Support Term Papers and Free Essays Browse Essays Business / Bmw Marketing Strategy Bmw Marketing Strategy This essay Bmw Marketing Strategy is available for you on Essays24.com! Search Term Papers, College Essay Examples and Free Essays on Essays24.com - full papers database. Autor: anton 06 January 2011 Tags: Marketing, Strategy Words: 867 | Pages: 4 Views: 1057 Printable Version Essay: Bmw Marketing Strategy Read Full Essay Join Now! For the purpose of this assignment, I will choose BMW, the luxury automobile maker that has established a mark for itself in the luxury car segment with its high performance cars. BMW is a powerful brand that is truly experienced by car lovers all over the world as a symbol of performance, power and luxury, all combined into its power packed machines that are treat to watch, drive and possess. That's why, it is truly known as the "Ultimate driving Machine". BMW has been able to live on to its brand's promise due to three major factors: consistency, patience and a simple, upbeat message. It has been beating the drum for the last many years that BMW offers customers the ultimate driving machine. BMW is very, very consistent in providing the product line that echoes what the brand is all about. It's high quality and products with superior engineering quality and performance has overshadowed other manufacturers in its category. BMW has never compromised on its product quality and engineering superiority and...
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...Utilizing and Developing Layout Strategies Operations Management Abstract This paper examines the effects that a winning layout strategy can have on a firm in gaining a competitive advantage. I will first identify the seven types of layout strategies, and point out the purpose and importance of each layout strategy and touch upon the advantages and disadvantages of each. I will discuss considerations for each layout design along with the reasons to use each particular layout. I will cite four existing real-life examples of each using a different layout strategy to attain an advantage. I cite the example of how BMW is using an assembly line customization to improve profitability, the office layout trends of today to reduce costs and improve employee productivity, the recent trend in the hotel industry to redesign their lobby layout to increase revenue, and the Skecher’s warehousing layout strategy to reduce handling costs. Finally, I will conclude that an outstanding and effective layout strategy will give a firm a competitive advantage. Layout strategy is a critical part of an operations manager’s strategy decision. In this paper, I will identify and define the different types of layout, explain how to attain a good layout to have a productive process and how to balance production or service flow in many various service or product oriented industries. The proper strategic importances of layout decisions, the types of layout, layout design considerations and superior...
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...Organizational Behavior January 30, 2010 Question: Describe the culture at BMW? The culture at BMW is employee oriented and employee driven. As stated in the article BMW’s Dream Factory by Business Week, “Much of BMW's success stems from an entrepreneurial culture that's rare in corporate Germany, where management is usually top-down and the gulf between workers and managers is vast. BMW's 106,000 employees have become a nimble network of true believers with few hierarchical barriers to hinder innovation. From the moment they set foot inside the company, workers are inculcated with a sense of place, history, and mission. Individuals from all strata of the corporation work elbow to elbow, creating informal networks where they can hatch even the most unorthodox ideas for making better Bimmers or boosting profits” (BMW’s Dream Factory by Business Week, Oct 16, 2006). Hence it is clear that employees play in a key role in the company’s innovation and success. As stated in the textbook, “If people are happy, they are more efficient. If they are unhappy, they are not going to bother making suggestions” (Organizational Behavior, Hellriegel & Slocum, Pg.112, 2010). Hence the culture at BMW motivates employees to work harder and participate in the company’s quest for innovation. Question: Discuss the model of leadership illustrated at BMW and the related impact on the organizational culture. The leadership at BMW uses positive reinforcement to influence an employee’s behavior. BMW’s...
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...I. Description of issues and challenges A. Home Depot should adjust their strategies to employees, vendors and especially to customer services. Through strategic realignment to enhance customer service, grab market shares and increase share price. 1. Justifications According to the case, we can see that during the Nardelli era the feedback of customer service is the worst ever in Home Depot history. And also because of the continued share price stagnation and declining housing market, Home Depot need to adjust its strategies to maintain its position in the home improvement market. II. Alternative Solutions A. Solution 1 Focus on cutting the cost of all the processes and use lower price product to grab market share. Maintain Nardelli’s centralized strategies and stop using the Six Sigma method in store operation. Hire knowledgeable full-time person, maintain the balance between full-time and part-time employees and keep implement the employee bonus program. 1. Pros: λ Centralized strategies on merchandise and purchase has advantages on build a uniform and consistent brand image and reduce cost. λ Centralized strategies are more convenience for headquarter to give instructions and unified management. λ Hire knowledgeable full-time person will improve the quality of customer service. λ Maintain the balance between full-time employees and part-time employee and keep implement the employee bonus program will stimulate the enthusiasm of employees, ensure the quality...
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...SUSTAINABLE LEADERSHIP: AN ANALYSIS ON BMW Akhil Menon Srikumar # 3936612 Submitted to Dr.Valerie Lindsay TBS 923 University Of Wollongong in Dubai TABLE OF CONTENTS EXECUTIVE SUMMARY 03 INTRODUCTION 04 COMPANY PROFILE- BMW 05 TECHNIQUES FOR SURVIVAL 05 BUSINESS MODEL 06 CREATIVE INITIATIVENESS 06 SUSTAINABLE LEADERSHIP 07 THINGS TO LEARN 09 CONCLUSION 10 REFERENCE 11 EXECUTIVE SUMMARY This report is basically a case analysis on the sustainable leadership excellence showcased by BMW. It describes their booming stages in their ventures through sustainable leadership. The report contains many concepts of locust form of enterprises as well as honeybee form of enterprises discussed and comparing in between which one is more preferred for better working of the enterprise. It mainly discuss on how the company works during the global financial crisis of 2008-09 and how they stood apart in front of its competitors when General Motors and Chrysler were in the stage of bankruptcy and the US government had to bail them out and Fiat bought Chrysler. INTRODUCTION The global financial crisis of 2008-09 has been a key thing for testing the efficiency and sustainability of many organizations around the globe. Most of the organizations could not survive GFC and the government had to come for the rescue of these companies. The report explains about how these...
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...Car, vehicles identified as true luxury models tend to the allow owners to immediately leverage visual prestige, as if the car is subliminally saying aloud, "I am someone of note"; because design shapes and lines are smoother, paint is more vibrant, and engine sounds are more distinct. To prove the point, park a Toyota Corolla next to a Mercedes AMG sedan and you'll get the idea quickly. ------------------------------------------------- Quality Of Design - Premier luxury cars are designed to meet stringent technical requirements across-the-board. Even in the case of well-appreciated marques such as Mercedes, BMW or Cadillac there are differences in the quality of fit, finish, operating efficiency and overall performance between lower priced models, and cars at the apex of a brand's food chain. For example, buy a BMW 128i at $29,900.00 and you'll get a good car, buy a BMW M6 at $102,100.00 and you...
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...and researched decision. Based on his observation, different processes can be defined for decision making. Decision making mainly depends on the involvement of the customer. There are high involvement products and there are low involvement products. Similarly, there are consumer products and industrial products. Involvement in industrial products like automobile (BMW) will generally be higher as compared to commercial products because the amount of investment in industrial products is also huge. Marketers must consider how consumers decide to buy their product. Consumers use nominal, limited, and extended decision making. Watch this video to learn more about the different types of consumer decisions. Consumer Decisions and Strategy In order to successfully reach their target market, marketers must have some idea of how much time and effort consumers will put into a purchase decision. For BMW the business personalities, high officials are the target market but decision sometimes depends on their wives and children. After many observations of the decision-making process, you see that the actual customers of BMW are motivated by their spouses or children and they must spend a lot of time to select a specific car among Mercedes Benz, Lexus, Prado etc. Types of Consumer Decisions There are three major categories of consumer decisions - nominal, limited, and extended - all with...
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...ordered by each customer to their liking which is something consumers see as a benefit and can raise the demand of certain vehicles. This also allows for the manufacturing company to better meet the demand without having an overabundance of supply. When a car manufacturing plant has a lot of cars left but no demand for them they just lost a ton of money. Cars are not cheap to put together hence the price we pay for them. The demand for cars is relative to price as well. The cars that are more affordable are more in demand and the supply of them will be greater as well to keep up with demand. Examples of these vehicles are Honda, Toyota, Chevy, Ford, and Subaru. Once you get into the higher priced vehicles or luxury class, such as Mercedes, BMW, Audi, and Volvo, the demand decreases, because of the price, and in turn so does the supply. In today’s economy another item that drives the demand of a vehicle is its estimated miles per gallon of gas. Gas seems to constantly be on the rise so consumers try to maximize their gas mileage by getting a vehicle that will give them the most for their money. This also includes reliability so not as many repairs and maintenance needs done. The things that influence demand are an affordable price, reliability, low cost...
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