...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...
Words: 8363 - Pages: 34
...The Effect of “Front-Loading” Problem-Solving on Product Development Performance Stefan Thomke and Takahiro Fujimoto In recent years, there has been a growing interest in the link between problemsolving capabilities and product development performance. In this article, the authors apply a problem-solving perspective to the management of product development and suggest how shifting the identification and solving of problems—a concept that they define as front-loading—can reduce development time and cost and thus free up resources to be more innovative in the marketplace. The authors develop a framework of front-loading problem-solving and present related examples and case evidence from development practice. These examples include Boeing’s and Chrysler’s experience with the use of “digital mock-ups” to identify interference problems that are very costly to solve if identified further downstream—sometimes as late as during or—after first full-scale assembly. In the article, the authors propose that front-loading can be achieved using a number of different approaches, two of which are discussed in detail: (1) projectto-project knowledge transfer—leverage previous projects by transferring problem and solution-specific information to new projects; and (2) rapid problemsolving—leverage advanced technologies and methods to increase the overall rate at which development problems are identified and solved. Methods for improving project-to-project knowledge transfer include the effective...
Words: 10111 - Pages: 41
...effectiveness of the use of techniques used in marketing products in BMW Group Market penetration There are various ways BMW Group uses market penetration such as sponserships, tv adverts and product palcement in films. The advantages of using market penetration for BMW are that BMW will gain more customers and increase their market share as promoting the company and its products will entice and attract customers to buy BMW products as a promotion of BMW or a BMW product is what may differentiate BMW products from its competiors products therefiroe this may make customers buy BMW products instead of products from BMW Groups competitors such as Mercedese. Also, BMW’s market penetration is very effective as BMW Group has a variety of ways that it promotes its products such as pro as different things attract different people. BMW also use market penetration by producing more products from existing braroduced in order to compete with rival brands. The disadvantages of using market penetration for BMW are that if BMW decrease prices by too much on luxury branded products such as Rollys Royce cars then sales of those products may decrease as the brands reputation of being a luxury car producer could suffer. In extension, customers will not expect very high quality at cheap prices. Market development BMW Grou different types of people. The advantages for BMW Group using this strategy are that market development allows them to expand the business and reach out to more customers therefore...
Words: 478 - Pages: 2
...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 an analysis of BMW between the years 2001-2005. The thesis is based on the assumption that BMW is the most successful automotive manufacturer in the premium segment. Methodology: In the study of BMW both primary and secondary data are used. The primary data consists of an interview and secondary data is collected from annual reports. Results and Conclusion: BMW is a well...
Words: 18022 - Pages: 73
...BMW, the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. BMW takes differentiation strategy to ensure BMW Group's lead over competitors and to actively shape the company's future by creating BMW vehicles that are perceived by customers to be unique. The mission statement of BMW Group is clearly defined: “the BMW Group is the world’s leading provider of premium products and premium services for individual mobility”. Another important point in the mission statement was that “BMW Group will invest substantially in future technologies, new vehicle concepts and pioneering drive systems”. This means that in addition to providing quality services to its customers, the BMW Group will engage in new and profitable areas to enhance the business. Vehicles made by BMW are able to command premium prices the prices of BMW Group are based on a differentiated strategy. This means that they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to demand and pay much higher prices for the perceived quality because customers perceive that the luxury, sportiness, and prestige of owing these vehicles are something worth paying for. The ability to increase revenues by charging premium prices allows BMW group to outperform its competitors and...
Words: 600 - Pages: 3
...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...
Words: 624 - Pages: 3
...January 2013 INVESTOR PRESENTATION BMW Group Investor Presentation, January 2013 Page 1 NINE MONTH 2012 RESULTS. in euro million Revenues Profit / loss before financial result (EBIT) Automotive1) Motorcycles Financial Services2) Other entities Eliminations Profit before tax Net profit EPS in euro (common / preferred) Operating cash flow (Automotive) Free cash flow (Automotive)3) Net interest-bearing assets (Automotive) Equity (Group) *) Adjusted 1) 9M-2011 January – September 2012 56,312 6,406 5,548 82 1,291 44 January – September 2011* 50,472 6,358 5,935 62 1,506 -115 Change in % 11.6 0.8 -6.5 32.3 -14.3 - -559 6,040 3,915 5.94 /5.95 6,768 3,840 13,025 28,853 -1,030 6,044 4,028 6.12 / 6.13 6,787 4,055 13,016 26,018 45.7 -0.1 -2.8 -2.9 / -2.9 -0.3 -5.3 0.1 10.9 for effect of change in accounting policy for leased products as described in note 3 on pages 36ff. of the quarterly report to September 30, 2012. EBIT includes a positive effect of € 85 million from the adjustment of residual value risk provisions. 2) EBIT includes a positive effect of € 124 million from better than expected off-lease business (9M-2011 one-effects amounted to € 439 million). 3) Free cash flow includes net investments in marketable securities of € 134 million (€ 839 million in 9M-2011). BMW Group Investor Presentation, January 2013 Page 2 GUIDANCE 2012. BMW Group We aim to achieve a higher full-year Group profit before tax than in 2011. Automotive Segment ...
Words: 8860 - Pages: 36
...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...
Words: 1372 - Pages: 6
...BMW Group Information 2004 Employing environmental principles to build cars Holistic concepts that lead to optimum solutions Taking an actively responsible approach to the protection of our natural environment is of fundamental importance to the development, manufacture, use and recycling of vehicles and their components. The BMW Group has thus for many years consistently employed methods such as Life Cycle Assessment and Design for Recycling in its decision-making. The application of these holistic philosophies generates results that are often surprising – and decisive. BMW Group research & development The BMW Group Concept: Sustainable Mobility In every corner of the world, individual mobility is an essential requirement for maintaining economic growth and prosperity. As traffic on the road grows steadily, it is imperative that solutions be found which are compatible with the needs of people and the environment. In this context, the BMW Group pursues a holistic approach in its efforts to entirely eliminate or continuously reduce the environmental impact of its products and processes through intelligent technology-based solutions. Key aspects of this strategy are: • Mobility-based research focused on the intelligent networking of various modes of transport • Improving environmental awareness and safety in the transport sector • Encouraging suppliers and partners to adopt the BMW Group guiding principle of sustainable development. • Further integration of the automobile...
Words: 2923 - Pages: 12
...the innovation, BMW pays a lot attention to develop research labs and focus on technical improvement. For example, In December 1917, the first BMW inline six-cylinder engine, the serial number is BMW IIIa, the maximum output power of 185 horsepower come into being. Two years later, improved version of this engine, BMW IV 250 horsepower created a flight altitude of 9,760 meters record. 1924, BMW Manufacturing's first V12 engine to power up to 580 horsepower, not only for the aircraft, also to promote high-speed trains in Germany "rail Zeppelin" to create a speed record of 230km / h. The late 1920s, the BMW 132, the first use of gasoline direct injection technology, its follow-up models BMW114 multi-stage turbo technology, the ultimate power breakthrough 1000 horsepower. The late 1930s, the BMW801 aircraft engine which Owns 14 cylinder displacement of 42 liters and power up to 1500 horsepower was made. A few years later, the BMW 802 is an 18 cylinder 2500 horsepower, power breakthrough, along with the advent of adjustable camshaft timing technology, which is one of BMW's most famous innovations was created. Since 1928 BMW entered the automotive industry, manufacturing the best car engine is not a difficult thing. In 1936, BMW326 is recognized as the most advanced production car, followed by the birth of the legends BMW328 up to 80 horsepower include thirty or forty years the tournament crown. In 1985, the true king of the arena, the first generation of the BMW M3 came into market...
Words: 686 - Pages: 3
...| 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...
Words: 6148 - Pages: 25
...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...
Words: 798 - Pages: 4
...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...
Words: 1364 - Pages: 6
...Alternative for Corporative Strategy Following strategies can be applied for BMW as alternatives. * Growth Strategy * For the organizational growth. * Stable strategy * Keep the same strategy which could apply for stable environment * Defensive Strategy * When organization face problems, then can apply defensive strategies like retrenchment, divestiture or liquidation. But when we consider about expecting 40% growth in automobile category, BMW should follow the Growth Strategy Growth Strategy can be found in following subsets, * Integration Strategies (Horizontal) * To apply when market growth should be high * Should have sufficient resources * Intensive Strategies * Market Penetration * Market Development * Product Development * Diversification Strategies * Related * Non related * This should be applied when organization competes in a no growth or a slow growth industry * Also it generally needs strong management team When identify these above strategies, next step is to do a critical factor evaluation. This is basically categorized to Cost, Benefit and Risk. Also weight can be given to each category. Criteria | Weight | Cost | 30% | Benefit | 50% | Risk | 20% | Benefit gained by BMW is considered as more weighted. When assign scores to each criteria following assumptions are made. Scores are between 0 to 10. High costs indicate by low score. High...
Words: 523 - Pages: 3
...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...
Words: 6824 - Pages: 28
