...design quality? Answer: Design quality means the product attributes that enhance the utility of the product for the customers. It is that making products for consumers to use the products better with more conveniences and values. Question 2: What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch” quality? Answer: I think there are several reasons in BMW’s new model development way like below; 1. BMW doesn’t use pre-production tools during prototyping. -> BMW has less opportunity to uncover and solve many kinds of quality problems earlier in development process. 2. BMW let suppliers involve into development after “cubing”. -> Suppliers meet quality problems during their first production and they don’t have enough time before new model introduction. 3. When BMW starts the first commercial production, BMW produces new models in old models’ production lines together to reduce fixed costs. -> It causes greater confusion and makes logistics more complex. All these things result in quality problems with newly launched products. To reduce these kinds of things; 1. Use pre-production and production tools earlier to find and to have more time to prevent quality problems expected in commercial production. 2. Involve reliable suppliers earlier in development process and use their experiences and skills for efficiency for trouble shooting. 3. Produce newly launched products in separate...
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...Q.1 What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? (583 words) Causes in different aspects Development process for building the cockpits caused a ripple effect of BMW’s quality problems in competing of luxury automobile market. Rivals from Japanese companies entering into the luxury segment was changed the standard of acceptable quality at launch. From time, cost and process cycle perspectives to elaborate the causes in-depth. Time: Frequent changes were allowed to be made in in-house prototype shop during three to five design cycles that made the tension of lead time in line with their corporate strategy – to be the leader in high-end car industry of technical and styling innovation. Long lead time for procuring production tools and short period of time to make the decision for selection of outside suppliers. Cost: Prototype process was the critical part whilst major problems were not easily located at final stage due to some parts were not of the same materials used in the final production model. Re-ordered production grade tools were expensive than “pre-production” grade tools and most of the parts were hand-built by highly skilled craftsmen. Process from Pilot to Commercial production: Transition from final prototype to high volume production process could not be integrated smoothly due to production tools were not fully ready in pilot plant. Though workers learned...
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...tangible and intangible product characteristics. BMW’s focus was on R&D, both in the engineering and styling of its cars, and had built a reputation for high performance engineering. Its launch quality had always been on par or better than that of its major competitors. However, since the late 1980s, the entry of Japanese competition (Honda’s Acura and Toyota Lexus) had set higher standards of conformance in this industry. 1. What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve launch quality? One of the primary reasons for BMW’s quality issues was its strategy of using different tools and materials in the prototyping process when compared to the production runs.BMW supported such a ‘dual’ development process to provide flexibility to its prototyping craftsmen to make changes to the design quickly. For instance, the prototype shop was able to make new parts within a week of being intimated of a design change. In contrast, the lead time for procuring pre-production tools from suppliers was 6 months. Providing such flexibility though had a flip side to it - something which worked in the prototyping phase may not work in the production phase. This meant that potential problems in the design could be identified very late in the development process. People in pilot production spent a lot of their time identifying and solving the big problems leaving them little or no time for minor problems and fine tuning. Thus...
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...1. What are the causes and consequences of BMW's quality problems with newly launched products? What should be done to improve launch quality? Cause and Consequences of BMW quality problems In this case, there are few cause and consequences that BMW face during their production with newly launch products and resulting in some major impacts that puts BMW in disadvantage position when competing with its competitors. One of the reason that affects the launch quality was the designing time duration. In styling, BMW took around 2 years on designing and finalize the launch products which is longest time would be spend on any automobile company. However the Japanese automobile company would likely only to spend no more than 6 month to finalize the products which is 3.5 times effective then BMW. Nevertheless BMW argues that the time were spend in this stage was essential as they have to work from creating a excellent durable design and also to ensure every single components to ensure it fits and matched into the launch products. This slow decision making process by BMW may cause few impact towards the company and even loss. According to Gilani Natasha, he state that business with slow decision making process may cause organization to increase organization cost and impedes performance. Besides that, BMW also will lost their competitive advantage towards its competitors as they could not able to produce as much variety of choice of launch products then the Japanese automobile company...
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...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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...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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...examination The Business Environment and Managing Change • 25% of A level • 1 hour 45 minutes exam • 80 marks • Section A: Pre-release research tasks leading to a 40 mark essay • Section B: Choice of 3 essays, one must be chosen for 40 marks • This unit is synoptic – this means that it pulls together all the material from the entire AS and A2 specification. There are two key additional elements of preparation for this paper: Complete the research task The research task is designed to enable you to investigate in detail a small part of the Unit 4 specification. The research brief will give you precise guidance on the tasks to complete. Do not make too much of this task and extend your research beyond what is asked. Do, however, relate your research to a variety of large businesses producing goods and services and operating in different markets. Read widely about business You should read newspapers, magazines, and books, watch television and surf the internet for news of business affairs. You will be asked to apply your knowledge of business studies to a number of business scenarios. In some cases (especially the essays), you will be invited to offer your own examples of how businesses are affected by or react to, specific circumstances. Having relevant knowledge is therefore essential Glossary of Terms |Term...
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...external anchor of the European Union accession, and a lengthy track record of solid economic management and structural reform are the drivers of Turkey’s long-run prospects (World Bank, 2010). Turkey’s high degree of integration with the world economy, through both trade and financial channels, resulted in the country becoming vulnerable to the impact of the global recession, with the economy contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution guarantees judicial independence, and prohibits any government agency or individual from interfering with the operations of the courts and judges (Country Studies, 2010). The presence and the systematic implementation of these laws create an open path...
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...“senders” of this information, e.g., by giving brand recommendations, by expressing criticism, or by sharing information with others (Hennig-Thurau et al., 2010). For this reason, managers no longer have exclusive control over information circulating about a company or brand. Consumers therefore play an important role in forming a company's or brand's perception and value in the marketplace (Keller, 2007). Exchange of information about companies and brands between consumers is not a new phenomenon. However, today we are witnessing a new and rapid evolution of consumers interacting with each other via the Internet. Researchers estimate that over 1.4 billion people interact via the Internet, resulting in continual growth in the quantity and quality of information (eMarketer, 2012). New platforms such as Facebook, Twitter or Linkedin, offer consumers the opportunity to...
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...Breakout Strategy Meeting the Challenge of Double-Digit Growth Sydney Finkelstein Charles E. Harvey Thomas C. Lawton (McGraw-Hill, New York, 2006) Table of Contents Dedication Acknowledgements Table of Contents List of figures Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Breakout Strategy Getting on the Fast Track Staying out Front Breakout Dynamics Putting Vision to Work Being a Magnet Company Delivering the Promise Executing Breakout Breakout Leadership Appendix: case study companies Index List of Figures Figure 1.1 Figure 2.1 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 Figure 5.4 Figure 5.5 Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 7.1 Figure 7.2 Figure 7.3 Figure 8.1 Figure 8.2 Figure 8.3 Figure 9.1 The Breakout Strategy Cycle Companies Getting on the Fast Track Companies Staying Out Front Types of Capital and the Capital Accumulation Process The Vision Wheel State Transition for Harley-Davidson: Organization State Transition for Harley-Davidson: Culture State Transition for Harley-Davidson: Relationships State Transition for Harley-Davidson: Markets The Six Pillars of a Value Proposition Leveraging up the Apple Value Proposition Reconciling Different Value Propositions Leveraging up Samsung Electronics’ Value Proposition Components of a Business Model Aligning the Business Model and Value Proposition Business Model Needs Analysis Delivering Strategy System Balance and Strategy Delivery at...
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...understanding of buyers is escalating because of buyers’ demands for uniqueness and the growing array of technology available to generate products to satisfy these demands. Companies are responding to the opportunities to provide unique customer value with products ranging from customized phone pagers for business users to self-designed, individualized greeting cards for consumers. Indeed, McKinsey research underlines the weakness of thinking about markets only in general terms—talking of market trends, growth markets, mass markets, declining markets, and so on—and collecting information that describes only broad trends, where differences within markets are averaged-out. They point to the identification of opportunities from a deeper understanding of markets at a “granular” level. Market fragmentation and increasing granularity characterize a growing number of markets. The compelling logic of market granularity is that effective strategy can emerge only from a much finer understanding of market segments, their needs, and the capabilities required to serve them.1 Best Buy provides an interesting illustration of strategic market segmentation. Best Buy is the world’s largest electronics retailer with sales revenue of $50 billion. In 2003 Best Buy piloted its “customer-centricity” strategy, radically shifting the company’s strategic emphasis from products and technology to customers. The goal was to focus on the most attractive customers based on the important differences...
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...The Lauder GLobaL business insiGhT reporT 2014 rebalancing the Global economy Lauder-Report-2014.indd 1 12/18/13 12:07 PM Introduction The Lauder GLobaL business insiGhT reporT 2014 rebalancing the Global economy In this special report, students from the Joseph H. Lauder Institute of Management & International Studies examine current trends and recent developments shaping today’s global marketplace. The articles cover a wide variety of topics ranging from technology, innovation and brand building to infrastructure, entrepreneurship and social impact. A section on consumer markets looks at the popularity of e-cigarettes in France and elsewhere, efforts by Japanese firms to expand their businesses into Asia, new trends in French gastronomy, changes in Japan’s traditional food-consumption habits, and how a sector of the Chinese population is spreading, and spending, its newfound wealth. The report offers an analysis linking market-driven strategies with social impact in Peru and Colombia, as well as an article describing South Carolina’s embrace of innovative research. Other articles look at the Russian government’s attempt to reboot the city of Skolkovo as an innovation hub, the mixed success of innovation efforts in China, and the growing threat of cybercrime to businesses across the world. The challenges of infrastructure and planning are addressed in analyses of transportation in areas of Latin America, deficiencies in Brazil’s infrastructure, and real estate’s...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Sector Leadership Best Global Brands 2013 10 86 BISH Methodology Creative Leadership 70 120 Contributors China’s New Brand Leaders 74 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership roles...
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...momentum disappears, without anyone quite realizing what has happened. The company is still growing, but not as strongly as before, not as efficiently. Everyone’s maxing out, but it seems like there’s molasses in the works. Sound familiar? Sooner or later, it hits you in the face. Imagine you are meeting up with a senior analyst whose opinion counts with some of your company’s biggest investors. You think you’re on safe ground—after all, your company is doing better than the competition. But the analyst is in full gimlet-eyed, illusion-killing mode. “That’s nothing to crow about,” she says. “Yeah, you’ve got reasonable growth, but it’s nothing exceptional. You’re a safe bet, nothing more. Okay, I might tell my mom to buy, but 3 The Momentum Effect then she’s happy with inflation plus one. The way we see it, you’re really grinding it out. We reckon the strain’s getting harder, too. There’s no impetus—no momentum.” Words like that can really take the gloss off a day. The next time you gather your team, you don’t congratulate them on beating their targets—you want more. Sure, our results are up, you say, but that’s not enough—where’s the impetus? When are we going to do something exceptional? With all the resources at your disposal, when are you going to start building some momentum? The team members look at their papers. Then Paul, an anxious member of your team, looks up and says: “Okay. Got any ideas about how?” What are you going to say?...
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