Bayerische Motoren Werke

By: Chinki Aggarwal Avinash Pradhan Sankalp Jain Parn Sharma Mayur Madaan

OVERVIEW

Mission statement of BMW To collect information on company history and background LLC policy of BMW A brief look on the company decisions made and environmental & market factors Sustainability strategy used by BMW A general concept of ownership and investments An over view on the international business markets covered Driving factors Challenges

Mission statement Sustainability. We take on responsibility.

Sustainability throughout the value chain is inseparable from our success and part of our corporate self-image. That is why we take responsibility. Because of our convictions, but also our self-interest, now and in the future.

Objectives of BMW

To provide the best relaxing place for their worker to help them be motivated and to work better with no distraction. To provide the best quality products for example their automobiles to their customers and other companies. To provide the best service to customers and hope to do business again. To work with educationalist (The BMW Education Program) to support and help raise the quality of learning in the United Kingdom. Quality, performance and excellence are standards, which BMW applies not just to its automobiles, but also to its support for education.

Cont.

To provide services and resources for schools that are interesting and relevant and which inspire young people to aim for excellence in all aspects of their studies. To provide special training for their workers, encourage its people to develop their professional and personal skills to enable them to meet its organizational goals. Integrate part of their business in a 'learning organization, which supports achievement of development and career potential for employees.

Important Years

1913 Karl Rapp Motoren Werke

Aircraft engine manufacturer

1916 1917, restructuring of company 1916, BMW Versailles Armistice Treaty

Consequent shift to motorcycle manufacturing

Important Years

1928 1929, expansion of manufacturing to automobiles. 1959 crisis, liquidation or licensing 1966 acquisition, the Hans-Glas Dingolfing Germany 1992, acquisition of large stake in California based Industrial Design Studio, and full acquisition in 1995.

Important Years

1994, Acquisition

Rover Land Rover MG Rights to brands including Austin & Morris

In future MG & Rover sold to Phoenix Consortium and Land Rover sold to Ford 2007, Rights to Husqvama Motorcycles at 93 million

Outlook for BMW

Motorcycles Formula One Automobiles

Sport Sponsorship

BMW

Rally

Motorsport Sponsoring Sports Car

Touring Cars

LLC Policy

Provide its employees with the environment, tolls and support to perform in a quality manner for the Company, its shareholders and its customers. Committed to the highest standards of ethical behavior, integrity and conduct. Ensures that it maintains working conditions at all locations which support the responsibilities of employees and provide the environment and the tools to permit compliance with Company policies and procedures. No employees should knowingly become involved in any situation which could create a conflict between their personal interests and the interests of the Company.

STRATEGY
1.

IDENTIFYING THE ISSUE: The change in the add campaign from The Ultimate Driving Machine to The Company Of Ideas arouse a question will it be able to reach the creative class along with retain the yuppies group along with the retaining the creative class? Dropping a 33 year old successful tagline. New tagline attacked corporate convention and compromise.

Market Environment
Strength The brand itself BMW Synonym to performance and driving. Weakness Seen only as a performance based sports car. Opportuniy The growing number of creative class[38 million]. It could add additional economic function transfer to creative class function. Opportunity to increase the U.S market share which was just at 2.5%. Threat New add placed little emphasis on performance a sharp departure from earlier adds. Prompted criticism for dropping a successful strategy for 33 years. Attacked issues like corporate convention and compromise.

ANALYSING THE ISSUE:

Difficult to make impact among the creative class who wanted brands which stood for larger values. A change or a sudden shift from a successful strategy may not work especially when it was brands strength for 33 years. Difficult to retain existing loyalists. Lesened emphasis on performance.

PLANNING:

How to determine the needs of the customers? How to expand their market? What should be made to attract the growing creative class? How to campaign their new idea THE COMPANY OF IDEAS?

IMPLEMENTATION:

Changed their add agency from FALLON WORLDWIDE TO GSDM to create their new add. Showcase the companys design prowess and independence. Promoted their add through television, print adds, lifestyle publications (focusing on art, design, travel, luxury, and sports), websites like www.thegothamist.com, www.gawker.com, that were frequently visited by the creative class and also by showing its environmental sentivity. Adds sent across message that differentiated BMW from other companies which destroyed creative and radical ideas.

CONTROL:

By analyzing the consumers reaction to the new add and then taking corrective action. Had come a long way since 1980s, therefore BMW had the confidence to tackle the critics who said it was creating confusion among consumers and was insecure and threatened by competition. Took measures to maintain the originality of the ad campaign.

HR Department

BMW's Human Resources encourage its employees to develop their professional and personal skills to enable them to meet its organization goals. An integral part of their business strategy is a 'learning organization' approach, which supports achievement of development and career potential for employees. Performance appraisal is an accepted part of every manager's responsibility. A formal review of performance is held at least annually and personal objectives are agreed for each employee for the coming 12 months period.

Finance Department

Pays salaries and wages to the staff Pays amounts to suppliers Controls the debts owed to the company. Advise senior managers on their major financial decisions understand and control the company's finance to it to become a profitable business. The invoices that the company gets are paid up in time and money that comes in the company is recorded so that we can establish the trends of the business.

Key Decisions

BMW paid 40 million to license Rolls Royce name and RR logo. Negotiations between VW and BMW

1998-2002

BMW would supply engines for the cars and allow RR name and logo usage rights to VW Only BMW would be able to name cars RR & VW to only build cars named Bentley

2003 Jan 1

RR and BMW Motorrad plans to operate as a separate enterprize

Success Factor Corporate Sustainability.Philosophie, Strategy and Implementation at the BMW Group

In future premium will also be defined by sustainability.

The BMW Groups sustainability strategy. Sustainability is a basic principle -the strategy applies to the entire company.

Investments

Strategic Investors 46.7%

Stefan Quandt 17.4% Johanna Quandt 16.7% Susanne Katten 12.6% North America 15.8% UK & Ireland 11.8% Other Europe 5.7% Germany 4.8% Rest of the World 2.5% Other Investors 12.7%

Free Float 53.3%

International Markets

Manufacturing Plants (7 countries)

Assembly Plants (6 countries)

Major Operations

Germany Mexico Russia United Kingdom Austria USA South Africa

Thailand Russia Egypt Indonesia Malaysia India

BMW 1,224,280 MINI

Countries like Canada and China

Sales of BMW worldwide

Year 2010 RR 2,711 Motorcycle 110,113

234,175

Driving Factors
Environment: Climate change and the subsequent effects Urbanisation: By 2030, over 60 % of world populationwill live in cities Politics and Regulations: CO2-and fleet regulations Restrictions on imports Economics: Shortage of resources, increase in the price of fossil fuels Culture: Sustainable mobility as part of a modern urban lifestyle;assumption of social responsibility

Main challenges faced by BMW

Roll-Out of new process methods based on a new IT solution for every new product line in the PEP-PDM solution Present focus on maintaining product data, need to focus also on data consumers Many specific reports available, but more flexibility needed Manage complexity

Cont.

More users with different roles on the same product data Support complex processes on complex UIs for power user Support specific process for occasional users Manage permanently increasing high data volume for Maintain product structure Product structure reporting Product structure explosion