...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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...VISSION AND STRATEGIC OBJECTIVES 5 2.1. Company Mission and Vision 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...
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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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...Strategic Management 313 Unit Index Number 3522 Semester 1, 2006 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...
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...Strategic Management Process Kimberly Bruno MGT 498 October 29, 2012 Homer Johnstone Strategic Management Process For an organization to achieve success a successful product or service is necessary. However, a successful organization requires much more than that. An organization needs a full-scale management plan. This displays plans for the future and allows an organization to run like a well-oiled machine. To fully understand the management process one must examine all necessary elements and examine an organization with a solid process. The Elements The basic components or basic models of strategic management include four elements. These elements are environmental scanning, strategy formulation, strategy implementation, evaluation, and control. However, evaluation and control is actually element, and there are multiple steps within each element. Environmental scanning includes the process of monitoring, evaluating, and dissemination of information from both external and internal environments to the correct people within and organization (Wheelen & Hunger, p. 16, 2010). The easiest way to do this is to conduct a SWOT analysis. Strategy formulation involves developing long-range plans to manage environmental opportunities and threats properly. The long-range plans include defining the corporate mission, specifying achievable objectives, developing strategies, and setting policy guidelines (Wheelen & Hunger, p...
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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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...| 5/4/2015 | | | | | | | | | | | | Impact of Leadership On Merger & AcquisitionsImportance of Leadership to M&A success or its failure | | | | | | | | | | | | | | | | | | | | | | | | By Shreyash Kumar Sharma | Assignment Details 1. Scope Highlight the impact of Leadership on Mergers and Acquisition. Focus on one success and one failure story 2. Assignment Flow 3.1 Executive Summary 3.2 Failure – BMW and The Rover Company * Summary * Acquisition Details * Analysis * What Went Wrong? 3.3 Success – AkzoNobel N.V – Imperial Chemicals Industries plc. * Summary * Acquisition Details * Analysis * Success Story 3 Closure 2.1 - Executive Summary In the current knowledge based economies, in order to gain access to one of the most important intangible asset of one business – the brand –, the companies merge or acquire the targeted brand (Kumar & Blomqvist, 2004) Today’s business world deals with an increasing phenomenon of Mergers and Acquisitions (M&A‟s), a process through which companies gain access to some tangible and intangible resources. The benefits of mergers and acquisitions (M&A) include, among others: * a diversification of product and service offerings * an increase in plant capacity * larger...
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...Subject: Strategic Leadership in a Changing World Question: Write an essay (using module concepts) that evaluates the strategic issues and options facing your organisation of choice. Company: Toyota Corporation Final Word count: 3,000 Toyota is seen as one of the market leader in the auto industry. It headquarters is based in Japan. It manufactures and sells vehicles (Toyota annual report, 2012). Toyota chiefly operates in Japan, Europe, Asia and North America. This essay will examine the company position analysis. Further, it will identify key strategic issues and these issues will be analysed and evaluated. Issues can be internal or external in nature and maybe positive or negative to the organisation (Haberberg & Rieple, 2008).The next section will analyse Toyota’s current position. To understand the organisation strategic position the environment, capabilities, culture and its purpose will be analysed (Johnson et al, 2011). Toyota’s culture is the Toyota way which focuses on continuous improvement. In addition it does lean production which concentrate on ‘just in time’ production and ‘Jidoka’ system which emphasises quality and no waste. According to (Toyota, 2013), they concentrate on CSR issues and environmental issues. The environment analysis will be analyses using Swot and PESTLE analysis. According to the evidence, Toyota’s corporate culture has placed the organisation in a position which focuses at adding value to current and future...
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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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...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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...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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...environment, strategy plays a very critical role in ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in the industry thereby reducing the significance of branding...
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...CASE STUDY OF BMWi INTRODUCTION: BMW start their work as a business entity in 1917. They entered in automobiles in 1928-29. They first significant aircraft engine then they shift their business to motorcycle and then automobile industry. They unveiled two new models, they launch their electric motoring division BMWi. This i3 is an electric small car and on the other hand i8 is a very powerful sports car. They combine the electric motor with the three cylinder combustion engine. For the reduction of weight the car is constructed with the light weight aluminum, in their structure and body from the strong but light carbon fiber. They also have small batteries. BMW are very much cautious about predicting that there will be a demand of electric car in the future. TASK 1 (1a,1b): Reason behind this decision: The reason behind this decision of BMW to make BMWi is that, they have taken preventive measures to reduce the impact of automobiles on the environment. They want to design less polluting cars by making their existing models into the more efficient along with the environmental friendly fuels as vehicles if future. The possibilities of which are as: electric power, hybrid power (combustion engine and electric motors) hydrogen engine. Now the BMWi has all this, it is relatively simple in production process. It does not involve any press shop, welding shop and the paint work is also in a very small quantity. Mr. Robertson insists that it means, “it is much easier to ramp up production...
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...clear answers to the questions: A s s s s What is the scope of the business (or offering) to which this strategy applies? What are the current and future needs of customers and potential customers of this business? What are the distinctive capabilities or unique competence that will give us competitive advantage in meeting these needs now and in the future? What in broad terms needs to be done to secure the future of our business? These questions should have been addressed during the process of strategy formulation. The processes and techniques and processes described in Part III may have contributed to answering them. In this chapter, we are concerned with some of the practical issues that arise when thinking and analysis leads into action and commitment. We are concerned also with what makes the difference between good and indifferent business strategies. We suggest that a good business strategy will meet six tests of quality: s s s s s s It will be correctly scoped. It will be appropriately documented. It will address real customer needs. It will exploit genuine competencies. It will contribute to competitive advantage. It will lay the ground for implementation. The paragraphs below examine each of these tests in turn. business strategies 171 14.2 The scope of business strategy ach separate ‘business’ should have its own business strategy so that a multiple business enterprise will have a number of separate business strategies...
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