...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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...Culture of BMW When we think of culture must do not equate it the work environment. However, culture plays a very important role in the work environment. This is something that those at BMW have realized. Seeing that the culture of a corporation effects the way employees interact and view their jobs BMW makes their work culture one of the most important factors throughout their corporation. At BMW they feel the culture of the corporation plays a big role in production as well as achieving all the goals set forth by the corporation for the corporation. Part of the reason for culture having a major role is BMW feels that everyone benefits from a great working environment. As a result of this new employees adjust to the culture at BMW very quickly. The corporate culture at BMW can be viewed as an entrepreneurial work culture. As stated in the article, “Much of BMW’s success stems from an entrepreneurial culture that is rare in corporate Germany (Kurylko, D.T).” What is so rare about this culture is employees join in all areas of the organization creating a feeling of teamwork or a “family” type feeling. All employees have a clear understanding of the mission and commitment of BMW. All employees work side by side at the same level. By doing so it is creating a better understanding of their fellow co-workers and their roles within the corporation. “The culture has become a network of committed associates with few hierarchical barriers to hinder innovation (BMW,s Dream Factory)...
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...Bavarian Motor Works company better known as BMW, is one of the world’s most respected automakers. The German based company is most known for producing luxury vehicles that offer superior levels of driving enjoyment. With its ever changing product line, few companies are able to compete with BMW’s vast array and quality of vehicles. Culture is a term that is difficult to express distinctly, but everyone knows it when they sense it. For BMW, it’s culture is expressed from the bottom to the top of this evergrowing company. BMW incorporates ideas from all of its associates from the bottom up. When one would expect a large company of its status to ignore the ideas of simple laborers as opposed to employees higher on the corporate ladder, BMW incorparates brainstorming sessions to make sure the needs of its consumers are well considered. Associates who work for the company experience a sense of place, history, and mission from the moment they set foot inside the company. Without forgetting it’s humble beginnings and shortcomings along the way, BMW has become a network of dedicated associates with few hierarchial barriers to delay innovation. The process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent is how leadership should be defined. The leaders at BMW encourage their associates to take in active role in the company’s product innovations. BMW has developed a mature partnership with...
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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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...Running head: BMW'S DREAM FACTORY AND CULTURE BMW's Dream Factory and Culture BUS/520 BMW's Dream Factory and Culture BMW, with more than $60 billion in sales, is much smaller than its American rivals. However, the U.S. auto giants could still learn some things from BMW (Reh, n.d., para.1). BMW’s culture could be considered one driven highly by teamwork. BMW’s 106,000 employees have become a network of committed associates with few hierarchical barriers to hinder innovations. Individuals from all levels of BMW work side by side. Which creates informal networks where even the most unorthodox ideas for making better Bimmers or boosting profits can be voiced? The difference at BMW is that managers don’t think they have all the right answers, their jobs are to ask the right questions (Reh, n.d., para. 2). Leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing other to embrace them in their own behaviors, and making hard decisions about human and other resources. The model of leadership used at BMW would be one of delegate style where the leader permits the team to make the decisions within prescribed limits (Hellriegel, & Slocum, 2010). A good example of this model/style being used would be when the demand for the 1 Series compact soared, plant manager Peter Claussen volunteered to temporarily use the brand new factory in Leipzig, Germany which had be designed for the 3...
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...head 1 BMW's Dream Factory & Culture Christian Chenard Strayer University Dr. Theresa J. Bowen Leadership and Organizational Behavior - BUS 520 April 2010 BMW's Dream Factory & Culture 2 How would you describe the culture at BMW? Entrepreneurial culture is rarely the norm in German corporations. Employees at BMW are innovative because management has learned from experience that listening to assembly workers' ideas and customers likes make for a very creative culture. The employees at the plant, to include engineers, assembly line employees and management are known to brainstorm when a problem arises with a car model in production. The task force concept is a powerful tool BMW has learned to use when it needs to either solve a problem or create a new concept of operation for a project. (Hellriegel, D. & /Slocum J, 2007, pp.522-524). Managers came to realize that they don't necessarily have all the right answers. Audi and Toyota are BMW's closest market rivals in Germany and this keeps everyone at BMW thinking from top to bottom. No sooner does an innovation hit the market, people at BMW stay on their toes to see if that is something their clientele might go for in a "Bimmer" or not. Norbert Reithofer, the current CEO at BMW stated "we push change through the organization to ensure its strength. There are always better solutions". (Hellriegel, D, 2007, p522). Not being...
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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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...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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...PART II: – THE CHANGE ANALYSIS – IMAGES OF CHANGE This part of the project is presenting to readers an analysis of the images of change found in the two companies – Royal Philips Electrical and BMW. A review of the said companies is made and comparison based on their change stories. The image of change possessed by any manager is determined by how best he/she is able to plan, direct and control the organization's resources (human, finances, materials/equipment and time) in the best possible way. Rodger Dean Duncan (2013), maintained that managers of change should be gardeners as he presented it in a sub-heading “ Be a Gardener, Go for Growth; A first tendency of many business people is to fix things. But successful leaders invest energy in growing rather than fixing. They know the organization is a living organism with many interrelated elements capable of extinction or growth. Successful leaders are gardeners, they create a nurturing environment and they cultivate with care.'' The above quotation has given us a clear picture of how managers of change should look like and what they need to do in order to keep the organizations in continuous growth. Therefore, it is necessary to present a critical analysis of change images in organizations which may apply to any situation of management and not limited to any specific organization. 2.1 Review of the changes in each of the case study organizations: 2.1.1 Royal Philips Electronics Company: ...
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...Table of Contents Table of Contents 1 Executive Summary 2 Introduction 2 Innovative Companies 3 Innovative Solutions 4 Transferring Innovations 8 Success Factors 9 Conclusion 10 Self Evaluation 10 References 12 Executive Summary In order for Chrysler to be successful in a global market, they are going to have to shed the old ways of manufacturing cars and develop newer innovative ideas to compete in today’s economy. By implementing a new business plan, a knowledge sharing system and partnering with a design firm, Chrysler can become a dominant force in the auto industry, not just domestically but globally. The initial startup costs for implementing these innovations are quite high, yet the long term payoffs such as lower manufacturing costs, higher quality products, less waste, a variety of innovative designs, better supplier relationships, increased sales, profits, market share, and greater customer retention and loyalty, all support changing to a more innovative company. Introduction The target of this project was to find and research innovative methods to apply to a current existing company. Our team chose Chrysler to apply the innovations researched to help their company domestically and globally. With Fiat recently acquiring a 35% stake in Chrysler, it is necessary for Chrysler to focus on the global market to remain competitive in this day and age. This project takes an in-depth look at TaTa Motors business model, Toyota’s knowledge sharing...
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...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 such as: Mercedes, Audi, and Porsche which benefit...
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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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...innovation across the retail industry. From pioneering the concept of designer partnerships to consistently being best in class in store design, Target remains focused on not only meeting, but exceeding, its guests' needs. To remain relevant to its guests over time, Target continually reinvents its stores, including layout, presentation and merchandise assortment, to create an engaging shopping experience. BMW Summary BMW can trace its roots back to Karl Rapp and Gustav Otto. In 1916, the Flugmaschinenfabrik Gustav Otto Company had merged into Bayerische Flugzeug-Werke AG (BFW) at government behest. Elsewhere, in 1917, the Rapp Motorenwerke Company morphed into Bayerische Motoren Werke GmbH, which was duly converted into an AG (public limited company) in 1918. BMW AG subsequently transferred its engine construction operations – including the company and brand names – to BFW in 1922. The date of BFW’s founding, 7 March 1916, has therefore gone down in history as the birth-date of Bayerische Motoren Werke AG. BMW embarks on a new era of electric mobility. With the BMW i3, the new BMW i brand presented the...
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...Before world war 2 * BMW was founded by Karl Friedrich Rapp in October 1913, originally as an aircraft engine manufacturer, Bayerische Flugzeug-Werke. The Milbertshofen district of Munich location was chosen because it was close to the Gustav Otto Flugmaschinenfabrik site, a German aircraft manufacturer. The blue-and-white circular logo BMW still uses alludes to the blue and white checkered flag of Bavaria and also indicates a spinning white propeller on a blue-sky background. * In 1923 BMW built their first model motorcycle the R32. The R32 had notably a 500cc air-cooled horizontally-opposed engine. A feature that would resonate among their various models for decades to come... albeit with displacement increases and newer technology. Line and Staff Concepts in BMW The line and staff is defined by its clear chain of demand, with final approval on decision affecting the operation of the company still coming from the top down SPAN OF CONTROL * Span of control refers to the number of subordinates who can be contolled by the superiors. The span depends upon * The level of management * Nature of work * Types of organisation * Types of subordinates STAFFING While the line structure would not be appropriate for large companies, the line-and-staff structure is applicable because it helps to identify a set of guidelines for the people directly involved in completing the organizational works. Staffing involves providing specialized assistance and advices...
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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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