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 than with conventional production”. BMW is hoping to launch some other models like that in the coming years and their rivals are also thinking about this range of car of light weight, carbon-fibre to become a great part of electric motoring in the near future.

Views of the Stakeholders:
Commitment requires dialogue. As we know that BMW is a internationally operating company, they often communicates their no of national and international stakeholders groups. They includes customers, business partners, employees, media, policy, scientific decision makers, NGO’s and investors.
BMW Group carried out a stakeholder survey in 2006/2007 by an external firm almost 200 stake holders from 21 countries. They goal of this survey is to take opinion about their working. The views of the stakeholders are positive because BMWi is an environmental friendly car, it provide protection to the environment. The fuel consumption and the CO2 emission both are the important issues which are challenging for the BMW Group. They felt that they are technology leaders and they can achieve this successful challenge.
1c- PESTLE Analysis:
Political:
In 2007, the European commission proposed the rule to cut CO2 emission in new cars to 130 gm/km. The laws and govt. regulations has badly affected the automobiles industry. They are concerned with the environmental and more safer automobiles. O due to all these activities BMW took decision to make strategies to develop an environmental friendly car i.e BMWi.
Economics:
Due to the uncertainty in economy, the rate of unemployment is also very high; increase in the prices of fuel characterized the economic environment. Due to this, the increase in the sale of small car and hybrid cars are likely to occur, These can safe energies and protect environment. The creation of BMWi is also occurred due to all these factors because it is the need of the day. Social:
The environmental concern for the fuel efficient and hybrid cars, it will affect the main choice of the car. Majority of the environmentalist are very mush worried about the impact of gas cars on the environment. All these factors initiate the BMW Group to make the electric motoring car BMWi. It can also save our resources and also minimizing the environmental impact.
Technological:
Technological innovation becomes the main part of the automobiles industry. Technological changes play an important role in the automobile to make their product in a better way. This new product of BMW is also a very big innovation which is a proper product at proper time.
Legal:
The EU4 legislation which is about the reduction of particle emission, EC car exemption, and legal driving age must be under review. The safety standard should be check. BMW follows all these legal points and then launch its new product.
Environment:
The two new vehicles of BMW are environmental friendly. So they protect the environment of the surroundings.
1c- INTERNAL STRENGTHS: * BMW is the leader of the automobile market and also the highest selling brand in the world. * It has good reputation in the most successful diesel vehicles. It wins the serial of awards like International engine of the year awards and others too. * The R&D is very much innovative and strong. They invest in it significantly. They spend around EUR 3,144m (5.6% of its sales) on the R&D in 2007.

Due to all these strengths BMW is able to launch its new vehicle with new and innovative style and also protect the environment from pollution.
INTERNAL WEAKNESSES: * BMW is growing very much and its largest market is Germany in the motorcycle business. Due to the high dependence on the particular region creates an opposite effect on the sale of the company during the demand stagnation period in that area. * It shows poor performance on the Asian market. * There production and deliveries are declining. * They pay high rate of wages.
These are the weakness of the company but the strengths of BMW are stronger so they can overcome all these problems.
1d-ANSOFF MODEL:
For launching the new product people have different idea how they start it and sell there product ,so first thing is the positioning of the product. Here we explain the positioning of BMWi according to the Ansoff Model.
First we look at the “Market Development”. This includes the target new market to launch your product to different people. First we target new geographical market for the BMWi inside or outside the Germany. Use different sale channel, and Target various group of people.
For “Diversification” This is a very risky strategy in this we use little existing expertise for achieving economies of scale. We can also use this strategy for BMWi if it is suffer in one area then we can save it in the other region.
“Market penetration” in this type we sell same thing to the same people through advertising , loyalty, new prices. We can also use it in BMWi to utilize our old client who are brand loyal and want to buy all the latest models of the BMW.
“Product development” as BMWi is a newly developed product and people who like to use new styles and new innovation must buy such products.
TASK 2
The strategic planning of BMW starts with its head office in Munch in Germany, they manufacture and sells the cars BMW , MINI and Royce rise car. They cover all types of classes. Currently they are producing cars in Germany, UK, USA and South America with their other external partners. In the last three years nine new models have been launched. They are developing new products in the coming future. They believe on the long term strategy planning process when they started their project. They have a well strategic planning process, the horizon of the planning divided into 12 years divided into yearly period. They complete the full life cycle of the product for the coming five years. In the planning process they plan about the product sale capacities. They take two initial steps future product and existing product.
The two partner companies mutually invest approx. 100$ in their plants and jobs in 80 new locations. For the the large scale production will start BMW i vehicle in 2013. So first they start the production of carbon fiber now. The electricity which is needed for the production of carbon fiber that is available clean and renewable local hydropower. The life cycle emission figure of the BMW i 3 are at the level of third for higher efficiency combustion engine car. If it works with electricity, it will improve the figure by 50%. The technology of carbon fiber totally changes the car industry. It is a light weight material due to this the consumption of fuel is also reduce and lower the emission of CO2. The SGL group and BMW Group are showing through innovation the cleaner individual mobility of future. BMW is not single in this race Daimler also follow it. BMW‘s planning this electric motor from the years, this is the first time when we have official small cars. For the resource allocation they need and own certain resources, capabilities and also have some assets which we can use globally. Every firm has its own capabilities and resources to achieve its goals. There are two types of resources Tangible resource and intangible resource. In tangible resources people and manpower and finance of the organization is involved. Finance can be in the form of debt and capital and BMW have all the resource in quantified form. This is a big organization they can manage all resources including capital. In intangible resources these things which do not have physical holding like the information about the various industries and also the market, reputation and enjoy working in the same field. In case of BMW they have all kind of resources through which they can implement. Now they are manufacturing the BMWi model the main strategic plan for that is * They develop proper system to make the goods at right place on right time. * They must do all the homework first. * About the demand of this car they have to plan first, then took steps of marketing, * The material which is using in its production they have to collect it first. * First through advertisement they should announce about their new product. * Due to the announcement people will well aware about the product, * Not only in Germany but globally advertise it. * They also have to capture the other economy of the world. * The price of this car should be less as compared to the BMW;s other expensive cars.
TASK 3
4a- Roles And Responsibilities of the Organization:
The role of the organization to innovate new product with new technology require many challenges these are the responsibility of the organization to settle them In the project management includes design, strategy and supply and other techniques to control the creative process. The role and responsibilities of the management are t develop and maintain business environment in which an organization will achieve all its strategic and mission goals. They can handle the ongoing process, business decisions and different strategies through which they can innovate and create new products. * They should give their primary attention towards the research and development in the coming recent years. * Build up the environment for the innovation of the product and try to expend the market.
3a)
BMW was planned to allocate new system in their world wide plants for automobile production. They use BMW Digital manufacturing strategy. The reason for this strategy to increase the capacity of plants, through DMF strategy they reduce the overall cost. But it increases flexibility all types of brand , models are made in mixed system depend upon their requirements. They plan to get this goal by using standardized planning method. They create a powerful software involving The BMW and tecnomatix they collect data and then create links between them. The benefit of this strategy is that the time becomes reduced to half. The advantage of this strategy which they implement and developed on the large scale, it is obvious that it is used for the maximum utilization of the plant. This concept works like that through this plants are not affected by the fluctuations in the mixed system all the types and model can be assembled according to their requirement in mixed system.
REFERENCES:
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