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314 Final Paper Project Final

314 Final Paper Project Final

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Sections

  • INTRODUCTION
  • aron Prescott
  • Products and Services
  • Product Development &Government Policy
  • BMW Global Production, Outsourcing, and Logistics
  • Vertical Integration
  • Foreign Direct Investment
  • Greenfield Strategy
  • BMW s Operation Segments
  • Works Cited (Aaron)
  • ris Miner
  • Culture
  • Works Cited (Kris)
  • Micah Edmond
  • Marketing
  • Acquisitions
  • The Four P s
  • Push and Pull Strategy
  • Works Cited (Micah)
  • Travis Harrant
  • Financial Analysis
  • Works Cited (Travis)
  • Herbert Bowen
  • Current Challenges and Solutions
  • Mergers
  • Globalization Strategy
  • Strategic Alliance
  • Works Cited (Herb)

International Business Final Project

By: Aaron Prescott Kris Miner Micah Edmond Travis Harrant
BMW GROUP

Page. 1

Table of Contents
INTRODUCTION .................................................................................................................... 2 Aaron Prescott ...................................................................................................................... 3
Products and Services.................................................................................................................. 3 Product Development & Government Policy .......................................................................................... 4 BMW Global Production, Outsourcing, and Logistics ......................................................................... 5 Vertical Integration............................................................................................................................................... 7 Foreign Direct Investment ................................................................................................................................ 9 Greenfield Strategy ............................................................................................................................................... 9 BMW s Operation Segments.......................................................................................................................... 11 Works Cited (Aaron) ......................................................................................................................................... 12

Kris Miner ........................................................................................................................... 14
Culture .......................................................................................................................................... 14 Works Cited (Kris) ............................................................................................................................................. 21

Micah Edmond ................................................................................................................... 23
Marketing ..................................................................................................................................... 23 Acquisitions ........................................................................................................................................................... 23 The Four P s ........................................................................................................................................................... 26 Push and Pull Strategy ..................................................................................................................................... 29 Works Cited (Micah) ......................................................................................................................................... 31

Travis Harrant ................................................................................................................... 32
Financial Analysis ...................................................................................................................... 32 Works Cited (Travis)......................................................................................................................................... 37

Herbert Bowen .................................................................................................................. 38
Current Challenges and Solutions ......................................................................................... 38 Mergers .................................................................................................................................................................... 39 Globalization Strategy ...................................................................................................................................... 41 Strategic Alliance ................................................................................................................................................ 42 Works Cited (Herb) ........................................................................................................................................... 45

Page. 2

INTRODUCTION
BMW Group Company is powerful MultinationalEnterprise, represented all over the world with more than 94,000 employees and over one million vehicles sold every year. Importers in 120 countries represent the BMW and worldwide sales organization comprised 24 sales subsidiaries. They are one of the most successful multi-brand premium car manufactures in the automobile industry. They are the only manufacturer of automobiles and motorcycles worldwide that concentrates on the premium standards and outstanding quality for every one of their models. Being one of the few automobile manufactures that concentrate exclusively in the premium market of automobiles, they offer an array of products. The BMW and Rolls-Royce brands of the company serve the premium and ultra premium segments in the automobile market. They also serve the premium small car segments with their Mini brand. BMW models include, Sedans, Coupes, Touring, Compacts, SUVs, etc. BMW has been making cars for almost one hundred years. They began as an aircraft company and then used the meticulous engineering to design top of the line cars. BMW is synonymous with high quality and performance, which is reinforced by strong brand recognition and customer loyalty. Introduction by, Aaron Prescott

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aron Prescott
Products and Services
BMW provides its customers with premium luxury and sports model automobiles and motorcycles. For almost a century BMW has maintained a reputation of excellence ever since the first motor was built. The First BMW engine that was produced was the, M2 B15 Victoria motorcycle (bmwdrives.com). BMW began to move away from the aircraft industry because of the armistice agreement Germany signed at the end of World War II, which prohibited the Germans from making aircrafts. In 1922 BMW, constructed the R32 motorcycle that was BMW s biggest seller, selling 3,100 bikes till 1926. The R32 showed a strong impression at its world premier at the Berlin Automobile Show. With the great success of the R32 BMW began to move into vehicle construction even before automobiles were invented. This movement is the point at which BMW established their trademark boxer engine design and continue until present day. 1928 was the year BMW presented their first automobile for sale called the Dixi 3/15. BMW purchased a car factory in Eisenach, Germany and with it a license to begin building the small vehicle. Since then BMW has been producing top of the line automobiles available all over the world. The current models BMW produces today are, the 1-series, 3-series, 5-series, 6-series, 7-series, Z-series, X-series, M-series, Xm-series. BMW uses a unique numbering system to identify their models. Usually the lower the number the

The two digits following the series number indicates the engine size and the. BMW was the world s first car manufacture to prepare medium a long-term development of its vehicles in alignment with a hydrogen-based operation. and their focus is to. The M models are offered in all the series BMW produces and includes high performance engines and aftermarket parts to enhance the driving experience. BMW CleanEnergy. In the U. BMW calls their alternative energy approach. Along with the hydrogen engine BMW announced that the companies first mass-produced electric car would be released in 2013. which indicates coupe or all wheel drive.S. The Z-series is BMW s sports convertible model and xseries is BMW s SUV models. it comes with high performance and always a higher cost. In some cases after the engine size numbers certain models will have a c or x. eradicate emissions and to utilize regenerative sources of energy (Just-auto). BMW s M series is a unique model. Product Development &Government Policy Since 2004 BMW has spent millions of dollars in R&D to advance the BMW name in the alternative energy movement.Page. 4 smaller and less expensive the car. The Mini E. The move too hybrid vehicles over the globe has become a growing concern for many automobile companies.recently President Obama announced new fuel efficiency standards to increase automakers research and design teams to produce newer technology that will return higher fuel efficiency. under BMW s Mini Cooper brand will be a fully powered battery-operated . i or d specify fuel injection or diesel.

South Africa.S market and has government regulations become stricter. which are produced in Great Britain. BMW has a strong share invested in the U. Egypt. Thailand. the USA. Its light weight and stronger aspects will come from a high tech carbon fiber that will allow the Mini E to have a 160 mile range on a single charge. BMW Global Production.0). BMW has to find ways to alter their strategies and remain competitive in foreign markets BMW will effectively transition into the hybrid sector and maintain the same line of excellence and instill their reputation of The Ultimate Driving Machine . BMW also owns the MINI and Rolls-Royce brands. Mexico. Outsourcing. the UK. and Logistics BMW manufactures products in thirteen countries on four continents.Page. 5 automobile. BMW automobiles are produced at twenty-four different locations. BMW Group is currently the only company that will be launching a volumeproduction vehicle on the market that features carbon fiber-reinforced material (GAS 2. BMW s worldwide subsidiaries and manufacturing plants are located in. Brazil. Malaysia. and safer than any other current electric car. Their motorcycles are manufactured in Berlin and the Husquvarna brand in Italy. stronger. faster. the Philippines and Vietnam. The Mini E. Indonesia. Although BMW and the other European automobile makers are late arrivers in the electric hybrid sector. BMW plans to surpass other current hybrid vehicles on the road. will be lighter. Austria. Germany. .

safety and processes at all of their locations around the world to guarantee worldwide premium products. Germany. 6 To Ensure customer satisfaction all around the world BMW maintains the same standards of quality. (BMWgroup. In the United States BMW s major manufacturing plant. is a subsidiary of BMW GROUP in Munich. In recent years BMW of North America has grown to include marketing.com).5 million vehicles. 90 mini passenger car dealers. 142 BMW motorcycle retailers. First and foremost. each plant making its own contribution to the smooth operation of the production network (bmwusfactory. BMW s group sales for North America is located in Woodcliff Lake. and 31 RollsRoyce motor car dealers (bmwusa. The Spartanburg plant is a Limited Liability company and is a subsidiary of BMW . sales. BMW only has one manufacturing plant located in North America and its located in South Carolina. South Carolina.Page. and financial service organizations all throughout the US.com). 335 BMW Sports Activity Vehicle centers.com). BMW has over three hundred automobile sales centers. greater efficiency in the supply of production materials helps to speed up the delivery of cars and motorcycles to customers. recently in 2009 BMW s manufacturing plant in South Carolina celebrated fifteen years of vehicle manufacturing producing 1. BMW s integration of production and logistics systems within the twenty-four manufacturing sites around the world offers many advantages for its customers. BMW maintains premium automobiles throughout the world. located in Spartanburg. New Jersey. BMW has had a presence in the United States since 1975 as BMW of North America LLC.

Page. The plant manufactures all of the BMW X5 and X6 sports utility vehicles for distribution around the world. BMW began relying on more vertical integration compared to past years in order to strengthen the . Vertical Integration Recently BMW has started preferring the make over the buy option in some countries in an attempt to cut cost (Interview Questions). About a week later I received an email from a generic email account with my questions answered. Mrs Wright from their New Jersey headquarters. I emailed her my list of questions and she forwarded them someone who could answer them. She was very helpful. I called Mrs. one in particular gave an in-depth response (Does BMW use more of a vertical or horizontal integration strategy around various locations in the world?) Based on the response I believe the representative may be involved in managing BMW parts for various assembly plants around the world. 7 Group s global manufacturing network. Wright back and she assured me they were from a reliable employee but could not remember who she gave them too. Interview from a BMW Representative (at their New Jersey Headquarters) Mid way through the semester I spoke with a representative from BMW. but I never received a name or title of the representative who answered them. Of the various questions I asked. I explained to her I was conducting an international business project and had a list of questions I was wondering if I could get answered.

Many suppliers operating in such sectors of the component supply industry fear BMW might re-in source all of the pressed parts activities thus undermining their businesses (Interview Questions). such as Germany. The shift to produce more in-sourced parts came when. 8 capabilities of their OEM car parts. German automakers factories were running at significant high utilization rates. and provide space for the Just In Time suppliers to carry out their work as close as possible to production.com). connected directly to the assembly area by two tunnels through which electric tow trains feed the production lines (Autointell. and free up in housing of resources. to reduce . BMW established the Integrated Logistics Centre (ILC). Each plant has a large warehouse. The ILC provides two functions. will be beneficial to increase productivity. The move towards Just In Time supplying and using a more vertical integrated decision making system is BMW s Six Sigma philosophy.Page. In 2007 BMW started the expansion of the stamping plants in Leipzig and Regensburg with a total investment of 200 million (Interview Questions). BMW sees the move towards a higher level of vertical integration in some specific sectors in various countries. Where available BMW employs a Just In Time supply strategy. 97% in 2005. To maintain smooth and efficient flow of production materials to plants around the world. BMW justified the upper level decision with the rising high logistical cost of pressed parts. act as a receiving and sequencing facility. BMW parts are shipped directly to the assembly areas.

Greenfield Strategy By investing in Greenfield production plants in various countries. The expansion provided 1. In 2008 BMW announced that they were investing 1 billion dollars in their Woodcliff Lake headquarters. As a global players BMW s flexible network of 24 production plants in 13 countries ensures that customers receive exactly the car they have ordered. eliminate waste and cut costs throughout the company (Hill). BMW realizes the importance of creating opportunities of local production in foreign countries and they capitalize on opportunities to penetrate and develop markets with long-term growth potential (made by the BMW group). 9 defects.S citizens. By establishing a local production plant.S citizens. to U. tailored specifically to their wishes and preferences (made by the BMW group).00 jobs.Page. BMW s Foreign Direct Investment in the United States has had provided thousands of jobs for U. boost productivity. in New Jersey. BMW can reduce high import costs of importing fully assembled automobiles to specific . This investment is the largest BMW has mad in America aside form its manufacturing facility in South Carolina (Ofii.org). BMW is able to enhance local acceptance in the market and become a local player. Foreign Direct Investment BMW Group is very successful in global production.

The plants that BMW has in these countries do not feature full-fledged car production buy only assembly of CKD s kits shipped from elsewhere to sidestep import tariffs which are strongly enforced in these countries (autointell.000 units in the 1st step the capacity can be gradually increased up to 300. BMW explains the benefits of natural hedging. Egypt. In the CKD process BMW assembles cars locally from imported parts and supplemented by parts produced locally and essentially fulfilling the local content requirements imposed by different countries government regulations. One of BMW s current Greenfields investments is located in Shenyang China. A high level of purchase volume in key sales regions with differing currencies serves to balance out . and ASEAN (Malaysia. BMW calls these local production plants. Vietnam. and BMW is planning to expand the production plant beginning in 2010. Indonesia) countries will double their share of production compared to 2009 (Bmwgroup.Page. India.com). completely knocked down. In 2013 these companies are only forcasted to account for 1. (CKD). Thailand.com).7% altoghether in the premium market.000 units/year in line with growing market demand in the long term. Russia. BMW s Greenfield expansion has the potential to make total production capacity to increase to more than 100. they can also be used in such cases to offer products in emerging market at competitive prices (made by the BMW group). BMW is able to make use of these local Greenfield production plants for natural hedging. BMW has also taken not of potential emerging markets for production. 10 countries.

Automobiles. 11 the flow of merchandise as well as make up of currency fluctuations and the associated trading risks (made by the BMW group). Another aspect is purchasing in the NAFTA region for production in Europe and other regions.00 to 240. In 2006. BMW plans to reduce dependence on foreign exchange rates by utilizing the natural hedging it has implemented over various countries. In recent years. they are. In light of its successful retail trend in the USA. Exchange rates have become a burden for the BMW GROUP in recent years.com). BMW s Operation Segments BMW is divided into three operation segments.00 units by 2012. This will allow BMW to decrease its foreign exchange rates to the US and decrease transportation cost. the BMW Group wants to expand its natural hedging sustainably over the medium term and thus significantly reduce its dependence on volatile foreign exchange rates (bmwgroup.com). The BMW automobile segment includes . One aspect is the local content of the vehicles manufactured in the USA. and Financial services.Page. By increasing the CKD assembly plants world wide BMW plans to cut down significantly on foreign exchange rates. BMW plans to expand the production capacity at Spartanburg Plant located in the USA from 150. the NAFTA region accounted for some 9% of BMW s global purchasing (bmwgroup. it was increased from about 30% to more than 60%. Motorcycles.

com/Manufacturing. The segment also focuses on selling cars and SUV s under one of the three BMW brands.com. 2010. Auto UK. . assembly.. This segment sells its cars and off-road vehicles through authorized dealers and independent import companies (Businessweek). 04. 2010. 1 May 2010. "BmwUSA. The last segment of BMW s operating segments is financial services. and assembly.org. BMW.aspx?id=1932>.com. and selling of the BMW motorcycles. 22.org/2010/04/22/bmw-says-first-electric-car-themegacity-is-coming-in-2013/>. The main concentration is mostly on leasing. The leasing aspect deals with retail customers and dealer financing to ensure the leasing opportunities are available to all customers and remain equal to all possible leases." The BMW Group Production Network. Both the automobile and motorcycle segments offer spare parts and accessories for purchase. <http://www." BMW Group in North America . Works Cited (Aaron) "gas2. and RollsRoyce. manufacturing.bmwusfactory.Page. The financial segments also handles Fleets business. and insurance ventures. . N.p. Web. <http://gas2. customer deposit business. Web. 2010. Web. 1 May 2010. "BmwFactory. The motorcycle segment focuses on manufacturing. 12 research and design." Auto UK. 1 May 2010. Mini.

ofii. 1 May 2010. 7th ed. 1 May 2010.p.autointell." Bmw Stock Research. Web.pdf+bmw+"gr eenfield"+investments&hl>. "Businessweek. N. International Business Competing in the Global Marketplace.p." Strategies. 13 <http://www. . Web.asp?privcapId=704634>. 1 May 2010. 2010. 1 May 2010.bmwusa..a..: McGraw-Hill/Irwin.html? http://www.com.bmwgroup.Page. L.com. <http://investing.com/bmwgroup_prod/e/nav/index.ht ml>.aspx> "OFii. Web.. 2009.com/research/stocks/private/sna pshot.org.S." BMW Logistics.p. Economy of Greenfield Projects by U. Boston [u. N. "bmwgroup. 2010. 2010.bmwgroup. Charles W. Hill.com. Web.com/european_companies/BMW/mini/oxf ord-plant/bmw-oxford-plant-07-logistics.htm>. <http://www. Print.com/Standard/Content/CompanyInformatio n/BMWGroupinNA. "Autointell.com/bmwgroup_prod/e/0_0_www_bmwgr oup_com/unternehmen/unternehmensprofil/strategie/strategie. 2009. <http://www..p.businessweek.org/docs/Greenfield_2009_Report. N." The Impact on the U. Subsidiaries of Foreign Companies . <http://www. N.S.

Great Britain. They have seventeen production facilities. custom. the United States. China. 14 ris Miner Culture Culture is a word that does not have one solid definition. which covers more than one hundred and fifty countries. and other capabilities acquired by man as a member of society (Hill 89). that complex whole which includes knowledge. These six countries are Austria. With over one hundred thousand employees. but also how each countries culture is different and how these individual countries need to interact with each other. South Africa. law. which are located in six different countries. and Germany. belief. One of the most popular definitions is that by Edward Taylor which he defines culture as. BMW not only has to look at how its German culture affects these countries. art. BMW is a multinational corporation. BMW also outsources to six other countries and has research and development in over thirty countries. Many of these countries have very different cultures. based in Munich Germany. in this case Bavarian Motor Works (BMW).Page. morals. BMW. The same can be applied to a corporation instead of a man. as a corporation and as a multinational enterprise. BMW has managed to create a high efficiency culture with . builds its corporate culture through its management style and its employees.

responsibility. adaptability. and independence (bmwgroup. While the employees of BMW can be considered a society. sustainability. effectiveness. respect trust and fairness. Adaptability is . It is this team that gives BMW the reputation associated with them. BMW employees are considered part of a team. Each employee is part of the organization. employees. it is the customers who determine the success of the company. In order for this team to succeed. society. high efficiency. The following principles of the BMW Group form the basis of this long-term and target-oriented action.Page. The first principle is customer orientation. they need to have a high team spirit. these are the society s values. That s why each employee has a personal responsibility to make the company successful. exemplary function. A second principle is peak performance.com). to offer even better products . With this mindset from the employees. This is why BMW builds their company around their customers. If something is not working as effective as possible management will look to improve it. If one employee slacks off then it affects the entire company. The vision of BMW is to become the world s leading provider of premium products and premium services for individual mobility (bmwgroup. Like all other companies who provide a product. It is a norm for everyone in the company to work to their best potential. to constantly incite each other to become even better. 15 their goal being. BMW is able to be highly efficient. Next comes effectiveness. disagreement. Another principle is responsibility. These twelve basic principles are customer orientation.com). BMW looks for effective results and production.

and fairness allows for employees to work with confidence and to their full potential to create the best product possible. or stay ahead of change. That s why the employees hold such a high responsibility to succeed. Like any argument. and fairness. If this is done. then fairness should follow. companies have to be able to adapt. This belief ranges from the CEO to the employees on the assembly lines. trust. trust. If a company is economically successful. Like the BMW website says. the longer they drag out the worse they get. This belief in respect. 16 also very important to BMW. BMW also allows and looks to resolve dissent once it is brought up. With recent breakthroughs in technology. Every employee is expected to treat each other fairly and with respect. With dissent. In this case they want the company to be successful economically. then it must be making a strong product that is desired by consumers. This is why BMW wants its employees to be upfront and bring any disagreements to management who can hopefully resolve the argument and send the workers back to work. An argument in any company is never a good thing. A company that is able to adapt to change. like BMW will be a successful company. . Each employee is expected to lead by example. BMW does this by making vehicles that are considered some of the best in the world.Page. BMW also has a strong belief in respect. The company also strives for sustainability. BMW takes this as a chance to create and then implement their new technologies into production vehicles. a company is only as good as its employees are.

consumers. These twelve basic principles are the guidelines. Instead. In market and mixed economies. These guidelines create a culture that is highly efficient and very successful. or South Africa. Independence is something that is very important to BMW. The way that BMW stays independent is through sustainable and profitable growth. and everyone else that is affected by the decisions of BMW.Page. Whether it is in Germany. BWM is committed to focus on its social responsibility. BMW is the company who buys other companies instead of being bought out. America. BMW not only survives. which support individualism. It does this in all different types of political systems. it can also succeed in totalitarian countries where socialism and collectivism are practiced. BMW continues to fill a large part of the vehicle segment worldwide. While BMW is a company that has had great success in democracies. This social responsibility is for BMW s employees. BMW has had a steady . these basic principles are uniform and being enforced to make sure that BMW continues to succeed. they are followed internationally wherever the company is located. 17 The final two basic principles of BMW are Society and Independence. It is a culture pushes the employees to exceed and respects them as well. While the different countries that BMW enters for business have different cultures. The high efficient culture that BMW has created allows BMWs to be found in all different types of economies. which BMW functions under. it grows. This corporate and employee culture are not just for one location. the employees voluntarily accept the BMW culture.

bmwgroup. First off is its highly efficient culture.com). as well as many other countries. First are the strengths of the company. The company is really starting to make pushes in countries with command economies like China. Quality of work like this can be related back to the twelve principles that are the guidelines BMW employees follow. and build something special. Also according to the IIHS. it is in control of its own destiny and able to make its own . China has a market for large sedans. As an independent corporation. The fact that they are built in the country at the Shenyang plant is a plus for the Chinese. Next is the fact that BMW is owned by itself. When the 7 series sedan is added to this number. which was already talked about. 18 following and made profit in most of these countries. While some companies often look at product safety laws as an inconvenience. This is different compared to Europe where narrow streets and high gas taxes cause a larger demand for small more fuel-efficient vehicles (www. An important factor in understanding any corporation is SWOT analysis. which surpass the expectation being legal. about seventy three percent of all BMWs sold in china are sedans. BMW often passes these with flying colors.Page. This plant specializes in production of the 3 and 5 series for the local Chinese market. This adds to the BMW reputation where they build vehicles. These two sedans alone make up for over fifty five percent of the BMWs sold in China. all BMWs received a rating of good. According to the Insurance Institute for Highway Safety (IIHS). crash test ratings are a big reason why Chinese vehicles are not allowed in America. They are simply not safe enough and do not pass these product safety laws.

Another strength is that it has a strong brand loyalty. This is slowly changing though as oil prices steadily increase. BMW is also found in every corner of the populated globe. There are many people and families that are enthusiast and will only purchase BMWs. Another problem is the repair price. like many other companies it also has some weaknesses. BMW has many opportunities ahead of itself. While strength of BMW is loyalty. While the Rolls-Royce brand reaches well above a couple hundred thousand dollars. This large market makes BMW a known competitor to everyone. less powerful yet more fuel-efficient engines are offered while in America the engines are more powerful and less fuel-efficient. While BMW controls itself. it also controls other companies such as MINI and Rolls-Royce. With the new trend of globalization. 19 decisions (Dharmesh). Mini. For instance. these cars are all relatively expensive. parts are not cheap. These are two companies which are somewhat specialized yet still profitable. If something goes wrong with a vehicle. a weakness is customer dissatisfaction. While BMW has lots of strengths. Shipping cost are . BWM has the possibility to further spread its brand. it specializes production to best fit the culture of a certain area. Finally.Page. If a customer has a bad experience with a vehicle or an employee. since BMW is found all over the world. BMW only puts the best parts in their vehicle so it is a tradeoff that owners have to accept. it is very possible that that customer will go to a competitor. especially in the American market. While BMW controls itself. and Rolls-Royce. in Europe. Only the base Mini Cooper is available fewer than twenty thousand dollars.

they have developed a functional hydrogen fuel cell.Page. This causes people to drive less and buy more eco friendly vehicles and BMW has yet to releases they hybrid models. new alternative energies are coming out and BMW is not going to let any of these pass them by. which BMW is in.com). 20 going down and allowing more BMWs to be in more places. They have an opportunity to continue to influence China Also. One threat BMW faces is competition. many countries are developing new standard such as America s new Corporate Average Fuel Economy. While every country has a different culture. like BMW. and well be coming out with it soon. Oil is also another threat to BMW. it brings an internal culture with it that people are . These CAFÉ standards require fleets of cars to achieve an average pre determined fuel economy (NHSTA. These competitors are. With oil prices on the rise. doing a lot of research in order to stay on top of emerging technology. BMW could fall behind the trend. While BMW does have to adapt to different laws and regulations in different countries. BMW has a culture of its own which it brings with it wherever it goes. is very competitive with competitors such as MercedesBenz and Audi. Threats occur in all companies and the way in which companies handle these threats determines their success. The market. BMW has pretty much perfected their diesel engine. prices of crude oil and gasoline are both on the rise. With more concerns about the possibility of an oil shortage. All of these are opportunities for BMW to expand and grow. If these threats are not taken seriously and constantly watched. setting the standard for new hybrid engines. or CAFÉ standards. BMW is a multinational corporation that spans all around the world.

<http://www.htm>.com/viewer?a=v&q=cache:3Yw_3nvGhgwJ:ww .nhtsa.com/e/nav/index. we can only tap into the full potential of international business if we understand different customer groups. Web. Web.bmwgroup. cultures and requirements. 04/23/1989.com/store/samples/aroq_bmw_profile_2005ed1./0_0_www_bmw group_com/home/home. NHSTA. Today we are active in more than 140 markets worldwide..justauto.." Just-auto. Ideally. Web. or norms. 21 willing to adapt to. which make it highly efficient and very successful wherever it goes. experiences and interests (bmwgroup. Aroq ltd. It is very rare to see an international business have such a uniform culture in different locations. "CAFE overview." google docs. <http://docs." BMW Group. "BMW Company AG: 2005 Company Profile.pdf>.Page.gov. 2005.com.com) Works Cited (Kris) "BMW Group. life situations. April 2005. BMW. Joys of BMW. BMW and its internal culture follow twelve basic principles. However. 29 Apr 2010.html&source=overview>.html?. <http://www. this task is handled by employees who have a deep understanding of this diversity thanks to their own biographies.google. 29 Apr 2010. 29 Apr 2010.gov/CARS/rules/CAFE/overview. As BMW says itself." NHSTA. Web. <http://www. 29 Apr 2010. "BMW in China.

.p.. <http://www. 08/02/2007. . Dharmesh.scientificaward.Page.pdf+bmw+plant+%22greenfield %22&hl=en&gl=us&pid=bl&srcid=ADGEEShRAHeXpINj0A_QTsxMB KSWV6pUxW7xrbNm4mMh313RSuw_ntfgxfmy5gN4JWLKxe6W_1k Yb_GZXvTrXpjxLUMgNtTalJuZKOal5pGR2Yajy0KTbmuq8LZ0Z83KSB2mCsFOnql&sig=AHIEtbThZVYYlFfR9Pjc63J8jzIDDZVqg>. "Marketing Strategies BMW. 22 w.com/e/0_0_www_bmwgroup_com/investor_rela tions/ir_services/BMW_in_CHINA." Slide Share. 29 Apr 2010.slideshare.net/thats4u83/b-mw-assignment>. N. Web.

Honda.Page. The company's success to date is proof of this strategy's correctness. To achieve its aims. Land Rover. the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. which needed to be changed." (www. For years BMW held a small market to which they sold cars. They needed to spread out across the market and expand upon their product base.com) Acquisitions BMW bought the British Rover Group in 1994. They had to make the right decision on how to expand their product line but carefully. if they created a more inexpensive line of cars. . BMW. the BMW Group has its sights set firmly on the premium sector of the international automobile market. and MG brands. which would compete with Ford. BMW Group is committed to the very highest in quality for all its products and services.bmwgroup. 23 Micah Edmond Marketing "With the three brands. From research and development to sales and marketing. Toyota. MINI and Rolls-Royce Motor Cars. BMW had to be extremely careful when doing this because they could easily destroy their very successful image. which consisted of Rover.

Rover was planning their next addition the now extremely popular Range Rover. At the time British Aerospace owned the Rover Group and were also searching for an exit from the company due to differing interests with the . which could have been profitable for the company. BMW looked into developing a new brand. when they came to BMW searching for a supplier that could produce diesel engines. Brands such as Toyota and Nissan were successful with their additions of their luxury creations Lexus and Infiniti. which did extremely well. with a lower end going up to a higher end. topping it off with their exclusive brand Bentley. When Fiat created the Croma they focused it as an executive car but it did not do very well on the market. There were only two options for BMW to expand. at the same time Fiat released their budget supermini car the Uno.Page. BMW held a spot at the premium level and the exclusive level with Rolls Royce. While BMW were researching and planning their possible routes for expansion into the market an option took place where they were able to look at Rover. 24 Volkswagen and Fiat it would unquestionably decrease the value of the BMW brand. The only times when large car companies were able to be successful in multiple market areas was when they used multiple brands. this was to either purchase an already existing brand or to completely create a new brand. Many car companies in the past have failed miserably trying to connect the extremely large gap between small budget vehicles and premium luxury vehicles. The Volkswagen group was able to achieve this going from their lower end brand Skoda. to their middle class that consisted of Volkswagen up to their higher class Audi.

which would have helped Honda enter this market. The possibilities of overlap between the two manufacturers were little to none. (www. Rover fit BMW s premium image and outstanding quality like the missing piece to a puzzle. Volkswagen. Triumph. This made it important for BMW to seize the company before Volkswagen was able to.uk) BMW soon sold the Rover Group to Ford but was very smart in their moves along the way. they were able to delay the possible competitor from having a big influence on the European market. (www. the Rover 75. . BMW s tactics at the international helped them setback a possible competitor from entering a market in another country. was very interested in the company. BMW was not the only company that had its eye on Rover.uk) BMW s choice to purchase the Rover Group was an exceedingly smart move that benefited the company in the long run. While BMW owned Rover they only invested in certain areas of which they retained after the deal was done. owning 20% of the company. With BMW breaking the tie between Honda and Rover. After five years of BMW owning Rover they only released one new car. BMW closed the majority of Rover s dealerships as well. resulting in a trade of ownerships. Honda was not comfortable being partners with their competitor BMW.aronline. Rover could have become Britain s goto brand for a premium vehicle. 25 companies focus on airplane design and manufacturing as well as defense.co. On the other hand Rover owned 20% of Honda s United Kingdom manufacturing facilities. The one problem among the transaction was Honda s partnership.aronline.Page.co. a competitor of theirs. BMW retained the Rover.

Longbridge and Hamms Hall. which they kept and later used on their X5 model. M and 6 series is geared toward a businessperson who is looking for incredible BMW performance as well as . 5." (www. promotion. and Hybrid. BMW though did not sell the rights to the 4x4 to Ford. they offer Rolls-Royce at their exclusive level.Page. Rolls-Royce is currently producing two lines. 26 Riley. The Z4. The first of the four P s is product. which is pushed toward individuals who want a premium car but do not need a large sedan. BMW offers three levels of premium vehicles. Cowley and Swindon. during ownership of which they retained when they sold the company. The 3 series is BMW s compact executive car. Both of these lines targeted towards exceptionally wealthy families and people who are looking to be "highly individualistic. X. price and place. The 5 series is BMW s mid-size executive car that is for businessperson who also has a family or wants more space. These four controllable categories are product. The 1 series is geared towards the middle class and is BMW s new less expensive model. and facilities. and MINI brands.rollsroycemotorcars. which is the physical product that is being sold. BMW at their mid sized premium level and MINI as their smaller car premium level. 6. 1. The Four P s The four P s have a huge impact on how BMW makes their marketing decisions internationally. 3. BMW invested into multiple of the Rover plants. Z4. 7. the Ghost and the Phantom.com) BMW currently has nine series of cars which include the. M.

Sports versions of their vehicles that contain performance enhanced specifications and different sized engines also influence prices.bmwusa.000 to $450." (www. generally focused toward a wealthy businessperson. BMW s product line ranges from $27.com) The price section of the four P's of marketing is different depending on which country you live in. In Europe MINI is very popular because of small streets and the car is easy to drive on these streets. BMW only distribute their first-class vehicles .000 dollars. MINI currently entails.000 to $137. which is focused towards more environmentally savvy individuals. Cooper. MINI is for individuals that looking for a premium level vehicle but fell that BMW is too expensive.bmwgroup. 27 modern style. MINI is more of a city car that is geared to people who do not need space but are family oriented and active. the product line of Rolls Royce ranges from $245. which is based on how BMW makes their vehicles available to the targeted customers. (www. they provide premium customer service.000 to $34.000. Cooper S. In the United States. Each of the companies has cars that are focused to certain target markets. The 7 series is BMW s full size luxury car that is focused towards people looking for effortless luxury and tremendous power. BMW s X series is focused towards wealthy families. There are many factors that affect BMW Group s decision with choosing the price of a vehicle. Along with their multiple brands and product lines.000.com) BMW also offers multiple lines of Hybrids.Page. The MINI product line ranges from $17. Cooper Clubman and the John Cooper Works. which vary internationally. directly mothers who are "socially conscious. The third P is Placement.

L.Page. Making the vehicles exclusive gives their company an advantage in preserving their premium status throughout the world. Promotion is one of the most important factors when dealing with a business internationally. In our textbook International Business: Competing in the Global Marketspace by Charles W.com) When visiting the BMW websites for both Germany and United States the home pages are similar yet they way they present the information is different. When visiting both websites the navigation section are the same as they are at the bottom of the page. he explains that cultural differences between nations are such that a message that works in one nation can fail miserably in another. Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.bmwblog. BMW s slogan though works equally well throughout the world. which is The Ultimate Driving Machine that was created thirty-five years ago. (www. The last of the 4 P s of marketing is promotion. One advertisement would not meet the needs of the different cultures of different countries. Hill. 28 through premium dealerships with BMW and MINI. (p. What is different about the two websites is the central . BMW has to use different advertisements for selling their premium cars in different countries throughout the entire world. 607) For example an advertisement created by BMW could possibly work with the German culture but be insignificant to people in the United States. The Ultimate Driving Machine is straightforward and can relate to any customer throughout the world that is looking for a premium car with exceptional quality.

After the site automatically moves onto the next section it presents their campaign "Build Your Own. Which is exactly what BMW does with this new campaign they are able to draw in Americans to make a car of their own. and no one else in the world will have the exact same car. Push and Pull Strategy BMW Films was BMW s form of advertainment which is a mesh of advertising and entertainment. Joy is BMW Active Hybrid." When you arrive at the United States BMW website you are greeted with a short movie clip and music. These high tech and gaudy advertisements work well with their target market in the United States. the main attraction. The German site is more straightforward and geared towards giving the consumer an exceptionally premium car with guaranteed quality." This attracts the United States population s ongoing obsession for everything to be customizable. Each of these four pictures give a statement about their new ad campaign "Joy Is " The website describes their new BMW 3 series Cabrio as "Joy is Always in Season. The website then explains the same ad campaign as in Germany but more flashy. It explains how each of their cars has "hundreds of millions of possibilities" as to how to customize a BMW to make it your own. 29 advertisement in the middle of the page. .Page. The only way to catch the eye of a potential customer is to have an ad campaign that will draw them in to see what you have to provide. On the German BMW website there are four pictures that you can scroll through. Through these short ten-minute film series named." and their new hybrids as "Joy is Efficiency of Movement.

Individuals who watch would become potential customers who would be attracted to BMW's cars. Taiwanese. In these films actor Clive Owen is The Driver who is hired by various people to be a sort of transport for their vital needs. and British. BMW was able to promote their premium cars." (p. 604. though the real stars were the premium BMW vehicles. Mexican. 30 The Hire. BMW was able to connect these films with multiple cultures throughout the world by using various filmmakers from throughout the world.bmwusa. which were featured in each of the films. A push strategy emphasizes personal selling rather than mass media advertising in the promotional mix While "a pull strategy depends more on mass media advertising to communicate the marketing message to potential customers.aspx) These short films highlight performance aspects of multiple BMW cars. The nationalities of the directors featured American. Charles Hill) When BMW created their short film series The Hire it was a distinct move in the way of a pull strategy.Page. The films demonstrated the high level of performance and the premium quality that their vehicles contain. "The main decision with regard to communications strategy is the choose between a push strategy and a pull strategy. Chinese.com/Standard/Content/Uniquely/TVAndNewMedia/BMWFi lms. (http://www. This diverse group of directors allows BMW to connect with different cultures throughout the world. .

Web.com>.aronline. <http://www.rollsroycemotorcars. 02 May 2010. 02 May 2010. Web. 01 May 2010.bmwusa. <http://www.Page. BMW Group.bmwblog.bmwgroup.aspx>. International Business: Competing In The Global Marketplace." BMW North America.com/Standard/Content/Uniquely/TVAndNewMedia/ BMWFilms. 31 Works Cited (Micah) Austin Rover Online. 02 May 2010. Boston: McGraw-Hill/Irwin. "BMW Films. Print. . <http://www. <http://www. . 2009. 02 May 2010. Web. Charles W. Web. 606-07. <http://www. Rolls-Royce Motor Cars.com>.bmwusa.uk>. BMW BLOG | BMW News. 7th ed.com>.com>. Web. Web. BMW Reviews.co. <http://www. BMW North America. 02 May 2010. Hill. L.

The automotive segment is the company s . 32 Travis Harrant Financial Analysis The Bayerische Motoren WerkeAktiengesellschaft (BMW) Company uses both International Financial Reporting Standards (IFRS) and the German Commercial Code (HGB) for accounting policies and procedures. The third-quarter reported a net profit of euro 78 million for BMW Group. This was euro 220 million (73. motorcycles.Page. Both accounting procedures are valid under the International Accounting Standards (IAS). The BMW Group uses consolidated financial statements to report the company s financial position and its subsidiaries. The earnings for BMW Group are broken down into three categories. They enable the overall group of company s outlook as opposed to one company s stand alone position. BMW Group uses the current rate method to determine the exchange rate.automobiles. In this financial analysis I will be using the third quarterly report and the annual report 2009 for the BMW Company. A consolidated financial statement combines the separate financial statements of two or more companies to yield a single set of financial statements as if the individual companies were really one (Hill 661).8%) lower than the 2008 third-quarter report. Under the current rate method. the exchange rate at the balance sheet date is used to translate the financial statements of a foreign subsidiary into the home currency of the multinational firm (Hill 664). and financial services.

In the USA.2 million units in 2008 to 62. . within the whole company. The motorcycle segment was reduced by one third from the 2008 year. The bonus program in France helped boost sales eleven percent. The motorcycle and financial markets were also hurt from the worldwide economic crisis. the car market was not affected by the economic crisis. The USA suffered about a three percent loss.Page. India had the biggest increase. In Brazil. In particular. even with the bonus program. Both countries contracted by almost one-half. which was also beneficial to the financial services sector (16 Quarterly Report). the largest market for motorcycles. In the European Union the demand decreased around two percent. with the motorcycle segment making the least amount of revenue. This helped the BMW financial services sector with a profit of euro 94 million.5 million units in 2009. Governments started to reduce interest rates to help compensate the recession. The financial services place second. Spain and Russia suffered the most from the economic crisis. It grew by 9% because of the tax reduction for small cars. The financial services were also hurting because of the international financial crisis. decreased from 66. they ensured the supply of liquidity to international money and capital markets. 18%.9%. based on the third quarter. sales dropped 40. 33 largest revenue maker. BMW suffered losses from all regions. The automotive segment. cash for clunkers (Annual Report). Because of the economic crisis worldwide.

slightly decreased. a 5.2 million. The total cash inflow also dictates the stockholders dividend payment. The overall cash outflow decreased from the previous year. Cash flows are classified into operating.3 million from 2008. BMW invested euro 2. BMW generated a positive cash flow of euro 10. This was decreased euro 5. increased euro 1.3% in value since the beginning of the year (14 3rd QTR Report). euro 2. the DAX.8 million from the previous year. and financing activities. Investing activities fell euro 7. and so on (Hill 678). The development costs rose 1. BMW uses the Germany stock index. investing. Financing activities also decreased from the previous year.16 points on the last trading day for the quarter. The automotive segment only increased by 3.5 percent decrease from 2008. In 2009.3 million in property.7 million. the dividend payment totaled euro 197 million.675. The main focus for BMW was product investment on new model set-ups and infrastructure investments.Page. was . The 2009 third quarter closed at 5.1 million. repayment of worldwide corporate debt.2 million to euro 3. plant and equipment and other intangible assets. 34 Capital budgeting for BMW Group decreased from euro 4. For 2009. The index has gained 8.3 million from the 2008 year. This was 18% higher than the previous quarter. at the end of the 3rd quarter. Cash flows are the basis for dividends to stockholders. In 2009. Investing activities.7 percent from 2008. The operating cash outflow. The common stock for BMW. investments elsewhere in the world.9% for the quarter. automotive segment. for cash inflows.

30 and yielded a .DE) .85. The day s range was euro 37.28-37. At the end of the quarter. The BMW Group joined the Carbon Disclosure Leadership Index in September 2009. At the closing time. The last trade value was euro 37.42 from the previous day.40.com/q?s=BMW.yahoo.1% of its value since the previous quarter. the value of preferred stock was euro 22. 35 euro 32.38. it was valued at US dollar 1.37. The asking price was euro 37.46 to the euro. In 2009.96. This caused a 4.5% decrease for the closing rate. At the end of the 3rd quarter. increased 22. the dividend increased euro .25 to the euro. The volume value was euro 2.73. The preferred stock increased 32. The bidding price was at euro 37. This means that the BMW Group has been the most sustainable car manufacturer in the world for the fifth time in succession (04 Annual Report).95.85. The US dollar has lost 4.finance.Page. has increased from the third quarter report. the US Reserve Bank had lowered the interest policy causing the US dollar to lose value. In the beginning of the year the US dollar was valued at 1.08. (http://uk. Because of the USA growing deficit. This was down euro .40. BMW was the industry leader in the Dow Jones Sustainability Index.8% from last quarter numbers.164. This index applied to companies in the Global 500 index that make a contribution to the climate protection. The current stock information. The 52 week range was euro 28. The market value cap was euro 22.53 billion.814.6% for the quarter.79 percent increase. as of 4/27/10. The opening bid was euro 37.

the rate at which one currency is converted into another (Hill 324). USA. 36 Foreign exchange market is. In some cases this makes it hard for the company to compare the actual amount from quarter to quarter. a market for converting the currency of one country into that of another country (Hill 324). The USA market came in second at 18. The Germany market was the largest sales volume at 20.053. The exchange rate is defined as.Germany. the overall value can be worth more or less than each other. the exchange rate does not affect the BMW Group s financial worksheets. Canada.2 percent. the units of volume fell 242. The European market was hit hard by the global recession crisis. In the USA. The BMW Group uses the euro for reporting financial statements. The USA market has to use the exchange rate to compute the earnings in the euro. Because the exchange rate is always changing.9% from the . The reason behind this is because the company manufactures in one country and then sells in another country. In the automotive market. The differences in the country s currencies value can let the company lose operating activities. the net sales volume decreased across the whole company. United Kingdom. Spain. compared to USA. -20. Sale volume was down 11. surpassed their previous year s sales volume by 2.8 percent.3 percent. Because the currencies of different countries have different values compared to each other. and Other. Italy.Page. China. France. As noted above. the results differ from the previously reported amount.8 percent. Spain came in last with 3.9 percent. The BMW Group automotive segment sales volume is broken down into eight markets.

com/q?s=BMW. in 1.: McGraw-Hill/Irwin. was 357. came in third with 267.Page.a. 7th ed. 2009.8 percent from 2008 financial year. The European market only sold 761.286. International Business Competing in the Global Marketplace. Although the overall market sales volume was decreasing. Charles W.5 percent increase. in 1. causing a 31.000 units.finance.1 units.718 units. the Asia and Chinese markets increased.1 percent. reported a volume of 267. 37 previous year. . L.yahoo. The Germany market. The total number of automotives delivered by region. Boston [u.000 units. The European market totaled. largest in the company. Print. This was down 4. The United Kingdom was the smallest market with only 137. was 1.5 units.3 units. The Chinese markets reported an overall increase of 31.3 units.DE) Annual Report Hill. Spain sold 40.887 units. Works Cited (Travis) http://uk.539 units. Asia reported a 10. the largest in the company.7 percent decrease. The Germany market.

engages in industry-level strategizing. it analyzes global trends in the automobile industry and then positions itself in relation to its competition (1). a firm must maximize the value for the firm. its owners and shareholders. in order to adhere to the guidelines of the foreign company at hand. a keen eye on the growth markets of tomorrow. Norbert Reithofer comments. Managers and firms alike must seek strategies that increase profitability of the enterprise and rate of profit growth over time.. the pertinent aspect is the firm. Then the company slashed capital expenditure by almost 800 million Euros and maximized on its financial services segment (2). 38 Herbert Bowen Current Challenges and Solutions A strategy can be defined as the actions a manager takes to attain the goals of the firm. a global company progresses to the stage of formulating and implementing strategies at the international level (1). To view some of these goals and missions that BMW has let s take a look at Dr. design and ecological innovations.significant when you consider that the group employs close to 100. Since. and.000 employees. and BMW has emerged leaner from the experience with a focus on cost reduction. of course. That the company has emerged leaner is a result of a reduction of about 4% of its workforce . 2009 was unequivocally a year of challenge for the entire automotive segment. At the industry level. Now you must adapt and mutate the company strategy. What exactly do I mean by this? BMW.Page.. .

Learning effects refer to the cost savings that come from learning by doing. and preparing for growth markets of tomorrow. in order to achieve economies of scale and thus cost reductions (2).000 equals 4.Page.000 employees. where cuts of . design. all ways to cope with and war against the tumultuous economy. know-how.04%*100. We are examining with the Fiat Group possibilities of joint use of components and systems in Mini and Alfa Romeo vehicles. This entry for BMW into the mini brand of cars would be a vehicle that is cute. Thus.000 employees being laid off. cost reduction. but not a luxurious (2). Moreover. the alliance between BMW and Fiat. gains efficiency and effectiveness. (In fact. labor. as they are ameliorated. Mergers The merger was a signed agreement to build cars and share components. due to the managers and firms learning new and efficient ways to increase revenue and cut down on operation. for instance. Through cost reductions BMW has become leaner by reducing 4% of its workforce. especially when it comes to small cars). Mini s are produced at the . ecological innovations. which employs 100. Board member Friedrich Eichner. For example. over time. they are producing a better. (engines. they slashed capital expenditure by 800 million. BMW was able to become leaner due to learning effects and economies of scale. In addition. revamped economy of scale. 39 In his comments. one can derive four components that appear to be the focus of BMW.

as third quarter sales fell by 8. such as parsimonious consumers in main markets. MINI and Rolls-Royce cars between July and September. The group sold 349. Siemens Energy & Automation (11). lagging used car markets affecting leasing operations. BMW s history of production and factory innovations has been a good match with Siemens technologies and services. develop a new product. Automation and Motion Division. BMW had to cut 40. or in other words the international financial crisis. two years ago in 2008 was the economic slowdown.793 vehicles. Fixed costs are the costs required to set up a production facility. beating the previous . BMW and Siemen s Energy and Automation aligned together.276. (11).C. 430).098 of its BMW. Along with the financial crisis. S. while net profit plunged by 63 percent to 298 million. But what plagued them in the past. and the like (Hill. a fall of 4.6 percent to 12. Compared to 2007 BMW reached sales of 1. said Raj Batra.Page. We are pleased to begin these latest projects and look forward to growing along with the Spartanburg facility.6 billion.) Examining further economies of scale refers to the lowering of a firm s unit costs and the increases in its profitability. and rising financing costs. BMW had additional setbacks.000 of additional units in 2008. What is illustrated are two companies combining resources to propel BMW to new heights and eventually industry leader. vice president. Therefore. 40 BMW in Cowley.2 percent. Oxford. as Siemen s delivered turn-key automated conveyor and end-of-line testing systems for BMW s new assembly North Facility in Spartanburg.

hence easy entry.5%. as 2006 sales of 805. Rolls-Royce Motor Cars increased by 25. 41 year's level of (1. perhaps in operations.5% to 222. skills difficult . and location economies. Third. Siemens has implemented a technique called PROFINET. Over time Rolls Royce has seen figures rise four times in a row.077). increased by 18. based on a three-fold integration of uniform engineering. BMW s actions and goals perfectly align with the globalization strategy.7%. learning effects.185.088) by 7. Advantages of alliances dictate four aspects: strategic alliances to proliferate into a foreign market. Another technique thought by Siemens is the TIA platform (Totally Integrated Automation). Next. where focus is on increasing profitability and growth. would be sharing the fixed costs through R&D. placing annual sales into the four-digit range for the first time.Page. MINI in comparison with the previous year of (188. asserting Rolls-Royce as tops in the super luxury car market (10).875 units sold to customers. This enables users to easily expand existing operations or build new lines without having to overhaul the entire automation system (11). the international open industrial Ethernet standard for automation. while reducing costs from economies of scale. Globalization Strategy Thus. high-performance communications and consistent data management. Those figures are presented to display why BMW finds it necessary to administer and acquire outside sources like Siemen s to further their technologies and find ways to cut costs. rose to 1010 cars.

To uphold this moniker one must transmute with the times. With this strategy. and quality performance (6). Strategic Alliance The alliance not only aids BMW. an alliance should push technological innovation to leap ahead of competition. but also garner more profits. BMW wants to lower emissions of carbon per kilometer travelled. Along with ecological standards BMW has formed with SGL. The proposed cooperation with BMW is a significant cornerstone of our strategy of alliances. one that will be noticed worldwide. We are delighted to work with such an esteemed and respected partner in the automotive industry with the clear objective of improving the competitive position of both parties (3). parts and technology will be put into the Megacity vehicle. Toyota. Fiat CEO Sergio Marchionne. economies of scale are kept in mind to produce carbon fiber reinforced plastics at volumes and prices realistic for mass production (5). providing a name coupled with high-class. The US has invested $100 million with 80 local . BMW wants to put a standardized image. For about four decades BMW has made itself known to have efficient dynamics. a company based in Seattle Washington. Once again. sustainable mobility. Finally.Page. 42 to develop by one firm should be complementary to the other. and Honda. and in the modern era focusing on ecological innovation is where governments and automakers alike are investing their dollars. but Fiat the largest Italian automaker. which is a BMW sub-brand. in this case Mercedes.

It will be the world s most cost efficient carbon fiber plant using state-of-the-art technologies (7). . If we look at BMW s recent advancements in China. For 2010.000 units. friendlier for the environment.000 to 100. China is boasting staggering sales and manufacturers are creating enticing bells and whistle for Chinese buyers. Additionally. the Mini E s body will be fabricated in the Moses Lake plant. European. The new rich have made China an integral asset for the market of luxury goods makers in the U.. So. China is becoming a hotbed for competition. said Robert Koehler. BMW not only is becoming more eco-friendly. This effort is by works of their Efficient Dynamics strategy.Page. For example. CEO SGL Group. BMW s operations went from 40. to remain eco-friendly. Why? In China there are more drivers who are starting to drive. 43 jobs that would be created. With dedication to ecological standards. and Japanese makers of high-end automobiles. to make light weight cars. the Moses Lake plant hopes to recycle all the carbon material. now the Megacity Vehicle powered by electricity has a base in the USA.S. we see investments of a billion dollars to increase production. a plant located in Moses Lake uses carbon fibers for large scale production in the automotive industry. In addition. The fourth component speaks towards the growth of future markets. but innovative with the new technology in carbon fiber. But its most notable feature is the creation of energy by hydropower. and desire a luxury car. to foster lightweight cars reducing CO2 emissions and ameliorate fuel storage.

and improving economies of scale. In essence. thought and construction of two plants with combined potential for as many as 300. new innovation in design and operation systems. "The growth in China doesn't come for free. We are currently exploring this possibility together with the authorities here in China . as they plan to deliver 120.000 BMW. propounding BMW s name across the globe. Their goals of cost . In addition. You have to invest and it will come" (8). and Rolls-Royce vehicles in China in 2010. he said at the Beijing auto show. the Audi A6L is favored by government officials.. Mini. a 33 percent increase from last year and 20 percent more than a previous projection. Tiexi would increase production capacity in China to 100. 44 Currently. In fact Rolls Royce has set up dealerships in Chengdu. I see China will even overtake the U.Page. But. The X1 is manufactured exclusively in Leipzig at present. BMW alliances focus on ecological concerns.000 vehicles a year would depend on market trends. Moreover. a mountainous southwest city that holds private gatherings for buyers who want to share their enthusiasm for cars. This quote speaks to BMW s intent.K." CEO Torsten Mueller-Oetvoes (8). and was up 14 percent. The BMW X1 could be one of the first products for our new plant in Tiexi in the Shenyang region. Reithofer continued (7). this year and that we will see the Chinese market as the second-most-important market after the U..S. in the super luxury end Rolls Royce s revenue has increased significantly as they have had to hire more workers in producing the vehicle to meet Chinese demand. but may be needed in long term. our home market. prescience into future markets.000 vehicles a year from 2012 on.

21 Apr. the carbon from the Moses Lake plant that will be recycled after use. . to maintain the pulchritude of the Earth s landscape. <http://www." Super Business . 21 Apr.. BMW can transport jobs. due to Rolls Royce and the success of the brand. BMW is emerging as the industry leader." BloombergUTV: Latest Business News. 45 reduction are realized through the skimming of jobs in the United State sector.com. BMW. Web. but with demand rising steadily in China. . Web. the source of all the luxury car activity is China. also. Live Stock Quotes. "BMW's 2010 Strategy. Audi. 2. Lull. 19 Mar.com/industrynews/automobile-industry-india/47499/bmw-s-2010-strategy. Pavan. and the SGL GROUP all allow BMW to lower their fixed cost and increase profitability.Project Management. Financial News and World Business News. Stock Market News. Modern times and regulations call for more miles to the gallon. Toyota all are competing to become top seller in China.super-business. India Business News.net/intercultural-management/308. <http://www. Economies of scale are paramount as the alliances between Fiat.bloombergutv..html>. and cleaner emissions.BloombergUTV. Siemens.html>. We see this from the Megacity Vehicle powered by electricity. Mercedes. 2010. 2010. Latest India News. However. "Corporate Strategy and Intercultural Management . Finally. 2010.Project Management.Page. With the boom of opulent persons in China. Works Cited (Herb) 1.

stm>. Chang. 8. <http://www. 5.com. 8 July 2010.com :: Speed Matters. Always On. 2010.com/hostednews/ap/article/ALeqM5h8LHDpLSjL1L9n TijACbBn-51YdAD9FBSD600>.pistonheads.co.com/blog/1037455_bmw-joins-forces-withcarbon-fiber-manufacturer-for-megacity-vehicle>. Spy Shots and Videos . <http://www. 2010.com | Always Branding.asp?storyId=18347>.bmwgroup.MotorAuthority. 21 Apr. Anita. 4.MotorAuthority. Web.html>. 2010. <http://news." Car News. .com | Brandchannel.bbc.bmwgroup. Web.Page. 2010. Web." Brandchannel.com/features_profile. Car Reviews. 2010. 6." BBC NEWS | News Front Page. Ireson. 7.co m/e/0_0_www_bmwgroup_com/investor_relations/corporate_news/news/ 2010/Carbonfaserwerk_April_2010. Web. 46 3. 2010.com/tvr/default.asp?pr_id171>.html?http://www." PistonHeads.com/e/nav/index. 9 July 2008.google. "HTC | Electronics Brands | Brandchannel. "BMW Joins Forces With Carbon Fiber Manufacturer For Megacity Vehicle . Web.motorauthority. 21 Apr. Web. BMW Group. <http://brandchannel. Nelson. 21 Apr. "The Associated Press: Rich Chinese Driving Growth of Luxury Auto Market. 21 Apr. "Fiat/ BMW Alliance. "BBC NEWS | Business | BMW and Fiat Mull Parts Alliance.uk/2/hi/business/7496105. <http://www. 21 Apr. 21 Apr." Google. <http://www.

"Siemens to Deliver Conveyor System for BMW Facility in South Carolina Today's Automation News Headlines from Automation.: McGraw-Hill/Irwin.The Local.Industrial Automation. Print. . Web. Krause. <http://www.de/money/2008110415309. Web. International Business Competing in the Global Marketplace. 7th ed.Germany's News in English. Web.com/47346/bmw-group-increases-2007-sales-9-2percent>.com/content/siemens-to-deliver-conveyorsystems-and-end-of-line-testing-for-bmw-facility-in-south-carolina>. Charles W.com. Factory & Process Automation." Automation." The Local . Stefan.automation. 11. 47 9. Boston [u. 2010. 21 Apr." HULIQ | Citizen News Review.com . "BMW Posts Hefty Quarterly Loss . 2010.Page. L. Instrumentation Resources. 21 Apr. Motion Control. "BMW Group Increases 2007 Sales by 9. <http://www.huliq.2 Percent | HULIQ. 2009. 10.html>. Hill.thelocal.a. <http://www. 21 May 2010.

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