BSBA-FM 3D

GROUP 4
Lapera, Yvie Patrice S.

Ortega, Niel V.

Talili, Paul Henzon B.

Tamayo, Mhitz T.

Bayerische Motoren Werke (BMW)

Management
Strengths:

- BMW reports their revenues by region and by brand and is doing exceptionally well in all
regions and brands. (Directing)

- According to BMW, they are looking ahead to expect the headwinds in Europe to remain for
their sales. However, they are also confident of healthy growth sales in other regions, especially
in Asia and the America. (Planning)

- China overtook the USA in 2012 as BMW's biggest international market. (Controlling)

Weakness:

- BMW operates using an autocratic, functional structure with no apparent Chief

Executive Office or Chief Operation Officer and divisional Presidents. (Organizing)
- - BMW's sales in January 2013 increased in all region and brands, except Motorrad
Motorcycle. (Controlling)
Marketing
Strengths:

- World famous German automobile, motorcycle, and engine manufacturing company.

- Listed in Forbes magazine as the number-one most reputable company in the world in
2012.
- BMW’s logo has been portrayed as the movement of an aircraft propeller with the white
blades cutting through a blue sky-first used in a BMW advertisement in 1929, 12 years
after the roundel was created.
- The iPad-equipped, specially trained “BMW Genius Everywhere” staff that gives
customers information about vehicles and features was successful.

Weaknesses:

- Poor performance in Asian markets.

- Brand portfolio is weak. BMW brand has only three names under them: Rolls-Royce,
BMW, and Mini.
- Controversies are blown out of proportion, giving them negative publicity.

Productions and Operations

Strengths:

- Workforce of approximately 105,000 employees.

- Operates 29 production and assembly facilities in 14 countries and has a global dealer
network in more than 140 countries.
- Has the smallest firms in terms of number of employees, but it has the second highest
earnings per share (EPS).

Weaknesses:

- Struggled to ship components on time because of a new supply-management system

being introduced in its central warehouse in Germany.
- BMW automobiles uses only premium gas to repair cost could be higher than usual.
- Forced to cease aircraft engine production by the terms of Versailles Armistice Treaty.
Finance and Accounting
Strengths:

- In 2012 BMW Group sold 1.85 million cars and nearly 117,000 motorcycles worldwide
that increase their annual sales of 10.6 percent.
- Also in 2012, BMW sales rose 11.6 percent, the best sales level in the history of the
company.
- Sales in the month of January 2013 grew 11.5 percent.
- Recorded the best-ever May 2013 sales with 166,397 BMW, MINI, and Rolls-Royce
automobiles delivered to customers worldwide.

Weakness:

- BMW’s stock has declined 2.5 percent in 2013 through August, valuing the company ay
45.7 billion Euros ($61 billion).
- 2012 year-end segment data by region for automobiles shows 2.8 percent decline in
motorcycle revenues and decline in United Kingdom revenues.
- Income Statement shows increase in liabilities from 11, 515 (€ million) in 2011
increasing to 14,559 (€ million) in 2012.

Research and Development

Strengths:

- Was established in 1917 following a restructuring of the Rapp Motorenwerke

manufacturing company.
- BMW was once an aircraft engine producer and later 1923 shifted to producing
motorcycle and automobile in 1928.
- BMW Group and Toyota Motor Corporation extended their long-term collaboration
agreement for the joint development of a fuel-cell system, architecture and components
for a sports vehicle, lightweight technologies, and collaborative research on lithium-air
batteries with a post-lithium-battery solution.
 Weakness:

- Slow product innovation

- Lack of original research ideas. BMW adopts and borrowed concepts from other
companies.
- Criticisms against BMW’s iDrive control, a rotating control knob and segment buttons-
designed to control all in-car entertainment devices, satellite navigation, heating and
ventilation, and other car controls with a screen.

Management Information System (MIS)

- BMW has no Management Information System (MIS). BMW must have an MIS because
it will help them to improve their operations, visualization, coordination, and control
analysis. In addition, MIS will help the company’s decision making and will increase
profitability.