BMW

Authors
Paola Estrada
Carla Guevara
Harold Gonzales
 INTRODUCTION
BMW was founded in 1916 by Karl Rapp and Gustav Otto
in Bavaria, Germany.
The first cars were built in 1932 by purchasing a car
manufacturer in Thuringia, Germany.
During the Second World War, BMW produced almost
exclusively aircraft engines for the German Air Force.
In March 1948, the first post-war motorbike was sold and
in 1952 the first car. BMW opened its first manufacturing
plant outside Germany in 1972 in Pretoria, South Africa.
After that, the company is expanding rapidly. Building
more foreign plants, the BMW Research and Innovation
Centre and the BMW museum in Munich. (Group, 2016)
 VISION STATEMENT

BMWs vision statement is explained as follows:

We are Number ONE.
We inspire people on the move:
We shape tomorrow's individual premium
mobility.
(Group, 2016)
 MISSION STATEMENT

The current mission statement of BMW

group is:
The BMW Group is the world's leading
provider of premium products and
premium services for individual mobility.
(Farfan, 2016)

 SWOT ANALYSIS
Strengths Weaknesses

1. Diversity in workforce
1. Perception of high prices
2. High reputation
2. Only serving luxury car segment
3. High class R&D
3. Increased purchasing prices
4. Brand loyalty
4. The last crisis has affected BMW
5. High quality and durability

Opportunities Threats

1. Stricter regulations and 1. Strong Competition (Audi, Porsche

environmental friendly trend or Mercedes) that are constantly
2. Growing luxury car market segment evolving and adapting to the
3. Increasing middle class market.
2. High amount of substitute products
3. High bargaining power of suppliers
(due to relationships)
 STRATEGIES

BMW's strategy is to be
highly competitive in their
market and to be the
number one. Their strategy
is differentiation, offering
high quality and constant
innovation in the market,
always innovating in
technology.
 Customer orientation:
Our clients decide if our company is successful.
Our clients are the center of all our actions and the
results of our actions must be judged from the
customer benefit perspective.

Maximum performance:
Our goal is to be the best. Each of us has to face this challenge, which
means that every employee has to be prepared to achieve a high
degree of efficiency. We aspire to belong to an elite, but without being
arrogant, because it is the company and its products that counts the
most - and nothing more.
 Responsibility:
Each BMW Group employee has personal responsibility
for the success of the company. This also applies within a
team, where each person should be aware of their
responsibility. In this sense, we are fully aware that we all
work together to achieve corporate goals. For this reason,
we also work together in the interests of the company.

Effectiveness:
Only sustainable and effective results will be seen for the
benefit of the company. When evaluating management, it
is only the effect of performance on results that counts.
Customer Satisfaction: Commits Continuous Improvement:
to satisfy its customers through the Commitment to an attitude of
quality of its products designing continuous improvement, through
individual mobility Premium. the involvement of all, to
continuously improve our
performance.
 We create the future:
We combine operational excellence and fresh thinking.

The BMW Group believes that the recommendations and

suggestions contained in the German Corporate Governance
Code help make the German financial market more attractive,
in particular for international investors.
The Board of Management and Supervisory Board support the
recommendations and suggestions contained therein and have
developed a corporate governance code for the BMW Group,
taking account of the specific circumstances of the BMW
Group.
Throughout its 100-year history, the BMW Group
has always reinvented itself. As a pioneer of new
technologies, the company has shaped change,
within both the industry and the world of mobility.
We are setting the standard with our Strategy
NUMBER ONE > NEXT, both now and in the
future. We will lead the BMW Group into a new era,
one in which we will transform and shape both
individual mobility and the entire sector in a
permanent way.
 EFAS
External Factor Weight Rating Weighted Score

Opportunities
1. Stricter regulations and 0.08 2 0.16
environmental friendly
trend
2. Growing luxury car 0.11 1 0.22
market segment
0.05 4 0.60
3. Increasing middle class

Threats
1. Strong Competition (Audi, 0.10 3 0.30
Porsche or Mercedes) that are
constantly evolving and
adapting to the market.
2. High amount of substitute
0.12 3 0.36
products
3. High bargaining power of 0.06
suppliers (due to 4
relationships) 0.12
 IFAS
Internal Factor Weight Rating Weighted
Score
Strengths
1. Diversity in workforce 0.05 3 0.15

2. High reputation 0.06 3 0.18

0.07 4 0.28
3. High class R&D
0.05
3 0.08
4. Brand loyalty 0.06
4 0.18
5. High quality and durability
Weaknesses
1. Perception of high prices 0.10 4 0.24

2. Only serving luxury car

segment 0.05 3 0.15

0.04 0.16
1. Increased purchasing prices
4
0.06 0.20
1. The last crisis has affected 4
BMW
 SWOT MATRIX
Opportunities Threats

1. Stricter regulations and 1. Strong Competition (Audi,

environmental friendly Porsche or Mercedes) that
trend are constantly evolving and
2. Growing luxury car market adapting to the market.
segment 2. High amount of substitute
3. Increasing middle class products
3. High bargaining power of
suppliers (due to
relationships)

Strengths (S1 O10) Diversity in the (S2 T1) The high product quality
1. Diversity in workforce workforce makes employees are loyalty of customers.
2. High reputation highly qualified.
(
3. High class R&D
4. Brand loyalty
5. High quality and durability
Weaknesses
1. Perception of high prices
2. Only serving luxury car
segment
3. Increased purchasing
prices
4. The last crisis has affected
BMW