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WELCOMEWELCOME
BMW(Bayerische Motoren Werke)
Titans are
Ruhul Amin
Nusrat Mehzabin
Koushik Ahmed Tushar
M.M. Abdullah              
BMW(Bayerische Motoren Werke)
 Bayerische  Motoren  Werke  AG(BMW), 
(English:  Bavarian  Motor  Works)  is  a 
German au...
Overview of BMW
 Industry: Automotive
 Founded: 7 March 1916; 100 years ago
 Founder: Franz Josef Popp, Karl 
Rapp, Cam...
Overview of BMW
BMW Mission Statement:
  “We will sell our products with the highest quality and integrity.” 
BMW Vision:
...
SWOT Analysis of BMW
Strengths:
 BMW group
 Innovation & technological advancement
 Renowned brand in automobile indust...
SWOT Analysis of BMW
Weaknesses
 Cars recalled
 Strategic alliances
 Younger generation less brand conscious 
Opportuni...
BMW –Your Dream Car
Presented By –
Kowshik Ahmed Tusar
S.N:20111105011
PESTEL AnALySiS
P- Political
E- Economical
S- Social
T- Technological
E- Ecological
L- Legal
PESTEL AnALySiS
Political
Enforcement of new laws related to CO2 emission.
Change in EU legislation related to end-of-li...
PESTEL AnALySiS
Social
Ageing population in European markets
Changing family patterns (increasing numbers of same sex
ma...
PESTEL AnALySiS
Legal
Changes in employee health and safety rules and regulations
Patents and Copyrights in relation to ...
VALuE ChAin AnALySiS
The value chain concept developed by Michael E Porter
provides as ystematic means of categorizing act...
RESouRCE-BASEd ViEw
STRATEgy
The resource-based view identifies the
distinctiveness of BMW’s superior performance
and comp...
RESouRCE-BASEd ViEw
STRATEgy of Bmw
Resource Competencies
Threshold Capabilities  Integrated supply
chain
 Young employe...
BMW –Your Dream Car
Presented By –
MM.ABDULLAH
S.N:20111105009
Presentation Topic Porter’s Five Forces analysis of BMW:
 Competitor Analysis:
 Key success factor of BMW:
 Generic st...
Competitor Analysis
 Primary Competitor:
 DaimlerChrysler
 Toyota
 General Motors
 Ford
 Main Competitor:
 Mercedes...
BMW VS COMPETITORS
ENTRY LEVEL
SEDANS
FLAGSHIP
SEDANS
MID LEVEL
SEDANS
BMWACURAINFINITILEXUS
Key Success factor of BMW
1.Customers----
2.Corporations….
3.Competitors….
Identification and selection of long-term
objectives and strategies:
 Generic strategy: Michael Porter developed three ge...
Identification and selection of long-term
objectives and strategies:
 Grand strategy: A grand strategy states the means t...
BMW –Your Dream Car
Presented By –
Ruhul Amin
S.N:20111105003
Grand strategy of BMW
Innovation: Innovation is a grand strategy that seeks to reap the premium margins associated with
cr...
Grand strategy of BMW
Vertical integration: It is a grand strategy based on the acquisition of firms that supply the
acqui...
Grand strategy of BMW
Global integration matrix:
 
 
Global strategy
 
 
Transnational strategy
 
International strategy
 ...
Grand strategy of BMW
Grand strategy selection matrix:
05/05/16
4/24/2016 12:32 PM
29
Overcome 
weakness
Maximize
Strength...
Strategy implementation, control and innovation:
Organizational Structure: 
As mentioned previously, BMW AG is headquarter...
Strategy implementation, control and innovation:
Management Style:
While management is hierarchical, each BMW employee is ...
Strategy implementation, control and innovation:
Controls for Employee Behavior & Performance: For employees located in Ge...
Recommendations
Now the recommendations based on the case analysis are as to:
BMW should diversify their market,
They sh...
05/05/16 34
Case analysis on bmw
Case analysis on bmw
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Case analysis on bmw

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Case analysis on bmw

  1. 1. WELCOMEWELCOME
  2. 2. BMW(Bayerische Motoren Werke) Titans are Ruhul Amin Nusrat Mehzabin Koushik Ahmed Tushar M.M. Abdullah              
  3. 3. BMW(Bayerische Motoren Werke)  Bayerische  Motoren  Werke  AG(BMW),  (English:  Bavarian  Motor  Works)  is  a  German automobile, motorcycle and engine  manufacturing company.  BMW  was  originally  founded  in  1916,  by  Franz Josef Popp.
  4. 4. Overview of BMW  Industry: Automotive  Founded: 7 March 1916; 100 years ago  Founder: Franz Josef Popp, Karl  Rapp, Camillo Castiglioni  Headquarters: Munich, Bavaria, Germany  Area served : Worldwide  Products: Luxury vehicles, sports  cars,motorcycles, bicycles  Slogan: "Sheer Driving Pleasure"  (Worldwide)
  5. 5. Overview of BMW BMW Mission Statement:   “We will sell our products with the highest quality and integrity.”  BMW Vision:     Current vision is to treat their customers like “F.A.M.I.L.Y.”      The F stands for family treatment,             A stands for attitude,             M stands for more than the customers expects,             I stands for individual attention and enthusiasm,             L stands for like an honored guest and the             Y stands for you make the difference.  Major Competitors:     BMW has four main competitors: Audi, Mercedes, Lexus, and Porsche. The two  bigger competitors are Audi and Mercedes.
  6. 6. SWOT Analysis of BMW Strengths:  BMW group  Innovation & technological advancement  Renowned brand in automobile industry  Workforce  Product portfolio  Asian markets  Plans for hybrid models
  7. 7. SWOT Analysis of BMW Weaknesses  Cars recalled  Strategic alliances  Younger generation less brand conscious  Opportunities  Increasing product portfolio  Changing lifestyle & customer groups  Market expansion Threats  Competition  Price factor  Rising fuel problems 
  8. 8. BMW –Your Dream Car Presented By – Kowshik Ahmed Tusar S.N:20111105011
  9. 9. PESTEL AnALySiS P- Political E- Economical S- Social T- Technological E- Ecological L- Legal
  10. 10. PESTEL AnALySiS Political Enforcement of new laws related to CO2 emission. Change in EU legislation related to end-of-life vehicle (ELV) recycling Level of political stability in emerging countries Possibility of the UK to stop its EU membership Economical Volatility of GBP: EURO exchange rates Appreciation of Renminbi (RMB) of 1% to 2% during 2012 Vast GDP fluctuations in EU countries during the last few years Volatility of price for crude oil
  11. 11. PESTEL AnALySiS Social Ageing population in European markets Changing family patterns (increasing numbers of same sex marriages, single parents etc.) Changing consumer attitudes towards savings and spending Rising life expectancy in developed countries Technological Increasing levels of popularity of “green” technologies Technological breakthroughs in auto manufacturing industry Integration of internet-enabled technologies in automobile industry Increasing levels of demand for alternative fuels Realization of the concept of driverless car
  12. 12. PESTEL AnALySiS Legal Changes in employee health and safety rules and regulations Patents and Copyrights in relation to innovation on auto devices and functionalities Changes in laws and regulations specific to car manufacturing sector Changes to relevant EU Directives Ecological Increasing levels of consumer concern towards “green” products Effects of non-government environmental organizations Changes in waste management practices
  13. 13. VALuE ChAin AnALySiS The value chain concept developed by Michael E Porter provides as ystematic means of categorizing activities and functions of an organization, illustrating the creation of value for customers. It helps the company to determine which activities create value and which do not. When the value chain is capable of creating additional value at no additional cost, a competitive advantage is realized.
  14. 14. RESouRCE-BASEd ViEw STRATEgy The resource-based view identifies the distinctiveness of BMW’s superior performance and competitive advantage to generate unique creations of product and service at lower cost which enables it to earn higher profits.
  15. 15. RESouRCE-BASEd ViEw STRATEgy of Bmw Resource Competencies Threshold Capabilities  Integrated supply chain  Young employees  Wide spread assemble and production units  High quality products and service  Technical design knowledge Capabilities for Competitive Advantage  Engineering Excellence  Value added work force  Brand management  Made-to-order cars  Technology and ability to translate new technical knowledge into product and service for customers
  16. 16. BMW –Your Dream Car Presented By – MM.ABDULLAH S.N:20111105009
  17. 17. Presentation Topic Porter’s Five Forces analysis of BMW:  Competitor Analysis:  Key success factor of BMW:  Generic strategy:  Cost Leadership of BMW:  Differentiation strategy of BMW:  Focus strategy of BMW:  Grand strategy  Concentrated strategy:  Product development strategy:  Market development strategy of BMW:  Strategy of Bmw for emerging markets:  Environmentally-friendly design strategy
  18. 18. Competitor Analysis  Primary Competitor:  DaimlerChrysler  Toyota  General Motors  Ford  Main Competitor:  Mercedes Benz…………..  LEXUS  Audi
  19. 19. BMW VS COMPETITORS ENTRY LEVEL SEDANS FLAGSHIP SEDANS MID LEVEL SEDANS BMWACURAINFINITILEXUS
  20. 20. Key Success factor of BMW 1.Customers---- 2.Corporations…. 3.Competitors….
  21. 21. Identification and selection of long-term objectives and strategies:  Generic strategy: Michael Porter developed three generic strategies, that a company could use to gain competitive advantage, back in 1980. These three are:  Cost Leadership of BMW:  Differentiation strategy of BMW:  Focus strategy of BMW:
  22. 22. Identification and selection of long-term objectives and strategies:  Grand strategy: A grand strategy states the means that will be used to achieve long-term objectives. Examples of business grand strategies that can be customized for a specific firm include:  Concentrated strategy:  Product development strategy:  Market development strategy of BMW:  Strategy of BMW for emerging markets:  Environmentally-friendly design strategy  Customer-focus orientation strategy:
  23. 23. BMW –Your Dream Car Presented By – Ruhul Amin S.N:20111105003
  24. 24. Grand strategy of BMW Innovation: Innovation is a grand strategy that seeks to reap the premium margins associated with creation and customer acceptance of a new product or service. The underlying rationale of the innovation is to create a new product life cycle and thereby make similar existing products obsolete. But few innovative ideas prove profitable because R&D and premarketing costs of converting a promising idea into a profitable product and service are extremely high. In this case BMW is successful enough. BMW’s brand image is tied highly to such innovation. It introduces the consumers in quick succession to the Rolls Royce, Z4 roadster, 5 series Sedan, 7 series Sedan, X3, 6 series coup, 1 series subcompact, Bavarian, M3 and so on. It had to increase 53% R&D costs, 75% increase capital expenditures, had to build $1.5 billion factory, employ 5500 worker, train the first 400 in 2001 to produce and distribute Bavarian Giant, new model car. 05/05/16 26 4/24/2016 12:15 PM
  25. 25. Grand strategy of BMW Vertical integration: It is a grand strategy based on the acquisition of firms that supply the acquiring firm with inputs or new customers for its outputs. BMW adopts both backward and forward vertical integration. Backward vertical integration: To speed up the upcoming X3 to market, BMW outsourced development and production to Austria’s Magna International Inc., a unit of Canadian-based supplier and engineering services. Forward vertical integration: BMW takes lease strategy to sell the cars. Up to 75% of its Luxury 7series Sedan and 50% of the 5series Sedan are leased in USA. 05/05/16 4/24/2016 12:15 PM 27
  26. 26. Grand strategy of BMW Global integration matrix:     Global strategy     Transnational strategy   International strategy   Multi-domestic strategy Global  integration  National responsiveness  High  low High  Low  05/05/16 4/24/2016 12:15 PM 28
  27. 27. Grand strategy of BMW Grand strategy selection matrix: 05/05/16 4/24/2016 12:32 PM 29 Overcome  weakness Maximize Strengths Internal (Redirected  resources within  the firms) External  (acquisition or  merger for  resource  capability) Turnaround  Divesture Liquidation  Vertical integration  Conglomerate  diversification  Concentrated growth Market development Product development Innovation Horizontal integration Concentric diversification Joint venture
  28. 28. Strategy implementation, control and innovation: Organizational Structure:  As mentioned previously, BMW AG is headquartered in Munich and has operations around the globe. The business is headed by two boards, as is typical of German public organizations: by a Board of Management, which is responsible and accountable for the operations, and by a Supervisory Board, which meets with the Board of Management to discuss the status of strategies. The Supervisory Board has the authority to hire and fire members of the Board of Management and represents two groups, stockholders and employees, with each group comprising half of the board membership. 05/05/16 4/24/2016 12:16 PM 30
  29. 29. Strategy implementation, control and innovation: Management Style: While management is hierarchical, each BMW employee is empowered to make decisions if they have the competency to do so. However, it is expected that decisions not be made haphazardly; planning is expected for any decision. After the purchase of Rover, BMW CFO Stefan Krause said: “We don’t want to waste money on trying things.” (Chief Executive Group L.P., 2003). Management tends to be low-key, but extremely focused, and has experience from a variety of functional areas. For example, Panke actually started his career as a nuclear physicist, hired by McKinsey & Company as a consultant for BMW before eventually being employed full-time. Panke’s management style is said to be very open and conducive in fostering debate among management to generate new ideas and to solve problems; he expects entry- level employees to raise sensitive issues through the ranks. 05/05/16 4/24/2016 12:16 PM 31
  30. 30. Strategy implementation, control and innovation: Controls for Employee Behavior & Performance: For employees located in Germany, one-page reviews are given by supervisors. Employees are graded on five criteria: • Work Quantity (number of projects) • Work Quality (regarding project content) • Intensity of the Work, Engagement, & Excitement • Diligence, Precision, & Accuracy • Teamwork 05/05/16 4/24/2016 12:16 PM 32
  31. 31. Recommendations Now the recommendations based on the case analysis are as to: BMW should diversify their market, They should diversify and extend the cost-effective products lines besides the Luxurious Sedan series, Bavarian Giant and this will help them to increase sales.. The BMW should not be confined to only the developed market but expand their market to developing and emerging markets like China, India. Their production and distribution facilities should not be confined only to domestic and primary markets. They should not be confined to only leasing but provide licensing and franchising agreement with foreign distributors. They should adopt consortia grand strategy because it will help them to add global partners to reduce cost. 05/05/16 4/24/2016 12:17 PM 33
  32. 32. 05/05/16 34

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