BMW Group

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Corporate Research Paper – BMW Group

Bayersiche Motoren Werke Group (BMW Group) is a German company whose operations are “focused on the premium segments of the international automobile markets (BMW Group)”. BMW Group was founded in 1916 and established its main plant and headquarters in Munich, Germany just after World War I in 1922. Those facilities exist as BMW’s headquarters and flagship plant to this day (BMW Group).
BMW Group coordinates its activities in more than 150 countries on 6 continents and operates 29 manufacturing facilities in 13 of those countries (BMW Group). Those manufacturing facilities are concentrated in Western Europe with 9 in Germany, 2 in Austria, and 3 in the UK. Its other manufacturing
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As a measure of liquidity, BMW’s current ratio for 2012 is 1.04 which signifies that BMW Group maintains an efficient operating cycle and is capable of handling its financial obligations, even though €32 billion are tied up in non-current receivables.
BMW Group’s Foreign Exchange (FX) Risk Management Policy In order to achieve growth, profitability, and sustainable levels of business in the future, BMW Group understands that it must expose itself to a degree of calculated risk. In its most recent quarterly statement to its stockholders, BMW Group recognized that, “Managing risks is a fundamental prerequisite for being able to deal successfully with the constant flow of changes in the relevant political, legal, technical and economic landscapes” (BMW Group). BMW Group’s discussion in its annual report around the many risks it faces is extensive. The report includes risk topics around sales and marketing, pension obligations, information technology, raw materials, and many other detailed business components. For this discussion, we will focus on financial risks and those relating to their international risk management. The first category of financial risk is exchange risk. For BMW Group, the sale of vehicles outside the Eurozone gives rise to exchange risk because changes in exchange rates, especially between the US dollar, Chinese renminbi, British pound, Russian rouble, and
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