Bmw Case: Essay

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BMW CASE:
Globalizing Manufacturing Operations

INTRODUCTION

This case focus on the dilemma that the president of BMW Manufacturing Corp., Al Kinzer, faced in 1995 in relation to BMW's new plant at Spartanburg, South Carolina and a dramatically increased demand in the U.S. market for the Z3 model.

To study the BMW case, the background information and role of new plant at Spartanburg will be described at the beginning. Secondly, the 3 alternatives options will be analyzed and compared accordingly to determine a proper conclusion. Finally, the recommendation will be presented with various considerations.

BMW BACKGROUND

BMW was found in 1913 by Karl Rapp as an aircraft engine design shop. After WWI, it started building
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Additionally, most of engineering teams include German engineers to provide significant technical supports and development to keep the quality assurance. Although focusing on Z3's existing production is the safest way to maintain the quality, we do not believe that the risk is serious enough to severely injure BMW by a rapid expansion.

Analysis of External

Expansion Focus Stay
Competition ✫✫✫ ✫✫ ✫
Customers ✫✫✫ ✫✫ ✫
Suppliers ✫✫✫ ✫✫ ✫ Market competition, and reaction from both customer and supplier side would be the major factors for external analysis. With a larger facility expansion in Spartanburg, BMW would be able to increase their production to meet the great market demand. The price would be also much more competitive since the cost decrease a lot due to the local sourcing and producing. Competitive price would let customers spend less; and sufficient cars would let customers to have more options to choose from. Suppliers would have opportunity to supply more, thus to increase the revenue. It would be also a plus for suppliers to work closely with BMW technical team and share experience to each other. Analysis of Supply Chain Management

Expansion Focus Stay
AAA ✫✫✫ ✫✫ ✫
Risk Pooling ✫✫ ✫

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