Bmw Case Study Analysis Essay

Production: We will significantly increase automation levels on our products. However, because automation sets limits upon our ability to reposition products with R&D, we will postpone automation for the High End and Size products until they arrive in the Traditional Segment. We will prefer second shift/overtime to capacity expansions.

In this world of technology and innovation even Ford Motor Company is investing in new technologies in order to improvised their supply chain management, build an environment with interaction between each department as well as suppliers in order to reduce the bridging gap between them. As it is a leader in auto market segment, needs to update and coop with time and technology periodically but due to huge competition from the Japanese auto makers like Toyota, Honda, and Nissan, Suzuki etc., who are strong and powerful with references to the supply chain process management due to which Ford market share dip compared to others as well as the sales also declined. During this time, Ford analysed the situation and thought positively and started improvement in the supply chain management.

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

BMW Group uses various different materials for the production of these components. Accordingly, the casting methods used are diverse and innovative. In engine production the cast components is processed using high precision, computer controlled machine tools, the workers being predominantly

BMW Group has its excellent technical system which offers a competitive advantage over its rivals. Training courses are also delivered to all the employees in order to develop new skills and highest quality standards.

The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you

BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other

Continuous development and responsiveness of suppliers at the early age of product development process is critically important. “Honda tries to encourage suppliers’ suggestions early before finalizing drawings, particularly in the area of cost reduction and quality improvement.”

G. According to US News, the 2016 Toyota Prius was ranked #9 in compact cars, #5 in hybrid and electric cars, #8 in hatchbacks, and #10 in small cars (“2016 Toyota Prius | U.S. News & world report,” n.d.). It retails between $24,200 and $30,000 which is considered a compact car. “The Toyota Motor Corporation is a multinational corporation and now the world 's largest automaker in terms of sales, net worth, revenue, and profit according to Fortune Global 500. Toyota is positioned in the moderately low-price, high volume market” (“Strategic analysis of Toyota motor corporation,” 2003). They did move more into the higher-priced market with the Lexus brand and worked to fill the need for electric vehicles with the Toyota Prius. The company is diversified in various markets within the automobile industry and are able to branch out in several directions.

teams are the ITSC, which is the IT “steering committee” composed of senior business and IT

As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.

Innovative ideas are always encouraged at BMW. Having team members coming together with different ideas and brainstorming together can lead to a success. Creative and innovative styles are what they expect. “Claussen convinced Krause and others that the unconventional approach wouldn’t just produce a pretty factory but one whose open, airy spaces would improve communications between line workers and managers and create an environment that helps the company build cars better” (Hellriegel & Slocum, 2009, p. 523). After discussing his vision, meeting with others to discuss the details, and with hard work from everyone, the plant opened with great creativity in 2005. The building represented the creativity of a young engineer, Knau, and the Claussens vision of teamwork. Having the ability to voice an innovative idea, and watching it come to life is what BMW promotes. Inovation and fexibility is important in the BMW family. The company is different from is competitors by creating a car for the customers taste. When creating new cars BMW use the ideas of the new hires because they are fresh within the company and have new ideas.

• Interviews organized: 9 interviews made with the team members and BMW Group Hungary representatives

In phase 2, the company faced the challenged of sustaining the hype around its new car and ensuring that potential customers actually purchase the Z3 when it is available. After reviewing the advantages and disadvantages of both marketing methods (traditional and non-traditional) and considering the success of phase 1, it is recommended for BMW to continues use the non-traditional approach and use minimum traditional strategies.

BMW must take action to compete with the Japanese auto companies by putting great emphasis on quality service at a reasonable price to gain the competitive