Business Managmenet for Bmw
Business Information and the Management of Organisations
1. Bayerische Motoren Werke, more commonly known as BMW is a German car and motorcycle manufacture founded in 1916, with profits of €324 million in 2008. BMW are renowned for its high quality cars and modern designs which sees them as one of the leading car manufactures in the world. [1] (http://www.bmwgroup.com/annualreport2008/)
Above is a chart published by BMW, which shows the net profit for the year 2004 -2008 in euro millions.
2. China have recently become the world’s largest car market with sales of cars, increasing by 37.7% a year and a reported 13 million vehicles to be sold at the end of this year. BMW are planning to increase the production of vehicles from 30,000 to 75,000 to cope with the Chinese demand. BMW also announced plans of building a new factory at the end of 2010 costing around $732 million, which could see the factory produce around 300,000 cars. I believe that the announcement of building a new factory is a strategic decision which will be made by the owners of BMW, who are at the top of the hierarchy. [2] (http://www.ft.com.ezproxy.leedsmet.ac.uk/cms/s/0/ef8e4434-cf63-11de-b876-00144feabdc0.html) It will have a big impact on the company, because they are taking a huge financial risk that Chinese car market will still be increasing and that there will be demand for the cars they produce. This shows that this is a long term plan aswell because they are looking to future of the Chinese car market. Another reason why this can be seen as a tactical decision is because it is a one off project and won’t be repeated. If successful it could see BMW dominate the car industry in China, however if not it could see them suffer financially from the costs of building the factory, the buying of the machines, and wages.
BMW have become the sponsors of the 2010 London Olympics, and have agreed to supply 4,000 cars to officials and competitors. [3]
1. Bayerische Motoren Werke, more commonly known as BMW is a German car and motorcycle manufacture founded in 1916, with profits of €324 million in 2008. BMW are renowned for its high quality cars and modern designs which sees them as one of the leading car manufactures in the world. [1] (http://www.bmwgroup.com/annualreport2008/)
Above is a chart published by BMW, which shows the net profit for the year 2004 -2008 in euro millions.
2. China have recently become the world’s largest car market with sales of cars, increasing by 37.7% a year and a reported 13 million vehicles to be sold at the end of this year. BMW are planning to increase the production of vehicles from 30,000 to 75,000 to cope with the Chinese demand. BMW also announced plans of building a new factory at the end of 2010 costing around $732 million, which could see the factory produce around 300,000 cars. I believe that the announcement of building a new factory is a strategic decision which will be made by the owners of BMW, who are at the top of the hierarchy. [2] (http://www.ft.com.ezproxy.leedsmet.ac.uk/cms/s/0/ef8e4434-cf63-11de-b876-00144feabdc0.html) It will have a big impact on the company, because they are taking a huge financial risk that Chinese car market will still be increasing and that there will be demand for the cars they produce. This shows that this is a long term plan aswell because they are looking to future of the Chinese car market. Another reason why this can be seen as a tactical decision is because it is a one off project and won’t be repeated. If successful it could see BMW dominate the car industry in China, however if not it could see them suffer financially from the costs of building the factory, the buying of the machines, and wages.
BMW have become the sponsors of the 2010 London Olympics, and have agreed to supply 4,000 cars to officials and competitors. [3]