BMW

Bayerische Motoren Werke AG, abbreviated as BMW (German multinational manufacturer

of luxury vehicles and motorcycles headquartered in Munich, Bavaria.

OVERVIEW: -
The BMW has employees of 118,909 with 106,928 (89.9%) employees in
automotive segment (2021), 3,418 (2.9%) employees in the motorcycles
segment (2021), 8,466 (7.1%) employees in the financial services segment
(2021).
The special fascination of the BMW Group not only lies in its products and
technology, but also in the company’s history, written by inventors, pioneers
and brilliant designers. Today, the BMW Group, with its 31 production and
assembly facilities in 15 countries as well as a global sales network, is the
world’s leading manufacturer of premium automobiles and motorcycles, and
provider of premium financial and mobility services.

VISION AND MISSION

BMW’s mission statement is “to become the world’s leading provider of
premium products and premium services for individual mobility.”
BMW’s vision statement is “to be the most successful premium
manufacturer in the industry.” 

Strengths Weaknesses

1. One of the most valuable automotive brands in 1. Poor automotive brand portfolio with little product
the world differentiation
2. Geographically diversified revenue streams 2. Increasing debt levels
3. Successful partnership in China
4. Perfect engineering and excellent driving
experience
5. Competence in hybrid and electric cars
6. Clear strategy to meet the future challenges and
trends

SWOT ANALYSIS
 Opportunities Threats

1. Fuel prices are expected to rise soon
2. Demand for autonomous vehicles
3. Weakening euro exchange rate
4. Timing and frequency of new model
releases
1. Increasing competition in the worldwide
automotive market
2. Increasing government regulations may raise the
costs
3. U.S. automotive market is poised to slow down or
even decline

ORGANISATIONAL STRUCTURE

PRESIDING
BOARD
NOMINATIO
PERSONNEL N
COMMITTEE COMMITTEE

MEDIATION
AUDIT COMMITTEE
COMMITTEE

LEADERSHIP STYLE
 “TRANSFORMATIONAL LEADERSHIP STYLE”
There are different types of management leadership styles such as transactional,
autocratic, bureaucratic, charismatic, democratic/participative, laissez-faire, task-oriented,
people/relations-oriented, servant and transformational leadership. All these leadership styles
are used in the organization for different reasons. Transformational leadership is an effective
and best fit leadership style in business situation. Thus, it can be said that transformational
management leadership style is best fit for business situations of BMW in Germany. There
are several pros of transformational leadership to BMW (Mascarenhas, 2011).
Transformational leaders expect to do best not only from his team members but also
themselves also. They also encourage all the team members to achieve their achievements for
contributing in the productivity of BMW. This management leadership style is best fit for
BMW to improve the productivity and engagement from everybody in the organization In
addition, it is also essential to use another leadership style, when the necessity arises in the
organization. Selection of leadership styles depend on the situation and leading the people of
the team.
BMW can also use transactional leadership style that is also best for managers of BMW.
Transactional leadership style ensures about the routine work that work is done reliably. The
transformational leadership style can bring changes in the employees and their skills (Zhua,
Chewb & Spanglerc, 2005). This leadership style possesses a vision for the company and
charisma and skills to execute vision, where they want to go the company. It also works well
in entrepreneurial businesses of BMW and inspires others members to achieve vision.

CORE COMPETENCIES OF BMW

BMW core competency is that everything it does is underpinned by its active driving design
philosophy. This has resulted in a long history of unique, high- performance cars. Even if a
competitor can match speed performance, speed alone does not create the “ultimate driving
experience” This makes it extremely hard for competitors to compete.

Core Competency is a deep proficiency that enables a company to deliver unique value to
customers. It embodies an organization’s collective learning, particularly of how to
coordinate diverse production skills and integrate multiple technologies. Such a Core
Competency creates sustainable competitive advantage for a company and helps it branch
into a wide variety of related markets.

THE CULTURE OF BMW

“PROGRESSIVE CULTURE”
We believe in supporting a progressive culture that allows all our associates to feel at home,
enjoy equal opportunities and grow with us. That’s why our culture is founded on 5 core
values, which set the tone for how we work together and treat each other in order to empower
us all – and foster a unique team spirit.
STAKEHOLDERS
Stakeholders refers to individuals or groups who depend on an organisation to fulfil their
own goals and on whom, in turn, the organisation depends on (Cwmifg, 2012). A stakeholder
universe (Appendix A) shows all the stakeholders of BMW. They can be categories into
internal and external stakeholders.
INTERNAL STAKEHOLDER EXTERNAL STAKEHOLDER
Shareholders Customers
Employees Partners
Executives Suppliers
Media
Competitors
Capital Market
Government
Interest Groups
R&D Institutes
General Public

ISSUED FACED BY THE ORGANISATION

POLITICAL
•Like most other businesses, political instability is a concern for BMW. Political instability
can directly impact their business. • Trade laws and investment regulations can impact the
business of a company.

ECONOMIC
BMW makes luxury cars, and the automobile market is highly competitive. There are
multiple vital players like Toyota in the market, and the brand value of the brands keeps
fluctuating. • The global economy is in an unstable condition. It has created volatility in areas
like currency conversion rate, GDP, etcetera.

SOCIAL
• The company does thorough market research before launching a product. The GDP, per
capita income, society, and culture can influence people's buying habits. They also consider
the nation's political and economic condition-in-a-new product. It has helped to increase their
sales Social media and other online platforms are crucial for sha sumer behaviour.
TECHNOLOGICAL
BMW one of the brands paying attention to research and development beton bringing any car
into the market.
BMWs under the luxury car category. Therefore, the brand needs to ensure the buyer can
have a comfortable and relaxing car ride.

LEGAL
Group uses a bunch of technologies in their cars to offer a luxury experience to the buyers.
•The company must comply with the labour laws and quality standards of the countries they
operate in for further growth and sustainability.
• Considering that fuel-powered cars contribute to pollution and, simultaneously, the non-
renewable energy sources are limited, BMW has added a hybrid mode to their products.

ENVIRONMENTAL
• BMW Group has developed its cars to have a low carbon-emission rate. In recent years,
BMW has decreased the CO2 emission from their new vehicles in the European market by
more than 42%.

THE BASIS OF COMPETITION (PORTER’S DIAMOND)

BMW FACTOR AND DEMAND CONDITIONS

Germany played a major role in the history of the automotive industry. It was Karl Benz, a
German mechanical engineer who designed and, in 1885, built the world’s first practical
automobile to be powered by an internal-combustion engine. Today, Germany is renowned for
its powerful and innovative cars. The largest industry sector in Germany is the automotive
industry. Vehicles make up almost 17% of total exports. The country is a primary location
for innovative car manufacturers and suppliers and home to powerful brands such as
BMW, Audi, Volkswagen, Mercedes etc.

One of the factors underlying the German success is that the workforce is created. German
students benefit from the country’s dual system of education where they combine vocational
education with apprenticeships. This type of education supplies the country with a steady flow
of highly skilled workers. The German automotive industry benefits from a strong industrial
core, first-class infrastructure, a highly-skilled workforce and cutting-edge research and
development.
BMW has become a prestige global brand, operating 31 plants in 14 countries, including the
largest car manufacturing plant in the world. BMW has taken advantage of the factor
conditions provided by the country. Ranked 2019’s 3rd most valuable car brand in the world,
the company did not start as a car manufacturer, but as an aircraft engine manufacturer. The
brand’s success relies on its outstanding car design, technological innovation, and
workforce.

As the Porter Diamond Model recommends, the brand grows its own workforce. The BMW

Manufacturer-Specific Advanced Training (MSAT) program provides students with extensive

training on BMW vehicles thus preparing them to work for the company.

EVALUATION OF FUTURE STRATEGIES

CO₂ REDUCTION.

We are focusing our efforts on realising another, even bigger reduction in CO ₂ emissions of
over 40 percent by 2030 – spanning the entire lifecycle, from the supply chain, through
production, to the end of the use phase. Our goal is for the BMW Group business model to be
climate-neutral no later than 2050.

ELECTROMOBILITY.

We are focusing on massive expansion of electromobility. Around ten million fully-electric

BMW Group vehicles should be on the roads by 2030. Reaching this goal will involve all
areas of the BMW Group – from production to charging station infrastructure.

Electric drivetrains are a prerequisite for climate- neutral mobility of the future. This is why
the BMW group is consistently expanding its range of electric vehicles. As early as 2023, the
group will offer at least one fully electric model in virtually all key segments. From 2025
onwards, the BMW group plans to increase its delivery share of all electric vehicles to 50%
with the Neue Klasse, while also further reducing its carbon footprint over the entire life
cycle. In doing so, it will utilize its experience as a pioneer of e-mobility.
STRATEGIC INITIATIVES THAT HAVE ACCURRED OVER
THE PAST 10 YEARS.
2011- 2018
BMW teams with Sixt AG to launch Drive Now. Introduced initially in
Munich, the car-sharing scheme is extended to cities such as Berlin,
Hamburg and San Francisco. Drive Now is offered under the new sub brand
BMW i. 

2018- PRESENT
BMW launches the i3 electric vehicle, first in the new i series dedicated to
sustainable vehicles. 
BMW announces $1 billion, 100,000-unit expansion to the Spartanburg plant
to 450,000 annual capacities, primarily to add the seven-seat X7 crossover.