CAPSTONE 2023 STRATEGY CASE ASSIGNMENT – Decarbonizing BMW

15 POINTS
DUE APRIL 13, 2023 BY 17.00
Format requirements
 Arial 12-point font single-spaced; maximum 5 pages and 1 spreadsheet page
(excluding the cover page). Please insert the spreadsheet as an object in the
Word Document.
 Document title: lastname_firstname_strategy_case_assignment_tesla.docx (or
.doc)
 Use the program cover page template:
https://www.aalto.fi/en/programmes/bachelors-programme-in-international-business-
mikkeli/planning-your-studies#2-guides-and-templates

Grading
To receive the full points on the case assignment, a student should do at least the
following:
 Use the materials from the case. Outside research on BMW or the auto industry
is not necessary to complete the case analysis.
 Use the concepts and models from the course lectures. Review the slides and
lectures prior to completing the case assignment. Please draw from your
knowledge of the simulation.
 Demonstrate learning, i.e., there are clear takeaways from the course.

There are four questions for this case assignment. Please answer all the questions.
1. Value Chain Analysis - Why is BMW focusing on carbon emissions in the full
value chain? Please detail BMW’s value chain and the potential for reducing
carbon emissions across each element of the value chain.
(target length: 1 page. Full paragraphs, but you can use bullet points within the
paragraphs.)

2. External Analysis - Using the supporting spreadsheet, calculate and compare

the life cycle carbon emissions of an internal combustion engine (ICE) vehicle
versus a battery electric vehicle (BEV). In the spreadsheet, choose assumptions
that you think reflect economic reality. What conclusions do you reach?
(Spreadsheet analysis and 1 page of analysis, full paragraphs, but you can use
bullet points within the paragraphs.)

1
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 3. Carbon Accounting – Among the various scopes of emissions mentioned in the
case, which metric provides a robust and defensible measure for decision-
making for BMW? How can external institutions hold car manufacturers
accountable to these standards?
(Target length: 1 page. Full paragraphs, but you can use bullet points within the
paragraphs.)

4. Comparison with Simulation – Business Level Strategy - Environmental

impact, ESG, and Decarbonizing of BMW. The simulation has specific decisions
that model the impact of environmental impact, environmental and social policies,
and labor policies that provide an advantage to firms in the simulation that invest
in those policies. Your team has completed 7 rounds prior to the discussion of the
case study. What comparisons between the BMW case study and the simulation
would you make? Does investing in decarbonization and ESG policies pay off for
BMW or your simulation firm? What recommendations would you make to the
CEO of BMW or other car firms about how to shape their future strategy to move
away from ICE and carbon-based energy sources? And do institutions and
stakeholders play a role in shaping those policies?
(Target length: 2 pages. Full paragraphs, but you can use bullet points within the
paragraphs.)

2
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