Professional Documents
Culture Documents
Mgt400 Group Assignment 2 BMW
Mgt400 Group Assignment 2 BMW
MGT400
INTRODUCTION TO MANAGEMENT
TITLE :
CHALLENGES IN MANAGING A BMW COMPANY
Prepared by:
3.
4.
5.
6.
Prepared for:
Date of Submission:
CHALLENGES IN MANAGING A BMW COMPANY
1. The Race for Technological Innovation: Staying ahead of the technological curve is perhaps
the most critical challenge BMW faces. The industry is witnessing a surge in electric vehicles
(EVs), autonomous driving technologies, advancements in connectivity, and a growing
emphasis on digitization. To keep pace with these developments, BMW must prioritize
investment in research and development (R&D). This translates to significant resources being
funneled towards:
Data Protection Compliance: Data privacy regulations are becoming ever stricter. BMW needs
to ensure that it collects, processes, and stores customer data responsibly and in compliance
with these regulations. This means obtaining explicit consent from users before collecting data,
clearly outlining how the data will be used, and providing customers with the ability to access
and delete their data upon request. By prioritizing data privacy, BMW can build trust with
customers and avoid potential regulatory sanctions.
3. The Supply Chain Metamorphosis: Integrating Innovation Throughout the Production
Ecosystem
Rapid technological advancements have a ripple effect, impacting not just the finished product
but also the entire supply chain and manufacturing process. For BMW to stay ahead of the
curve, ensuring a seamless integration of new technologies into its production lines is crucial.
This requires a multifaceted approach:
Embracing Industry 4.0: The concept of Industry 4.0, characterized by automation, robotics, and
real-time data exchange, is no longer a futuristic vision but a present necessity. By employing
smart factories, BMW can optimize production efficiency and quality control. Imagine production
lines where robots handle repetitive tasks with precision, while data analytics allow for real-time
monitoring of processes and identification of potential bottlenecks. Integrating connected
devices and sensors throughout the manufacturing ecosystem can provide valuable insights,
allowing for predictive maintenance and proactive adjustments to optimize production.
Sustainability and Ethical Sourcing: As environmental consciousness rises, BMW cannot ignore
the sustainability implications of its supply chain. Integrating sustainable practices throughout
the process, from material sourcing to manufacturing, is paramount. This could involve
collaborating with suppliers who utilize recycled materials, implement energy-efficient production
processes, and adhere to ethical labor practices. By prioritizing sustainability, BMW not only
aligns itself with evolving consumer expectations but also mitigates potential reputational risks
associated with unethical sourcing practices.
The transformation of the supply chain presents both challenges and opportunities for BMW.
Successfully navigating this shift requires a multi-pronged approach, embracing technological
advancements, fostering close collaboration with suppliers, and prioritizing sustainability
throughout the production ecosystem.
Software Development and Data Analytics: Connected cars and autonomous driving
technologies heavily rely on software. Expertise in areas like coding, software architecture, and
cybersecurity is becoming increasingly important. Data analytics plays a crucial role in
extracting insights from the vast amount of data generated by connected vehicles. This data can
be used for personalized customer experiences, predictive maintenance, and optimizing product
development.
Artificial Intelligence and Machine Learning: Integrating AI and machine learning into vehicles
requires a workforce comfortable working with these technologies. From implementing AI-
powered driver assistance features to personalizing in-car experiences, expertise in this area is
key to future innovation.
Digital Marketing and Customer Engagement: The way customers interact with car brands is
changing. BMW needs talent adept at creating engaging digital experiences through targeted
marketing campaigns, social media engagement, and interactive online platforms.
Creating a Competitive Employer Brand: In a competitive talent market, BMW needs to position
itself as an attractive employer. This can be achieved by highlighting its commitment to
innovation, its focus on sustainability, and its track record of employee development.
Additionally, offering competitive salaries, benefits packages, and a positive work environment
can make BMW stand out from the competition.
5. Keeping Pace with Evolving Customer Demands: A Critical Challenge for BMW
In the age of rapid technological advancements, the automotive industry isn't the only one
undergoing a metamorphosis. Customer expectations are also shifting dramatically. For a
company like BMW, renowned for its luxury vehicles and established brand identity, keeping
pace with these evolving desires presents a significant challenge. Here's how BMW can
navigate this dynamic landscape and continue to provide exceptional customer experiences:
Understanding the Changing Customer: The first step is understanding the evolving customer.
Today's consumers are increasingly tech-savvy and expect a seamless integration of
technology into their car ownership experience. This includes features like smartphone
connectivity, real-time traffic updates, personalized navigation, and in-car entertainment options.
They may also value the ability to remotely access vehicle information, schedule service
appointments, and even initiate self-diagnostics. BMW must prioritize research into customer
preferences and leverage data analytics to gain insights into these evolving expectations.
Delivering Personalized Experiences: The focus is shifting from a one-size-fits-all approach to
personalization. Customers are looking for experiences tailored to their individual needs and
preferences. BMW can achieve this by offering customizable driving modes, personalized in-car
entertainment options based on user profiles, and subscription-based services for connected
car features. Imagine a customer who prioritizes performance receiving driving suggestions for
scenic routes, while another who values comfort can have their preferred climate settings pre-
loaded.
Building a Seamless Digital Experience: A seamless digital experience goes beyond just in-car
technology. BMW needs to ensure a smooth user journey across all touchpoints, whether it's
browsing online configurations, scheduling test drives through a mobile app, or interacting with
customer service via a chatbot. Implementing a unified digital ecosystem that integrates
seamlessly across platforms will be crucial. This can include features like online scheduling for
service appointments, real-time tracking of vehicle repairs, and personalized recommendations
for maintenance needs.
Embracing Transparency and Trust: Building trust with customers is paramount in the digital
age. BMW needs to be transparent about data collection practices, clearly outlining how
customer data is used and ensuring robust cybersecurity measures are in place. Providing
customers with control over their data and allowing them to easily access and delete information
upon request fosters trust and loyalty.
Innovation that Meets Customer Needs: While technological advancements are exciting, staying
ahead of the curve is only meaningful if it translates to real benefits for consumers. BMW's
innovations should be customer-centric, addressing their pain points and enhancing their driving
experience. For example, imagine a new feature that utilizes real-time traffic data and AI to
suggest alternate routes or automatically adjust driving profiles to optimize fuel efficiency.
Investing in Customer Feedback: Actively soliciting and analyzing customer feedback is vital.
BMW can utilize surveys, online forums, and social media platforms to gather insights into
customer experiences. By actively listening to customer feedback, the company can identify
areas for improvement and prioritize development efforts that address real-world issues.
Content for Group Project
1. Introduction
Background Company
BMW's story starts with the roar of airplane engines, not the purr of luxury cars. In 1916,
Bayerische Flugzeug-Werke AG (BFW) emerged to build aircraft engines for World War I.
Though short-lived, BFW laid the groundwork. Meanwhile, another player, Rapp
Motorenwerke, focused on similar wartime production. Interestingly, the iconic blue and white
quadrants of the BMW logo have their roots in Rapp's design. Following Germany's defeat, the
Treaty of Versailles hampered aircraft production for both companies. In 1918, Rapp became
Bayerische Motoren Werke GmbH (BMW), but it wasn't until 1922 that BFW officially
merged with BMW, transferring its engine operations and name. March 7, 1916, BFW's
founding date, marks BMW's official birth.
In 1948, the Isetta, a microcar, helped with post-war mobility. Gradually, BMW
transitioned back to luxurious vehicles. The success of the 1960s New Class sedans, particularly
the 2002, cemented their reputation for high-performance luxury cars. Since then, BMW has
continued to innovate and expand, becoming a leader in electric vehicles and autonomous
driving technologies. Their journey is a testament to adaptation and a commitment to engineering
excellence.
Organization Chart
2. Content (Technological Implementation, Changes or Development)
Technological Implementation
● The fast-charging, long-range battery
BMW is the world’s first car maker to bring wireless charging to the market, eliminating
the hassles of plug-in charging for drivers and enabling a more streamlined and user-friendly
experience. Simply park over a pad and your car charges, just like refueling, but easier. Their
new system delivers 3.6kW of power efficiently.
Lithium-ion batteries
Typically used in portable devices, electric accumulators use lithium as their active
material. Their high energy density means they last longer and discharge less. They also
enable electric cars to perform better between recharges.
Solid-state batteries
These batteries are made from solid materials such as ceramics. They offer numerous
advantages. They deliver higher energy density and faster recharging, while reducing the
risk of fire.
Sodium-ion batteries
Less expensive than lithium-ion, these batteries use sodium and could reduce overall
costs. However, they may not offer the same performance in terms of range and charging
time as lithium-ion batteries. These advances promise to make electric cars more
efficient, safer and more affordable, contributing to wider adoption and a more
sustainable future.
❖ Lane keeping system : camera follows road lines to help the driver stay in the right lane
❖ Lane departure warning system :cameras detect electric vehicles in blind spots
❖ Adaptive Cruise Control (ACC) : radar to maintain a safe distance from the vehicle in
front
● Intelligent lighting
Safety, visibility and aesthetics are the latest innovations in intelligent lighting aim to
combine and meet the function such as adaption in driving conditions and vehicle direction, it
also follow the movement of the steering wheel and offer a range of over 600 m, and it also has
high visibility and low energy consumption.
● Smartphone connectivity
Smartphone integration is becoming increasingly fluid and intuitive. New features such
as wireless charging and compatibility with voice assistants are emerging. In addition to the
features seen on all new electric cars, automakers are adding more specific functions to
connectivity systems. Artificial intelligence enables autonomous driving, energy management
and personalization of the driver experience. Current and future innovations include screen
projection, wireless charging, compatibility with voice assistants, navigation based on artificial
intelligence, music streaming services, voice control of vehicle functions, and also the 5G and
Wi-Fi 6.
Changes
An internal combustion engine (oil-based) BMW conversion is a major undertaking that
usually calls for specialized knowledge. Converting a BMW car from petrol to electric is a
complex and potentially expensive process. It requires knowledge of automotive technology,
electrical systems and regulatory compliance. It is also important to consider the potential impact
on the warranty and resale value of the vehicle. Below shows the changes of technologies which
from petrol-run vehicle to electric car:
Engine Removal: The car's internal combustion engine must be taken out, along with any related
parts such as the cooling system, exhaust system, and fuel tank.
Installation of Electric Motor: The internal combustion engine must be removed and replaced
with an electric motor, controller, and related parts. The weight, dimensions, and power
requirements of the vehicle must be met by the electric motor.
Battery Installation: In order to power the electric motor in the car, a high-capacity battery pack
must be fitted. To make room for the battery pack, the vehicle's chassis may need to be modified
or reallocated.
Electrical System Integration: The vehicle's electrical system must be modified to accommodate
the electric motor, controller and battery. This includes connecting the motor to the battery,
installing charging ports and integrating electronic controls.
Modification of the cooling system: Electric motors and batteries generate heat during operation
and require an efficient cooling system to maintain optimal temperatures. This may require
modification or addition of vehicle cooling components.
Testing and Certification: Once the conversion is complete, the vehicle must be tested to ensure
it meets the safety and regulatory standards for electric vehicles. This may include emissions
testing, safety inspections and certification processes.
Development
BMW Group's 2013 i3 model launch marked the start of the company's transition to more
environmentally friendly transportation. After ten years, the business has seen a major change in
direction as well as an increase in the use of EVs. For the entire year 2023, the BMW Group is
expected to have a modest increase in sales. In 2023, completely electric cars and high-end
luxury models such as the new BMW i7*, new BMW 7 Series, new BMW XM*, and updated
BMW X7 will be the primary growth drivers. Following in BMW's series of electrification
initiatives is the introduction of the BMW i5, an additional completely electric vehicle model
that will be offered for sale in all major automotive markets. BMW predicts that the introduction
of the i5 will lead to further rise in EV sales, in line with the increasing demand for its electrified
cars. Sales growth for its luxury automobile brand Rolls Royce has been constant at 1% over the
last few months, despite the brand's output being very different from that of its sister premium
brands. The Rolls Royce Spectre, the company's first-ever fully electric luxury vehicle, has been
delivered to a select few customers, marking another significant step forward in the brand's
electrification journey.
Positive Impact
❖ Industry
BMW has made significant progress in electrifying its vehicle lineup, reaching the
milestone of 1,000,000 electrified vehicles on the road by 2022. This achievement underscores
BMW's commitment to sustainability and its proactive response to the shifting landscape of the
automotive industry. The company's electrified offerings encompass a diverse range of vehicles,
including the innovative BMW i3, designed with a lightweight carbon fiber-reinforced plastic
body for enhanced efficiency. Additionally, BMW offers plug-in hybrid variants of popular
models like the 3 Series and X5, providing customers with options that combine electric power
with traditional combustion engines for versatility and extended driving range. Through these
efforts, BMW aims to address consumer concerns and drive the transition towards a sustainable
and electric future for mobility. BMW's commitment to sustainability extends beyond vehicle
production to include initiatives aimed at reducing carbon emissions throughout the entire
lifecycle of its products. This holistic approach underscores BMW's dedication to environmental
responsibility and underscores its role as a pioneer in shaping the future of electromobility on a
global scale. The total energy use of the BMW Group in 2022 was 6.3 million MWh, which was
2.8% less than the year before. The deployment of energy-saving strategies throughout its
operations was largely responsible for this accomplishment. One noteworthy example is the
installation of LED lighting in sixteen plants, a move intended to improve efficiency and lower
energy consumption. When compared to traditional lighting systems, LED lighting is known for
its longer lifespan and lower energy usage, which adds up to significant energy savings over
time. BMW exhibits its dedication to reducing its environmental footprint and maximizing
operational effectiveness throughout its manufacturing plants by adopting such sustainable
measures. BMW's proactive approach to sustainability and its continuous efforts to promote
positive change within the automotive sector are reflected in this reduction in energy use.
❖ Environment
You may travel short distances and through cities almost completely emission- and noise-free
when you drive locally emission-free, such as in the case of electric cars (EVs). This transition to
electric vehicles not only lowers CO2 emissions but also dramatically lowers noise pollution,
creating a calmer and more hygienic urban environment. By adopting e-mobility, people can
help reduce the environmental impact of transportation and provide a model of ecologically
friendly mobility that others can emulate. Urban dwellers can live better thanks to electric
vehicles, which provide a practical solution to the problems of air pollution and noise in crowded
regions. A cleaner and more sustainable future for transportation is also promoted by the shift to
e-mobility, which is in line with larger sustainability objectives. Understanding the
environmental advantages of e-mobility can encourage wider adoption and support programs
targeted at creating a greener, quieter, and more sustainable urban environment through
education and awareness.
❖ Customers
Your electric car may be easily and conveniently charged from the comfort of your home
with a personal wallbox. Your EV only has to be plugged in for the night to wake up with a fully
charged battery and be ready to go on your regular travels. Numerous benefits result from using
this method, including time savings from avoiding the need to frequently visit public charging
stations and constant, dependable charging of your electric vehicle. By making charging electric
vehicles accessible and hassle-free, this seamless integration of charging infrastructure into your
daily life not only improves convenience but also promotes the adoption of electric vehicles.
○ Negative Impact
Environment
● Battery Production and Disposal
The production of EV batteries involves the extraction and processing of raw
materials, including lithium, cobalt, and nickel, which can have environmental
consequences such as habitat destruction, water pollution, and carbon emissions.
Additionally, the disposal of EV batteries at the end of their life cycle presents challenges
related to recycling and waste management, as battery recycling processes can be energy-
intensive and may result in the release of toxic substances if not handled properly.
Customers
● Recommendations
4. References
● The Star Online. (2023, June 13). Country still lacking in EV charging stations,
charging-stations-says-ministry#:~:text=CYBERJAYA%3A%20Malaysia
%20stills%20lack%20Electric,to%20our%20market%20and%20country.
● Idris Nagri. (2024, January 16). BMW’s CFO announces a “tipping point” in the
https://the-cfo.io/2024/01/16/bmws-cfo-announces-a-tipping-point-in-the-
companys-transition-to-electric-vehicles/
https://www.bmwgroup.com/en/innovation/drive-technologies/electromobility.ht
ml
exclusively all-electric models from the end of 2027. (2024). BMW Group
PressClub.
https://www.press.bmwgroup.com/global/article/detail/T0439003EN/transformati
on-to-e-mobility:-bmw-group%E2%80%99s-munich-plant-to-produce-
exclusively-all-electric-models-from-the-end-of-2027?language=en
● Swallow, T. (2023, April 11). BMW Group is a growing force for electric vehicle
https://evmagazine.com/mobility/bmw-group-is-a-growing-force-for-electric-
vehicle-adoption
Expect In The Next Decade! Motorwerks Auto Group; Motorwerks Auto Group.
https://motorwerksag.com/the-future-of-bmw-technology-what-to-expect-in-the-
next-decade/
● People’s, Y. (2017, November 2). Electric Cars. Young People’s Trust for the
Environment. https://ypte.org.uk/factsheets/electric-cars/what-are-the-downsides-
to-electric-cars
● BMW Group Supply Chain - Due Diligence & Suppliers. (2023). Bmwgroup.com.
https://www.bmwgroup.com/en/sustainability/supply-chain.html
● Helmers, E., & Marx, P. (2012). Electric cars: technical characteristics and
https://doi.org/10.1186/2190-4715-24-14
BMW.com.my. (n.d.).
https://www.bmw.com.my/en/more-bmw/sustainability/vehicles-materials-
production.html
● BMW electric cars. BMW Electric Cars: Explore EV Benefits & Technologies.
(n.d.). https://www.bmw.com.my/en/electric-cars.html
https://www.beev.co/en/blog/les-10-innovations-qui-promettent-de-revolutionner-
la-technologie-des-voitures-electriques/
5. Appendices