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Mgt400 - Group Assignment 2 - BMW
Mgt400 - Group Assignment 2 - BMW
MGT400
INTRODUCTION TO MANAGEMENT
TITLE :
CHALLENGES IN MANAGING A COMPANY WITH RAPIDLY CHANGING
TECHNOLOGY DEVELOPMENT
Prepared by:
Prepared for:
Madam Radziatul Shima binti Mohd Shah
Date of Submission:
13/05/2024
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TABLE OF CONTENT
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1. Introduction
1.1 Background Company
BMW's story starts with the roar of aeroplane 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.
Post-war limitations forced diversification. Motorcycles became BMW's new focus. In
1923, the iconic R 32 motorcycle roared to life, achieving success and solidifying BMW's
reputation for innovation on two wheels. By 1928, BMW was ready for four wheels. The Dixi, a
small car based on the Austin Seven, marked their entry into the automobile market. Over the
next few years, BMW established itself as a manufacturer of reliable and sporty vehicles. World
War II, however, saw a return to aircraft engine production. After the war's devastation, BMW's
factories were severely damaged. Yet, the company persevered.
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.
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1.2 Organizational Chart
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1.3 Challenges In Managing A Company With Rapidly Changing Technology
Development
Connected car features: Developing cutting-edge connectivity features is vital. Imagine vehicles
that seamlessly integrate with smartphones, provide real-time traffic updates and personalized
navigation, offer a variety of in-car entertainment options, and can even self-diagnose potential
issues. This requires expertise in areas like an artificial intelligence, big data analytics, and
cybersecurity to ensure a seamless and secure user experience. Additionally, BMW needs to
consider offering tiered subscription models for connected car services, allowing customers to
choose the level of connectivity that best suits their needs and budget.
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Regulatory compliance and standards
Emission reduction: Meeting or exceeding emission standards remains a crucial challenge. This
necessitates ongoing advancements in engine technology for internal combustion vehicles,
exploring alternative fuel options like hydrogen fuel cells for a cleaner future, and potentially
developing hybrid powertrains that combine the benefits of electric and gasoline engines.
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.
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Supply chain and manufacturing challenges
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.
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.
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Talent acquisition and skills development
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.
BMW also needs to invest in employee training to upskill and reskilling existing
employees is crucial. Offering continuous training programs in relevant technologies can
empower current staff to adapt to the changing landscape. Next, cultivating a company culture
that values continuous learning and skill development attracts talent and encourages employees
to keep their skillsets relevant. This could involve offering internal learning platforms, mentoring
programs, and opportunities to attend relevant conferences and workshops.
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Customer expectations and experience
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:
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 prioritise research into customer preferences and leverage data analytics
to gain insights into these evolving expectations.
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.
Besides that 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
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data and allowing them to easily access and delete information upon request fosters trust and
loyalty.
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.
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.
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2. Content (Technological Implementation, Changes or Development)
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low power, which is 19.7–18.9 kW/100 km, through technologies such as recuperation during
braking.
Sustainability Initiative
Compared to an automobile with a combustion engine, an electric vehicle has cheaper
continuing maintenance costs. Service expenses are reduced because some parts, such as spark
plugs, oil filters, and exhaust systems are not prone to wear. It is BMW’s efforts in recycling and
circular economy practices. The new technology brings a practical, silent, and emission-free.
This implies that drivers can simultaneously set an example for ecologically conscious mobility
and lower carbon emissions with low noise levels.
One example is Automatic Emergency Braking (AEB), which makes use of sensors to detect
obstacles and adapt to the surroundings:
Lane keeping system : To assist drivers in maintaining their lane, a camera tracks the lines
on the road.
Lane departure warning system : In blind spot area, cameras identify electric vehicles.
Adaptive Cruise Control (ACC) : A radar to stay a safe distance behind the leading car
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more-intuitive interfaces that make it simpler for newcomers to access the newest advancements,
manufacturers have properly responded to the demands of the market. In order to allow drivers to
focus entirely on the road, menus and controls have never been simpler to use.
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Intelligent lighting
The newest advancements in intelligent lighting combine safety, visibility, and aesthetics
to fulfil functions like adapting to changing driving conditions and vehicle direction, following
the movement of the steering wheel, providing a range of more than 600 metres, having excellent
visibility, and using little energy.
2. Fuel Source:
(Internal Combustion Engines) ICE vehicles use gasoline or diesel as their primary fuel.
These fuels are stored in the fuel tank and burned in the engine for power.
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Electric cars use electricity stored in rechargeable batteries as a power source. The batteries
are charged by connecting the vehicle to a charging station or socket, or in some cases by
regenerative braking, where the kinetic energy of braking is converted into electrical energy
and stored in the batteries.
4. Environmental effects:
ICE vehicles emit greenhouse gases and pollutants such as carbon dioxide, nitrogen oxides
and particulate matter during operation.
Electric cars emit no emissions while driving, which reduces air pollution and contributes to
overall carbon dioxide emissions, especially when charged with renewable energy sources.
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
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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 surpassed a million electrified vehicles on the road by 2022,
demonstrating their dedication to a sustainable future. Their diverse lineup includes the
innovative i3 and plug-in hybrid versions of popular models, catering to a range of driver
needs. This commitment goes beyond the car itself. BMW actively reduces its
environmental impact throughout the vehicle lifecycle. Their efforts in 2022 resulted in a
2.8% decrease in energy consumption, achieved through initiatives like implementing
energy-efficient LED lighting across their plants. These actions solidify BMW's position
as a leader in sustainable transportation and a key player in shaping the future of electric
mobility.
❖ Environment
Electric vehicles (EVs) are revolutionizing urban transportation, offering a
powerful solution for cleaner and more livable cities. Their silent operation dramatically
reduces noise pollution, creating a calmer and more peaceful environment for residents.
But the benefits go beyond tranquility. EVs are also a game-changer for air quality,
significantly slashing emissions that contribute to respiratory problems and smog. This
translates into a healthier environment for everyone, especially in densely populated
urban areas. By choosing EVs, we can become active participants in reducing our
environmental impact and fostering a more sustainable transportation future. Wider
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adoption of EVs, supported by education and awareness programs, holds the key to
creating greener, quieter, and healthier cities for all.
❖ 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.
Increased Electricity Demand: The widespread adoption of EVs could potentially strain existing
electricity grids, especially during peak charging times, leading to increased demand for
electricity generation and distribution infrastructure. If not managed effectively, this could result
in higher energy consumption and associated environmental impacts, particularly if additional
electricity generation relies on fossil fuels.
❖ Customers
While battery technology is constantly advancing, this is currently the reality. Electric
cars with the greatest performance now offer ranges exceeding 300 miles on a single charge.
However, many electric cars only have a maximum range of 150 miles or less on a single charge,
making them ideal for urban driving and short trips rather than long-distance commutes. To refill
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the batteries, they must be charged for a minimum of 30 minutes at a specific high voltage
charging station, similar to those found at highway rest areas. When you consider how quickly
you can fill up a petrol or diesel car compared to the long distances newer cars can now travel
without refueling, it's clear that fossil fuels still hold a significant edge in this aspect.
Adding to these concerns is "range anxiety" - the fear of running out of battery before
reaching a charging station. This is a valid concern due to the limited number of stations
compared to gas stations. Malaysia faces an even starker reality, with only 1,000 stations built so
far, far short of the 10,000 targeted by 2025. These limitations make long-distance travel in EVs
less convenient for now.
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3. Conclusion and Recommendation
In conclusion , the diffusion of Electric Vehicles across the world represents a significant
shift towards sustainable transportation and a greener future. As countries and industries embrace
the benefits of EV technology, we are witnessing a rapid evolution in the automotive sector that
prioritize environmental conservation and energy efficiency. The increasing adoption of EVs not
only driven by technological advancement but also by a growing awareness of the need to reduce
carbon emissions and consumers are recognizing the importance of transitioning towards cleaner
transportation options, and EVs are at the forefront of this transition. While challenges such as
range anxiety, cost, and charging infrastructure remain, the momentum behind EVs in
undeniable. With ongoing research and innovation, coupled with supportive policies and
inventives, the future of electric mobility looks promising.In conclusion, the diffusion of EVs in
the world not just trend but a transformative movement towards a cleaner ,more sustainable
transportation ecosystem. By embracing EV technology and investing in its growth, we can pave
the way for more environmentally friendly and energy efficient future for generation come.
Recommendation:
Electric vehicles (EVs) are at the forefront of sustainable transportation solutions,
offering numerous benefits for the environment and society. While significant progress has been
made in promoting EV adoption, there are still challenges that need to be addressed in this article
into recommendations to further enhance the adoption and integration of electric vehicles into
our daily lives.
Investing in research and development for advanced battery technologies,charging
infrastructure and vehicle to grid integration is crucial for the continued growth of the electric
vehicle industry. Funding innovative projects can drive technological advancements and improve
the performance and efficiency of EVs.
The implementation of a model project are very effective for assess the feasibility and
impact of EV introduction and to implement capacity the building mentioned above. Model
projects can allow to collect information needed for full EV development and to strengthen the
implementation capacity of related agencies. It is advisable to use support from developed
countries to implement the model project.
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4. References
● The Star Online. (2023, June 13). Country still lacking in EV charging stations, says
lacking-in-ev-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.html
electric models from the end of 2027. (2024). BMW Group PressClub.
https://www.press.bmwgroup.com/global/article/detail/T0439003EN/transformation-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
group-is-a-growing-force-for-electric-vehicle-adoption
● Thompson, T. (2023, October 4). The Future of BMW Technology: What To Expect In
https://motorwerksag.com/the-future-of-bmw-technology-what-to-expect-in-the-next-
decade/
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● 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 environmental
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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/
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5. Appendices (Article, Journal, Official Web)
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