As an economy expands the risk appetite of the people increases considerably. Although the automobile market has been witnessing boom there are isolated cases of failures.
This report consists of nine sections and its aim is to learn more about the BMW Group business activities within analysis and observation. I am going to use as much business knowledge as I learnt to analyze this company and trying to find out the factors influencing the BMW Group.
BMW was founded in 1916 as an aircraft-engine factory in Munich. In 1923, BMW built first motorcycle and then in 1928 bought the car factory with license to build a small car called the Dixi. It continues growing and expanding its business with a good reputation and high quality of products which both satisfy its customers.
[...] is why the BMW Group will use the potential of the BMW brand to an even greater success in a future. The production of BMW Group is developed to satisfy different customer's needs, providing a variety of models for luxury, middle and low segments of market. Company constantly works out new technological decisions and improvements and nowadays set new standards in production. BMW has already achieved in individual requests fulfilling. Now its ambiguous objective is to provide every customer with his individual, personalised car on a defined date agreed in advance. [...]
[...] It can be measured in two ways: by volume and by value Volume measure the quantity of goods purchased, and market size by value is the amount spent by customers on the volume sold.” (Ian Marcousé P14) Here are the figures of BMW Resource from the BMW Group Annual Report 2002 The table represents two aspects; one is the figure of its production which including BMW, MINI and Motorcycles, other one is the deliveries to customers. Obviously, the market size of BMW Group is extending and being vigorous. [...]
[...] Product life cycle and portfolio analysis BMW has a long history; in recent years the BMW Group has demonstrated ever more incisively its versatile potential. The former niche supplier has evolved into the world's only multibrand car manufacturer with a portfolio exclusively comprising premium marquees, all the way from the micro-car to the luxury segment, BMW designed. BMW has a diversity of products, it designed BMW brand cars such as 3 Series compact and 3 Series Cabrio and then recently it introduced the MINI brand with high-performance model. [...]
[...] The BMW Group has recognised provisions in the balance sheet to cover the obligations relating to the risk of collection, treatment and recovery of all end-life vehicles sold by the BMW Group to date. Provisions are also being recognised on an on-going basis for new vehicles as a result of its activities in vehicle recycling and the progress made in “Design for Recycling”. The change in fuel prices, partly affected by the market and partly by the government tax policies, and the requirement to reduce the fleet fuel consumption and CO2 emissions set high demands on engine and product development. [...]
[...] BMW automobiles have been rolling off the assembly line in the new Shenyang plant, located in Liaoning province, since September 2003, the plant is a joint venture between the BMW Group and Brilliance China Automobiles for the Chinese market within several years. Production began with automobiles of the BMW 3 Series, followed by those of the BMW 5 Series. If the BMW Group planned to launch the MINI into China's car market, or other developing countries, its market share would be enlarged then its position in the Boston Matrix graph which shows the market share of each of the firm's products and the rate of growth of the markets in which they operate) will transfer to the Star”. [...]
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