A PROJECT REPORT ON BMW A Project Report Submitted in partial fulfilment of the requirements for the Award of degree of Bachelor

of Business Administration 2010 2011 Submitted by: Guided by (M ! P"iy#$%# G#"& '

MA(ARAJA AGRASEN )NST)T*TEO+ MANAGEMENT ST*,)ES

Ce"ti-i.#te -"/m t0e C/m1#$y2O"&#$i3#ti/$

This is to certify that Mudit J#i$ son of ( Mr Sanjay Jain pursuing BBA from Mahraja agrasen institute of management studies! "ew #elhi has successfully completed Project Report in our organi$ation on the topic titled! %A B*S)NESS REPORT ON BMW& from ''() *ctober'''to '+, -ctober'''''' +-(. #uring

her project tenure in the organi$ation/ company! we found him/ her hard wor0ing! sincere and diligent person and his/ her beha1iour and conduct was good during the project 2e wish him/her all the best for his/ her future endea1ors

C/mme$t /- Guide ( + . N#me #$d Si&$#tu"e /- t0e Me$t/" ( #esignation '

ST*,ENT *N,ERTA4)NG

This is to certify that 3 'Mudit 4ain had completed the Project titled % A B5SS3"6S R6P*RT *" BM2& under the guidance of M !P"iy#$%# G#"& in the partial fulfilment of the requirement for the award of degree of BBA from Mahraja

agrasen institute of management studies!"ew #elhi This is an original piece of

wor0 and 3 had neither copied nor submitted it earlier elsewhere

Mudit 4ain Stude$t N#me #$d Si&$#tu"e C/u" e

,#ted 5

CERT)+)CATE
This is to certify that the project titled %A B5SS3"6S R6P*RT *" BM2& is an academic wor0 done by %Mudit J#i$& submitted in the partial fulfilments of the requirement for the award of the #egree of BBA from M#0"#6# #&"# e$ i$ titute /- m#$#&eme$t tudie 7Ne8 ,e90i under my guidance and direction To the best of my 0nowledge and belief the data

and information presented by him/her in the project has not been submitted earlier

N#me #$d i&$#tu"e /- +#.u9ty Guide ,e i&$#ti/$

CERT)+)CATE

This is to certify that the Project titled %A B*SS)NES REPORT ON BMW& is an academic wor0 done by %Mudit J#i$& submitted in the partial fulfilments of the requirement for the award of the #egree of %7ourse& from %Mahraja agrasen institute of management studies!"ew #elhi & 3t has been completed under the guidance of Ms Priyan0a 8arg (3nternal 8uide9 ,"! 4C S0#"m# (#irector9

AC4NOW:E,GEMENT

3 owe a great many than0s to a great many people who helped and Supported me during ma0ing of this project My deepest than0s to the guide : teacher! M !P"iy#$%# G#"& the 8uide of the project for guiding and correcting 1arious documents of mine with attention and care ;e has ta0en pain to go through the project and ma0e necessary correction as and when needed 3 e<press my than0s to the director ,"! 4C S0#"m# of Mahraja agrasen institute of

management studies!Ne8 ,e90i

e<tending his support My deep sense of gratitude to BMW for support

3 would also than0 my 3nstitution and my faculty members without whomthis project would ha1e been a distant reality 3 also e<tend my heartfelt than0s tomy family and well wishers

N#me ; i&$#tu"e /- t0e tude$t

PRE+ACE

This report presents the research! findings and Recommendations resulting from a project report on BM2 The objecti1e 2as to compile and synthesi$e information on the Status of the company! current uses! And financial projections 3n so doing! it lays the foundation for the de1elopment of a 7ompany inma0ing cars The 7ommission=s in1ol1ement in this project reflects its long>term interest in ma0ing a company good in ma0ing car Proposed Topic of the Project ? Bmw *bjecti1es of the Project ? To 0now about the brand 1alue of the product@ ;ypothesis of the Project ? 7ompany #etails ? leading car

manufacturing manufacturing #etails ? car manufacturing Brief Summary of the Project ? 1arious cars for the comfort of cars

N#me ; i&$#tu"e /- t0e tude$t

SCOPE

Since the release of BM2=s official strategy bac0 in September +--A! media sources around the world ha1e speculated about the carma0er loo0ing to either launch its own new brand or acquire one to help its e<pansion

3nstead! BM2 established a new en1ironmental thin0>tan0 dubbed BProject iB! whose tas0 is to de1elop a number of solutions for a 1ehicle designed for congested city motoring

The Project>3 di1ision runs independently to BM2 and has been gi1en until the middle of the ne<t decade to de1elop a concrete solution for a possible range of city cars The urbani$ed car for the masses connotation has lead to speculation that the Project i cars will be something low>end and cheap "othing could be further from the truth! according to research and de1elopment boss #r 5lrich Cran$ who re1ealed to 8ermany=s Handelsblatt that BM2 will be wor0ing on bringing the Project i solutions to mar0et completely in>;ouse

C(APTER 1 A*TOMOB):E )N,*STR< PRO+):E

The 0i t/"y /- t0e #ut/m/bi9e begins as early as (ADE! with the creation of steam>powered automobiles capable of human transport 3n (F-D! the first cars powered by internal

combustion engines running on fuel gas appeared! which led to the introduction in (FF) of the ubiquitous modern gasoline> or petrol>fueled internal combustion engine 7ars powered by electricity briefly appeared at the turn of the +-th century but largely disappeared from commonality until the turn of the +(st century! when interest in low> and $ero>emissions transportation was reignited As such! the early history of the automobile can be di1ided into a number of eras based on the pre1alent method of automoti1e propulsion during that time Gater periods were defined by trends in e<terior styling and si$e and utility preferences

8erman engineer Carl Ben$! in1entor of numerous car>related technologies! is generally regarded as the in1entor of the modern automobile The four>stro0e petrol (gasoline9 internal combustion engine that constitutes the most pre1alent form of modern automoti1e propulsion is a creation of 8erman in1entor "i0olaus *tto The similar four>stro0e diesel engine was also in1ented by a 8erman! Rudolf #iesel The hydrogen fuel cell! one of the technologies hailed as a replacement for gasoline as an energy source for cars! was disco1ered in principle by yet another 8erman! 7hristian Hriedrich SchInbein! in (F.F The battery electric car owes its beginnings to ;ungarian Jnyos 4edli0! one of the in1entors of the electric motor! and 8aston PlantK! who in1ented the lead>acid battery in (F)E

Aut/m/bi9e )$du t"y i$ )$di# The first motor car on the streets of 3ndia was seen in (FEF Mumbai had its first ta<icabs in the early (E-- Then for the ne<t fifty years! cars were imported to satisfy domestic demand Between (E(- and +-Bs the automobile industry made a humble beginning by setting up

assembly plants in Mumbai! 7alcutta and 7hennai The import/assembly of 1ehicles grew consistently after the (E+-Bs! crossing the .-!--- mar0 in (E.- 3n (E,D! Premier Automobile Gtd (PAG9 earned the distinction of manufacturing the first car in the country by assembling B#odge #eSotoB and BPlymouthB cars at its Curla plant ;industan Motors (;M9! which started as a manufacturer of auto components graduated to manufacture cars in (E,E 3n the early F-Bs! a series of liberal policy changes were announced mar0ing another turning point for the automobile industry The 8*3 entered the car business! with a A,L sta0e in Maruti 5dyog Gtd (M5G9! the joint 1enture with Su$u0i Motors Gtd of 4apan M5G introduced BMaruti F--B in (EF. pro1iding a complete facelift to the 3ndian car industry The car was launched as a Mpeoples carM with a price tag of Rs,-!--- This changed the industryBs profile dramatically The de>licensing of auto industry in (EE. opened the gates to a 1irtual flood of international auto ma0ers into the country with an idea to tap the large population base of E)-mn people Also the lifting of quantitati1e restrictions on imports by the recent policy is e<pected to add up to the flurry of foreign cars in to the country Many companies ha1e entered the car manufacturing sector! to tap the middle and premium end of car industry The new entrants are #aewoo (Mati$9! Telco (3ndica9 and ;yundai (Santro9 in upper end of economy car mar0et 8M! Hord! Peugeot! Mitsubishi! ;onda and Hiat ha1e entered the mid>si$ed car segment and Mercedes>Ben$ is in the premium end of mar0et

S(EER ,R)=)NG P:EAS*RE

BMW 5 B#ye"i .0e M/t/"e$ We"%e AG7 B#>#"i#$ M/t/" W/"% (E$&9i 0'

BM2 is a 8erman automobile and motorcycle manufacturing company found in (E(D! it is 0nown for its performance and lu<ury 1ehicles 3t owns and produces the M3"3 brand! and is the parent company of Rolls>Royce Motor 7ars

T(E BMW GRO*P

2ith the three brands! BM2! M3"3 and Rolls>Royce Motor 7ars! the BM2 8roup has its sights set firmly on the premium sector of the international automobile mar0et To achie1e its aims! the company 0nows how to deploy its strengths with an efficiency that is unmatched in the automoti1e industry Hrom research and de1elopment to sales and mar0eting! BM2 8roup is committed to the 1ery highest in quality for all its products and ser1ices

P"e-#.e by T0e C0#i"m#$ /- t0e B/#"d O- M#$#&eme$t

:#die #$d Ge$t9eme$7

The BM2 8roup achie1ed positi1e group earnings for the +--E financial year! despite the global economic crisis The company remains the automobile industry=s leading premium manufacturer More than ( +F million customers purchased a BM2! M3"3 or Rolls>Royce last year! and o1er FA!--- customers bought a BM2 motorcycle Sales benefited only marginally from the national stimulus programmers initiated in many countries! such as the scrap page bonus scheme in 8ermany *ur accomplishments in +--E were reali$ed as an independent company 2e continue to chart our own course with courage and determination N and with a clear 1iew to the future The image section illustrates how we are translating the four pillars of our Strategy "umber *"6 N Huture! 8rowth! 7ustomers and Profitability N into action 3t also cites many e<amples of how we are conser1ing resources and gradually reali$ing sustainable mobility 5ltimately! companies and products are made by people ;ere you can learn about the people behind our products? 2ho are the men and women who ma0e up the BM2 8roup@ Abo1e all! you will ha1e the opportunity to get to 0now our customers 2ho buys our 1ehicles! and why@ 2hat does their BM2! M3"3 or Rolls>Royce mean to them@

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Two factors determined our actions as a company in +--E? acti1e crisis management and inno1ati1e future projects 2e acted quic0ly and decisi1ely in response to the economic crisis? Oehicle in1entories were reducedP fi<ed costs were substantially trimmed across all di1isionsP and se1eral plants temporarily implemented short>time wor0ing 2e also too0 steps to secure sufficient liquidity 2e were capable of operating effecti1ely throughout and were able to refinance at relati1ely fa1orable rates on the capital mar0ets at all times Parallel to these short>term measures! we also set the course for the successful de1elopment of the BM2 8roup o1er the ne<t few years N something 3 belie1e is crucial 2e in1ested in projects for the future and our sites! in particular in 8ermany! the 5S! 7hina and 3ndia *ur in1ol1ement in 3ndia is one of the focal points of this report *ur Strategy "umber *"6 lays the foundation and sets out a 1ision that unites e1eryone at the BM2 8roup? to be the leading pro1ider of premium products and premium ser1ices for indi1idual mobility in the

year +-+This ma0es it quite clear that premium is! and will continue to be! our business model The concept of %premium& is changing! just as society and people=s lifestyles are changing To gi1e an e<ample? People still want to be mobile as indi1iduals N and there is a rising demand for mobility! especially in growth mar0ets such as 7hina and 3ndia But people all o1er the world are becoming more interested in how efficient their 1ehicle is *ur 6fficient #ynamics measures ha1e drastically reduced fuel consumption and 7*+ emissions across our entire fleet 2ould you e1er ha1e belie1ed that BM2 could be the world=s most en1ironmentally friendly premium brand@ *r that the a1erage fleet consumption of the BM2 and M3"3 fleets could be lower than that of the mass manufacturers N e1en though they offer much better performance@ The statistics of the 8erman Hederal Motor Transport Authority are unequi1ocal? A1erage 7*+ emissions for new BM2 and M3"3 1ehicles registered in 8ermany in +--E were no more than ()D grams of 7*+ per 0ilometer That represents an a1erage fuel consumption of ) E liters per (-0ilometers

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Hor the BM2 8roup! the year +-(- will largely be defined by the new BM2 ) Series 3 personally belie1e that the new BM2 ) Series is one of the best cars we ha1e e1er built 7urrently! the 1ehicle with the best fuel economy and lowest emissions in the BM2 model range is the .+-d 6fficient #ynamics 6dition 7ustomers will be able to e<perience its sheer dri1ing pleasure with a fuel consumption of just , ( liters per (-- 0ilometers and (-E grams of 7*+ per 0ilometer from spring +-(- onwards 2e showcased e1erything that 6fficient #ynamics still has to offer at the +--E 3AA 3nternational Motor Show within our BM2 Oision 6fficient #ynamics This concept car rightly attracted a great deal of attention N not just for its futuristic design! but also for its inno1ati1e dri1e train! comprising a .>cylinder turbo diesel engine with two electric motors mounted on both a<les 7onsequently! this thoroughly sporty 1ehicle consumes an a1erage of just . AD liters per (-- 0ilometers This technical masterpiece is highlighted further in detail

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2e also belie1e premium means offering our customers new technical solutions The first two BM2 models with hybrid dri1e will become a1ailable in +-(- *ur worldwide M3"3 6 customer test has so far been a resounding success There are about D-- M3"3 cars with electric dri1es currently on the roads "o other electric car has cloc0ed as many 0ilometers and as many miles as the M3"3 6 *ur customers thin0 it is terrific They are helping us learn how e>mobility can succeed in e1eryday situations 2e also presented the first BM2 with electric dri1e! and will be releasing a further trial fleet of electric 1ehicles based on the BM2 7oncept Acti1e 6 concept car to customers ne<t year

All of the e<perience we gain will be incorporated into our Megacity Oehicle This is much more than just a highly inno1ati1e car 2e aim to completely redefine how cars are built N with regard to 1ehicle architecture! lightweight construction and use of materials N to create a

sustainable 1alue chain

N/ #ut/m/bi9e m#$u-#.tu"e" u e "e /u".e m/"e e--i.ie$t9y!

61erybody is tal0ing about sustainability N when action is what is needed 2e belie1e our 1ehicles should also be produced in an en1ironmentally responsible manner 3n September +--E! the #ow 4ones Sustainability 3nde< named the BM2 8roup as the leading company in the automobile sector for the fifth consecuti1e year Hor us this is both an incenti1e and an obligation 2e are committed to sustainability in all areas That is why we decided to send a clear signal and withdraw from Hormula *ne at the end of the +--E season N although it was not an easy decision after ten years of successfully competing at the highest le1el in motorsports

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2e are ta0ing a new direction with our Strategy "umber *"6 The small car segment represents a source of growth opportunities! and we will therefore be offering premium products for these customers 7ollaboration with others will also allow us to achie1e economies of scale 2e will continue to rely on strategic partnerships with the best partners for the tas0 at hand 2hat is more! increased use of shared modules between models and brands will enable us to further reduce costs throughout the entire process chain! but still maintain our high quality *ur industry is currently in a period of tremendous uphea1al and technological change The economic crisis has further accelerated this trend 3n order to be successful in the mar0etplace! companies must find the right answers to the challenges of tomorrow *ur ideas and actions are geared towards the long term *ur strategy pro1ides us with the plan for shaping our own future 2e achie1ed a great deal in +--E 3 would li0e to than0 e1ery single one of our ED!+.employees for their outstanding personal dedication 3 would also li0e to than0 our customers for their confidence in our products and our company! as well as our entire retail networ0 2e ha1e also continued to wor0 producti1ely with our suppliers Gast but not least! 3 would li0e to than0 our shareholders and in1estors for their commitment to the BM2 8roup N particularly in these times of economic crisis The effects of the economic crisis will continue to be felt in +-(- ;owe1er! we are cautiously optimistic that we will be able to resume our growth path this year 2e belie1e in the future of indi1idual mobility N and we are already creating it N/"be"t Reit0/-e" C0#i"m#$ /- t0e B/#"d /- M#$#&eme$t

COMPAN< ()STOR<

E"# O- Ai"."#-t (1?1@' T0e +i" t +9i&0t

After 2orld 2ar 3! BM2 were forced to cease aircraft (engine9 production by the terms of the Oersailles Armistice Treaty The company consequently shifted to motorcycle production in (E+. once the restrictions of the treaty started to be lifted! followed by automobiles in (E+F

The circular blue and white BM2 logo or roundel is often alleged to portray the mo1ement of an airplane propeller! to signify the white blades cutting through the blue s0y > an interpretation that BM2 adopted for con1enience in (E+E! which was actually twel1e years after the roundel was created

E"# O- M/t/".y.9e (1?2A':5+#.e T0e P/8e"7 T0e Ride ) O$

BM2 began building motorcycle engines and then motorcycles after 2orld 2ar 3 3ts motorcycle di1ision is now 0nown as BM2 Motorrad Their first successful motorcycle! after the failed ;elios and Hlin0! was the MR.+M in (E+. Many BM2s are still produced in this layout! which is designated the R Series

3n (EF. came the C Series affectionately 0nown as BT0e +9yi$& B"i.%B! shaft dri1e but water>cooled and with either . or , cylinders mounted in a straight line from front to bac0 3n the early (EE-s! BM2 updated the airhead Bo<er engine which became 0nown as the oil head

3n +--,! BM2 introduced the new C(+--S Sports Bi0e which mar0ed a departure for BM2 3t is both powerful and significantly lighter than pre1ious C models 3nno1ations include a

unique electronically adjustable front and rear suspension and a ;ossac0>type front for0 BM2 call #uo le1er

E"# O- Aut/m/bi9e ( 1?2@' :5T0e *9tim#te ,"i>i$& M#.0i$e

The "ew 7lass was a line of compact sedans and coupes starting with the (ED+ ()-- and continuing through the last +--+s in (EAA Powered by BM2Bs celebrated four>cylinder M(- engine! the "ew 7lass models featured a fully independent suspension! Macpherson struts in front! and front disc bra0es 3nitially a family of four>door sedans and two>door coupes! the "ew 7lass line was broadened to two> door sports sedans with the addition of the -+ Series (D-- and +--+ in (EDD Sharing little in common with the rest the line beyond power train! the sporty siblings caught auto enthusiastsB attention and established BM2 as an international brand Precursors to the famed BM2 . Series! the two>doorsB success cemented the firmBs future as an upper tier performance car ma0er "ew 7lass four>doors with numbers ending in M-M were replaced by the larger BM2 ) Series in (EA+ The upscale +---7 and +---7S coupes were replaced by the si<> cylinder BM2 6E! introduced in (EDE with the +F--7S The (D-- two>door was discontinued in (EA)! the +--+ replaced by the .+-i in (EA)

C(APTER 52

T0e Aut/m/bi9e )$du t"y St#t BM2 and the fi1e major companies in +--F>-E C/m1#$y 8eneral Motors Hord #aimler>7hrysler Toyota Ool0swagen BM2 8roup N/ /- >e0i.9e (m' F) DA . F) D +) ) -+ ( (+ Eu"/(b' ()A (E ((D ,A (,, D) (+) .FA () ,( )+

COMPET)TORS )N MAR4ET

BMW B)R,S (PRO,*CTS'

( Series The ( Series was launched globally in autumn +--, and shares many structural! chassis! power train! hardware and electronic elements with the larger . Series The model was started to pro1ide a lower point of entry into the BM2 range as the . Series mo1ed gradually up> mar0et The ( Series coupe and con1ertible went on sale in the 5nited States in model year +--F as the (+Fi and the (.)i

BM2 ( Series )>door

BM2 ( Series 7oupe BM2 ( Series 7oupe

. Series The BM2 . Series is an e<ecuti1e car manufactured since model year (EA) The . Series is currently in its fifth generation! the 6E- 7urrent models include the sport sedan (6E-9! station wagon (6E(9! coupe (6E+9! and con1ertible (6E.9 3t offers lu<ury The . series is one of BM2Bs most important models! as it accounts for a majority of its worldwide sales

+--A .>Series 7oupe

+--D .>Series Touring

+--D .>Series Sedan

BM2 6,D 8eneration with Q;P Performance

) Series The M) is the Motorsport di1isionBs 1ersion of the ) Series The new M) is powered by a H(>inspired O(- engine! producing )-A hp (.AF 029 and is mated with a A>speed sequential manual gearbo< (SM89 transmission! which is capable of a top speed of about ..- 0m/h (production 1ariants are restricted to +)- 0m/h! or ()) mph9

+--) ) Series with M Sport Pac0age C Se"ie

+--A )>Series Touring +--A M) with M Sport Pac0age

6.E BM2 M) Sedan

BM2 A>Series (H-(9 BM2Bs full>si$e flagship e<ecuti1e sedan Typically! BM2 introduces many of their inno1ations first in the A Series Hor e<ample! the somewhat contro1ersial i#ri1e system debuted in the A Series The A Series ;ydrogen! featuring one of the worldBs first hydrogen fuelled combustion engines! is fuelled by liquid hydrogen and emits only water

1apour The O(+ engine also runs on gasoline "umerous engines power the A Series worldwide BM2 offers diesel! straight D! OF and O(+ motors! as well as the Alpinatuned supercharged OF

D SER)ES S*=S DA

BMW DA (current generation9 BM2Bs second crosso1er S5O debuted in "o1ember +--. as a Model Rear +--, (called SAO or Sports Acti1ity Oehicle by BM29 and is based on the 6,D/(D . Series platform Hor +--A! the S. is powered by the ")+ inline D cylinder engine that debuted on the +--D 6E- . Series 3n +--A a face lift was gi1en to the S.! including an S>dri1e update! suspension adjustments! an engine upgrade! and aesthetics inside and out E Se"ie EF A +>seater roadster and coupe which succeeded the Q. Hrom +--D the Q, Roadster is a1ailable as a . -i (. - G 3D with +() hp9! a . -si a1ailable with the new generation . - G 3D with +)) hp ((E- 029! a + )si with a + ) 3D with +(F bhp ((D. 029 or a + -i with a ()- bhp (((+ 029 + - G 3, The Q, coupK is a1ailable only in the high>performance . -si trim powered by the . - G +)) hp ((E- 029 3D The Q, (6F,9 was built at the Spartanburg plant 3ts successor! also named Q, (6FE9 > this time a coupK>con1ertible with folding hardtop> will be built in Regensburg alongside the (6E.9 .>Series 7abrio

Q, M The new Q, M roadster and coupe ha1e been released with an 6,D M. motor (. + G! ... hp9 and also features the M bra0ing! suspension! and styling characteristics

+--D Q, Roadster +--D Q, 7oupe +--A Q, M Roadster M SER)ES BM2 M

MA

E?2 MA C/u1G Based on the . Series! the M. defined an entirely new mar0et for BM2? a race>ready production 1ehicle Since its debut! the M. is heralded in enthusiast circles! in large part due to its unique geometry and award winning engines The newest platform became a1ailable the Autumn of +--A in 6urope! and second quarter of +--F for the 5 S in 7oupe (6E+9! and later the 7abriolet (6E.9! and Sedan (6E-9 1ariants

MH

BMW MH C/u1e The MD is the M di1isionBs 1ersion of the D Series The MD shares its dri1e train with the M) The O(- produces )-F hp (.AE 029 and .F.lb/ft ()+-"m9 of Torque The production MD

debuted at the +--) 8ene1a Motor Show 3t is currently a1ailable in a coupe and a con1ertible 1ersion There is speculation that an MD 7SG 1ersion is to be released in the future The 1ehicle is based on the D Series coupe and con1ertible! which were launched in +--, 7arbon fiber and other light materials are used in places li0e the bumpers and roof that are far from the centre of gra1ity and/or high up! so that they not only reduce the o1erall weight but impro1e the handling by reducing the moment of inertia and the centre of mass height

The pre1ious generation was launched in (EF.! but ended in (EFE with around )!F)) sold

M)N)

Mini (styled as M3"39 is a British automoti1e brand owned by the BM2 8roup that has produced the successor of the original Mini in *<ford! 6ngland since April +--( 7urrently three body 1ariants are a1ailable? hatchbac0! con1ertible and 7lubman The car! whose first generation was designed by Hran0 Stephenson! is drawing inspiration from the original Mini! which was manufactured by the British Motor 7orporation and its successors from (E)E to +--- The name of the carBs brand! M3"3! is all>capitali$ed to distinguish it from its predecessor

The de1elopment of the first generation had been done between (EE) and +--( by Ro1er 8roup in 8aydon! 5nited Cingdom and BM2 A8 in Munich! 8ermany and was accompanied by continual contention between Ro1er and BM2 6specially the positioning of the car was contended Ro1er wanted an economy car! whilst BM2 supported a small sporting car and finally pre1ailed 3n (EEE BM2 assumed control o1er the whole project after BM2Bs 76* Bernd Pischetsrieder had left the company 2hen BM2 di1ested itself of Ro1er in +---! BM2 decided to 0eep the Mini project and to build the car! which was originally to be built at Ro1erBs Gong bridge plant! T.U the former production plant of the traditional Mini! at BM2Bs *<ford plant in 7owley! *<ford! 5nited Cingdom! in what was historically the Pressed Steel 7ompany body plant The +--( to +--D model years included four hatchbac0 models? the basic MMini *neM! the diesel>engine MMini *ne/#M! the sportier MMini 7ooperM and the supercharged MMini 7ooper SM The Mini was designed and engineered to replace the long running Ro1er (-- and the larger Ro1er +--! both deemed unsuitable for the modern world automobile mar0et The Mini was supposed to replace low>end models of the +-- and high>end models of the (-- with a Ro1er .) replacing high end +--s and low end ,--s After the di1estment of M8 Ro1er! the Mini was instead mar0eted as a small yet desirable city car rather than a mainstream replacement of the (-- and +--

RO::S5RO<CE MOTOR CARS

Rolls>Royce Motor 7ars is a British manufacturer of lu<ury automobiles based in 8oodwood! 6ngland 3t is the current producer of Rolls>Royce branded automobiles! whose historical production dates bac0 to (E-, The factory is located across from the historic 8oodwood 7ircuit in 8oodwood! 2est Susse<! and 6ngland 3t is a wholly owned subsidiary of the BM2 8roup 3n (EEF! owners Oic0ers decided to sell Rolls>Royce Motors The most li0ely buyer was BM2! who already supplied engines and other components for Rolls>Royce and Bentley cars! but BM2Bs final offer of V.,-m was beaten by Ool0swagenBs V,.-m

A stipulation in the ownership documents of Rolls>Royce dictated that Rolls>Royce plc! the aero>engine ma0er would retain certain essential trademar0s (the Rolls>Royce name and logo9 if the automoti1e di1ision was sold Rolls>Royce plc chose to license not to O2 but to BM2! with whom it had recently had joint business 1entures O2 had bought rights to the MSpirit of 6cstasyM hood ornament and the shape of the radiator grille! but it lac0ed rights to the Rolls>Royce name necessary to build the cars Gi0ewise! BM2 lac0ed rights to the grille and mascot BM2 bought an option on the trademar0s! licensing the name and MRRM logo for V,-m! a deal that many commentators thought was a bargain for possibly the most 1aluable property in the deal O2 claimed that it had only really wanted Bentley anyway

BM2 and O2 arri1ed at a solution Hrom that date! only BM2 would be able to name cars MRolls>RoyceM! and O2Bs former Rolls>Royce/Bentley di1ision would build only cars called MBentleyM The Rolls>RoyceBs 7orniche ceased production in +--+

E$>i"/$me$t#9 Re./"d /- BMW

The company is a charter member of the 5 S 6n1ironmental Protection AgencyBs (6PA9 "ational 6n1ironmental Achie1ement Trac0! which recogni$es companies for their en1ironmental stewardship and performance 3t is also a member of the South 7arolina 6n1ironmental 6<cellence Program and is on the #ow 4ones Sustainability 8roup 3nde<! which rates en1ironmentally friendly companies BM2 has ta0en measures to reduce the impact the company has on the en1ironment 3t is trying to design less>polluting cars by ma0ing e<isting models more efficient! as well as de1eloping en1ironmentally friendly fuels for future 1ehicles Possibilities include? electric power! hybrid power (combustion! engines and electric motors9 hydrogen engines

W0#t C"iti. S#y I

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All Wheel Drive All>wheel dri1e means traction! directional stability and dri1ing safety 2ith BM2 <#ri1e! it also means dri1ing pleasure *n dry tarmac! <#ri1e transfers ,-L of the torque to the front wheels and D-L to the rear! allowing the car to retain the sporty handling characteristics youBd e<pect from a BM2 3f the situation or surface changes! <#ri1e redistributes torque within milliseconds to pre1ent o1er> or under steer at the onset 3tBs the perfect blend of safety! traction and agility

Active Steering. Acti1e Steering adjusts the steering ratio and weight to the carBs speed At low or medium speeds! it translates steering input directly for easier par0ing in town and enhanced agility in bends At high speeds! the amount the wheel needs turning increases! resulting in greater directional stability > on motorways for instance > and therefore safety 3t means optimum feel and ma<imum enjoyment! whate1er the speed and situation

,)STR)B*T)ON C(ANNE: O+ BMW

BM2 is an automobile dealer that manufacturers and sells a wide range of 1ehicles The BM2 automobiles are sold to a special target mar0et and appeals only to a particular stratum of people BM2 1ehicles are classy! stylish! comfortable and lu<urious 2ith regard to the BM2 films! which can be 1iewed on www bmw com! there are a number of reasons surrounding the success of these films The films allow prospecti1e customers to 1iew the cars before purchasing them Mar0eters ensured that the 1isitors to the site felt compelled to stay at the site They associated each model of the 1ehicle to that of human attributes Hor e<ample! the BM2 Hormula M was described as ha1ing a Wsoul= 2hen consumers see these attributes! they suddenly begin to identify with these attributes! and then create an image and personality of the 1ehicle for themsel1es! by also gi1ing the 1ehicles personal human traits as well The site also offers consumers the option of customi$ing their own 1ehicle to their preference and taste Another reason the BM2 site and films ha1e increased sales for the company is that mar0eters ha1e used dynamic features for the site The site is portrayed as a type of one>stop shopping! because not only are BM2 1ehicles showcased! but an online maga$ine is on the site 3f 1isitors to the site do not wish to ma0e a purchase! they may opt to 1iew the online maga$ine Mar0eters embar0ed on an intense 3ntegrated Mar0eting 7ampaign that ga1e rise to increased interest and traffic to the BM2 site 3ntegrated Mar0eting 7ommunication (3M79 is a strategy used to plan! e<ecute and monitor communication about a brand 3n addition! the 3M7 is aimed at attracting and retaining customers The mar0eters of the BM2 site had to ha1e e<tensi1e 0nowledge of the brand! competitors and target audience Through the 3M7 plan on the 3nternet! mar0eters were able to use a direct mar0eting channel to reach it target audience 3n addition! the type of distribution channel that was employed by mar0eters on the BM2 website was to perform the facilitating function! where contact was made with buyers! the needs of buyers were matched with the product and they had ideal communication strategies to ensure effecti1e information transfer The success of the BM2 films also include the that fact that each Oehicle is presented with the possible fuel consumption information as well as the model of the 1ehicle that would be most appropriate for the consumer based on the model chosen and the consumer=s lifestyle 2hen mar0eters cater to the needs of customers and a positi1e perception of the brand has been created! the success of the product is ine1itable

*N)TS ,E:)=ERE,
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PROMOT)ONA: +)G(TS BETWEEN B)G P:A<ERS

COMPAN<N STRATEG<

OBJECT)=ES
As a person with 0nowledge of business strategy! the author has always brought up to his superiors the 1iability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it By del1ing into this project paper! the author intends to ha1e better insights into how business strategy is thought up! formulated and then imparted down into the subsidiaries of the company or organi$ation The author hopes to ha1e an in>depth understanding as to how the implementation of business strategies enables companies and organi$ations to compete effecti1ely and profitably in this era of internationali$ation where competition is e<tremely intense 3n order to reinforce the learning objecti1es! two 0ey focal issues were focused upon! i e inno1ation and di1ersity 3nno1ation was discussed with regard to business strategies where they were renowned for their de1elopmental capabilities to constantly inno1ate #i1ersity came under strategic thin0ing and formation as the author considered the di1erse culture! political climate! economic surroundings! social en1ironment! technological settings! go1ernment policies and legal systems in its bid to become a leading player in order to better understand the issues being discussed

EDEC*T)=E BR)E+
This essay utili$ed BM2 as the model organi$ation to re1iew its present business strategies and how they dealt with critical situations Hrom the analysis! 0ey trends in the business strategies of BM2 were then identified! how they wor0ed and their effecti1eness in dealing

with critical situations was ascertained The paper then mo1ed on to assess these business strategies with regard to their suitability to critical situations! during which the internal capabilities of these business strategies in relation to the strategy being followed by BM2 was determined also An o1erall analysis of the performance and effecti1eness of the business strategies of BM2 was also conducted to assess and compare the capabilities of these business strategies with those of others 8aps in the capabilities and en1ironment were then identified Hinally! se1eral choices of strategies to impro1e the business strategies of BM2 as effecti1e means in critical situations were recommended and e1aluated in terms of appropriateness to the issues re1iewed! feasibility in carrying out the options and acceptability within the 0ey sta0eholders and decision ma0ers Se1eral 0ey implementation issues related to managing strategic change were also addressed as well

O=ER=)EW O+ BMW
BM2 aims for sustainable growth as a broad mar0et leader in the automobile industry as well as for segment leadership 3n both cases! the automobiles of BM2 will play a crucial part BM2 is able to establish its broad leadership usually by acquiring other strong automobile companies and their cars! which are then combined into a new! larger company *ffering training to its employees! impro1ing the company operations! and the introduction of new car technologies then reinforces the positions of the 1arious BM2 automobiles This practically results in economies of scale that is able to create a distribution networ0 for both the local and international BM2 automobiles 3f a mar0et is already in the control of other automobile companies! BM2 de1otes its attention towards the de1elopment of a premium segment with its 1arious automobiles

The mission of BM2 is to secure the growth of the business in a sustainable manner! while at the same time constantly impro1ing the company=s profitability The strategy to achie1e this in1ol1es four elements? ( + . , Stri1ing in order to reach a leading position in attracti1e mar0ets Hocusing on securing a competiti1e share of the automoti1e mar0et segments 2or0ing in order to impro1e the company=s efficiency and cut costs in operations 7ontinuous growth through selecti1e acquisitions for as long as they are able to create shareholder 1alue

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t"#te&i. 1/ iti/$I

BM2=s generic strategy in the automoti1e mar0et lies on product differentiation The differentiated automobiles and motorcycles of BM2 are able to satisfy the needs of their customers through a sustainable competiti1e ad1antage This allows BM2 to desensiti$e the prices of their automobiles and motorcycles and instead focus on the 1alues that generate not only a comparati1ely higher price but also a better margin BM2 is committed on its efforts to continuously de1elop original automoti1e technologies that generate a high appeal to the general public due to its quality and cost effecti1eness *1er the years! BM2 has been able to build a substantial base meant to boost the company=s designing and manufacturing capabilities This enables the company to bring to mar0ets truly original and more importantly efficient automoti1es that are reasonably priced The research and de1elopment team of BM2 also plays a crucial role in the achie1ement of this feat The company also belie1es that ma0ing a positi1e impact in the society through their quality products is the 1ery essence of being a manufacturer

BM2 has been able to maintain its reputation as one of the worldBs leading automoti1e companies for more than (.- years now 3t is able to face the challenges in many of its mar0ets directly This is made possible by the effecti1e generic strategies aimed to deli1er not only profit growth! but also on building down the foundation of BM2=s brands and business The generic strategies of BM2 are focused mainly on dri1ing the growth of its brands and impro1ing the company=s financial performance These campaigns ha1e also helped secure significant acquisitions and partnerships And more importantly! these campaigns ha1e led to the release of the potentials of the company=s employees! thus building a quality performance> based culture The generic strategies of BM2=s local automoti1es are practically reinforced by the local employees themsel1es These mo1es certainly allow the company to impro1e e1en more without the costs of introducing new technologies These efforts ha1e resulted in increased financial gains for the company and ha1e allowed the establishment of distribution networ0s for both the local and international BM2 products

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8ermany has e<perienced electoral and political transitions and crises in the last (+ months There ha1e been at least four political trends that ha1e emanated from these political e1ents These are? (a9 the cry for democracy and reformsP (b9 increased popular and local>

le1el asserti1enessP (c9 greater public accountabilityP (d9 re>definition of the concepts of power and politics Also! the forms of political economies ha1e slowly shifted from a bipolar (big go1ernment>big business9 to a tri>polar structure (authorities > pri1ate sector N ci1il society9 The implementation of the Hree Trade Area! or HTA! which laid out a comprehensi1e program of regional tariff reduction! will be continuously implemented in phases through the year +--F *1er the course of the ne<t se1eral years! the programs in tariff reductions were made broader 6fforts to eliminate non>tariff barriers and de1elop common product certification standards were initiated 3n addition! the 8ermany also was able to formulate framewor0 agreements for the intra>regional liberali$ation of trade in ser1ices 3ndustrial complementation schemes meant to encourage intra>regional in1estment were also appro1ed ((EF,9

E./$/mi. T"e$d
#espite the ad1erse economic trends in the first half of the year! 8ermany as a whole e<perienced relati1ely robust economic growth 3t is estimated that 8ermany posted a better> than>e<pected 8#P growth of , )L last year! slightly higher than the , (L growth that they achie1ed in +--) Many 8erman cities ha1e also seen the ris0>weighted capital adequacy ratios of their ban0ing systems impro1e due to go1ernment>sponsored ban0 recapitali$ation programs! continued progress in financial restructuring! and impro1ements in financial ris0 management ( (EEE9 The capital adequacy ratio of commercial ban0s in 8ermany is now far higher than the FL Basle norm 3t ranges from about (,L in Berlin to about +-L in #ortmund! with commercial ban0s reporting an a1erage capital adequacy ratio of about (FL

S/.i#92Cu9tu"#9 T"e$d
2ith the rise in the middle to upper>middle class households in certain cities within 8ermany! there e<ists a strategy mismatch for not considering the potential for consumer mar0et There ha1e also been social and cultural trends that ha1e been e1ident o1er the last (+ months These include? (a9 the irre1ersible rise of ci1il society among 8erman citiesP (b9 the rise of ci1il society blends perfectly with a tri>polar structure of political economyP (c9 the increase in the roles of intellectualsP and (d9 the beginning of a period of introspection

Te.0$/9/&i.#9 T"e$d
3t is a common 0nowledge that the automoti1e industry in 8ermany is still a relati1ely new industry and is still in its early stages of de1elopment ;owe1er! it has shown signs of rapid growth and it is being estimated that there will be more than a million automobiles that will be shipped within the year And it is further being e<pected that within the ne<t years the tremendous growth and technological ad1ancements will continue in the automobile world Therefore! the continued growth and de1elopment will also ma0e it imperati1e for locali$ation to occur in the automoti1e industry in the years to come ((EEF9

B! +i>e +/".e A$#9y i A! )$te$ ity /- )$du t"y Ri>#9"y

BM2 is one of the worldBs leading manufacturers of automobiles and motorcycles Around eighty (F-9 percent of automoti1es in 8ermany operate on a BM2 engine system Mercedes>Ben$ is the only major competitor with a share of si<teen ((D9 percent *f the

major competitors! Acura and 4aguar are both using BM2=s engine system! and hold about AL and (,L mar0et shares respecti1ely *ther competitors! such as Ool1o and Audi! use BM2Bs engine system! but both companies ha1e below (-L mar0et share BM2 has had so much success in the consumer mar0et! but the future goals include selling more products to corporations

B! T0"e#t /- Ne8 E$t"#$t

"ew entrants in the automoti1e industry will ha1e to deal with high costs of entry for their latest technologies Most of BM2=s major competitors ha1e yet to establish strong distribution channels This will se1erely hamper their plans to retaliate with their technological de1elopments as without distribution channels! their products would ne1er be seriously considered in the automoti1e mar0et by customers BM2 must worry though about certain go1ernment laws in countries that might wea0en its competiti1e position

C! B#"&#i$i$& P/8e" /- Su119ie"

Suppliers of automoti1e products other than BM2 ha1e relati1ely lower bargaining power because their products ha1e yet to establish consistency in the mar0et This is in contrary to BM2 brands where these products ha1e been able to secure the confidence of its customers worldwide

,! B#"&#i$i$& P/8e" /- Buye"

A majority of BM2 customers are professionals who rely on automobiles and e<pect no less than the best riding e<perience e1ery time they use them Hor instance! a customer phones in a ser1ice request from the "ew Ror0 airport while boarding a plane bound to Paris the same day The technical people of BM2 in "ew Ror0 will immediately wor0 on the car

ser1ice request of the client And when that client arri1es in Paris! he / she would be able to call the BM2 "ew Ror0 ser1ice center and pic0 up e<actly where he / she left off The bargaining power of buyers in the automoti1e industry is relati1ely high because aside from BM2! there are only few! large players in their industry

E! T0"e#t /- Sub titute

There are 1ery little threats that could emerge from possible substitutes This is because

product>for>product substitution could not possibly happen especially with BM2 products *ther automobile products cannot simply replace the ingenuity of the established BM2 products in the mar0et Also! the millions of users of BM2 products surely would find it too uncomfortable using other automobile products other than BM2 automobiles

A! (/8 d/e t0e /"&#$i3#ti/$ #dd >#9ueI

The product differentiation strategy of BM2 will definitely be ad1antageous on any part of the 1alue chain analysis Hor instance! BM2=s efforts to gather primary information that are unique and una1ailable to most of its competitors ha1e successfully initiated differentiation The product differentiation strategy of BM2 comes from its uniqueness The differentiation ad1antage of BM2 is achie1ed either by changing their indi1idual 1alue chain acti1ities in order to increase the le1el of uniqueness of the final BM2 product or by reconfiguring the 1alue chain BM2 bases its pricing strategies on se1eral 0ey trends that continuously shape the global mar0etplace of automoti1es *ne particular trend is labeled as %premium>ti$ation& ((EF(9 This phenomenon causes the polari$ation of different mar0ets This would then

trigger the consumers to demand and pay much higher prices for percei1ed quality ;owe1er! discounting in prices is also simultaneously ta0ing place! therefore squee$ing out the middle range More often than not! automoti1e companies undergo internationali$ation which leads to a tighter squee$e for shelf space This will in turn lea1e BM2 as a winner 3t is for this reason why BM2 1alues the %premise sector& so much because this would allow consumers can to try their brands at low ris0 and price 3n terms of mar0et segments! lu<ury and specialty automoti1es of BM2 with higher engine powers ha1e a disproportionate share of 1olume growth at an estimated ,>)L per year! as against the +>.L o1erall growth rate These rates come up as a result of both the rise in 8#P among de1eloping mar0ets and consumer demands for higher 1alue propositions! which is ob1iously dominated by international brands Therefore! BM2 has to increase its portfolio and operate globally to o1ercome the home mar0et BM2 practically operates on a relati1ely fragmented mar0et! with the top four automoti1e companies accounting for ++L of global automobile manufacturing fi1e years ago and only about +FL today

T0e M#"%et

The main mar0ets for BM2 automobiles ha1e been in 6urope! the 5SA! 4apan and the Pacific region! with the mar0ets of 8ermany and the 5S accounting for almost half the total car sales 3mportant mar0ets ha1e also been the fast>growing 5C! and the 3talian! Hrench and 4apanese mar0ets Sales in the 5SA mar0et ha1e been particularly successful! as they grew by o1er F per cent on the pre1ious year to +AA!---! becoming the biggest mar0et for the group and o1erta0ing the Ge<us brand for the first time At the end of +--.! the outloo0 for +--, by group management and industry obser1ers was upbeat This 1iew was supported by the successful launch of the new )>series! the consolidation in 6urope and Asia of the BM2 Q,! the introduction of the BM2 S. The new BM2 ( Series and the BM2 D Series cabriolet were launched early in +--, By far the most successful models were the M3"3! the .>series and the )>series! but the other models were also in significant demand 3n the 7hinese mar0ets there was growing demand for the higher end models of the range! specifically for A> series and )>series

We offer our customers emotional products, which, through the strength of the brand and the substance of the product, fulfill the customer s wish for individuali!ation and differentiation. "he #$W %roup will never build boring products.&

300 250 200 150 100 50 0

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=)EWS O+ OWNERS

G:OBA: BRAN, )MAGE

Hirst! let=s ta0e a loo0 at BM2 in conte<t of the global automobile industry 3n recent decades! the industry has undergone significant consolidation among manufacturing enterprises Hrom multiple acquisitions by Hord to the #aimler>7hrysler merger! many automa0ers now enjoy economies of scale and global distribution networ0s that afford significant ad1antages in procurement! R:#! manufacturing! and distribution The synergies borne by these scale economies allow larger manufacturers to better weather fluctuations in the macro>economic en1ironment! yet profit from the e1ol1ing needs of the car consumer Hor instance shifting production away from gas>gu$$ling S5Os to more economical automobiles helps manufacturers profit in years where oil prices riseP while de1eloping inno1ati1e brands and designs can satisfy new segments of consumers who will pay premium dollars for differentiated features and styles Manufacturers that cannot rely on scale to deli1er profitable returns need to ensure that their brands and limited product lines remain highly differentiated and rele1ant! and continue to aggregate a growing consumer following in the face of sophisticated competition 61en without a degree in microeconomics! you can get a sense of the relati1e ad1antage among 1arious manufacturers by e<amining the sector chart below

,), <O* 4NOWI

A BM2 A8 bought the British Ro1er 8roup in (EE, and owned it for si< years B! 3n year +---! Ro1er was ma0ing huge losses and BM2 decided to sell the combine The M8 and Ro1er brands were sold to the Phoeni< 7onsortium to form M8 Ro1er! while Gand Ro1er was ta0en o1er by Hord C!BM2 built mini in +--( ,!BM2 was one of the earliest manufacturers to offer anti>loc0 bra0es on production motorcycles starting in the late (EF-s E! BM2 Sponsors Cumho BM2 7hampionship in 5C e1ery year

Hormula *ne > BM2 has won (E grand pri< as an engine supplier

Sports car

Ge Mans +, ;ours > BM2 won Ge Mans in (EEE with the BM2 O(+ GMR designed by 2illiams 8rand Pri< 6ngineering +, ;ours of #aytona > BM2 won ( time ((EAD9

Rally

RA7 Rally > The .+F sport car won this e1ent in (E.E Paris #a0ar Rally > BM2 motorcycles ha1e won this e1ent D times

Tour #e 7orse > The BM2 M. > 6.- won this e1ent in (EFA

C(APTER A

CORPORATE SOC)A: RESPONS)B):)T<

BM2 is the first company in its industry to e1er produce a 7SR Annual Report! which summari$es its achie1ements in M7orporate Social 7ontribution Acti1itiesM re1ol1ing around Bfi1e pillarsB N 7ultural Promotion! 6ducation Support! 6n1ironmental Protection! 7orporate 8o1ernance and 7ustomer 3ntegration The report also highlights the significance of the acti1ities in BM2Bs long>term corporate de1elopment! building a win>win situation within society

(i&09i&0t 1: Cu9tu"#9 P"/m/ti/$

BM2 7hina and BM2 Brilliance jointly launched BBM2 7orporate Social 7ontribution Acti1itiesB in the summer of +--A! dedicating a large budget to promote nearly +- projects within Bfi1e pillarsB Among them! MBM2 7hina 7ulture 4ourney +--AM was the most attracti1e and impactful project #uring the e<citing! ((>day journey co1ering o1er .!)-0ilometres! a fleet of () BM2 1ehicles dro1e all the way from Beijing to #unhuang and 1isited (( MMaterial 7ultural ;eritage ProjectsM and (A M"on>Material 7ultural ;eritage ProjectsM A total of ( million RMB was donated to pro1incial cultural departments The e1ent called for the protection and restoration of state>le1el and pro1incial>le1el cultural heritage sites and cultural practices! and was warmly>recei1ed nationwide The 7SR Annual Report notes that as an important part of BM2Bs 7orporate Social 7ontribution Acti1ities! the culture journey will continue in years to come 3n addition! in promotion of cultural communication and the arts! BM2 also sponsored se1eral cultural promotion projects! including BBM2 7ulture "ight and BBM2 "ightB! featuring performances by the Giaoning Ballet Tour Show and world renowned 1iolinist G1 Siqing

(i&09i&0t 2: Edu.#ti/$ Su11/"t

As the 0ey project in education support! BM2 launched a long>term MBM2 7hildrenBs Traffic Safety 6ducationM program By pro1iding transportation safety education through

attracti1e and engaging methods to o1er +--- 0ids aged four to si< years o1er () 0ey cities! the safety training camp generated a great amount of attention to childrenBs traffic education and transportation safety Through this project! BM2 has pro1en to be an industry leader in childrenBs traffic safety education Meanwhile! BM2 is also acti1ely promoting a fi1e>year MBM2 7hina Scholarship for *utstanding 7ollege StudentsM project in cooperation with the Song Ying ling Hund by pro1iding scholarships totalling + ) million RMB to )-- outstanding students from (uni1ersities +--A was the third year of this fi1e>year project Apart from funding (-- distinct college students per year! BM2 also pro1ided internship opportunities to (- select students at its Shenyang Plant So far the project has recei1ed wide support and appreciation from teachers and students

:i&0ti$& u1 BT0e +9#me /- :i-e!B BMW 1e" /$$e9 ./m1/ e # /$& t/ 0/8 t0ei" u11/"t t/ .0i9d"e$ #--e.ted by t0e e#"t0Ou#%e!
MGetBs stand shoulder to shoulder! lighting up the flame of life / Together embracing the bright futureM Hollowing the 2enchuan earthqua0e! BM2 staff members were mo1ed to compose and record an original song that would con1ey their support and lo1e to the children in the disaster area 2or0ing at a professional recording studio! the group quic0ly completed the song! entitled The Hlame of Gife Although not professional singers! e1eryone truly sang their hearts out! Mlighting up the flame of lifeM and spreading strength! optimism and hope for the future to those affected

Mutu#9 "e 1e.t #$d .#"e!

BM2 has always 1iewed its employees as the foundation and decisi1e element for its corporate de1elopment 7reating space for its employees to grow is thus an important objecti1e for BM2 As a result! BM2Bs commitment to corporate social contribution is also reflected internally! in attention to employee concerns! the wor0ing en1ironment! and the broader corporate culture 3ndeed! BM2 sees its employees as creators of the corporate culture and partners in corporate social responsibility 6ncouraging 1oluntary employee participation in public welfare acti1ities ser1es as an embodiment and e<tension of BM2Bs corporate culture and emphasis on corporate social contribution

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BM2 joins with the 7hina 7harity Hederation to establish the BM2 2arm>;eart Hund The Sichuan earthqua0e! measuring F - on the Richter scale! unleashed its destructi1e power in just minutes >> but also instantly produced a tremendous outpouring of concern and compassion Together with the 7hina 7harity Hederation (77H9! BM2 7hina and BM2 Brilliance Automoti1e ha1e set up the BM2 2arm>;eart Hund! which will contribute to reconstruction projects in the earthqua0e area The 2arm>;eart Hund also pro1ides a platform for BM2 employeesP BM2 authori$ed dealers! BM2 car owners as well as all BM2 fans to constantly gathering their lo1e and generosity 3tBs a perfect channel for the BM2 community to show its support and contribute to reconstruction in the earthqua0e hit area in the near future! and will also brought warmth and help to broader regions in the long term

BMW SWOT ANA:<S)S

P St"e$&t0
o BM2 is not the best biggest but the best car company in the world o BM2 has strongly influenced consumers through media and film industry o Spartanburg demonstrates that BM2 is firmly committed to the 5S mar0et and rededicated to the performance 1alues that made BM2 a cult here in the (EF-s o The Spartanburg plant can build +)- to .-- cars a day and production is set up to be fle<ible so that it can produce se1eral models on the same line in random sequence o The plant currently employs (!)-- people and the plan is to grow to +!--- by the end of this decade o Spartanburg offer us the opportunity to de1elop a new set of relationships in "orth America

P We#%$e e
o Their corporate image is too serious and tradition>bound o BM2 was percei1ed to be a 8erman>made car! not an American>made car

P O11/"tu$itie
o The cars wonBt be that e<pensi1e as compared to 8erman>manufactured cars o This is BM2Bs first auto plant outside 6urope This is the chance for BM2 to ta0e a step

away from being a 8erman car manufacturer towards its long>term goal of becoming a truly global brand o Spartanburg can really change what BM2 stands for

P T0"e#t
o *ther lu<ury car import manufacturers were rumored to ha1e similar concepts under de1elopment o There are a lot of competitor lu<ury cars in the country

A9te"$#ti>e C/u" e /- A.ti/$

Z A7A[(? Ta0e the traditional mar0eting strategy of BM2 This is the traditional tele1ision and print ad1ertisement mar0eting strategy The tele1ision and print ads will be utili$ed in order for the new Q. roadster be ad1ertised all o1er the 5nited States

/ Ad>#$t#&e
o 3n this way! the tradition of tele1ision and print ad1ertising will be preser1ed o 3t will be less costly for them to ad1ertise the new Q. model

/ ,i #d>#$t#&e
o Their goal of ma0ing the new Q. model uncon1entional will be defied o There will be less impact with regards to their new car model

St"e$&t0
BM2 is a well>0nown company with a high status branding that has a 1ery high recognition factor The company has been strengths in both research and de1elopment and design as well as in mar0eting Hor e<ample when it comes to mar0eting it was a BM2 ad1ertisement that was the first e>ad1ertisement that made it to 7ampaigns BPic0 of the 2ee0B (#oman9 ;owe1er! in a long>term purchase such as this there is a need for moire substance than just mar0eting! otherwise the life of the company would be relati1ely short due to the nature of the purchase 3t is in these longer>term systems and strategies that we can see many of the strengths of BM2! we can consider these by starting with the mar0et position of the company

BM2 as well as MercedesB and a few other companies ha1e managed too successful attain a mar0et position where they ha1e a focus on a narrow range of e<clusi1e cars These can be seen as aimed at the mar0et place that is not also sensiti1e to price! and as such we must argue that the mar0et positioning may be seen as a strength as there will not be such a reaction if the economic conditions change The customers that are in the target group are happy to pay a premium price for what they percei1e as a premium product (Thompson9 This may not be so true of the subsidiary companies that ha1e had different problems! such as the ill>fated Ro1er group ;owe1er! the core product has remained strong (Thompson9 This may be seen as di1ersification! and some of the di1ersification may also be seen as a strength! for e<ample the purchase of Rolls Royce where there is a similar strategy! howe1er the range and target mar0et are e1en more focused and e<clusi1e The strategy of BM2 is designed to be defensi1e against other car manufactures! and as we will see when it comes to the section on threats this is a defensi1e strategy that BM2 ha1e adopted after learning the need for defensi1e as well as aggressi1e mar0eting and strategies

C(APTER F CONC:*S)ON
The automoti1e industry is distinguished by a highly competiti1e mar0et Thus! the players on the mar0et struggle with increasing cost of production! de1elopment and mature mar0ets 2ith the aim to increase profit margins and reduce costs! Ool0swagen! 8M and Hord are some companies! which use the same components in different car models and car brands These companies ha1e in other words succeeded in synergising research and de1elopment effects within the company despite car model and business area By a contrast! BMW! an indi1idual actor! has yearly shown strong financial results and has retained its mar0et shares This becomes of interest to study more profoundly! in order to find the factors behind successful company and a strong brand

Pu"1/ e? The purpose of this thesis is to analyse the de1elopment of BM2 during the past years "ot only are the financial statements ta0en into consideration 3n addition! comparison to competitors and the mar0et situation is also made

,e9imit#ti/$ #$d # um1ti/$ ? This project is delimited to an analysis of BM2 between the years +--(>+--) basically The thesis is based on the assumption that BM2 is the most successful automoti1e manufacturer in the premium segment

Met0/d/9/&y: 3n the study of BM2 mostly secondary data is used

Re u9t #$d C/$.9u i/$? BM2 is a well 0nown and highly 1alued brand and has high di1ersity in the product portfolio BM2 possesses high internal competence and the company de1elop a large part of the car by themsel1es The emerging mar0ets in South 6ast Asia! Russia! 6astern 6urope and South America ha1e shown e1ident growth de1elopments 6minent production! transportation and raw material costs ha1e both dampened margins and affected the buying power of consumers li0ewise as high oil prices

Su&&e ti/$ -/" -u"t0e" tudie ? 2hat would be of interest are the ser1ices that the automobile manufacturers offer beside the cars! the after sales ser1ices! li0e financial ser1ices for e<ample 3n addition! future research could also include studies of customer loyalty in association to the after sales ser1ices

C/$.e1t /- BMW #d>e"ti eme$t BATT:E O+ TWO

BM2 and Audi are duelling again! but this time! onto the %mar0eting battle field& And what would be the best Place to do so other than the one of the top states when it comes to car lu<ury sales? 7alifornia *n the corner of Santa Monica Bl1d and Be1erly 8len Bl1d (corrected the location9! Audi has put up some Billboards showing the all new Audi A, along with the headline? </u" m/>e7 BMW& Santa Monica BM2! a Gocal dealership! too0 on the challenge and entered a 1irtual chess game \ of course! with cars rather than Pawns! 0ings or queens 4uggernaut Ad1ertising! an independent ad1ertising agency headquartered in Santa Monica! 7A! has initiated a Tactical outdoor mar0eting campaign on behalf of BM2 of Santa Monica The campaign is in response to Audi=s current billboards challenging BM2 with the headline %</u" m/>e7 BMW & 4uggernaut Ad1ertising=s creati1e wor0 features the BM2 M. with the headline %C0e.%m#te!& and is

Positioned Prominently within the same sightline to westbound traffic as the Audi ad 4uggernaut approached BM2 of Santa Monica after identifying a unique and immediate geographical opportunity along the highly Traffic0ed Santa Monica Bl1d corridor between Be1erly ;ills and Santa Monica W0e$ 8e 0e#"d t0e ide#7 8e 9/>ed it #$d ./u9d$Nt "e i t &/i$& -/"8#"d7 says #el Montell! 4r of Santa Monica BM2

The trouble began when BM2 released an ad for its new .>series and congratulated Audi for winning the South African car of the Rear award 7ertainly an esteemed honour in it=s own right! but BM2 signed the congratulations with the line! +"/m t0e 8i$$e" /- t0e 8/"9d .#" /- t0e ye#" #8#"d 200H! Audi=s PR guerrillas! not willing to sit idly by while being assaulted in the print realm fought bac0 with the ferocity e<pected from the 8erman carma0er They parried BM2=s thrust with an ad proclaiming that the 8/"9d .#" /- t0e ye#" #8#"d& was nice! but 8eN>e %i.%ed butt #t :eM#$ -/" iK ./$ e.uti>e ye#" 7 / 1ut t0#t i$ y/u" 1i1e #$d m/%e itQ

=)EWS
7le1er ad1ertising! BM2 won the battle but Audi is winning the war Audi has re>branded them as the Progressi1e lu<ury car Mercedes is catching up finally with the current redesigns but how is BM2 adapting@ By offering maintenance for up to )-!--- miles 7ome on BM2 you can do better! maybe its time for a Redesign as well

B)B:)OGRAP(<
T0e +/99/8i$& Re-e"e$.e #"e t#%e$ i$ ./$ ide"#ti/$ -/" t0e 1"e1#"#ti/$ /- t0i P"/6e.t! B//% 3nside the BM2 Hactories? Building the 5ltimate by 8raham Robson

#ri1en? 3nside BM2! the Most Admired 7ar 7ompany by #a1id Ciley BM2 by Rainer 2 Schlegelmilch #ri1ing Machines? The BM2 Story by 4ames Taylor E$.y.9/1#edi# #$d ,i.ti/$#"y 6ncyclopaedia Britannica ;ow stuff wor0s@ 6ncarta Automoti1e 6ncyclopaedia M#&#3i$e ; Ne8 1#1e" A"ti.9e A5T*7AR 3"#3A BM2 A5T;6"T37 Q382;66GS 2hat=s ;*T@>;industan Times Web ite 2 Web1#&e http?//www bmw in/in/en/ http?//www bmw com/ http?//en wi0ipedia org/wi0i/BM2 http?//www infibeam com/cars/ma0e/bmw html http?//bmw>motorsport com/ms/en/inde< html http?//www bmwblog com/ http?//www $igwheels com/b+cam/home action B:OGS http?//www bmwblog com/