BMW success

DESISLAVA DIMITROVASTOYAN STOYANOVVICTOR CHIKUNOV

BMW“The ultimate

driving machine”

Factor of success in BMW Group

•http://www.youtube.com/watch?v=-QCD1ybgWPU

http://www.youtube.com/watch?v=-QCD1ybgWPU

http://www.youtube.com/watch?v=-QCD1ybgWPU

More than 90 nationalities worldwide9.6 per cent associates under 30 5 continents

Over 140 countries with BMW Group presence

100,306 associates 3 automobile brands

2 motorcycle brands BMW GROUP1

1. Brief History

1916 BMW (Rapp Modern Werke) is founded as an aircraft-engine factory in Munich. In 1917, changed to BMW.

1923 the fist BMW motorcycle leaves the Munich production line.

1981 BMW becomes the first European carmaker to establish a subsidiary in Japan.

• In 1970 BMW moved its headquarter to Munich. The building looks like the four cylinder of cars.

1. Brief History

Introduction• BMW (Bayerische Motoren Werke AG) became an automobile manufacturer in 1929 founded by Franz Josef Popp.

1. Brief History

1. Brief History

Product Diversification

MotocyclesMotocycles CarsCars

1. Brief History

• The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industry leader in the Dow Jones Sustainability Indexes for the last seven years.

1. Brief History

2. Corporate culture GrowthGrowth

Shaping the future

Shaping the future

Strategy №1Strategy №1

ProfitabilityProfitability

Access to technology

and customers

Access to technology

and customers

•BMW

Group Compliance Organization

Board of Management BMW AG

Annual ReportingCompliance Committee

Investigation &

Monitoring

Investigation &

Monitoring

Legal Compliance

Code

Legal Compliance

Code

Communi-cation

Communi-cation

TrainingTraining

Human Resources

Human Resources

Compliance Contact

Compliance Contact

ReportingReporting Compliance Committee

Office

2. Corporate culture

• Social responsibility

BMW Group is places among the leaders on the Dow Jones Sustainability Group Index, the world's most important list of sustainability-oriented companies.

2. Corporate culture

• Recycling at BMW

3. The Secret of BMW's Success

• Employee buzz at BMW is a hot management theory in action

• Informal networks at BMW are vital for innovation

• Creation of the best ideas

An example of buzz theory:

• To reach a younger crowd of potential buyers for its new 1 Series launch in 2004, BMW used mobile-phone messages as the main source of buzz, directing interested people to signups on BMW's Web site for pre-launch test drives in August that year—something unheard in the industry at the time.

3. The secret of BMW’s success

•Build a network or web of personal ties

•Fresh ideas

•Savvy workers

How does BMW manage discipline with creativity and keep the anarchy of networks from careening out of control?

3. The secret of BMW’s success

4. Factors of success

US Germany China UK Italy France Japan Other

0

5

10

15

20

25

30

18.417.1

14

10

4.3 4.22.9

29.1BMW Group - key automobile markets 2011

Sales Volume in %

• Growth of most markets - Export to China and India

• Maximum quality guaranteed through highly skilled professionals at BMW Service Centre

• New mobility and customer services

• Call center

• Innovation all the time


• Developing new technologies

• Sales network expanded

• Developing new models

• Workforce size increased

• High-level of standards of safety and other standards

• Making future conceptual cars

• Friendly policy oriented to the customer

• In the BMW Group there are two times more workers than any other company in the automotive industry.

• Maximum safety through the guaranteed use of Original BMW Parts

• Maximum flexibility through worldwide validity

• Maximum chance of a high resale value through transferability to the subsequent owner

• The service program for a BMW car 4 years and older.



• BMW Tele Services

• The BMW dealer warranty

• BMW Financial Services worldwide


5. Organizational structure

• The board of management

of BMW Group consists of six

of the most successful European

managers plus the chairman of the board.

6. Managerial system

• Risk management

• Accidental management

• Talent management

• Energy management

• Brand management

• Anti-crisis management

Planning

Implementing

Organizing

Management process


Risk management The Risk management system is tested regularly for appropriateness and effectiveness by Internal Audit. Knowledge gained from these audits serves as the basis for further improvements. Sensitivity analyses, which contain stress scenarios and show the potential impact of interest-rate changes on earnings, are also used as tools to manage interest-rate risks.



Dilbert by Scott Adams

Accident Management make sure BMW clients are also well taken care of in emergencies. If necessary, BMW also organize a taxi or a hotel reservation


The Talent Relationship Management is an

excellence in leadership through training and

dialogue with the prospective employees and the current ones. It includes BMW educational process where students are able to

get bachelor and PhD degree.


Energy management• Car production is done on CO2 – neutral basis and all of the energy used comes from renewable sources.

• The Efficient Dynamics concept comprises the whole set of measures throughout the entire vehicle fleet relating to highly efficient engines, improved aerodynamics, lightweight construction and energy management.


The Efficient Dynamics concept

6. Managerial

system

• Basis: fleet consumption of newly registred cars in Europe measured on the basis of New European Driving Cycle in accordance with the ACEA self-commitment

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20110.0

20.0

40.0

60.0

80.0

100.0

120.0

100 101 102.4101 98.6 96.7 96.792.9 92.9 94.8

90 88.6

8073.3 71.4 70 69

CO2 Emissions of BMW Group cars in Europe6. Managerial

system

Brand Management

• The price here matters the most.

• Price is something that will maintain an image of the brand for a long time.

• Price is a factor that has always set BMW apart from other car brands for a long time.


Price = Luxury

Anti-crisis management• Thanks to the increasing sales in the USA, China and India, BMW Group hasn’t been affected by the word crises.


• The best financial year in the history of the company – 2011.

• Sales volume, revenues and earnings highs, exceeded their targets.

• Till March 2012 the company made a record of sold cars since the company was established.


The Board of Management reported the fallowing datas on the 2011 annual report:



7. Career System

•“We move people!”

•”Many people move us!”

• Social diversity

• BMW Driving Experience

• Job Experience

• Workshops and seminars

• Pleasant atmosphere

• Heath Care System

7. Career system

• Licenses and certifications

• Additional professional development

• Training Requirements and Recommendations

• Decision Making Motivation

BMW Driving Experience

8. Social Media• http://www.facebook.com/BMW

• http://www.youtube.com/watch?v=G6aDYxWRpPc

http://www.facebook.com/BMW

http://www.youtube.com/watch?v=G6aDYxWRpPc

http://www.youtube.com/watch?v=G6aDYxWRpPc

SWOTSWOT

STRENGHTS•Innovation • Management System•Strong Cash Flow•Diverse Range and New Products•Less CO2 Emission•US military service•Strong R&D•Strong brand image

WEAKNESESS•Cost for Repairs •Gas prices increase•New and Existing Competition•Requires Specialized Skills For Repairs•High Prices of products

OPPORTUNITIES•Emerging Markets BMW•Hybrid cars benefits•Rising green awareness•Buy VOLVO CO.•Diesel in the USA

TREATHS•Decreasing the CR•Oil Prices Increasing•Credit Policies•Mercedes and Audi

9. Analysis of the present state of BMW Group

MODEL:


An example: “X- drive” system


10. Business forecast for 2013 and beyond

• What are BMW Group's driving concepts of the future?

- highly progressive drive technologies with economical fuel consumption and low emissions;

- BMW’s Efficient Dynamics Program (reduce fuel consumption and emissions)

- usage of hydrogen replacing the fossil fuels;

- engine hybridization.

• BMW Active Hybrid

• BMW Active E


• Targeting new highs in sales volume and pre-tax Group earnings;

• Maintaining an EBIT margin of 8-10% in the Automotive;

• Increase productivity in 2013

- BMW will hire 3,000 employees on its production sites in Germany by the end of 2013.


• Improvement on numbers of won prizes

- For the last year BMW was bestowed with numerous prizes, such as:

1. “International Engine of the Year Award”;

2. ÖkoGlobe 2011 environmental prize;

3. The internationally prestigious “Goldenes Lenkrad” award;

4. The “2010 GOOD DESIGN ” award;

5. The “iF Gold Award” in Hanover, the highest prize awarded by the International Forum Design;

6. The German Design Award 2012 in silver.


M

W

B - Begin a system

- Make it effective

- Work for its success

All of these and more go into every product BMW offers. That explains why

the vehicles never cease to inspire.

Passion.

Precision.

Dedication.

Design excellence.

Innovation.

Documents

BMW success