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DHRUV UTTAMCHANDANIWORD COUNT: 2470 CONTENTSINTRODUCTION                                                                                              ( PAGES 2 AND 3)OBJECTIVES                                                                                                    ( PAGES 4 AND 5)HUMAN RESOURCES                                                                                              ( PAGES 6-9)MARKETING                                                                                                          ( PAGES 10-17)EXTERNAL INFLUENCES                                                                                      ( PAGE 18-19)CONCLUSION                                                                                                               ( PAGE 20)BIBLIOGRAPHY                                                                                                      (PAGES 21-22) INTRODUCTIONBAVARIAN MOTOR WORKSBMW (Bavarian Motor Works) is a Germany-based company which currently produces automobiles and motorcycles, and also produced aircraft engines until 1945.

The company was founded in 1916 and has its headquarters in Munich, Bavaria. They produce in countries such as Germany, Brazil, China, India, South Africa and the United States. BMW have 2 main owners Stefan Quandt with 29% of the company and Susanne Klatten with 21%. 50% of shares are owned by the public float. BMW has an employee count of 105,876 since 2012.

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They are one of the most trusted automobile company. Their production count upto 2016 is said to be 2,512,635 vehicles. In 2015 they were the 12th largest motor vehicle producers.WORLD WAR IIDuring World War II, many BMW production facilities had been heavily bombed. BMW’s facilities in East Germany were seized by the Soviet Government and the remaining facilities were banned by the Allies from producing motorcycles or automobiles. During this ban, BMW used basic secondhand and salvaged equipment to make pots and pans, later expanding to other kitchen supplies and bicycles.In 1947 BMW were able to restart motorcycle production and released their first motorcycle called the R24. However BMW were officially allowed to produce automobiles in 1952.

They produced BMW 501 large sedan and they continued the production of the sedans.NEAR BANKRUPTCY By 1959 BMW were in debt and they were losing money this happened due to their automobiles not selling well. The BMW isetta was selling well enough however the profit margin for bmw was low and the other cars such as the luxury sedan were either too expensive or outdated according to many other cars.

                   BMW’s ObjectivesMission of the companyBMW is a company which is looking for maximum amount of success within its industry and their main mission is to continue to grow. BMW is considered as one of the most desired automobile brand compared to its competitors. Most customers are satisfied with the high quality and luxurious products provided by this excellent brand.Here are some of BMW’s objectives:To continue to make their position strongerTo manufacture environment friendly carsTo stay ahead in the competition To help the society by being responsible To increase sales all across the worldBMW want to continue to grow by 2020 by using new technology and expanding within the global motor vehicle market. They want to continue to increase their market sales by developing new activity and finding new opportunities.Market ShareBMW’s market share is between the range 4.42% and 9.54%.

This means BMW’s market share is comparitevely high compared to other companies. BMW had the fourth highest car sales in the UK in 2015. Joint VenturesBMW are looking forward to form a joint venture with Great wall motor in China in the coming up years.

They are planning to launch electrical vehicles only. BMW are looking forward to expanding in China and gain a higher market share over its competitors Audi, Mercedes and Volkswagen. It is said that in the last year BMW’s sales grew by 11.3% and they continued to stay above competitors Mercedes in the top 3. BMW have a target till 2025 in order to achieve a successful campaign for these electrical cars with the help of Great wall motor. Human Resources – Recruitment policyThe recruiting process for BMW takes about 5-6 weeks which includes 4 steps for the process.InterviewWritten assessmentProduction assessmentDrug test/physical.Most employee’s used BMW’s online application to start communicating with BMW for a job.

BMW use a basic set of questions to interview their potential employee’s such as:Are you currently employed?Have you been with your employer for at least a year?What is the best way to handle conflict with another coworker?What sort of experience do you have that is relevant for this position?Most employee’s found the interview process easy as the questions were straight forward.Working conditions:The working conditions in BMW are great most workers are satisfied with their colleagues and are happy with their daily routine. Most staff members have had great experiences working for BMW and they are happy they had the opportunity to work for such a large MNC.Working Hours: The working hours are about 9 hours per day from 9am – 5pm and most staff members are expected to work on saturdays.Benefits provided by BMW to employee’s: BMW provide their employees with basic medical care such as medical,vision and dental checkups.

BMW Organisational Structure:BMW have a tall organisational structure like most large companies. A tall organisational is one which has many levels of hierarchy. In a tall organisational structure there are many managers who handle a subordinate.Advantages of having a tall organisational: Senior management can maintain greater span of control.Limited span of control.

Higher motivated employees.Employees overlooked by the manager/head. Disadvantages of having a tall organisational:Freedom and suggestion of employees is restrictedDecision making can be slowed downCommunication has to take place through many layers of managementCan be expensive as more managers are needed for a high amount of subordinates.Marketing Product A wide range of cars:TrucksBikes CyclesHelicopters BoatsClothing/accessorizeServices:They provide customers with a range of after services such as car services or repairs.What makes BMW’s product successful?Has a attractive design Stimulates new wantsHas different qualitiesSatisfies customersProduct development:Fundamentals: This is the planning process and deciding the design which will satisfy customers      Competition: Deciding how much the price will be? How will the interior design be? Decide the innovative designs?Detail work: The final design process. Meeting with board of directors, test modeling Features of BMW products:BMW have diversified products such as sedans or SUVs and sports car BMW have a unique selling point as their products contain  top quality designs and they use new advanced technologies. BMW have expanded in their existing market and are known as one of the best in the industry.

BMW Top 3 selling cars:BMW 3 Series: A luxurious car which is worth $33,445. BMW sold 70,458 3 Series models in 2016.BMW 4 Series: In 2016, 35,763 4 Series models were sold, and pricing kicks off at $43,145.BMW 5 series: This car has great luxurious features and BMW sold 32,408 5 Series cars in 2016, and pricing starts at $52,195.Brand Name: BMW have a strong brand name which is well known to most people.Brand Image: BMW have a unique brand image and are recognised in the industryBrand Loyalty: BMW have a strong brand loyalty with their customers.

Most customers are attracted to the new products released by BMW.PackagingBMW use a ribbon on the outside of the car as style of packaging for customers. This can be an effective way to make the customers feel like they have bought something “BIG”.

Most car brands use this packaging technique.BMW also use plastic sheets in order to make sure their seats don’t get scratched by customers who tryout the car for sometime and they make sure the seats remain in good condition until the car has been sold. The product should not only have a well designed packaging but it must also protect the product.BMW Product Life Cycle:BMW try keeping their products in their introductory and growth stages by introducing new products once in a while. BMW try adding something new to their cars every 3 years. Their product life cycle is about 7 years.

BMW have figured out that there can be changes in their product life cycle every once in a while. It is important for them to maintain the growth of their products PriceBMW are a part of a very competitive market and in order to be recognized and successful enough they use competitive pricing. Competitive pricing is a method which prices its products equal to or just a little lower than its competitors. Most rival companies such as rolls royce and mini cooper also use this pricing method.BMW have started with a new pricing method along with competitive pricing. They have started to use dynamic pricing in order to price their products.

This method is effective for new products which are being introduced to the market. They offer competitive prices for smaller products such as BMW 3 seriesBMW believe that cost base pricing is also a good way to price their products. Cost base pricing involves the cost of production, distribution and selling the product. It involves all efforts and risks taken up by the company. Companies such as Apple and BMW use these method of pricing.PromotionAs BMW are apart of a very competitive market they are looking forward to continue their rank within the top 5 companies in their industry. BMW use effective methods to promote their products.

They use aggressive advertising campaigns such as TV, online ads, billboards, print ads , etc they use these so that there is continuous brand awareness. BMW have also increased their name as they have started being part of F1 racing. This has left a strong impact and has attracted new customers recently. This method of information is known as above the line promotion. This is a promotional strategy using mass media to promote their products and target a specific target market.PlaceBMW being a large brand in the car industry market their product world wide. They first started manufacturing their products in Bavaria, Munich and then they slowly expanded as they got new customers across the globe and they have set up massive new production facilities.

It is said that they manufacture their products in over 10 countries. BMW have recently started entering rather small markets which has helped them continue to grow over a period of time.BMW use level 2 distribution channel:Advantages of level 2 distribution:Faster to sell to customersCan buy in small quantitiesRetailers can provide informationCost savingDisadvantages of level 2 distribution:Less/low communicationRevenue loss for the manufacturer Problems BMW faced while entering a marketBMW faced problems in South Africa:Problem 1: The energy supply required was hard to achieve in the local areas of South Africa. There were often many power cuts and shortages of energy supply.Solution 1: BMW have signed a new power purchase agreement with an energy company Bio2watt and hopefully the energy available will increase.Problem 2: Threats of labour action which was disrupting the production of vehicles. As workers took strikes which caused high losts in production.

Solution 2: BMW signed a 3 year wage deal within its industry which was that there are going to be a new round of wages to match up to workers satisfactions.Problem 3: Lack of skilled workers available in Africa. Decrease in productionSolution 1: New automotive production and development programmes were introduced to improve skills of workers.External Influences- Environmental and Ethical issuesBMW are aiming to be as sustainable as possible as they have also been working on producing new electric cars which can help protect the environment. BMW are being as efficient as possible as they are constantly improving and they have generated cost savings of € 158 million since 2006. They are trying to use renewable energy, hydropower and wind. Their long term aim is to achieve 100% from renewable sources.BMW want waste less and recycle more!Since 2006 BMW have decreased the following: Water consumption by 55%Energy consumption by 66% Industrial wastewater by 65%Ethical IssuesBMW are a company who have said ” Employees must be treated fairly regardless gender, nationality , age , background, etc.

However there was a case filed by the The Equal Employment Opportunity Commission saying that “BMW fired and denied hire to class of employees who worked successfully for years.” This was filed in 2013. The EEOC claimed that BMW used their criminal conviction policy as an excuse to have people fired.

UTi would send their employees over to work in the BMW facilities to deal with warehouse distribution, transportation services, and manufacturing support. This left employees in a huge problem. In 2008 BMW and Uti broke ended to work together.ConclusionBMW is a company which are continuing to expand as the years pass by. They are apart of a very competitive market which has high branded competitors such as Audi , Mercedes , Toyota, etc. BMW have a tall organisational structure for their business. BMW have targeted to produce diverse products which are sustainable for their company and the environment.

One of their main goals are to use resources more efficiently and they are looking forward to produce electrical cars in the near future. BMW have mainly used competitive pricing as a method to match up to competitors prices. BMW have maintained a high brand image with their customers as their products are unique and attractive for most customers. BMW use a rather easy process for recruiting new employees and the questions are mostly straight forward. BMW use the level 2 distribution channel which starts from consumer to retailer to customer. BMW have a goal to continue to increase sales across the world by introducing different types of cars such as sports,luxurious,etc. BMW’s products are currently at the growth stage as this mnc are continuing to grow throughout while introducing diverse products.

Their main products which have developed over the years are BMW 3,4 and 5 series. BMW also faced an ethical problem regarding their employees being treated unfairly. This problem has been solved by BMW and UTi to stop working together.BibliographyBMW, Spreading Sheer Driving Pleasure From Bavaria to the Worldhttps://successstory.com/companies/bmwBMWhttps://www.indeed.

com/cmp/BMW/faq/benefitsThe corporate strategies and objectives of BMWhttps://www.ukessays.com/essays/marketing/the-corporate-strategies-and-objectives-of-bmw-marketing-essay.phpBMW UK market share 2017 | Statistics* All products require an annual contract.

   Prices do not include sales tax    (New York residents only). – https://www.statista.com/statistics/300446/bmw-car-market-share-in-the-united-kingdom/BMW SWOT Analysis | USP & Competitors | BrandGuideZigu – https://www.mbaskool.

com/brandguide/automobiles/4892-bmw.htmlBMW Brand Study of its branded house strategyhttps://www.stealingshare.com/pages/bmw-brand-study-a-look-at-how-bmw-structures/BMW Marketing Mix (4Ps) StrategyZigu – https://www.mbaskool.

com/marketing-mix/products/16810-bmw.htmlORGANISATIONAL STRUCTURES ADVANTAGES AND DISADVANTAGES | ORGANIZATIONAL STRUCTURE | BUSINESSIn-text: (Scribd, 2018)Your Bibliography: Scribd. (2018). Organisational Structures Advantages and Disadvantages | Organizational Structure | Business. online Available at: https://www.scribd.

com/document/305031334/Organisational-Structures-Advantages-and-Disadvantages Accessed 22 Jan. 2018.


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