BMW Group has been successful due to 1) innovation in new technologies like electric vehicles, 2) an effective management system, and 3) forecasting future concepts like hydrogen fuel cell vehicles. The company aims to increase sales volumes and profits in 2013 while maintaining an 8-10% EBIT margin for automotive. BMW's strengths include diverse products, strong brand image, and reducing emissions, while weaknesses are high repair costs and prices.

1. Factor of success in BMW Group
BMW
“The ultimate
driving machine”
DESISLAVA DIMITROVA
STOYAN STOYANOV
VICTOR CHIKUNOV

2. •http://www.youtube.com/watc
h?v=-QCD1ybgWPU

3. 5 continents
100,306
3
1
associates
automobile brands
2 motorcycle brands BMW GROUP

4. 1. Brief History
1916 1923 1981
BMW (Rapp Modern the fist BMW motorcycle BMW becomes the first
Werke) is founded as an leaves the Munich European carmaker to
aircraft-engine factory in production line. establish a subsidiary in
Munich. In 1917, changed Japan.
to BMW.

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

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

7. 1. Brief History

8. Product Diversification 1. Brief History
Motocycles Cars

9. 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.

10. 2. Corporate culture Growth
Access to
technology Strategy №1 Shaping the
and customers future
Profitability

11. 2. Corporate culture Board of Management BMW AG
Annual
• BMW Compliance Committee Reporting
Group Investigation Legal
Compliance &
Monitoring
Compliance
Code
Organization
Compliance Communi-
Reporting
Committee cation
Office
Compliance Training
Contact
Human
Resources

12. 2. Corporate culture
• Social responsibility • Recycling at BMW
BMW Group is places among the leaders on the Dow
Jones Sustainability Group Index, the world's most
important list of sustainability-oriented companies.

13. 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

14. 3. The secret of BMW’s success
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.

15. 3. The secret of BMW’s success
How does BMW manage discipline with
creativity and keep the anarchy of networks
from careening out of control?
• Build a network or web of personal ties
• Fresh ideas
• Savvy workers

16. 4. Factors of success
BMW Group - key automobile markets 2011
Sales Volume in % 29.1
30
25
20 18.4 17.1
15 14
10
10
5 4.3 4.2
2.9
0

17. 4. Factors of success
• Growth of most markets - Export to • Developing new technologies
China and India
• Sales network expanded
• Maximum quality guaranteed
through highly skilled professionals • Developing new models
at BMW Service Centre
• Workforce size increased
• New mobility and customer
services • High-level of standards of safety
and other standards
• Call center
• Making future conceptual cars
• Innovation all the time

19. 4. Factors of success
• 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.

20. 4. Factors of success

21. 4. Factors of success
• BMW Tele Services
• The BMW dealer warranty
• BMW Financial Services worldwide

22. 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.

23. 6. Managerial system
• Risk management
• Accidental management
• Talent management
• Energy management
• Brand management
• Anti-crisis management

24. 6. Managerial system Management
process
Implementing
Planning Organizing

25. 6. Managerial system
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.

26. Dilbert by Scott Adams 6. Managerial system

27. 6. Managerial system
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

28. 6. Managerial system
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.

29. 6. Managerial system
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.

30. 6. Managerial
system
The Efficient Dynamics concept

31. 120.0
6. Managerial CO2 Emissions of BMW Group cars in Europe
system 100.0 100 101 102.4 101 98.6
96.7 96.7
92.9 92.9 94.8
90 88.6
• Basis: fleet 80.0 80
consumption 73.3 71.4
70 69
of newly
registred cars
60.0
in Europe
measured on 40.0
the basis of
New European 20.0
Driving Cycle
in accordance
with the ACEA
0.0
self-
commitment

32. 6. 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.

33. Price = Luxury

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

35. 6. Managerial system
• 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.

36. 6. Managerial system
The Board of Management reported the fallowing
datas on the 2011 annual report:

37. 6. Managerial system

38. 7. Career System
• “We move people!”
• ”Many people move us!”

39. 7. Career system
• Social diversity • Licenses and certifications
• BMW Driving Experience • Additional professional
development
• Job Experience
• Training Requirements and
• Workshops and seminars
Recommendations
• Pleasant atmosphere
• Decision Making
• Heath Care System Motivation

40. BMW Driving Experience

41. 8. Social Media
• http://www.facebook.com/BMW
• http://www.youtube.com/watch?v=G6aDYxWRpPc

42. STRENGHTS WEAKNESESS
•Innovation •Cost for Repairs
• Management System •Gas prices increase
•Strong Cash Flow •New and Existing Competition
•Diverse Range and New Products •Requires Specialized Skills For
•Less CO2 Emission Repairs
•US military service •High Prices of products
•Strong R&D
•Strong brand image
SWOT
OPPORTUNITIES TREATHS
•Emerging Markets BMW •Decreasing the CR
•Hybrid cars benefits •Oil Prices Increasing
•Rising green awareness •Credit Policies
•Buy VOLVO CO. •Mercedes and Audi
•Diesel in the USA
9. Analysis of the present state of BMW Group

43. 9. Analysis of the present state of BMW Group
MODEL:

44. 9. Analysis of the present state of BMW Group
An example: “X- drive” system

46. 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.

47. 10. Business forecast for 2013 and beyond
• BMW Active Hybrid
• BMW Active E

48. 10. Business forecast for 2013 and beyond
• 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.

49. 10. Business forecast for 2013 and beyond
• 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.

50. B - Begin a system
M - Make it effective
W - Work for its success

51. Passion.
Precision.
Dedication.
Design excellence.
Innovation.
All of these and more go into every product
BMW offers. That explains why the vehicles
never cease to inspire.