Description
PROJECT ON SUCCESS OF BMW
Factor of success in BMW Group
BMW “The ultimate driving machine”
DESISLAVA DIMITROVA STOYAN STOYANOV VICTOR CHIKUNOV
•http://www.youtube.com/watc h?v=-QCD1ybgWPU
5 100,306
associates
continents
2
motorcycle brands
1
3
automobile brands
BMW GROUP
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.
1. Brief History • 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
Product Diversification
Motocycles
1. Brief History
Cars
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.
2. Corporate culture
Access to technology and customers
Growth
Strategy ?1
Shaping the future
Profitability
2. Corporate culture
Board of Management BMW AG Compliance Committee
Investigation & Monitoring
• BMW
Annual Reporting
Group Compliance Organization
Legal Compliance Code
Reporting
Compliance Committee Office
Communication
Compliance Contact
Training Human Resources
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.
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
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.
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
4. Factors of success
30 25 20 15 10 5 0
BMW Group - key automobile markets 2011 29.1 Sales Volume in %
18.4 17.1
14 10 4.3 4.2 2.9
4. Factors of success
• 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
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.
4. Factors of success
4. Factors of success • 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
6. Managerial system
Management process
Implementing
Planning
Organizing
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 interestrate risks.
Dilbert by Scott Adams
6. Managerial system
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
6. Managerial system
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.
The Talent Relationship Management is an
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.
6. Managerial system
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 selfcommitment
120.0
CO2 Emissions of BMW Group cars in Europe
100 101 102.4 101 98.6 96.7 96.7 92.9 92.9 94.8 90 88.6 80 73.3 71.4 70 69
100.0
80.0
60.0
40.0
20.0
0.0
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.
Price = Luxury
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.
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.
6. Managerial system The Board of Management reported the fallowing datas on the 2011 annual report:
6. Managerial system
7. Career System
• “We move people!”
• ”Many people move us!”
7. Career system
• Social diversity • BMW Driving Experience • Job Experience • Workshops and seminars • Pleasant atmosphere • Heath Care 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
•
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
SWOT
TREATHS
•Decreasing the CR •Oil Prices Increasing •Credit Policies •Mercedes and Audi
OPPORTUNITIES
•Emerging Markets BMW •Hybrid cars benefits •Rising green awareness •Buy VOLVO CO. •Diesel in the USA
9. Analysis of the present state of BMW Group
9. Analysis of the present state of BMW Group
MODEL:
9. Analysis of the present state of BMW Group
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.
10. Business forecast for 2013 and beyond
• BMW Active Hybrid
• BMW Active E
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.
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.
B
M W
- Begin a system - Make it effective - Work for its success
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.
doc_960242088.pptx
PROJECT ON SUCCESS OF BMW
Factor of success in BMW Group
BMW “The ultimate driving machine”
DESISLAVA DIMITROVA STOYAN STOYANOV VICTOR CHIKUNOV
•http://www.youtube.com/watc h?v=-QCD1ybgWPU
5 100,306
associates
continents
2
motorcycle brands
1
3
automobile brands
BMW GROUP
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.
1. Brief History • 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
Product Diversification
Motocycles
1. Brief History
Cars
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.
2. Corporate culture
Access to technology and customers
Growth
Strategy ?1
Shaping the future
Profitability
2. Corporate culture
Board of Management BMW AG Compliance Committee
Investigation & Monitoring
• BMW
Annual Reporting
Group Compliance Organization
Legal Compliance Code
Reporting
Compliance Committee Office
Communication
Compliance Contact
Training Human Resources
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.
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
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.
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
4. Factors of success
30 25 20 15 10 5 0
BMW Group - key automobile markets 2011 29.1 Sales Volume in %
18.4 17.1
14 10 4.3 4.2 2.9
4. Factors of success
• 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
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.
4. Factors of success
4. Factors of success • 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
6. Managerial system
Management process
Implementing
Planning
Organizing
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 interestrate risks.
Dilbert by Scott Adams
6. Managerial system
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
6. Managerial system
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.
The Talent Relationship Management is an
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.
6. Managerial system
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 selfcommitment
120.0
CO2 Emissions of BMW Group cars in Europe
100 101 102.4 101 98.6 96.7 96.7 92.9 92.9 94.8 90 88.6 80 73.3 71.4 70 69
100.0
80.0
60.0
40.0
20.0
0.0
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.
Price = Luxury
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.
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.
6. Managerial system The Board of Management reported the fallowing datas on the 2011 annual report:
6. Managerial system
7. Career System
• “We move people!”
• ”Many people move us!”
7. Career system
• Social diversity • BMW Driving Experience • Job Experience • Workshops and seminars • Pleasant atmosphere • Heath Care 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
•
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
SWOT
TREATHS
•Decreasing the CR •Oil Prices Increasing •Credit Policies •Mercedes and Audi
OPPORTUNITIES
•Emerging Markets BMW •Hybrid cars benefits •Rising green awareness •Buy VOLVO CO. •Diesel in the USA
9. Analysis of the present state of BMW Group
9. Analysis of the present state of BMW Group
MODEL:
9. Analysis of the present state of BMW Group
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.
10. Business forecast for 2013 and beyond
• BMW Active Hybrid
• BMW Active E
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.
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.
B
M W
- Begin a system - Make it effective - Work for its success
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.
doc_960242088.pptx