International Business Final Project By: Aaron Prescott Kris Miner Micah Edmond Travis Harrant B M W G R O U P page. 1 Table of Contents INTRODUCTION .................................................................................................................... 2 Aaron Prescott ...................................................................................................................... 3 Products and Services.................................................................................................................. 3 product Development & Government policy .......................................................................................... 4 BMW Global production, Outsourcing, and Logistics ......................................................................... 5 Vertical Integration............................................................................................................................................... 7 Foreign Direct Investment ................................................................................................................................ 9 Greenfield Strategy ............................................................................................................................................... 9 BMWǯs Operation Segments .......................................................................................................................... 11 Works Cited (Aaron) ......................................................................................................................................... 12 Kris Miner ........................................................................................................................... 14 Culture .......................................................................................................................................... 14 Works Cited (Kris) ............................................................................................................................................. 21 Micah Edmond ................................................................................................................... 23 Marketing ..................................................................................................................................... 23 Acquisitions ........................................................................................................................................................... 23 The Four pǯs ........................................................................................................................................................... 26 push and pull Strategy ..................................................................................................................................... 29 Works Cited (Micah) ......................................................................................................................................... 31 Travis Harrant ................................................................................................................... 32 Financial Analysis ...................................................................................................................... 32 Works Cited (Travis)......................................................................................................................................... 37 Herbert Bowen .................................................................................................................. 38 Current Challenges and Solutions ......................................................................................... 38 Mergers .................................................................................................................................................................... 39 Globalization Strategy ...................................................................................................................................... 41 Strategic Alliance ................................................................................................................................................ 42 Works Cited (Herb) ........................................................................................................................................... 45 page. 2 INTRODUCTION BMW Group Company is powerful MultinationalEnterprise, represented all over the world with more than 94,000 employees and over one million vehicles sold every year. Importers in 120 countries represent the BMW and worldwide sales organization comprised 24 sales subsidiaries. They are one of the most successful multi-brand premium car manufactures in the automobile industry. They are the only manufacturer of automobiles and motorcycles worldwide that concentrates on the premium standards and outstanding quality for every one of their models. Being one of the few automobile manufactures that concentrate exclusively in the premium market of automobiles, they offer an array of products. The BMW and Rolls-Royce brands of the company serve the premium and ultra premium segments in the automobile market. They also serve the premium small car segments with their Mini brand. BMW models include, Sedans, Coupes, Touring, Compacts, SUVs, etc. BMW has been making cars for almost one hundred years. They began as an aircraft company and then used the meticulous engineering to design top of the line cars. BMW is synonymous with high quality and performance, which is reinforced by strong brand recognition and customer loyalty. Introduction by, Aaron prescott page. 3 aron Prescott Products and Services BMW provides its customers with premium luxury and sports model automobiles and motorcycles. For almost a century BMW has maintained a reputation of excellence ever since the first motor was built. The First BMW engine that was produced was the, DzM2 B15 ǮVictoriaǯ motorcycledz(bmwdrives.com). BMW began to move away from the aircraft industry because of the armistice agreement Germany signed at the end of World War II, which prohibited the Germans from making aircrafts. In 1922 BMW, constructed the R32 motorcycle that was BMWǯs biggest seller, selling 3,100 bikes till 1926. The R32 showed a strong impression at its world premier at the Berlin Automobile Show. With the great success of the R32 BMW began to move into vehicle construction even before automobiles were invented. This movement is the point at which BMW established their trademark boxer engine design and continue until present day. 1928 was the year BMW presented their first automobile for sale called the Dixi 3/15. BMW purchased a car factory in Eisenach, Germany and with it a license to begin building the small vehicle. Since then BMW has been producing top of the line automobiles available all over the world. The current models BMW produces today are, the 1-series, 3-series, 5-series, 6-series, 7-series, Z-series, X-series, M-series, Xm-series. BMW uses a unique numbering system to identify their models. Usually the lower the number the page. 4 smaller and less expensive the car. The two digits following the series number indicates the engine size and the, i or d specify fuel injection or diesel. In some cases after the engine size numbers certain models will have a c or x, which indicates coupe or all wheel drive. The Z-series is BMWǯs sports convertible model and x- series is BMWǯs SUV models. BMWǯs M series is a unique model; it comes with high performance and always a higher cost. The M models are offered in all the series BMW produces and includes high performance engines and aftermarket parts to enhance the driving experience. Product Development &Government Policy Since 2004 BMW has spent millions of dollars in R&D to advance the BMW name in the alternative energy movement. BMW was the worldǯs first car manufacture to prepare medium a long-term development of its vehicles in alignment with a hydrogen-based operation. The move too hybrid vehicles over the globe has become a growing concern for many automobile companies. In the U.S,recently president Obama announced new fuel efficiency standards to increase automakers research and design teams to produce newer technology that will return higher fuel efficiency. BMW calls their alternative energy approach, BMW CleanEnergy, and their focus is to, Dzeradicate emissions and to utilize regenerative sources of energydz(Just-auto). Along with the hydrogen engine BMW announced that the companies first mass-produced electric car would be released in 2013. The Mini E, under BMWǯs Mini Cooper brand will be a fully powered battery-operated page. 5 automobile. Although BMW and the other European automobile makers are late arrivers in the electric hybrid sector, BMW plans to surpass other current hybrid vehicles on the road. The Mini E, will be lighter, stronger, faster, and safer than any other current electric car. Its light weight and stronger aspects will come from a high tech carbon fiber that will allow the Mini E to have a 160 mile range on a single charge. DzBMW Group is currently the only company that will be launching a volume- production vehicle on the market that features carbon fiber-reinforced material (GAS 2.0). BMW has a strong share invested in the U.S market and has government regulations become stricter, BMW has to find ways to alter their strategies and remain competitive in foreign marketsdz BMW will effectively transition into the hybrid sector and maintain the same line of excellence and instill their reputation of Dz The