Bmw Company Analysis

1261 words - 6 pages

Jakub Vozarik
Company profile

Short History
Bayerische Flugzeug Werke was founded on March 7, 1916 and even though this company, which specialized in aircraft engines, was acquired by BMW in 1922, the BMW Group considers BFW’s establishment as a point of its own foundation. World War I really helped the small company grow so that in 1918, it was converted into a stock corporation with share capital of 12 million Reichsmarks. Franz Josef Popp, the General Manager of the former limited liability company, was appointed General Director. After the war, the company turned its attention to rail vehicle brakes and built-in engines because of the production ban on aircraft engines. In 1922, ...view middle of the document...

Just like any other global company, even BMW was hit by the financial crisis in 2008/2009. In the early 2008 the BMW stock was trading for about $43/share and in October 2008 it hit its minimum of approximately $16/share. Since then the BMW Group has slowly recovered and currently the stock is at a value of $38.2/share, which means that the company’s recent performance was good. The company also reports a significant increase of sold automobiles – 13.8% compared to the same quarter last year. Because of that, the company reported an increase in revenue by 8.1% to euro 12,443 million (excluding the impact of changes in exchange rates – 7.8%). One of the main competitors on the market, Audi Group, reported a revenue of euro 6,700 million. The BMW Group reports a net profit of euro 324 million for the first three months of the year (2009: net loss of euro 152 million). Audi Group, however, was able to generate more profit – around euro 363 million. This reflects BMW Group’s strong position on global automobile market. Even though the company, as well as others, suffered a setback in a form of an economic crisis, it was able to recover impressively fast. Financial reports for Q1 2010 of both companies were quite similar, which means that BMW, globally, has a very strong position on the market. The fact that overall profit was lower than its competitor’s should not be considered as a factor stating that BMW Group’s market position is weaker. It just means that companies are dominant on different markets. Graph below indicates BMW’s dominance on market in the UK.

Current business strategy
BMW Group specializes in three types of products/services: automobile production, motorcycle production and financial services with automobile production being their main area of interest. With BMW, MINI and Rolls-Royce Motor Cars, the BMW Group is the world's only car maker to pursue a purely premium strategy for all market sectors covered by its brands, from exclusive smaller cars to luxury limousines. BMW has established itself as a brand that is associated with quality, luxury, style and advanced technology and this reputation allows the company to gain large profits from this market. The mission statement of the company states: “The mission statement up to the year 2020 is clearly defined: the BMW Group is the world's leading provider of premium products and premium services for individual mobility”. This is supposed to be achieved by clever marketing. BMW’s marketing strategy consists of many types of advertising and events. One of the company’s main source of marketing is its...

Other Papers Like Bmw Company Analysis

Hfghf Essay

3776 words - 16 pages improved fuel economy, as the company is in support of Kyoto targets for carbon emissions and fuel consumption. For example; from 1995 to 2008. the BMW Group reduced CO2 emissions of their European vehicles by almost 27% (BMW Group 2010). This relates to the (2010) sustainabil4 value report for the company, comprising a materiality analysis that indicated climate change and CO2 emissions are regarded as the most important issues to BMW Group

Financial Analysis BMW 2012/13

4996 words - 20 pages FINANCIAL STATEMENT ANALYSISA financial analysis of the Balance Sheet and Income Statement of the BMW Group for the subject Managerial AccountingBy:Maira Fontes, Nicolas Mueller, Jonas Gerhaeusser2014-11-02 List of TablesTable 1: BALANCE SHEET BMW GROUP ANNUAL REPORT 2013 5 Table 2: BALANCE SHEET BMW GROUP ANNUAL REPORT 2013 5 Table 3: INCOME STATEMENT BMW ANNUAL REPORT 2013 6 Table 4: DuPont 15 Profile of the BMW GroupBMW

Case Study Bmwi

2324 words - 10 pages Stakeholders: Commitment requires dialogue. As we know that BMW is a internationally operating company, they often communicates their no of national and international stakeholders groups. They includes customers, business partners, employees, media, policy, scientific decision makers, NGO’s and investors. BMW Group carried out a stakeholder survey in 2006/2007 by an external firm almost 200 stake holders from 21 countries. They goal of this survey is

Marketin Segment

5793 words - 24 pages Courtesy of Company Websites and forbes .com 7 III. The BMW 3 Series History The BMW 3 Series was introduced in 1968 as the BMW 2002, and it was engineered to fill a void in the car market between American-born muscle cars and small two-seater sports cars. The 2002 was the first official “sports sedan” to enter the American market, and consumers enjoyed its performance capabilities and sufficient space. The 2002 was re-branded as the 3

Bmw Dream Factory

1989 words - 8 pages the impact of the BMWs performance was noted by the business week in its analysis of the BMWs case in 2006. The Businessweek reported that “BMW's management structure is flat, flexible, entrepreneurial -- and fast. That explains why, at the very moment GM and Ford appear to be in free fall, BMW is more robust than ever. The company has become the industry benchmark for high-performance premium cars, customized production, and savvy brand

The Secret of Bmw’s Success

1366 words - 6 pages on the key reasons for BMW success. The company has always promoted high-performing product trough a high-profile brand since the early stage; this perception is still present and evident in the company’s culture and has always been the guideline to narrow the strategic path of the group. Competitor analysis The German automaker experienced a steady increase in sales in the last few years, as it has always been able to respond to the attacks


4399 words - 18 pages Analysing Bmw and the Automobiles Industry BMW – the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. By 2008 the company sold 1.2 million automobiles under its largest brand – the BMW. In 2001 it very successfully launched the new Mini which is the only brand kept after the failed acquisition of the Rover group with sales rising to over 230 thousand in 2008. In 2003 Rolls

Automotive Sector Assay

633 words - 3 pages * inutes 242 minutes Donner Company Case Study: Analysis of Operating Problems The question here is to identify the decision rule of when to use... Save Paper * Gm Swot Analysis Full-line, edgy-styled high volume luxury brand that competes directly with BMW and Mercedes-Benz. (GM Case, 2009) Chevrolet: Remains GMs high volume brand... Save Paper * Globalisation

Jaguar Commercial Analysis

1011 words - 5 pages Comm 101 Dana Weidman April 6th, 2014 Media/Commercial Analysis Marketing is defined as the activities of a company associated with buying and selling a product or service, which includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure

Marketing Plans

2996 words - 12 pages delicate to come up with. But yet in the end BMW's segmentations proved effective to this BMW owes its success. V. Conclusion Seeing the examples mentioned above it is obvious that market segmentation is not merely done by choosing a segment and then catering to it. It involves a study, and a careful analysis of the different combinations a marketer can come up with. This delicate mixing and matching can spell the

Financial Assessments

1266 words - 6 pages 2009 financial statement) meaning fair value, at the time. Available-for-sale assets are valued at fair value. For loans and receivables that the company cannot determine their fair value reliably, amortized cost is used for valuation, otherwise fair value valuation is used. Further BMW’s 2009 state all new financial reporting rules for this year, which includes IAS 39-related to derivatives & hedging, and shows a detailed analysis of the

Related Essays

Applied Strategic Managemnet Essay

4063 words - 17 pages uncertain changeability as a result of dynamics in the external environment. The BMW Group has a moderate turbulence level, as the external environment is rapidly changing with no definite theorem that can prove positive in the future growth and profitability of the company. 3. Factors Affecting BMW Group (PESTEL Analysis) ○ Political Factors: - The EU laws concerning the emission of carbon, produced by cars has led BMW Group

Bmw Films Essay

399 words - 2 pages BMW Films: Individual Case Analysis The Problem Statement What is the next step for the BMW Marketing Team to continue benefitting their company through their marketing campaigns without the risk of diminishing returns? Key Points from the Case * 90% of the viewers on the BMW Films website prefer it if they made more films. They really liked their marketing campaign based on the reviews and feedback. This really showed that BMW had a

Bmw Organisational Analysis Andhuman Resources Policies

1286 words - 6 pages same time, the Worldwide Head Office and Manufacturing Plant inGoodwood, GB, was built. ( AnInternal and corporate analysis in terms of strength, weaknesses, opportunitiesand threats (SWOT) will assist in gaining an understanding of where BMW iscurrently in terms of strengths and where improvement is required within thebusiness and what outside environmental threats it may face as well as what newopportunities are available to the company in the

5 Favourite Brands Essay

1014 words - 5 pages “Uniqueness through diversity, leadership, taking risk, courteous.”. And my keywords about causes of choosing BMW are safety, comfort, luxury, after sales service guarantee, design, performance and uniqueness. As known BMW is a German company, in many people mind German cars are strong and secure. In car sector, the first feature is the customer looking for is security and ain the solutions of lot of testing about security i trust BMW. The most