Evaluation Report On Business Operation Of BMW Company

BMW or Bayerische Motoren Werke AG is a company which produces cars and motorcycles. In 1916, the company was set up by Karl Rapp, an engine man and Gustav Otto, an aircraft manufacturer (BMW UK, 2019). Cars are offered for sale under the name of BMW, Mini Cooper and Rolls Royce and motorcycles are sold under the brand BMW Motorrad. The head office of BMW is in Munich, Germany and manufacture of vehicles in Brazil, China, India, United States of America, United Kingdom, South Africa, Mexico and Germany (BMW UK, 2019)

In this report, BMW, the World’s best-selling luxury car, will be analysed on how they run their business operation, offering recommendations on marketing strategy at the end. This report will include the performance objective, customer analysis, marketing environmental trent analysis and evaluation.

The performance objective

The performance objective are the areas of operational performance that a company tries to improve to adjust the bid to reflect the company's strategy. There are five operational performance objectives: Quality, Speed, Flexibility, Dependability and cost (Neely, 2007).

BMW focus on two main performance objectives:

Quality

BMW’s objectives are to communicate to the consumer that their quality and prestige will become more developing and continue to grant the best products and services for customers, also with honesty and high thinking which shows that BMW will become the most successful luxury car in the capital (Kiley, n. d. ). The mission statement of BMW states, “To turn out to be best premium vehicle maker in the vehicle business”(Histesh, n. d. ).

Flexibility

BMW need to always come up with a new and innovative product in term of agreement and revenue. The vision is “efficient dynamic vehicles that preview tomorrow’s driving pleasure using today’s technology” (BMW UK, 2019).

Customer Analysis

The new CEO, Dan Akerson starts another bearing: GM is allowed to structure vehicles that attract directly to consumer. GM aims to present new models faster to construct vehicles which people will want to purchase and not autos that the organization want to sell (J. , 2013).

Marketing Environmental Trent Analysis

Environmental Analysis is a necessary tool. It is a procedure to differentiate all the outside and inner components which can influence the association's exhibition. The most used detail investigation of the environment is the PESTLE framework. PESTEL stands for Political Factors, Economic Factor, Social Factors, Technological Factor, Legal Factor and Environmental Factor which explain a framework of macro environmental (Development and marketing company, 2019).

Political Factors

Europe presents end-of-life mandates whereby vehicle makers need to reuse vehicle parts like tires and airbags, representing extra recyclability on BMW. Rapidly and effectively, and using the new technology, nearly 90% of the vehicle is reused when its lifecycle closes (Boeriu, 2015).

Economic Factors

As BMW has generation offices found all globally, it can spend its revenue in a similar currency. However, with various assembling models distribute to every factory, BMW won't ready to coordinate its income with cost. At present, BMW is presented to high currency danger from US dollar, British Pound and Chinese Renminbi. These record for 65% of BMW's total currency exposure. When BMW settles an arrangement in foreign currency, an exchange rate fence is closed to dispense with the hazard (Automotive Management, 2011).

Technological Factors

BMW utilizes technology to increase upper hand in the generation of motors, consequently winning numerous engineering awards in the industry. With rising attention to worldwide natural marvel, it makes the open doors for BMW to investigate another creation heading by fusing 'green' innovation into its business procedure. BMW intends to fabricate the most creative item. Sooner rather than later, BMW will proceed with its accentuation on growing new clean advancements for consistent development and improvement of its items (BMW UK, 2019).

Environmental Factors

In BMW's current markets, environmental concern assumes an important role of living up to emission standards and ecological orders. BMW watched the changing pattern of clients' preferences and support for 'green' items, and therefore reacted by expanding its attention on assembling more eco-friendly cars. Through this, BMW accomplished its lead on the Dow Jones maintainability list and is working hard to remain in front of manageability in making innovative solutions (Quek, 2015).

The PESTEL analysis proposes constant improvement for BMW. The presentation of new guidelines and expense strategies are urgent political components. Economic factors are distinguished as having the most impact on BMW productivity. However, expanding GDP the different cost increment and hazard factors still pose as a danger to BMW. New technologies will add to practical answers for 'greener' items. These factors have both positive and negative point of view toward BMW and along these lines BMW should respond on making the possible negative viewpoints great (Development and marketing company, 2019).

Evaluation

SWOT analysis is a structured approach to evaluating the strategic position of a business by identifying its: Strengths, those tasks that a business is particularly good at. Weaknesses, areas were a business struggle. Opportunities, changes in the environment that might of new areas of growth. Threats, change that might restrict the activities of the business (M. , 2019).

Strengths

Various Range of Products, profoundly admired brand, strong Cash Flow, worldwide acceptance (Kiley, n. d. ).

Weaknesses

High prices, environmental issues, move in the demand, introduction of new technologies (All Answers Ltd. , 2013).

Opportunities

New Product line, market shift to globalization, broadening, advancement (All Answers Ltd. , 2013).

Threats

New and Existing challenge (Audi), economic downturn, Instability in the cost of the fuel (All Answers Ltd. , 2013).

Recommendations

BMW should keep on building up its organization model through new sorts of associations and coordinated efforts. This include industry coordinated effort on electricity network, digital security and interchanges which offer innovation and developments for creating little motors based on low emission technologies. Expanding connection with government and controllers on high capital investment projects will help BMW get governments' sponsorships and motivators. BMW's employees are the most significant asset for the company and social workforce decent variety is a key factor for future accomplishment to guarantee future competitiveness. This can be accomplished with investment in preparing focusing on right abilities and attitudes of key administrators and future leaders in order to successfully deal with the change toward a feasible car industry.

Moreover, directing exploration on the future of car industry in recent year to keep a tab on expansion. Designing of crisis management tool to protect the money inflow and money outflow at the hour of emergency. Offering quality and moderate item to the premium segment to keep up that image earned. Also, using wide varieties of media tools to make brand awareness in the short just as over the long haul the whole way across the world.

Conclusion

In conclusion, the luxury car industry is evaluated to turn out to be increasingly competitive later on. This force on BMW to consistently improve to remain in front of the competition. In perspective on conceivable future changes, the danger of new participants and substitutes may both arrive at a moderate level as they might be new contestants and innovative in the business. If the new contestant can effectively set up its name in the business, it will end up being BMW's commendable rival. In order to keep up or improve current market share and brand image, occupants should continually grow new developments and technologies. The accomplishment of the other contenders' procedures will demonstrate as a risk of substitute to BMW. The general impact of powers predicts a difficult circumstance for BMW. The most critical powers are the increasing force of competition between contender organizations and uprising potential risk of substitutes which both always undermines BMW's position and market share. BMW solid brand character and R&D experience are the key factors to help BMW stay focused later on.