A2 Micro Business Profile Template

Business Profile FOR: bmw Business Size, Structure & LeadershipCEONorbert ReithoferNumber of employees110,351 (2013)SectorManufacturing/ProductionHQ LocationMunich, GermanyRevenue & ProfitsTurnover (M) 76, 058Operating profit (M)7,913ROCE (%) P/E ratioMarket Cap ($bn)Examples of the biggest operating costsFixed costsVariable costs1. Property, plant and equipment12233Growth StrategyInternal or external growth strategy? Sustainable Growth Strategy (internal)If external Examples of recent mergers / acquisitions1. Rover (2012) unsuccessfull 23Non-Price CompetitionKey brands in portfolio123Examples of non-price competitiona)b)c)d)Paste recent share price movement hereSocial Media ReachTwitter Followers495.1KFacebook Likes18.6MKey CompetitorsMercedes LexusAudiMission Statement / Corporate Aim"The BMW Group is the world's leading provider of premium products and premium services for individual mobility."

HISTORY BMW is a German automobile, motorcycle and engine manufacturing company founded in 1916.BMW is headquarter in Munich, Bavaria. It also owns and produces Minicars, and is the parent company of Rolls-Royce Motor Cars.BMW is part of the "German Big 3" luxury automakers, along with Audi and Mercedes-Benz which are the three best-selling luxury automakers in the world.Rolls Royce"Rolls-Royce today announces additional headcount reductions as part of an intensified programme to improve operational efficiency and reduce cost across the Group. We now propose a restructuring plan that will reduce headcount by 2,600 over the next 18 months, principally in our Aerospace division. The majority of this reduction will be achieved in 2015.

This is consistent with our announcement of October 17, when we committed to accelerate progress on the 4Cs: Customer, Concentration, Cost and Cash particularly Cost.

The board of rolls Royce has excess headcount which is standing in the way of a long term return to profitable growth.

The total additional cost of the 2,800 redundancies estimated at 120million. That equates to an average of over 40,000 per employee, an indicator of the experienced and specialist nature of Rolls Royce's workforce.

Rolls Royce"Company sources say that the aviation [job] losses are more closely linked to a general cut in global defence spending, greater productivity after investment in new factories and an end of the development phase of the new Airbus A350 and Dreamliner engines."The quote above makes a useful link between operational efficiency and productivity. Rolls Royce has invested in new factory capacity in both the UK and overseas, which may have made some of their older facilities less cost-effective.It looks like the redundancies at Rolls Royce are not likely to be the last significant headcount-related cost reductions. Rolls Royce management have clearly identified operational efficiency as key factor in improving business competitiveness. The squeeze on costs will continue.Bmw and google glassBMW has started a pilot project to test the impact of wearable technology in improving quality assurance of its cars. Workers at the companys South Carolina plant are using Google Glass to record and document potential deviations in the cars.

The project is a part of new BMW campaign, which is designed to evaluate the application of new technologies to provide support to workers in production and production planning. This collaboration not only increases employees confidence, but also improves their productivity and motivation which will ultimately increase profits. Impact of technology6Headline : BMW i3 is first electric model to be crowned Green Car of the YearThere are two versions of the BMW i3. Both have electric engines, but there's also a version with a range extender that charges up the battery using its own petrol engine, acting as a generator. It's still the electric part that drives the wheel at all times, though.

The USP of this new car is its efficiency. Not only is it eco-friendly but it also the equivalent of 124 miles per gallon in its pure electric version, making it more efficient than any petrol-powered runabout.

This improves the companys corporate image and corporate social image.Impact of Globalisation Long time rivals BMW and Daimler want to cooperate in finding suppliers for their Mexico plants due to logistic reasons.

"We have had the BMW cooperation for eight years and it is alive and well. We are looking at how to work together in Mexico. The potential cost savings are around 10 percent," Zehender said.

Of course, the whole Mexico plant deal comes as both manufacturers are looking to cut down on costs while also increasing their production capabilities.

Globalisation can impact companies in a positive way, it is clear that the impact of globalisation has allowed two rivals to work together to increase their profits.Headline: Huawei Technology : to partner up with car firms to develop 5G technology 5G mobile phone technology focuses on car-linked technology, China'sHuawei Technologies, the largest telecommunications equipment maker in the world, has recently signed strategic partnership agreements with several carmakers including BMW.

The world's major advanced telecom nations have begun researching 5G technology, while Huawei has forged an alliance with BMW to conduct joint R&D.

Changan, since 2003, has established a global R&D system in Beijing, Shanghai, Italy, Japan, the United Kingdom and the United States, but it has had difficulties with each places different market rules and work environments.Location

Headline: From Beetles to BMWs: Mexico is quickly becoming a powerhouse for manufacturing luxury carsMexicos German auto history began with small, cheap cars. Now its becoming a place where top-of-the-line German brands roll out of billion-dollar factories.

The country has gotten negative attention recently as the source of some of Takata Corp.s defective air bags, blamed for at least five deaths. While it was once seen as a dangerous place, where executives feared for their safety, its now winning the trust and investment of the highly regarded manufacturers.

BMW is set to start production in 2019, and will be the last of the three luxury automakers, sometimes called original equipment manufacturers, to go online

This also impacts globalisation as the company will benefit from Mexico's laws and structure.Headline: Schomp to move Mini and Honda from Littleton to Highlands RanchHIGHLANDS RANCH Schomp Automotive Group on Tuesday broke ground on new Mini and Honda dealerships in Highlands Ranch, next to its successful BMW location.

Wallace said the BMW location started on shaky ground amidst the Great Recession, but has gone from selling 150 cars a month when first opened to about 450 a month now.

The Mini dealership will have two floors, the first of which will have two showrooms, a customer lounge and cafe, indoor new car delivery area, a parts and accessories boutique and a Mini car track that will connect the showrooms. The second floor will have a customer lounge information centre, outdoor customer lounge, fireplace and John Cooper car display.

Government PolicyEnvironmental Protection. BMW Group Environmental Guidelines. Responsibility for our Environment. We are all responsible for sustaining and protecting our natural environment. The BMW Group is called upon to conduct responsible and sustainable environmental policies, which are also economically viable. This is an obligation we have taken upon ourselves through our competence as a manufacturer of highly technological products and as an employer of a highly qualified workforce around the world. To this end, we strive to reconcile the interests of people and nature, technology and progress with the right of future generations to an intact environment. Headline: Govt to Push Left-Hand Steering Wheels on Future Car Imports (Asia)The government plans to carry out a policy encouraging vehicle imports manufactured with left-hand steering columns, in an apparent effort to phase out their right-hand counterparts, which currently predominate on Burmas roads and pose safety risks.

This could be problematic for BMW as it may mean a decrease in sales in right hand side cars. This could cause a fall in sales and ultimately a downturn in profits.Headline: BMW Hits Back at Germanys Female Board Quota PlanBMW and other German industry leaders are blasting a government plan to get more women in key business roles.A spokesman for the automaker said it doesnt believe in quotas while denouncing a bill supported by Chancellor Angela Merkel that would require 30% of supervisory board positions at companies to go to women, Bloomberg reports. While we hold that opinion, BMW Spokesman Jochen Frey said, we want and strive for diversity in our workforce in terms of gender, ethnicity and age.

BMW are improving their corporate image by catering for all. This improves consumer confidence and helps the company build up a stronger brand.