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BMW The ultimate driving machine

DESISLAVA DIMITROVAStoyan stoyanovVictor chikunovBMWThe ultimate driving machine

Factor of success in BMW Group1

More than 90 nationalities worldwide9.6 per cent associates under 305 continentsOver 140 countries with BMW Group presence100,306 associates3 automobile brands2 motorcycle brands BMW GROUP11. Brief History1916 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.

In 1970 BMW moved its headquarter to Munich. The building looks like the four cylinder of cars.

1. Brief History5IntroductionBMW (Bayerische Motoren Werke AG) became an automobile manufacturer in 1929 founded by Franz Josef Popp.

1. Brief History

1. Brief HistoryProduct Diversification

MotocyclesCars1. Brief HistoryThe 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.1. Brief History2. Corporate cultureGrowthShaping the futureStrategy 1ProfitabilityAccess to technology and customersBMW Group Compliance OrganizationBoard of Management BMW AGAnnual ReportingCompliance CommitteeInvestigation & MonitoringLegal Compliance CodeCommuni-cationTrainingHuman ResourcesCompliance ContactReportingCompliance Committee Office2. Corporate cultureSocial responsibilityBMW Group is places among the leaders on the Dow Jones Sustainability Group Index, the world's most important list of sustainability-oriented companies.

2. Corporate culture

Recycling at BMW3. The Secret of BMW's Success

Employee buzz at BMW is a hot management theory in actionInformal networks at BMW are vital for innovationCreation of the best ideasAn 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 yearsomething unheard in the industry at the time. 3. The secret of BMWs successBuild a network or web of personal ties Fresh ideasSavvy workersHow does BMW manage discipline with creativity and keep the anarchy of networks from careening out of control?

3. The secret of BMWs success4. Factors of successGrowth 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 time4. Factors of successDeveloping new technologies Sales network expanded Developing new modelsWorkforce size increasedHigh-level of standards of safety and other standardsMaking future conceptual cars

Friendly policy oriented to the customerIn 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 ownerThe service program for a BMW car 4 years and older.4. Factors of success

4. Factors of success

BMW Tele ServicesThe BMW dealer warrantyBMW Financial Services worldwide4. Factors of success

215. 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 managementAccidental managementTalent managementEnergy managementBrand managementAnti-crisis management

PlanningImplementingOrganizingManagement process

6. Managerial systemRisk 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 interest-rate risks.

6. Managerial system

6. Managerial systemDilbert by Scott AdamsAccident Management make sure BMW clients are also well taken care of in emergencies. If necessary, BMW also organize a taxi or a hotel reservation6. Managerial system

The Talent Relationship Management is an 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.6. Managerial system

Energy managementCar 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 concept6. Managerial systemBasis: fleet consumption of newly registred cars in Europe measured on the basis of New European Driving Cycle in accordance with the ACEA self-commitment6. Managerial systemBrand 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.6. Managerial system

Price = LuxuryAnti-crisis managementThanks to the increasing sales in the USA, China and India, BMW Group hasnt 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 systemThe Board of Management reported the fallowing datas on the 2011 annual report:

6. Managerial system

6. Managerial system

7. Career System We move people!Many people move us!Social diversityBMW Driving ExperienceJob ExperienceWorkshops and seminarsPleasant atmosphereHeath Care System7. Career systemLicenses and certificationsAdditional professional developmentTraining Requirements and RecommendationsDecision Making Motivation

BMW Driving Experience

8. Social Media


Innovation Management SystemStrong Cash FlowDiverse Range and New ProductsLess CO2 EmissionUS military serviceStrong R&DStrong brand image


Cost for Repairs Gas prices increaseNew and Existing CompetitionRequires Specialized Skills For RepairsHigh Prices of products


Emerging Markets BMWHybrid cars benefitsRising green awarenessBuy VOLVO CO.Diesel in the USA


Decreasing the CROil Prices IncreasingCredit PoliciesMercedes and Audi

9. Analysis of the present state of BMW GroupMODEL:9. Analysis of the present state of BMW Group

An example: X- drive system9. Analysis of the present state of BMW Group

10. Business forecast for 2013 and beyondWhat are BMW Group's driving concepts of the future? highly progressive drive technologies with economical fuel consumption and low emissions;BMWs Efficient Dynamics Program (reduce fuel consumption and emissions)usage of hydrogen replacing the fossil fuels;engine hybridization.

BMW Active Hybrid

BMW Active E

10. Business forecast for 2013 and beyondTargeting new highs in sales volume and pre-tax Group earnings;Maintaining an EBIT margin of 8-10% in the Automotive;Increase productivity in 2013BMW will hire 3,000 employees on its production sites in Germany by the end of 2013.10. Business forecast for 2013 and beyondImprovement on numbers of won prizesFor the last year BMW was bestowed with numerous prizes, such as: International Engine of the Year Award;koGlobe 2011 environmental prize;The internationally prestigious Goldenes Lenkrad award;The 2010 GOOD DESIGN award;The iF Gold Award in Hanover, the highest prize awarded by the International Forum Design;The German Design Award 2012 in silver.10. Business forecast for 2013 and beyond

mwB - Begin a system - Make it effective - Work for its successAll of these and more go into every product BMW offers. That explains why the vehicles never cease to inspire.Passion. Precision. Dedication. Design excellence. Innovation.