Bmw Case Study Analysis Essay

Production: We will significantly increase automation levels on our products. However, because automation sets limits upon our ability to reposition products with R&D, we will postpone automation for the High End and Size products until they arrive in the Traditional Segment. We will prefer second shift/overtime to capacity expansions.

Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.

BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other

For future development projects, Carl-Peter Foster should concentrate on BMW’s core competencies of concept design and assembly- then outsource its parts to experienced suppliers who can offer further technological knowledge. In order for BMW to introduce more models more frequently, they need to decrease the lead-time from the concept phase of the car to the release of the final product to the market.

teams are the ITSC, which is the IT “steering committee” composed of senior business and IT

In this world of technology and innovation even Ford Motor Company is investing in new technologies in order to improvised their supply chain management, build an environment with interaction between each department as well as suppliers in order to reduce the bridging gap between them. As it is a leader in auto market segment, needs to update and coop with time and technology periodically but due to huge competition from the Japanese auto makers like Toyota, Honda, and Nissan, Suzuki etc., who are strong and powerful with references to the supply chain process management due to which Ford market share dip compared to others as well as the sales also declined. During this time, Ford analysed the situation and thought positively and started improvement in the supply chain management.

G. According to US News, the 2016 Toyota Prius was ranked #9 in compact cars, #5 in hybrid and electric cars, #8 in hatchbacks, and #10 in small cars (“2016 Toyota Prius | U.S. News & world report,” n.d.). It retails between $24,200 and $30,000 which is considered a compact car. “The Toyota Motor Corporation is a multinational corporation and now the world 's largest automaker in terms of sales, net worth, revenue, and profit according to Fortune Global 500. Toyota is positioned in the moderately low-price, high volume market” (“Strategic analysis of Toyota motor corporation,” 2003). They did move more into the higher-priced market with the Lexus brand and worked to fill the need for electric vehicles with the Toyota Prius. The company is diversified in various markets within the automobile industry and are able to branch out in several directions.

• Interviews organized: 9 interviews made with the team members and BMW Group Hungary representatives

As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.

process BMW had to launch a reengineering task force who was responsible for meet a bold target of for slashing product

1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.

BMW Group uses various different materials for the production of these components. Accordingly, the casting methods used are diverse and innovative. In engine production the cast components is processed using high precision, computer controlled machine tools, the workers being predominantly

Innovative ideas are always encouraged at BMW. Having team members coming together with different ideas and brainstorming together can lead to a success. Creative and innovative styles are what they expect. “Claussen convinced Krause and others that the unconventional approach wouldn’t just produce a pretty factory but one whose open, airy spaces would improve communications between line workers and managers and create an environment that helps the company build cars better” (Hellriegel & Slocum, 2009, p. 523). After discussing his vision, meeting with others to discuss the details, and with hard work from everyone, the plant opened with great creativity in 2005. The building represented the creativity of a young engineer, Knau, and the Claussens vision of teamwork. Having the ability to voice an innovative idea, and watching it come to life is what BMW promotes. Inovation and fexibility is important in the BMW family. The company is different from is competitors by creating a car for the customers taste. When creating new cars BMW use the ideas of the new hires because they are fresh within the company and have new ideas.

Continuous development and responsiveness of suppliers at the early age of product development process is critically important. “Honda tries to encourage suppliers’ suggestions early before finalizing drawings, particularly in the area of cost reduction and quality improvement.”

BMW Group has its excellent technical system which offers a competitive advantage over its rivals. Training courses are also delivered to all the employees in order to develop new skills and highest quality standards.