Business Innovation of BMW Organization †MyAssignmenthelp.com

Question: Discuss about the Business Innovation of BMW Organization. Answer: Introduction Back in 2006, the organization of BMW which included Rolls-Royce and Mini produced approximately 1,366,838 vehicles that were four-wheeled. These were built in five states. In the year 2010, the organization built about 112,271 motorcycles and 1,481,253 vehicles which are four-wheeled using the Husqvarna and BMW brands. One such product is the BMW X3 that was developed by Magna Steyr. This is part of the Magna International, an Australian organization which was licensed under BMW until 2010. It is not until the month of October 2010 that the BMW X3 was produced within the BMW facility in the U.S. In 2011, approximately 56% of the BMW-branded automobiles that were manufactured were petrol powered. The other 44% were diesel powered. Of the total vehicles produced in that year, 27% of them were four-cylindered models while 9% were eight-cylindered automobiles. The organization also had a local assembly plant that operated through the application of components regarded as knock down and were found in Russia, Thailand, Egypt, Malaysia, Indonesia, and India. Averagely, about 9,000 vehicles left the plant every day while about 63% of the developed vehicles transported via rail. Scope of the study This research activity will first look into the current market conditions of BMW organization before embarking on the discussion of customer segment of the organization. Later, the research process will determine the product demand conditions of the group. Afterward, the activity shall highlight the competitors of the company. This activity will also analyze research activities on the demand conditions and customer segments of the organization. Afterward, the activity will formulate a discussion on the issues above before concluding the research activity. Objectives of the study This research activity will: Identify the market conditions of the business Discuss the customer segment of the organization Discuss the demand conditions Highlight the company competitors Literature Review Technological aspect: - By 2014, the organization had signed deals that would render them license the technology of Toyota within the areas of the lithium batteries, diesel engines, and hydrogen cells for fueling. With the BMW Connected Drive, there is the aspect of services provision alongside apps that were controlled via the on-board computer on the vehicle. The company then announced that it would roll out additional Connected Drive functionality by telecommunications (BMW GROUP, 2016). Such services were then made available to the vehicles that were delivered from Australia April in the same year. Later, the Connected Drive service was updated to include aspects of real-time data traffic, the introduction of emergency call systems, and concierge. All these updated aspects worked alongside the driver assistance services. By 2015, BMW launched what is known as customer portal which had an integrated access incorporated into the Connected Drive service (BMW GROUP, 2016). Car sharing: - It was not until the year 2011 that BMW came up with the Drive now. This was a joint-venture which would help in the provision of carsharing services in most of the cities of Europe and even those of North America. In 2012, this service was already operating in more than 1,000 vehicles. The vehicles were intended to serve five cities and approximately 60,000 customers (BMW GROUP, 2016). Marketing: - As much as the BMW slogan 'The Ultimate Driving Machine' was available as early as the 1970s, by 2010, the campaign got supplanted. The campaign was dubbed 'Joy' and intended to have the brand become "approachable." Analysis SWOT Analysis Strengths: - BMW happens to be one of the automotive brands that are most valuable worldwide The organization has a revenue stream that is geographically diversified. It has held a successful Chinese partnership It is regarded with proper engineering vis a vee impeccable driving experience Recognized for competence in electric and hybrid cars The organization has a clear strategy on how to face future trends and challenges The figure below shows BMWs revenue in several countries (in billion Euros) Weaknesses: - Improper portfolio for the automotive brand with just a little differentiation of the product Increasing levels of debt The figure below shows the debt of BMW from 2012 t0 2015. Opportunities: - The organization expects the prices of fuel to rise in future There is also a possible hick in the demand for vehicles that are autonomous The euro exchange rate is getting weak The aspect of frequency and timing of new release of models Threats: - There is the aspect of hiking competition within the global automotive market There is also the aspect of soaring regulations of the government leading to increased costs The motor vehicle market of the U.S. threatening to slow down or maybe decline Discussion Most of the world governments happen to be committed to the duty of reducing the emission of greenhouse gases. They are however encouraging the use of initiatives of fuel efficiency. In such cases, it is evident that there is a risk regarding the fact that such environmental initiatives have the capacity to increase the cost of production for manufacturers of vehicles. Such costs will therefore not get recouped in the market that is rather a price-sensitive and highly competitive (Jurevicius, 2017). The years of 2015 and 2016 happened to be the best with regards to the automotive industry in the United States. On average, the sales of new vehicles increased by around 6%. The automobile companies were also able to ensure the growth of their sales regardless of the fact that they were losing market share. Due to such cases, the General Motors also happened to have benefited. On the contrary, the automotive market is slowing down regarding growth. General Motors and Ford claim that the sales of the new vehicle have the capacity to slow down or decline as time passes by due to the issue of market saturation (Jurevicius, 2017). Conclusion As discussed in this activity, it was not until the month of October 2010 that the BMW X3 was produced within the BMW facility in the U.S. In 2011, approximately 56% of the BMW-branded automobiles that were manufactured were petrol powered. The other 44% were diesel powered. Of the total vehicles produced in that year, 27% of them were four-cylindered models while 9% were eight-cylindered automobiles. The organization also had a local assembly plant that operated through the application of components regarded as knock down and were found in Russia, Thailand, Egypt, Malaysia, Indonesia, and India. Averagely, about 9,000 vehicles left the plant every day while about 63% of the developed vehicles transported via rail. References Abdullah, H. (2009)Major Challenges To The Effective Management Of Human Resource Training And Development Activities . (Accessed: 14 February 2017).Available at: https://www.sosyalarastirmalar.com/cilt2/sayi8pdf/abdullah_haslinda1.pdf BMW GROUP. (2016). BMW GROUP KEY FIGURES (2016). Bmwgroup.com. Retrieved 18 July 2017, from https://www.bmwgroup.com/en/company.html Cuozzo, B., Dumay, J., Palmaccio, M., Lombardi, R. (2017). Intellectual capital disclosure: A structured literature review.Journal of Intellectual Capital,18(1), 9-28. Retrieved from https://queens.ezproxy.cuny.edu:2048/login?url=https://search.proquest.com.queens.ezproxy.cuny.edu:2048/docview/1857284551?accountid=13379 Indicators, K. (2017). Key Performance Indicators (KPI) | Guide and Process Explained. Application Performance Management. Retrieved 23 March 2017, from https://www.applicationperformancemanagement.org/performance-testing/key-performance-indicators/ Jurevicius, O. (2017). BMW Group SWOT analysis - Strategic Management Insight. Strategic Management Insight. Retrieved 18 July 2017, from https://www.strategicmanagementinsight.com/swot-analyses/bmw-swot-analysis.html Laihonen, H., Lnnqvist, A., Metsl, J. (2015). Two knowledge perspectives to growth management.Vine,45(4), 473-494. Retrieved from https://queens.ezproxy.cuny.edu:2048/login?url=https://search.proquest.com.queens.ezproxy.cuny.edu:2048/docview/1732776855?accountid=13379 Melendez, K. (2015). Retail Logistics: Multiple distribution centers and their advantages. Info.mkmdistribution.com. Retrieved 23 March 2017, from https://info.mkmdistribution.com/blog/bid/314982/Retail-Logistics-Multiple-distribution-centers-and-their-advantages Power, D. (2017). Types of decision support systems (DSS). Retrieved March 6, 2017, from https://www.gdrc.org/decision/dss-types.html The user, S. (2016, June 30). PGIMER latest notification 2017: Assistant Accounts Officer. Retrieved March 6, 2017, from https://www.myreadingroom.co.in/notes-and-studymaterial/65-dbms/561-operational-data-and-decision-support-data.html