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BMW Presentation

Transcript: Time series forecasting method Forecasting process involves four departments: Finance, Used Cars, New Cars, and Mini Cooper Based on past sales data for each division forecasts are developed External factors that influence forecasting include gas prices and the seasons 2. Order Placement Orders are placed several months in advance, and are based on forecasted demand. Made-to-order fulfillment strategy Backwardly-integrated procurement system U.S. dealerships share a comprehensive inventory database 3. Transportation Two main suppliers: one in South Carolina and one in Maryland. Receive the cars directly from BMW manufacturers in Germany within 4-6 weeks. Open or closed transport trucks, depending on the model of the car. Motorwerks outsources car transportation services to different companies around the Twin Cities area. Timely and undamaged transportation is critical. 4. Quality Control The receipt of each car is carefully verified, and the car is washed and undergoes a multi-point vehicle inspection to identify any body work problems. If the car does not pass its inspection, it is sent across the street to BMW’s service detail center, where the car’s flaws are corrected. After passing the inspection test the car is stored in the dealership according to its model and monetary value 5. Inventory Management Storage system: -Outdoor lots -Indoor Garage -Floor Space New inventory is registered with BMW’s integrated data base as well as secured by electronic locks When capacity is exceeded, storage space is leased from competitors nearby Located in Bloomington, MN New Car Procurement Process Motorwerks Dealership 1. Forecasting

BMW presentation

Transcript: by Hunain Siddiqui First BMW car BMW Presentation Growth of BMW What is BMW Competition > March 7, 1916, Karl Rapp and Gustav Otto created the company BMW. BMW stands for Bayerische Flugzeug-Werke, or Bayerische Motoren Werke. >BMW Emblem Established, Made with Bavarian state colors. First appeared in the middle of a propeller for a plane. > BMW is headquartered in Munich, Bavaria. Foundation of bmw Foundation Growth of Bmw From 1913 to 1945, bmw specialized in making aircraft engines for jets and fighter planes during world war 1 to world war 2. 1923–1939: Start of production, BMW's production of automobiles began in 1928, when the company purchased the Automobilwerk Eisenach car company from Gothaer Waggonfabrik. 1945–1951: Post-war rebuilding.In West Germany, many of the BMW factories had been heavily bombed during the war. By the end of the war, the Munich plant was completely destroyed. BMW was banned by the Allies from producing motorcycles or automobiles. During this ban, BMW used basic secondhand and salvaged equipment to make pots and pans, later expanding to other kitchen supplies and bicycles. 1952 - 1994 1999 - present Growth of bmw 1952–1958: Production resumes in Munich, bmw started to create luxury cars again after the ban of automobiles and motorbikes. 1959–1968: Near bankruptcy and New Class By 1959, By 1959, BMW was in debt and losing money. 1968–1978: New Six, 3 Series, 5 Series, 7 Series. In 1968, production of the BMW M30 engine began, BMW's first straight-six engine since World War II which would remain in production for 24 years. This engine coincided with the launch of the New Six large sedans (the predecessor to the 7 Series) and New Six CS large coupes (the predecessor to the 6 Series). The first generation of the BMW 5 Series mid-size sedans were introduced in 1972, to replace the New Class sedans. The 5 Series platform was also used for the BMW 6 Series coupes, which were introduced in 1976. In 1975, the first generation of the BMW 3 Series range of compact sedans/coupes was introduced as the replacement for the 02 Series. The first generation of the BMW 7 Series large sedans were introduced in 1978. 1978–1989: M division, The 1978 BMW M1 was BMW's first mid-engined sports car and was developed in conjunction with Lamborghini. It was also the first road car produced by BMW's motorsport division, BMW M. In 1980, the M division produced its first model based on a regular production vehicle, the E12 5 Series M535i. The M535i is the predecessor to the BMW M5, which was introduced in 1985 based on the E28 5 Series platform. 1989–1994: 8 Series, hatchbacks. >The 8 Series range of large coupes was introduced in 1989 and in 1992 was the first application of BMW's first V8 engine in 25 years, the BMW M60. It was also the first BMW to use a multi-link rear suspension, a design which was implemented for mass-production in 1990 E36 3 Series >The E34 5 Series, introduced in 1988, was the first 5 Series to be produced with all-wheel drive or a wagon body style. >In 1989, the limited-production BMW Z1 began BMW's line of two-seat convertible Z Series models. >In 1993, the BMW 3 Series Compact (built on the E36 3 Series platform) was BMW's first hatchback model (except for the limited production 02 Series "Touring" models). These hatchback models formed a new entry-level model range below the other 3 Series models. >In 1992, BMW acquired a large stake in California-based industrial design studio DesignworksUSA, which they fully acquired in 1995. >The 1993 McLaren F1 is powered by a BMW V12 engine. Growth of bmw 1994–1999: Rover ownership, Z3. In 1994, BMW bought the British Rover Group (which at the time consisted of the Rover, Land Rover, Mini and MG brands as well as the rights to defunct Austin and Morris brands), and owned it for six years. The Z3 two-seat convertible and coupe models were introduced in 1995. These were the first mass-produced models outside of the 1/3/5 Series and the first model to be solely manufactured outside Germany (in the United States, in this case). 1999–2006: SUV models, Rolls-Royce BMW's first SUV, the X5, was introduced in 1999. The X5 was a large departure from BMW's image of sporting "driver’s cars", however, it was very successful and resulted in other SUVs being introduced, such as the smaller X3 in 2003. The 2001 E65 7 Series was BMW's first model to use a 6-speed automatic transmission and the iDrive infotainment system. The E65 also attracted controversy for its exterior styling.[96] In 2002, the Z4 two-seat coupe/convertible replaced the Z3. In 2004, the 1 Series hatchbacks replaced the 3 Series Compact models as BMW's entry-level models. 2003 Rolls-Royce Phantom was the first Rolls-Royce vehicle produced under BMW ownership. This was the end result of complicated contractual negotiations that began in 1998 when Rolls-Royce plc licensed use of the Rolls-Royce name and logo to BMW, but Vickers sold the remaining elements of Rolls-Royce Motor Cars to BMW

bmw presentation

Transcript: 1916 BMW's History Future 2008 Becomes the first car manufacturer to have antilock braking standard across its entire model line BMW's History Total assets €172.174 billion Expands into motorcycle production BMW's History 1923 Production output 2,430,507 vehicles Award-winning Advanced Diesel with Blue Performance arrives in America. Volkswagen Total equity €42.764 billion BMW's History The BMW 328 Roadster BMW's History 1936 Profit €6.396 billion BMW's History The BMW Vision EfficientDynamics Concept looks and sounds like science fiction. Builds its first motorcar, the Dixi 3/15. The BMW 507 steals the spotlight at the Frankfurt Motor Show. A world altitude record of 32,013 ft. in an aircraft powered by a BMW Type IV engine Operating income €9.224 billion BMW introduced the Head Protection System (HPS), setting a new standard of safety for severe side-impact collisions. OWNERS Stefan Quandt (29%) Susanne Klatten (21%) Public float (50%) Revenue Increase €92.175 billion Originated with three other manufacturing companies BMW's History 1957 BMW is born first as a manufacturer of aeroengines. Nelson Piquet clinches the Formula 1 world championship for BMW 1929 Opens the Spartanburg manufacturing plant in South Carolina. BMW's History Rivals of BMW 1986 BMW's History BMW's History 2010 models expand the realm of what is possible. 2010 BMW's History 1968 1919 BMW GROUP BMW ROLLS-ROYCE MINI BMW's History Annual production Year BMW MINI Rolls-Royce Motorcycle 2005 1,122,308 200,119 692 92,013 2006 1,179,317 186,674 847 103,759 2007 1,302,774 237,700 1,029 104,396 2008 1,203,482 235,019 1,417 118,452 2009 1,043,829 213,670 918 93,243 2010 1,236,989 241,043 3,221 112,271 2011 1,440,315 294,120 3,725 110,360 2012 1,547,057 311,490 3,279 113,811 2013 1,699,835 303,177 3,354 110,127 2014 1,838,268 322,803 4,495 133,615 2015 1,933,647 342,008 3,848 151,004 BMW's History 1983 BMW opens the Research & Innovation Center in Munich Mercedes-Benz Audi 1997 BMW's History Number of employees 122,244 1994 BMW's History Debuts an entirely new class of motorcar - the sports sedan 1987 Divisions Mini BMW Motorsport BMW i BMW Motorrad 1917 BMW's History

BMW Presentation

Transcript: BMW, translated into English, stands for Bavarian Motor Works. BMW is a German luxury automobile, motorcycle and engine manufacturing company that was founded in 1916 by Franz Josef Popp. BMW has 23 production and assembly plants in 13 different countries. Know for its elegant vehicles and excellent performance, BMW is considered one of the greatest producers of luxury cars. In 2014 alone, they accumulated a total of 1,811,719 worldwide sales from their products. In 2012, BMW's share of the U.S. car market reached 1.9% and has been increasing since then. The company aims to generate profitable growth by focusing on the premium segments of the international automobile markets, strengthening its worldwide market position. **(PLEASE DELETE THIS BEFORE PRESENTATION) Message from Mercy: Hey guys! So basically, I worked on the first two bulletpoints from the requirements on schoology. I finished my part and I timed it so it was about a minute and 30 s. You guys just have to divide the next 4 bullets between the two of you. BMW Market Structure Analysis BMW AND THE AUTOMOTIVE INDUSTRY By: Mercy Villacis, Madison Dieu, and Emily Gonyou The company’s brand is extremely strong and is associated with high performance, engineering excellence and innovation. BMW continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the world’s largest luxury car maker. BMW is currently classified as one of the top three luxury car manufacturers in the world along with Audi and Mercedes-Benz. WHAT IS BMW? BMW's U.S. market share from 2012 to 2015

BMW Presentation

Transcript: Company What's BMW made of? History Changes BMW figures some 90% of the innovations in its new models are electronics-driven. That requires once-slow-moving automakers to adapt to the lightning pace of innovation and change driving the semiconductor and software industries. Evolution of Design End of 1920s Art nouveau and art deco are over (cars) Special Autobody manufacturers Easy formed design (save time) Cubic forms and plain windows First car 3/15 in 1929 1933 The double-kidney was introduced Fritz Fiedler (constructor) First aesthetic design elements Design & techique 1936 BMW 32 More modern Sporty & emotional Round forms Aerodynamic comes into play First design department After WWII BMW 501 Not very successful BMW decides to BUY design (USA, Italy) 1955 3 different cars Isetta BMW 507 (mixture of italian lines and american forms) BMW 503 50s BMW 1500 New medium class Quandt (new investor) insists on double-kidney 3200 CS 2000 CS 70s New French designer (Paul Bracq) Plane and prolated autobody & big windows Typical twin headlights New series 5 70s - 80s Design Prototype BMW Turbo Claus Luthe Wedge profile & aerodynamic curves Brand Strategy - branding strategy of BMW consists of innovation, dynamism, exclusivity and aesthetics which helps the company to increase its brand value. BMW has based it brand on four core values : Technology Quality Performance Exclusivity PRODUCT TYPE : Durable product Top-of-the-range, small and urban car Attributes Different MINI Cooper Models A modern design for an automotive legend Free-choice options Powerful Reliability, safety and comfort Go- Kart handling and road holding It’s a Mini adventure…!! INNOVATION RESEARCH INNOVATION MANAGEMENT INNOVATION TRANSFER INNOVATION RESEARCH INNOVATION MANAGEMENT INNOVATION TRANSFER Design Awards 2004 - "most innovative company" 2009 - International Design Excellence Awards 2010 - Multiple ‘Red Dot’ Awards 2010 - Auto Bild Design Award ‘BMW Efficient Dynamics’ 2011 - Federal Republic of Germany Conclusion Through the integration of Innovation into all edges of the company and by making the process a key strategic and cultural element, BMW strives to remain one of the leading automobile producers in the 20th century. The combination of innovation and creativity in the design segment depicts the reasons behind the company’s astonishing success. In addition, the groups focus on this specific factor granted them a secure long-term success in sales, as well as, an opportunity to stand out in such a competitive premium market. “Innovations in technology give the car maker the opportunity to stand out clearly from the competition and to express the features so typical of a BMW, MINI, or Rolls-Royce in and through the very substance of the product.” Mini in 1973 : Mini 1275 GT, the high end mini: « long nose », Mini 1000 and Mini Clubman Mini Cooper‘s Example The Mini Success Innovation Through Design Another brand focused on innovation whether it is technical, aestetic, or in terms of communication…: Mini in1959 INNOVATIONS TO ACTUAL PRODUCT DEVELOPMENT Strategy & Design of An Old Bayerische Company Chérine SABOUR Faisal ALQETHAMI Naif ALRABIE Patrick WALTER Hsueh-Li WANG

BMW Presentation

Transcript: Darwin 8,405/8,514 Place Let's See it in Action SM human capital investment strategy = lower turnover rate Provides generous pay and benefits to workers Great employee-management relationship One thing to consider: 70 48 “Ford, Chrysler, Mazda and Honda said Tuesday that they're working with NHTSA, but they wouldn't say if they will expand their recalls. BMW said its recalls of Takata air bags already are national.” 197 mill The Four P’s. Product - Luxury & Sporty Vehicle Price - Compares its prices with other luxury vehicles Place - Distributed Globally to high end dealers Promote - Promotion is aimed towards Upper Liberals, Post-modern, and Upper conservative, upper class and wealthy to attain a youthful and dangerous image Retention and Reviews Retention Rate: 59% Mixed reviews among consumers about the vehicle. Most seem to be very positive, but some negative reviews come from poor customer service when dealing with repairs. Competitors? BMW: Sporty & Simplicity Mercedes: Comfort & Luxury Audi: Young & Stylish BMW recalled the product at early stage of discovery of default. Ethics The Dilemma: Revenue ranking Industry and Competitors Questions 1.45 Certain duties and responsibilities based on what feels right. Responsibility to put safety first Not focusing on the consequences of price and labor Financial Crisis 2008-2009 The Solution: BWM acted early on a national recall of the Takata airbags which shows their premium service to fix their product to make sure that it remained a premium product 76 mil BMW Group Capturing Value Price-Earnings (P/E) ratio: Generally, P/E ratio reflects the company's growth in the future Companies that are losing money do not have a P/E ratio Manufacturers and suppliers: ethical decisions of suppliers Employees: Fair treatment/pay and good working conditions Business Partnerships: BMW’s image and profitability Potential Investors: company makes smart decisions Communities: factory location stimulates economy BMW group 2008 profit :330 mil 2009 profit : 210 mil Volkswagen (Audi) group 2008 profit : 4,688 mil 2009 profit : 911 mil Daimler (Mercedes Benz) group 2008 profit : 1,414 mil 2009 profit : -2,644 mil Stakeholders Interests 15,361/10,529 5 Forces Corporate Social Responsibility Internal factors: Brand establishment Human Capital Research and Development 0.9 Process 31 Operation Management Advantages: Narrow focus: premium quality and high price Strong market share in the small market segment Disadvantages: Daimler: wide variety of vehicles such as buses Volkswagen: brands with wider price range 117 mil Volkswagen: Cut Carbon Dioxide emissions by 40% in 2020, in German facilities pledge to make production up to 25% more friendly per vehicle manufactured Daimler: abides by current environmental standards and quotas Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price Higher dividend yield means higher return per stock. Deontology: Sustainability: Goal of Halving the CO2 emissions of their vehicle fleet from 1995 levels by 2020. Introduction of the completely electric BMW i series Marketing Work Cited & Production of Takata parts for BMW specifically will be moved from Mexico to Germany for better quality control Takata airbags spray metal shrapnel at occupants when deployed. Used in over two dozen brands More than 7 million vehicles at risk 139 reported injuries across all automakers 2 deaths in Honda vehicles http://www.forbes.com/global2000/list/#page:3_sort:0_direction:asc_search:_filter:All%20industries_filter:All%20countries_filter:All%20states http://www.forbes.com/sites/joannmuller/2013/04/18/vw-is-already-the-worlds-leading-automaker/ http://www.bmwgroup.com/d/0_0_www_bmwgroup_com/investor_relations/_pdf/20130610_The_Future_Of_Sustainable_Mobility_Sattig_FINAL.PDF http://www.businessinsider.com/bmws-massive-non-union-plant-is-basically-a-huge-screw-you-to-unions-2011-2#ixzz3JeQojgkl http://www.reuters.com/article/2014/11/19/us-takata-recall-automakers-idUSKCN0J32L320141119 http://abcnews.go.com/Politics/takata-airbag-safety-exec-denies-nationwide-recall/story?id=27053071 http://www.consumerreports.org/cro/news/2014/10/everything-you-need-to-know-about-the-takata-air-bag-recall/index.htm http://www.huffingtonpost.com/2014/11/18/regulators-takata-airbag-recall-nationwide_n_6181560.html http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/strategie/strategie.html http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/produktion/produktionsnetzwerk/produktionsstandorte/standorte/index.html Vertical integration through strategic supplier relationships investing in carbon fiber raw material for M models and i-series If recalled the financial costs, time and labor used to fix the cars could all go towards new products. Ethics Theories: Grace Utilitarianism: Creating Value Greatest good for greatest amount of people. Safety is the top concern for customers and other

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