Transcript: Record sales of above 1.6 million units 24 HI-Tech production facilities in 13 countries, global sales network spanning more than 140 countries, most valuable brand in car sector (23rd in total), Opportunity to growth on China market. BMW Group BMW owners tend to fit two specific VALS (Values and Lifestyle) groups: Achievers: goal oriented individuals who value prestigious and well-made products. It is also demonstration of their success. Innovators: readily accept new technologies and ideas thus they purchase cutting-edge, high-class products. The essentials at a glance. BMW is the world’s first manufacturer to introduce a full-colour Head-Up Display. All driver-relevant information is projected onto the windscreen in the driver’s field of vision. Competitors Advertisement Panke said: Slogans Milberg’s vision of the premium brand strategy was characterized by: Europe’s fastest advisor: a BMW. With BMW Assist, BMW is the first European manufacturer to offer an extensive safety and services package. The new telematic services include, amongst other features, detailed traffic information and location-relevant information services for filling stations and hotels that can be sent directly from the BMW Call Centre and received in the car. Panke, who succeeded Milberg, believed in the four 'Ps' in an effective organization: The formula of success Vision Number ONE "The Ultimate Driving Machine" "BMW - The Smart Choice" "The Feeling Remains" BMW vision is targeted towards creating value and securing future success. They are driven by their goal to increase profitability. Long-term thinking and responsible action, Establishing a strategy of ecological and social sustainability throughout the value chain, Comprehensive product responsibility, Clear commitment to resource conservation, Very precision strategy for high-performing engines, high-recognition branding, high-profile racing cars. Innovation “We believe a company can only think in one set of terms. If you are premium, you have to focus on it.” Helmut Panke What is BMW? Standing for 'New Opportunities' and 'New Efficiency' Customization and customer orientation BMW stands for Bayerische Motoren Werke. In English, that would be: Bavarian Motor Works Founded in 1917 in Munich as an airplane engine manufacturing company In the present day and age, the company produces cars, motorcycles and high-end bicycles BMW Group sales BMW Group BMW is top company that integrates the strategy of being unique into it's business plan (concentration on premium segment of cars, leadership through innovation and emotional marketing) Innovating to be different, to be the best and lead the others Efficient dynamics, clean energy, connected drive The right people: passionate of the job, premium positioning: from making cars to making profit, process driven: not personality driven, Panke: leadership. Focus on understanding who you are, what you stand for, What are the values you have in the organization, What are the values you believe in for the products and services that you sell and provide BMW builds high-performance products because BMW is a high-performance organization Parking made easier. Unique across Europe: the BMW 7 Series features Park Distance Control (PDC). The system employs ultrasonic sensors to determine distances when parking, and enables precise manoeuvring – even in the tightest of spaces. Target market: BMW Group consists of three brands: BMW, MINI, Rolls-Royce Customer is a part of production process Enhanced customer service Creating cars, you will enjoy to drive Why is BMW group successful? Panke didn’t want people to follow him but he wanted people to follow his program and processes. Concentrating only on the premium segments of the automobile market, Creating a demanding product and market offensive in the premium segments, ensuring that the brand is represented in all relevant parts of the market, The appropriate expansion of the production and sales network, The agility of the overall company with quick reactions and innovations, Cooperation and networks using external resources through strategic partnerships rather than mergers. A new style of leadership and guidance oriented, Profitable growth. Result? – Increase in profits of more than 400% in 2002 compared to 1999. Safety becomes measurable. The world’s first integrated radar-based distance warning device is installed in the BMW Turbo concept car. The BMW Turbo also measures lateral acceleration forces and warns its driver when the BMW is losing its grip on the road.
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
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. 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
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
Transcript: Strengths Social Media 1. Political restrictions 2. Rising oil prices 3. American inflation protectionism ` Average customer is : 47 years old Caucasian male Married with No Children Earn Approx. $160,000 In the Professional Field Expansion in India ` Opportunities Educate Consumers Improve Hybrid & Electric products ActiveHybrid Reduce CO2 Emission StrategyONE Number ONE defines: BMW vision for the year 2020. BMW mid-term targets for the year 2016. BMW internal milestones. + Expansion in China Four Initial Steps Weaknesses Brazil Educate Employees The color and design came from the Flag of Bavaria.(not the aircraft engines or propellers) ORGANIZATIONAL ASSESSMENT Revolution Evolution Further R&D Expansion BMW INFORMATION MISSION AND VISION INTERNAL ASSESSMENT EXTERNAL ASSESSMENT MARKET ANALYSIS A Luxury Performance Vehicle Manufacturer Established in 1917 MINI & Rolls-Royce Motorcycles Why we didn't choose : India Sustainability Expansion to China and other countries Educate Investors 1. Demand for “Green” sustainability 2. Population growth and aging 3. Technology Threats Fix Factors (internal and external environments, SWOT analysis Financial statement-quantitative and qualitative result (attention of the period) Third party report and survey Expansion in Brazil Social Media Market Position-sales volume and revenue Profitability-finance ratio Cash Product Mix Technology Environment The Five Years Pro-forma Operating Budget 1. Exceptional cash flow management 2. Smart investment decisions, mainly in research and development. 3. Unique idea generation through information communication channels and cross-functional teams 4. Deep product base and wide variety of product options available. 5. Strong brand and legacy 1. Growth is slowing down the creative process at BMW 2. Outsourcing has reduced BMW’s flexibility 3. BMW’s chosen market (luxury goods) is very susceptible to the health of the economy Measurement and evaluation methods Industry Overview ` 2011 finance year Sales volume 12.8% 1,380,384 units Revenue 13.8% € 68,821 million EBIT 56.9% € 8,018 million Earning or profit 31% € 4,907 million expansions in China significant increase of 37.7% to 233,630 Empower Employees "Green" Plan Customer profile Strategy Number ONE “with its four pillars: ‘Growth’, ‘Shaping the future’, ‘Profitability’ and ‘Access to technology and customers’”
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
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
Transcript: BMW 4-Series available with 2 types of engines: 4-cylinder with 240 horsepower & 6-cylinder with 300 horsepower can reach 60 mph in just 3 seconds can hold up to 70 gallons of gas eco-mode BMW X5 445 horsepower gas & diesel options for engine can hold up to 85 gallons of gas 8-speed automatic transmission start/stop assist system BMW M4 6-cylinder turbocharged motor 680 horsepower 195 mph can hold up to 175 gallons of gas built-in GPS with internet and wi-fi BMW i3 electric 2-cylinder motor 170 horsepower has an estimated 80-100 mile range can go to 60 mph in just 5 seconds battery recharges in just 30 minutes BMW i8 3-cylinder electric motor can go up to 550 horsepower can go up to speed of 155 mph & 60 mph in just 4.4 seconds battery takes 3.5 hours to charge LED headlights scissor doors removable roof bluetooth radio with built-in GPS, internet, and wi-fi
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