Research BMW Mission, Vision, Objectives, and Strategies

Case Study for Bmw
Name
Institution
Bayerische Motoren Werke is a German manufacturing company. It is commonly known as BMW. The company manufactures luxury vehicles, motorcycles, sport cars, and engines. It was founded in the year 1916 by Franz Josef Popp, Karl Papp and Camillo Castiliglioni. BWM is headquartered in Munich, which is the biggest city of the German state of Bavaria. BMW Company owns Mini cars and it is also the company that owns and runs Rolls Royce Motor Cars. The company manufactures motor cars under the BMW Motorsport, which is the division of BMW accountable for activities related to motorsport including work- runs competition programmes in touring car racing and motorcycle racing. The company also manufactures motorcycles under BMW Motorrad, which is the motorcycle brand of the BMW Company. In football, the company sponsors Bundesliga club Eintracht Frankfurt and it has also sponsored different European golf events such as PGA championship and the BMW Italian open. The company is a charter member of the US Environmental Protection Agency’s National Environment Achievement Track, which acknowledges organizations for their improvement and achievement. The Company is moreover a member of the South Carolina Environmental Excellence Program. The company competes with other companies such as Mercedes Benz, Audi, Porsche, General Motors Company, Toyota Motor Corporation, and Volkswagen. It is considered as one of the excellent selling pleasant and comfortable automakers in the globe.
BMW Mission, Vision, Objectives, and Strategies
The mission statement of BMW states that the company is the world’s ranking first provider of quality goods and services for individual movement. The vision statement of BMW states that the company aspires to be the most fruitful superior manufacturer in the car industry. The objectives of the BMW company include to make their status powerful at the end of each year, to produce cars that are friendly to the environment, to be ahead in the competition, to be responsible as a way of helping the society and to continuously produce goods of high quality that are appealing to everyone. Finally, to elevate it’s sales across the globe.
The BMW Company has adopted pricing and marketing strategies with an aim of growing its business. Examples of marketing strategies include sales promotion strategy where it engages in providing short-term incentives to clients who buy their products so that they attract more customers and in return increase its sales. It has also adopted an advertising strategy where it advertises its products through different channels so that it can call public attention to their products in the hope that individuals will be persuaded to purchase its products. It has moreover adopted the public relation strategy where it maintains communication with its suppliers, customers, retailers, and employees through different channels of communication so that they it can sustain a favorable public image and the favorable public image can in return aid in promoting an increase in its sales. In addition, it has adopted the experiences and events marketing strategy where it incorporates it with the celebrity endorsement marketing strategy to progressively create experiences and organize events to exhibit their enhanced features and efficient designs so that a long-lasting influence can be formed on its client.
Examples of pricing strategies BMW Company has adopted include the price skimming strategy where the company sets high prices on their products at the introductory phase then it lowers the prices when competition steps in and the market price of the particular products is reduced. Secondly, it has adopted the premium pricing strategy where it sets the price of a product higher than similar products with an aim of maximizing profit. Lastly, it has adopted the price-quality signaling strategy where it sets high prices on its products because high prices signal goods of high quality to potential clients. Therefore, eventually gain profit from increased sales because customers in most cases buy products they perceive to be of high quality.
BMW Opportunities and Threats
Opportunities are those external factors surrounding an organization and are favorable in that they can promote the success of an organization. Threats on the other hand are those external factors that surround an organization but are unfavorable in that they cause failure of an organization. Opportunities of BMW Company include strategies alliances where the company can form alliances with other established automobile companies with an aim of using their specialized strengths to modify their offerings. The company also has the opportunity of market growth where they can enter new markets so that they can elevate their targeted revenue. Moreover, the company has the opportunity of increasing product portfolio, which can aid in increasing their sales, as more choices under the same brand will be available for customers. Finally, the high powerful brand image is an opportunity because it can aid the company in acquiring new market segments.
Threats of BMW Company include competition from its rivals where some are selling stylish and comfortable cars at lower prices and therefore posing a threat to the BMW because many customers will opt to buy from the other companies because they are inexpensive and offer quality products. Decrease in fuel costs is also a threat to the BMW Company because there will a reduction in the demand of their hybrid and hydrogen fueled cars. Moreover, rise in EURO exchange rate is also a threat as it can affect the market share of the BMW Company negatively.
Competitive Profile Matrix of BMW Company
Competitive profile matrix is a strategic tool that compares a company with its competitors and discloses their relative strengths and weaknesses. Through the tool, the company can moreover, identify the areas they are strong in and those that need improvement. The tool consists of the critical success factors, rating, weight, and the weighted score attributes. The critical success factors are those factors that have identified after a thorough study of external and internal environment surrounding a company. Rating attribute depicts the response of the company towards the critical success factors. Rating is assigned to each critical success factor and the response is poor if 1.0 represents it. Normal if it represented by 2.0 and above normal if it is represented by 3.0. Finally, high if 4.0 represents it. The weight attribute identifies the relative significance of factor to being fruitful in the company’s industry. Weighted score attribute is the outcome accomplished after multiplying weight with the rating of each critical success factor. The following is an example of a competitive profile matrix of BMW Company.


BMW


Volkswagen


General Motors Company


Critical success factors

Weight

Rating

Weighted Score

Rating

Weighted Score

Rating

Weighted score

Reputation of brand

0.12

2

0.24

4

0.48

2

0.24

Product integration level

0.07

3

0.21

2

0.14

2

0.14

Products range

0.04

4

0.16

2

0.08

3

0.12

Market share

0.06

3

0.18

3

0.18

4

0.2

Sales per employee

0.15

3

0.45

2

0.3

1

0.15

Customer retention

0.03

3

0.09

4

0.12

3

0.09

IT capabilities

0.12

2

0.24

2

0.24

3

0.36

Fruitful promotions.

0.09

3

0.27

4

0.36

4

0.36

Variety of distribution channels

0.09

3

0.27

2

0.18

3

0.27

Quality of products

0 .12

4

0.48

2

0.24

2

0.24

Competitiveness

0.13

3

0.39

2

0.26

3

0.39

Total

1.00


2.98


2.58


2.56

External Factor Evaluation Matrix of BMW.
The EFE matrix method is a tool commonly utilized for the examination of current business conditions. It is a great tool to be utilized in the identification of the opportunities and threats that are facing a company. The tool solely deals with the external factors surrounding an organization. When constructing the matrix the external factors are listed and divided into groups of opportunities and threats. Weights should be assigned to each factor, then rating assigned to each factor and the rating should be between 1 and 4. Weighted score should be later be calculated by performing multiplication of each factor weight with its rating. Finally, the total weighted score should be calculated by adding all the weighted scores. The following is an example if an EFE matrix of BMW Company
External factors

Weight

Rating

Weighted score


Opportunities





Expand brand portfolio

0.14

4

0.56


Elevating prices of fuel

0.12

3

0.36


Growth in Asia

0.07

2

0.14


Changing wants of customers

0.08

3

0.24


Increasing green awareness

0.07

2

0.14


Threats





High competition

0.13

4

0.52


Decreasing fuel prices

0.12

3

0.36


Increasing Euro exchange rates

0.11

2

0.22


Easy entry in the market

0.09

3

0.27


Increasing prices of raw materials.

0.07

2

0.14


Total

1.0


2.95


Strengths and Weaknesses of BMW
Strengths are the internal characteristics and resources of a company that support a fruitful result. Weaknesses on the other hand are the internal characteristics and resources of a company that work against a fruitful result. The strengths of BMW include a strong brand image. Forbes listed the company as the most honorable company in the globe. The strong brand image makes it have a competitive advantage over its competitors and therefore becomes possible for the company to enjoy high profits due to high sales that are attributed to the strong brand image. The company has managed to build a strong brand image through the marketing strategies it has adopted. Secondly, it has a powerful leadership style, which has been put in practice by Joachim Milberg who is the company’s supervisory board chairperson and Norbert Reithofer who is the board of management chairperson in the company. Through their leadership styles, the company has gained competitive advantage and has sustained a powerful legacy and market presence throughout the world. The company also has a powerful financial position, highly skilled employees who are committed to their work. Moreover, it has the strength of excellent market promotion of its products.
The weaknesses of the BMW Company include intense competition from companies such as Toyota and Volkswagen. The company moreover charges high prices for their products and therefore many potential customers refrain from trading with them as they opt to buy products from those companies that set low prices on their products. The company in addition has a weak brand portfolio where it only serves luxury market portion for the elite group and this can negatively affect the future company growth. Finally, it is vulnerable to future economic issues as a result of the premium pricing strategy it has adopted.
Internal Factor Evaluation Matrix of BMW
The IFE matrix is a tool utilized for examining the strengths and weaknesses of a company. When creating the matrix the internal factors should be identified and categorized into strength and weaknesses. A weight that ranges from 0.00 to 1.0 is appointed to each identified factor and the weight appointed represents the relative significance of each factor. Rating to each factor is later assigned. Finally, the calculation of the weighed score should be carried out by multiplying each factor weight by its rating. The following is an example of an IFE matrix of BMW

Weight

Rating

Weighted score

Strengths




Powerful brand image

0.12

4

0.48

Quality employees

0.10

4

0.4

Powerful management team

0.08

3

0.24

High profitability

0.10

4

0.4

Quality products

0.08

3

0.24

Financial position

0.04

3

0.12

Weaknesses




High prices

0.11

3

0.33

Stiff competition

0.12

4

0.48

Weak brand portfolio

0.06

2

0.12

Few strategic alliances

0.11

3

0.33

High number of Cars recal...