Bayerische Motoren Werke AG Case study of group 4 Bayerische Motoren Werke AG Victoria Tikhonova Anna Kichigina Anastasia Loseva

History of BMW company 1916 – Founding of Byerische Flugzeug-Werke. 1917 – Rapp-Motoren Werke was renamed Bayerische Motoren Werke GmbH. 1918- BMW GmbH becomes BMW AG. After World War I – aircraft production 1923 - motorcycle production 1928 – automobile production since 1959 - The dominating shareholder Quandt family 1994 – purchase of British Rover Group (Rover, Land Rover, MINI and MG brands) 2001 – launch of new MINI

Milestones of success - Management structure - Most innovative company - The technological lead - Cooperation with science - Happy Workers, Better Cars - Ecology oriented

BMW innovations Management techniques Lighting-fast changes Mobile-phone messages Ideas first

Products and services Products: BMW brand MINI brand Rolls-Royce brand Motorcycles Financial Services: financing and leasing, asset management, dealer financing and company car pools

Competitors Company Goods Services BMW Daimler AG Premium class cars (MINI) Luxury class automobiles (BMW, Rolls-Royce) Motorcycles Financing and leasing, asset management, dealer financing and company car pools Daimler AG Luxury cars (Mercedes-Benz Cars), Trucks (Daimler Trucks), Vans (Mercedes-Benz Vans), Buses (Daimler Buses) Daimler Financial Services: vehicle financing, leasing, insurance and fleet management. Toyota Motor Corporation Luxury cars (Lexus, Scion) Premium cars (Camry, Corolla, Sienna) Pickups Minivans (Runner, Land Cruiser, RAV) Truck (V-8 Tundra) Consumer financial services: auto loans and leases and a full lineup of factory-backed insurance services and products Volkswagen Group Low-consumption small, family cars (Volkswagen, SEAT, Skoda); Premum cars (Audi, Volkswagen); Luxury class automobiles (Bentley, Bugatti, Lamborghini) Trucks (Scania, Man) Consumer financing services: vehicle financing, direct bank business, insurance products, leasing, fleet management

Current situation In October 2008 – sales fell on 8,3% (decrease od demand on developed markets) Third-quarter Group revenues decreased by 8.6 % to euro 12,588 million The third-quarter profit before financial result fell by 60.2 % to euro 387 million

Future focus on earnings sustain strong market position maintain high level of customer satisfaction ensure stability of dealer organization remain committed to its "production follows the market" philosophy proving to be an appropriate and forward-looking entrepreneurial decision continue long-term investments speeding up cost cutting and efficiency improvement measures

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