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

4. 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
motorcycle production
1928 – automobile production
since The dominating shareholder Quandt family
1994 – purchase of British Rover Group (Rover, Land Rover, MINI and MG brands)
2001 – launch of new MINI

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

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

7. 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

8. 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

9. 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

10. 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

11. Thank you for attention!
ANY ?