Bmw Operations Management

Strategic Management

The purpose of BMW strategic analysis is to gather and evaluate information
concerning SWOT (strengths, threats, opportunities, weaknesses), and give future strategic alternatives. According to Johnson and Scholes (1998): “The aim is to identi¬fy the extent to which the current strategy of an organisation and its more specif¬ic strengths and weaknesses are relevant to, and capable of dealing with, the changes taking place in the business environment” (Johnson, Scholes, 1998, p.148).
Automotive industry is one of the leading industries in the world. The aim of automotive industry is to maintain the level of service and product quality and develop strategies to improve their product/services. BMW, a European automotive leader, is affected by different factors of environment which have a great influence upon it. This is called the microenvironment (or the competitive environment), because it is within this sphere that BMW competes, both for resource inputs and to sell its product outputs. BMW is owed by Quandts (46% of the group), which turnover was about “UERO 35 bn, with BMW Automotives accountong for about UERO 25bn, achieving over 10 % operating profit” (Lenciani, 2001).   As well as any other company, BMW tries to get and keep a customer proposing higher quality at lower price than its competitors. In general,   BMW Group is a dynamically evolving entity operating within a dynamically changing environment.
An examination of how strategy is formed gives useful insights into the nature of strategy itself. SWOT is normally associated with more rational approaches to strategy formulation, but perhaps its greatest contribution lies in providing the management strategist   a broad framework for analysing the position of a firm at a particular moment in time. It can also be useful in the development of a number of strategic options which attempt to tackle opportunities and threats, build on corporate strengths and avoid weaknesses. An...