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Business Report and Business Model Canvas for BMW

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Added on  2023/06/16

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This report discusses the Business Model Canvas of BMW, explaining the sections of the canvas, legal structure, intellectual property, and record-keeping legal requirements. It also includes information on the company's customer segments, customer relationships, distribution channels, unique value proposition, key activities, key resources, key partners, cost structure, and revenue stream.

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MANAGING BUSINESS
AND INNOVATION

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Model Canvas...............................................................................................................3
Explaining the sections of the Business Model Canvas...............................................................3
The legal structure........................................................................................................................6
The intellectual property of the company....................................................................................6
Record keeping legal requirements..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1
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INTRODUCTION
Managing the innovation or the innovation management refers to the process of making
changes and to introduce the new strategies in order to develop the business. It involves or affect
the activities, decisions and the procedures at the time of formulating and implementing the
innovation strategy (Tykkyläinen and Ritala, 2021). BMW is one of the biggest multinational
manufacturers of automotive such as luxury vehicles and motorcycles in Germany. This report
shows the Business Model Canvas of BMW and also the structure of the company and its
intellectual property and the accounting book or record keeping requirements of the organization.
MAIN BODY
Business Model Canvas
KEY
PARTNERS
IT companies,
visionaries, other
car companies,
supply chain.
KEY
ACTIVITIES
Accelerating the
pulse of the
times, sales,
marketing and
production,
Develop future
the mobility,
Innovating for a
better driving
experience
KEY
RESOURCES
BMW brand,
Efficient
dynamics
VALUE
PROPOSITION
1,2,3,4,5,6,7
X,M series,
Ultimate driving
experience, reach
destination on
time and feel
relaxed, Full
electric i3, i8,
Remote services,
Active control
with stop and go
CUSTOMER
RELATIONSHIP
Co- pilot driver
assistance, love
the brand of the
car, Personal
mobility assistant
BMW connected,
Always buy your
side at your
service
CHANNELS
Third party
mobility service
provider, dealers,
Online rental
booking
CUSTOMER
SEGMENTS
Urbanities and
conscious people,
sports, life,
Performance- driven,
quality minded
people
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COST STRUCTURE
Production, Sales and Marketing, Research and
development, People Training, Innovation and
exploration
REVENUE STREAM
Service and Maintenance, Rental fees, Car Sales,
Leasing fees
Explaining the sections of the Business Model Canvas
Mainly there are nine sections of the business model canvas, they are as follows:
1. Customer segments – It mainly refers to the process of dividing or distribution the
customers or the buyers of the company. The main aim of the segmentation is to decide
or judge the customers according to the segments. There are five types of customer
segments such as psycho graphic, behavioural, geographic, social media and
demographic segment (Alamdar Youli and et.al., 2020). The BMW mainly targets the
upper class group of people or the customer as only they can be easily afford the models
of BMW and also appreciate the work done by the company. BMW provides the
premium quality, high performance, advanced technology and the exclusive brand
models of auto mobile. The upper class segment of the customers values the brand of
BMW and also appreciate or use the luxury models of vehicles made by the firm.
2. Customer relationship – The relations of BMW with its customer are very good and
strong as the company engage with the large segment of buyers and also maintains the
long- term relationships with them. BMW have the happy and satisfied customer base as
it always tries to provide quality products or the models of the vehicles and also focuses
to provide best services to the consumers. BMW gave emphasis on introducing the new
and advanced technological models that facilitates or assist the customers (Sibalija and
et.al., 2021).
3. Distribution channels – The sales of the goods and the distribution channels of BMW are
mostly offline which means the customers can purchase from the stores and it is approx
80% and the other 20% purchase is through online. The distribution channels of BMW

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are located at different locations across the world. It' distribution channels provides
various offers to the customers such as free services of the cars, discount offers, warranty
cards, etc. This will help in attracting more and more buyers and also contributes in
increase the sales as well as the profit percentage of BMW.
4. Unique value proposition – It is also known as unique selling proposition (USP) and
refers to a statement that explains the distinct selling points of the goods and services of
the firm (Arenas-Castro and et.al., 2019). The BMW offers to its customers a strong and
powerful value proposition that is “ The ultimate driving machine”. This will help the
company to create a loyal and trusted customer or the fan base that values the luxury and
the high performance of the BMW models of cars.
5. Key activities – In a business key activities describes or illustrates the efforts of the
organization in order to run the model work of the enterprise. These activities includes
production of the goods or the products or providing the services to the buyers. The
important key activities of the BMW are to provide sales after services to the customers
and also to produce the premium and the best quality products or the model brands of the
cars. BMW focuses on the innovation of the cars according to the demand of the
consumers and to give them the better driving experience and it also develops mobility
for the future.
6. Key resources – It refers to the different types of resources that are needed by the
organization in order to run the business smoothly and easily. These are the building
blocks that explains the assets off the company that are required or needed to facilitates
the model work of the business (Umar and et.al., 2020). Only with the help of these
resources the company is able to generate the income or the revenues as well as the value
propositions. There are various key resources such as financial, physical, human
resources, intellectual and technological, etc. These resources facilitates the activities and
the functions of the firm. The key resources of BMW includes intangible, tangible
resources and the competences. This will assist the BMW to achieve the competitive
advantage as well as the goals and the objectives of business and also leads the enterprise
towards success.
7. Key partners – It is associated with the persons or the other organizations that are
connected with all the activities and the operations of the company and also have the
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power to directly affect or gave impact on all the functions of the organization. In simple
words the key partners refers to the relationship that a company maintains with the other
business organizations, government or the non- consumer institutions. These refers to the
relations of the firm with its manufacturers, suppliers as well as with the partners of the
business and it is necessary to maintain the healthy and trust worthy relationship with
them in order to remove the barriers of the business. BMW mainly have the seven local
suppliers for the production of the cars (Maddinsyah and et.al., 2020). It includes Valeo
India , ZF Hero Chassis, Force Motors, Tenneco Automotive India, Draexlmaier India,
Mahle Behr, Lear India. BMW group made the collaboration with the Mercedes- Benz
AG to develop the automated driving technology and also to facilitates the customer
segment of the company.
8. Cost structure – It is one of the important components of every enterprise and it means
the collection or the sum of different types of the costs whether it is variable or the fixed
cost that are helpful in making the overall expenses of the business. The organization use
or defines the cost structure in order to set the prices of the goods or the products and also
to recognize or identify the areas where the expenses or the expenditure can be reduced.
The cost structure of the BMW focuses or target the high or the upper class audience or
the buyer and make the strategies or the plans accordingly. BMW mainly or mostly invest
in the exploration and the innovation activities and spends on the marketing,
advertisement and the sales of the products so that they can be able to deliver the best
services to the customers and to maintain the brand value of its cars. BMW also put
efforts to train their employees so that they can handle, fulfil and understand the needs or
the requirements of the customers in order to gain their trust and make them satisfied.
9. Revenue stream – It is that stream from where the company earn or generate the income
from several type of sources such as sales, services and others. There are two types of
revenue that are one- time revenue and recurring revenue (Agusty, 2020). There are many
ways that the organization applies or adopts to earn money and to generate the revenue to
enhance the profits of the business. BMW earn or generate more revenue from the sales
of the cars as compared to the other services provided by them to the customers such as
maintenance and the service of the cars, rental fees, leasing fees of the vehicles, etc. So,
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basically the company generate income or earn money with car sales. This will help the
BMW to increase the profit percentage of the company.
The legal structure
The legal structure of the BMW company is very strong as compared to the other big
organizations as it follows all the rules, regulations and laws of the government as well as the
laws related to the company's policies (Piccirillo and et.al., 2021). The BMW tries and put efforts
in order to fulfil the social and ecological responsibilities and have created the corporate culture
that involves trust and the mutual understanding and appreciation of the employees. The main
aim of the legal structure of BMW is to ensure that the employees, managers as well as the
management bodies must act lawfully and fulfil all the legal responsibilities (BMW GROUP
LEGAL COMPLIANCE CODE, 2016). This will help the company to gain the trust of the
customers towards the brand of BMW and also facilitates BMW in order to get happy and
satisfied employees and consumers.
On the other hand , if the organization violates any rules or the laws it will create many
problems or the hurdles in the path of the BMW's growth and success as it results in fines and
compensation claims that have to be paid by the firm (Diaz-Granados and Sheehy, 2020). It also
affects the brand values or the goodwill of the BMW so it is necessary for the enterprise to
provide premium quality products and services. However, violation of the laws can create risks
or the issues for BMW as it affects the attitude or the behaviour of the stakeholders, customers or
the business partners (Diaz-Granados and Sheehy, 2021). So, it is important that BMW must
give priority to the compliance of the laws for the growth and success of the business.
The intellectual property of the company
The group of the BMW looks for to provides an innovative website that gives full
information about the company. The intellectual property includes or involves trademark, patents
and the copyright of the BMW group and all these are protected (Wang and et.al., 2019).
Following are the three intellectual properties of BMW-
Patents: It is one of the difficult ethical or the legal issue to deal with as it means or refers to the
preservation of the secret and unique aspect of an organizations idea. As per this context a patent
requires full disclosure with the software. So, BMW should patent its information systems in
order to escape the duplication or the repetition of the information. It creates some issues or the

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problems that are related to the legal implications and the BMW should put efforts so that this
will not harm the company (Li and et.al., 2019).
Copyrights: Under this all the files related to the images, text, sound files, graphics, videos,
animation, etc. are protected and the content or the information associated with the copyright
websites cannot be copied, changed or distributed by the other parties for commercial use.
Trademark: It includes the trademark rights of BMW such as model name, marks, emblems and
the logos of the company that cannot be used by the other organizations in order to fulfil the
objectives of their business or for some other use.
In addition to the above discussion if the intellectual property is not protected by the
BMW group it will result in many issues or the risk that harm the company's brand as there is a
possibility of the duplication of the original information or the work of the firm that can be sell
by the other organizations at very low prises (Bannerman, 2020). It is against the laws or the
rules to reproduce or to use the patent, copyright and the trademark without taking the
permission of the creator or the company. It mainly includes compliance risk, brand risk,
business value, availability risk, access risk, etc.
Record keeping legal requirements
Mainly there are three types of accounting documents such as income statement, balance
sheet and the cash flow statement. These documents give the full information of the company
and all are interconnected. It is necessary for the BMW to keep the records of these accounting
documents in order to fulfil the legal requirements of the company. The record keeping
requirements refers to the statements that ensures that which records are to be maintained or
created by the company (Bahl, Lahiri and Mukherjee, 2021). It involves regulations and
legislation, policies and the procedures of the government, internal processes or the rules and
regulations of the business, agreements, etc. There are various types of records that should be
maintained or must be kept up to date by the BMW group. They are as follows-
Accounting records: These type of records are also known as financial records that are related to
the financial transactions and also shows the financial status of the company. It includes
vouchers, deposit slip, cash receipt, balance sheet, sales records, profit and loss statement, etc.
So, it is very necessary for BMW to keep the records of all these things in order to know the
current financial situation of the firm.
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Legal records: It refers to the records that fulfil the legal requirements or the needs of the
enterprise and also help the firm to maintain the legal process or the procedures. It also help the
BMW group to fulfil the legal processes, requirements and the formalities that must be in the
priority list of the company in order to save the company from indulging in the legal procedures
that can be presented at the courts (Bezpalov and et.al., 2019). Legal records involves
government rules and regulations, articles of association, memorandum of association etc.
Personnel records: These records are related to the employees or the workers records of the
BMW group and includes the employees history card, name and address of the workers, salary of
the personnel, record of the absenteeism, history of the paid and casual leaves of the employees,
etc. In simple words it is the overall and full record of the personnel that are working with the
BMW group.
CONCLUSION
From the above discussion in the report it can be concluded that customer
segment and relation played an important role in the growth of the organization. Unique
value proposition, key activities partners and resources were also discussed in the
report. Cost structure of company lead to the better utilization of resources. Revenue
stream of business had an essential role in the profit maximization of the organization.
Various activities and decisions were affected in the process of making changes in the
strategy of BMW. Legal structure of the organisation improved the performance of the
employees by keeping them motivated and engaged with effective rules and
regulations.
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REFERENCES
Books and journals
Bahl, M., Lahiri, S. and Mukherjee, D., 2021. Managing internationalization and innovation
tradeoffs in entrepreneurial firms: Evidence from transition economies. Journal of
World Business. 56(1). p.101150.
Bezpalov, V.V. and et.al., 2019. A model for managing the innovation-driven development of a
regional industrial complex. Entrepreneurship and Sustainability Issues. 6(4). p.1884.
Tykkyläinen, S. and Ritala, P., 2021. Business model innovation in social enterprises: An
activity system perspective. Journal of Business Research. 125. pp.684-697.
Alamdar Youli, F. and et.al., 2020. Designing a Sustainable Business Model by Using Soft
Systems Methodology and Value Triangle Business Model Canvas (Case Study:
Farassan Manufacturing and Industrial Company). Modern Research in Decision
Making. 5(1). pp.95-117.
Sibalija, J. and et.al., 2021. Understanding value in a healthcare setting: An application of the
business model canvas. Methodological Innovations. 14(3). p.20597991211050477.
Arenas-Castro, and et.al., 2019. Business model canvas as an analytical tool for the evaluation of
companies: case study for the audiovisual industry in Bogota, Colombia. South African
journal of industrial engineering. 30(4). pp.118-130.
Umar, A. and et.al., 2020. Improving the social enterprise-based business performance from the
aspect of social business model canvas. International Journal of Entrepreneurship. 24(1).
pp.1-12.
Maddinsyah, A. and et.al., 2020. Desain Formulasi Dan Implementasi Bisnis Strategik Dengan
Pendekatan Business Model Canvas (BMC) Terintegrasi Kerangka Integrated
Performance Management System (IPMS) Pada Koperasi Asperindo. Inovasi. 7(2).
pp.67-76.
Agusty, R.M., 2020. Designing Business Model Canvas Transforms Into Balanced Scorecard in
the XYZ University in Indonesia. Dinasti International Journal of Management
Science. 1(6). pp.830-843.
Piccirillo, D. and et.al., 2021. The role of police contact and neighborhood experiences on legal
socialization: Longitudinal evidence from adolescents in Brazil. Journal of Social
Issues. 77(2). pp.437-461.
Diaz-Granados, J. and Sheehy, B., 2020. The Sharing Economy & the Platform Operator-User-
Provider" PUP Model": Analytical Legal Frameworks. Fordham Intell. Prop. Media &
Ent. LJ. 31. p.997.
Diaz-Granados, J.J. and Sheehy, B., 2021. The Sharing Economy & The Platform Operator‐
User‐Provider “PUP Model”: Analytical Legal Frameworks. Fordham Intellectual
Property, Media and Entertainment Law Journal. 31(4). p.997.
Wang, J. and et.al., 2019. A summary of research on blockchain in the field of intellectual
property. Procedia computer science. 147. pp.191-197.
Li, Z. and et.al., 2019, December. How to prove your model belongs to you: A blind-watermark
based framework to protect intellectual property of DNN. In Proceedings of the 35th
Annual Computer Security Applications Conference (pp. 126-137).
Bannerman, S., 2020. The World Intellectual Property Organization and the sustainable
development agenda. Futures. 122. p.102586.
Online references
1

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BMW GROUP LEGAL COMPLIANCE CODE, 2016. [Online]. Available through
<https://www.bmwgroup.com/content/dam/grpw/websites/bmwgroup_com/company/
downloads/en/2016/BMW_Group_LEGALCOMPLIANCECODE_EN.pdf>
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