Analyzing the Impact of Business Strategy on BMW's Profitability

This research project examines the impact of business strategy on organizational profitability and productivity, using BMW as a case study. The project's abstract outlines the importance of business strategy and its effects on company performance. The study aims to analyze the relationship between business strategy, profitability, and productivity, answering specific research questions through a literature review and research methodology. The literature review explores BMW's past strategies, performance, and competitive advantages in the global market. The research methodology includes primary data collection through questionnaires. Findings indicate a positive correlation between BMW's business strategy and its financial outcomes, with recommendations for future improvements in cost reduction and technological advancements to enhance competitiveness. The project provides a comprehensive overview of BMW's strategies and their impact on the company's success.

RESEARCH PROJECT

ABSTRACT
Business strategy is crucial concept as it states measures through which an organisation is
a planning to compete effectively in the market. Thus, BMW is one of the renowned
organisations which is operating in the automotive segment and known to take assistance of
various strategies to fulfil their formed objectives. Therefore, overall project is going to highlight
need of impressive strategy and its impact on company productivity as well as profitability of the
company. The structure of research will be helpful in fulfilling requirement of every aspect of
research and avail positive outcomes. The aim and objective of this study is identified as; to
analyse the impact of business strategy on organisational profitability and productivity in the
present era. The paper seeks to answer the question in literature review section based on critics.
The literature review section is state which identify effectiveness of business strategies that plays
a crucial role in developing organisational performance and productivity to recognize future
growth. The section of research methodology will represent types of research, design
philosophies, sampling etc. that used by organisation to gather accurate data and information. To
analyse user's opinion, researcher adopt primary method of research (Data sampling) in which
questionnaire assist to represent view point of 40 respondent toward organisational strategy. As a
result, and respond of candidates, findings defines that the effectiveness of business strategy of
BMW that helping them manage positive relation between profitability and productivity. Lastly,
it has been recommended that BMW requires to walk with time and should make necessary
changes in its working and technological up-gradation in order to enhance sales and create a
competitive image in market. As a major area of improvement are the reduction in the cost of
their luxury cars and services by improving manufacturing costs to maximise future profitability.

Table of Contents
ABSTRACT ....................................................................................................................................2
TITLE .............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview of the Research ...............................................................................................1
1.2 Background of the Research ............................................................................................1
1.3 Research Significance......................................................................................................2
1.4 Research Aim...................................................................................................................2
Research Objectives...............................................................................................................2
Research questions.................................................................................................................2
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
Introduction............................................................................................................................3
2.1 Elaborate the strategy which is used by BMW in past few years....................................3
2.2 The performance of an organization for identifying requirement of growth...................5
2.3 The relationship between profitability and productivity.................................................6
2.4 Some major paths for gaining competitive advantage at global marketplace.................7
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................8
3.1 Introduction .....................................................................................................................8
3.2 Type of Investigation........................................................................................................8
3.3 Research Design ..............................................................................................................8
3.4 Research Philosophy........................................................................................................8
3.5 Research Approach ..........................................................................................................9
3.6 Data sampling ..................................................................................................................9
CHAPTER 4: DATA ANALYSIS .................................................................................................9
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................................18
5.1 Conclusion .....................................................................................................................18
5.2 Recommendation ...........................................................................................................18
REFERENCES..............................................................................................................................20
APPENDIX ...................................................................................................................................22

TITLE
To identify the impact of business strategy on organisational profitability and
productivity in the present era – A case study on BMW
CHAPTER 1: INTRODUCTION
1.1 Overview of the Research
In the modern competitive era, the basic purpose of each business organisation is to
attaining high growth and profit. This create value in sustaining a high and well reputed position
at market area. Organisations are very much concern on creating strategies as to gaining high
growth in market environment (Aghdaie, Sanayei and Etebari, 2012). The competition at market
place is high so small as well as large business firms are focused on adopting most innovative
technological tool and methods as these are effective in improving organisational productivity
and performance. In today's high-tech competitive world, Information Technology change
business aspects. Technology has supreme power to influence either in positive or negative
manner in today's business environment but without pre-planned and scientific business strategy,
no organisation will get success art great extent specially in this competitive business and high-
tech environment. BMW is a popular German multinational company, who deals in auto-mobile
and motorcycles. The company also produce aircraft engines until 1945. the basic objective of
firm is to be satisfying the needs and wants of customers through producing more innovative and
attractive products and services.
1.2 Background of the Research
BMW is a well developed company and trusted by most of the customers due to its high
product quality. Thus, main objective the project is to highlight the significance of effective
strategy at workplace with the help of various facts or figures. Foremost background of the
research is to throw some light on necessity of business strategy in organizational success and
development. The company was established in the year of 1916 and its headquartered is in
Munich, Bavaria. The company produce its motor vehicles in various areas such as Germany,
China, Brazil, India, South Africa and United State. In the year of 2015 the company was
declared as the twelfth largest producer of Auto-mobile products. Due to high competition at
market place organisations are concern on adopting various strategies that are effective in
enhancing organisational performance and productivity. An effective business strategy is
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valuable for high performance of firm as implementation of good strategies helps in developing
firm’s growth and success.
1.3 Research Significance
The research into consideration is based on business strategy and how technology
commands over it in totality. Business strategies plays vast role at work place as to maintaining
all business operations in well planned and effective manner. The basic purpose of conducting
the research is to enhance the skills and knowledge of learner. This also helps in identifying the
importance of technologies at work place and its impact on developing organisational
performance and productivity (Azevedo and et. al., 2013). The major focused area of each small
as well as; are business organisation is to sustaining high competitive edge at market place in
order to providing high competition to their significant buyers.
1.4 Research Aim
“To identify the impact of business strategy on organisational profitability and
productivity in the present era – A case study on BMW”
“Main motive of this project is to highlight the need of designing organizational strategy
by showing its influence on company profit and productivity. Along with this, associated factors
are also going to outlined for understanding its benefits to the BMW”
Research Objectives
This also considered as another essential part of research project as it is interlined with
research aim. This is a summarized form of analysing what is to be achieved in the study. These
are some statements which are prepared as per the variables of research aim. Some essential
objective of research is described as below:
 To analyse the strategy which is used by BMW in past few years.
 To determine the performance of an organization for identifying need of growth.
 To assess the relationship between profitability and productivity.
 To discuss the various approaches through which business can achieved competitive
advantage at global market
Research questions
 What are the strategy which was adopted by BMW in past few years?
 Analyse the performance of BMW for understanding need of growth?
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 What is the relationship between profitability and productivity?
 What are the approaches used by company for gaining competitive advantage at global
pace?
CHAPTER 2: LITERATURE REVIEW
Introduction
This is the most effective part of research as it refers as a theoretical frame work of any
study. It helps in conducting an in-depth research through analysing the view point of various
authors and writers (Eckerson, 2010). This section of research is based on research questions that
are interlined with research aim. Past research projects are also effective in completion of this
section of research as these are appropriate in providing relevant information for conducting a
particular study. This part helps to conducting the investigation in well planned, systematic and
critical manner.
2.1 Elaborate the strategy which is used by BMW in past few years
As per the view expressed by Elbashir, Collier and Sutton, 2011, business strategies plays
crucial role in developing organisational performance and productivity at market area. The
fundamental duty of each small as well as large business enterprises is to adopt most suitable
strategy which helps in enhancing growth of firm. Strategies helps in effectively managing all
business resources and its operations in well planned and systematic manner.
According to Doron Lewin 2015, BMW is the only auto-mobile organisation that always
implement specific strategy in their business to represent incomparable cars in market. BMW
majorly implement unique selling strategy in their business from the past few years in which
they are majorly focusing on providing luxuries features in their cars on high prices. Firm
majorly concentrating on astonishing variety of body style, engine, size and its unique design to
defeating competitive luxury brands in market.
As per the view point of Willish 2015, BMW gaining customer's loyalty from past few
years and its rate has grown to 605 from 52% rapidly. The organisation always avoids cost focus
strategy because they only wants to deal in luxuries brand by providing expensive features,
facility and design in their cars. In this process advancement of technology play a most important
role that helps to make desirable modification and alteration in existing as well as new cars to
represent unique feature in front of customers.
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In BMW, higher authority and management play vast role in designing effective strategy
for firm as to implementing its all operations in efficient direction so that firm can attaining
higher productivity and profitability. As a large business organisation, BMW is focused on
creating further most effective business strategy which helps in developing the brand value of
firm at market place. These business ideas assist to create value in high profitability of firm. The
fundamental objective of BMW is to satisfy the needs and wants of customers through offering
them variety of cars and its services as per their requirements. In order to enhance their strategy
properly, BMW always carried out innovative ideas by considering advance technology in their
organisational procedure. These kind of planning helps in improving productivity of firm by
enchaining skills and knowledge of employees. Company is concern on producing more
innovative and attractive design as to stabilizing sustainability among customers. In respect to
fulfilling the basic desires of different local markets, BMW and its higher authority decided to
adopt a unified or centralized brand strategy which is to be used by various countries. These
kinds of strategy are implemented by BMW from past few years in their business that helps to
maximising profitability on desired level.
BMW is also focused on adopting new and smart technologies as to improving their
production process to creating more awareness among public about the offered cars and services
(Muchiri and et. al., 2011). These ideas and approaches take a specific place in firm from past
few years as they always implement advancement that helps in representing innovative cars and
accessories as per the changing needs and wants of customers. In a competitive market every
organisation is concern about enhancing sales as well as profitability and for this they provide
their services at cheapest cost to customers, but BMW never concern about such thinks. Main
reason behind this is, management of firm majorly focusing on Unique selling strategy in which
their proper focus is on Differentiation method that helps to create their unique image in target
market. BMW is operating in wide area of market and concern on producing innovative products
with more advance features as to gaining attention of people towards their firm and offered
products and services.
2.2 The performance of an organization for identifying requirement of growth
According to Judy Capko, 2003, for a business organisation, it is required to analyse their
improvement in their performance from the past few years because it is always provide an
opportunity to create a unique image in market. For this, management of firm requires to monitor
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action plan of their employees while they are facing any challenge. This strategy assists to make
desirable modification to attain target objectives easily. All these ideas are uses to represent
business strategy that helps to identifying requirement of growth. BMW is a large-scale auto-
mobile organisation that implement unique strategy in their business in order to create their own
image in target market.
As per the views expressed by John dudovskiy, 2016, BMW always implement a unique
selling strategy is of product differentiation with focus lies on representing unique design and
services in market place. Electro mobility is the new focus of the company. The company tries to
achieve high level of profitability by offering long term value with short term perspective. BMW
provide their unique products which are known as status symbol among society as there is an
increasing per capita income in countries all over the world. BMW can fuel its growth by tapping
higher section of society and by bringing new products with latest possible technologies for
them. All these business ideas help to enhance performance of organisation that helps to denote
their future requirement for growth. The various competitive advantage that is fuelling the
growth of BMW are as follows :
 Representation of status and achievement – The BMW symbol is regarded as status
symbol that assist to create a luxuries image of an individual in a society. Such kind of
Brand Reputation is achieved by BMW in past few decades (Loureiro, Sardinha and
Reijnders, 2012).
 Unique designs and features - Effective Design and features with every model of the
brand is enhancing company's image among consumers. The loyalty and trust of
consumers on BMW cars is very high because of effective design and features that the
company offers to people through their products.
 After sales service – The company is renowned among its customers to provide better
quality after sales services to its customer. The company is making huge investments in
its R&D to bring more products in the market to increase profitability and efficiency.
 Technological up gradation – BMW belongs to Germany, it is a country which is well
known for its advancement when it comes to technology up-gradation and adaptation.
BMW carries this competitive edge over its competitors in global market like Renault
Toyota, Honda etc.
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Based on above analysis, it has been identified that BMW always focusing on
improvement of their existing image by introducing unique cars in market. All these strategies
assist to enhancing performance of firm to clearly identifying their requirement of growth. In the
year of 2016 the growth of firm is increased as compared to the performance of past few years.
To maintaining and enhance sales and revenue of firm, BMW implement unique service ideas to
represent beneficial products and services to their significant customers.
2.3 The relationship between profitability and productivity
According to Jenny Roper, 2015, In a business organisation, management requires to
enhance productivity of employees who assist to maximise profitability of a business firm easily.
These both things are interrelated to each other which provide its effective contribution in
business success as well growth.
As per the view point of Gronum, Verreynne and Kastelle, 2012 BMW is leading car
manufacturing company which able to make a sustainable brand image in marketplace. In recent
decade sales of cars are decrease, in order to increase performance of company management of
BMW apply a specific strategy that is called centralised strategies in order to increase sale
performance of cars. BMW uses centralised distribution to increase the sales of cars in
marketplace. It reveals about receiving product from supplier and it was delivered to individual
branches of multiple showrooms of BMW. Deliveries from supplier are transported to a central
location in full quantity. The logistic management of BMW put their effort in order to deliver the
cars in stipulated time frame. The suppliers and various agent set margin of profit while selling
of cars. BMW do not provide personal stock to their agent. So that company deliver the cars to
their loyal customer by the medium of agent (Willcocks, 2013).
Once the delivery is accomplished the commissioned paid by company to agent.
Company sets margin of profit so that it can be used to develop business firms. Centralise
strategies used by BMW creates lots of employment. It is concluded as core marketing strategies
to increase the sales of cars. Company offers different offers to increase sales of cars. Centralised
marketing strategies allows a company to accumulate the financial and human resources. BMW
implemented advance technology to attract customer. Implementation of latest technology
increase sales of cars. BMW established a mechanism with government which impact business
unit’s ability to rapidly deploy a technology to capitalize employee on an opportunity. Instead of
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having the autonomy to choose and deploy technology the business unit of BMW implement
those changes which are ordered by the customers. These leads satisfy desire of customer.
As per the above analysis it has been identified that productivity of firm and profitability
are interrelated to each other. For this management of firm require to pay their maximum
attention toward improve skills and working approaches of employees to serving better quality
services to significant customers. Through this thy can easily build long term relation with them
that provide higher profitability to them easily.
2.4 Some major paths for gaining competitive advantage at global marketplace
According to Matthew Zajechowski, 2018 a company needs a specific brand story in
order to maximise level of profit of company. The marketing manager of BMW can enhance the
sales of cars. There are three strategy which aids to enhance profitability of cars.
 Make time for marketing research and planning: BMW needs to implement different
methods like feedback, questioning, and conducting marketing research to know the
choice of customer. Understanding desire of customer is the key factor for company to
increase sales of cars. Apply views of customer in manufacturing leads to compete rivals
present in marketplace. This is core process of strategic planning to make sustainable
brand in marketplace. The feedbacks gained by customer leads to make long term goals
for company. It aids in manufacturing new range of cars in market at low level of price.
 Know your customer better than any competitor: According to writer instead of
spending time in knowing competitor it is better to know the desire of customer. It is the
continuous processes that BMW will have to start living and breathing daily as part of its
internal culture. Creating quality marketing research help to understand needs of
customers (Zeng, Xie and Tam, 2010).
 Avoid reactiveness at all costs: BMW do not react on small modification made by rival
companies present in marketplace. Company should put their effort to manufacture new
and innovative cars which comprises of latest technology in affordable price in respect of
rival companies.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is all about accumulating necessary data and information with the
help of various methods. Thus, main objective of this section is to outline various appropriate
methods, tools and techniques for acquiring relevant materials. As a result, it helps researcher or
company while making corrective decision by understanding distinct perception. This part of
research is based on various application that all plays essential role in completion of research
project in efficient way (Gunasekaran and Spalanzani, 2012).
3.2 Type of Investigation
This consist to be an essential part of research methodology as it signifies the clear
direction to the researcher for carry out the research in well planned manner. A research can be
qualitative or quantitate in nature. Qualitative research is based on the quality of data which are
gathered by the researcher for reaching at result and outcome. On the other side quantitative
research is based on quantitative means of data. This type of research is depend on accurate facts
and figures. The research into consideration is based on qualitative means as the accumulated
data is related with qualitative means.
3.3 Research Design
This is also an essential part of research methodology as it can also be considered as a
blue print of research. This helps in providing a significant format for implementation of
research activities in well planned and systematic manner (Härri and et. al., 2013, April). This
section of research is categorised among three major parts such as descriptive, exploratory and
experimental research design. In this research project descriptive research design has to be taken
into proper action as the report is based on qualitative means of data. Researcher select
descriptive research design as it helps in conducting the whole research in detailed manner with
the help of case study, naturalistic observation and survey.
3.4 Research Philosophy
It is concerned with nature, source and development of knowledge. Under this record and
analysis of the data are done. There are two types of research philosophy interpretivism and
positivism. In this project interpretivism approach is opted as it gives qualitative report which
aids researcher in taking decisions and analysis of data.
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3.5 Research Approach
There is always an approach to carry out certain task, similarly research approach would
mean carrying out specific research in effective manner. There are two type of research inductive
and deductive (Hennessy and Heanue, 2012). Inductive research is based on qualitative data and
that is the reason inductive research is selected for this research project. Data are collected from
Various sources to make a research project. There are two types of data collection technique
Primary and secondary (Lin, 2013). Both the methods of data are collected being used for
preparation of research report.
3.6 Data sampling
It means the data is collected from a sample of population rather than the whole
population and the sample from which data is collected is seen as the representative of the
population. The size of the sample may change according to size of the research (Jeston and
Nelis, 2014). There are two types of data sampling technique probabilistic and non-probabilistic.
Probabilistic technique has been selected for this research project. In this project sample size of
40 respondents has to be taken and these members are employees of an organization. Major
reason behind selecting employees is that they are aware about the company internally and
externally. Thus, they can answer the questions by considering each or every aspects which helps
an organization while making changes at workplace.
CHAPTER 4: DATA ANALYSIS
This section of research is going to determine graphical representation based on above
questionnaire. It involves interpretation of gathered data by the uses of logical and analytical
determination. Main objective of this section is to represent clear and understandable finding to
collect final results easily.
Theme 1: BMW mainly applied centralized business strategy for performing their
business operations in well planned way.
Q1) The different type of business strategies that are used by BMW for
performing their business operation?
Frequency
 Centralized 35
 Decentralized 5
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