(DOC) Strategic Management : Assignment

STRATEGIC
MANAGEMENT
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3 ...........................................................................................................................................7
TASK 4............................................................................................................................................8
TASK 5............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Strategic Management is the process of identification and description of the
organization's strategies so that company can achieve its goals, improve its performance and
sustain in the competitive environment. It is a bundle of various steps viz. Planning, setting
objectives, analysis and monitoring the results attained by it. The manager of the company is
responsible for the successful implementation of various plans and strategies to increase the
customer base. It is crucial to long-term success of a business (Doz, 2017). It involves planning
for projected as well as unfeasible contingencies. The chosen company in this project report is an
auto-mobile company named Bayerische Motoren Werke (BMW). This report covers, the past
strategies followed by it, detail strategic and competitive advantage analysis, prospective
situation in the existing market, degree of alignment in mission and vision statement, strategic
capabilities, potential strategies that could be implemented and recommendation on the basis of
evaluation.
Overview of the company
BMW is one of the top car manufacturers in the world. It was founded in 1916 and has its
headquarters at Munich, Germany. It is a multinational company engaged in production of
luxury auto-mobiles and motorcycles. It started as an aircraft manufacturing company but the
business ended in the year 1945 owning to Versailles Armistice Treaty (Annual Report of BMW,
2017).
TASK 1
BMW Group is the leading premium car manufacturing company which have always
included advanced and innovative technologies, digitalisation and sustainability in its strategies.
The strategic is directed towards expansion of the existing technological competence, customer
satisfaction and to sell or provide services in a manner to become the leader in this industry for
long-term. It saw enough potential in the Rover Group which pushed it to enter the mass car
market in the UK. This strategy was supported by UK government because of the prospective
investment opportunities and exploring new export markets. The formulation of any plans and
strategies is for delivering high quality, reliability and high-level customer service support. All
these were based on the services provided to the customer which resulted in high growth of the
company in the market. To rise above these hurdles, BMW improved its existing customer

service for which, it formed a customer constitution at all the exclusive BMW dealership outlets.
The charter was prepared with an intention to enhance competitiveness, realign its operations and
make all its dealers to be customer-centric. The sales of BMW UK reached to 251,577 in the
year 2016, which recorded to be the best ever sales it has made so far. The number consisted of
both BMW and MINI. The percentage was increased to 8.9% as compared 2015. Further, it
conducted R&D to analyse the current position and business environment (Coporate Strategies
of BMW, 2018). However, 2017 was a challenging year for it due to which it felt a need to focus
on marketing strategy. It came with slogans like “The Ultimate Driving Machine” and “Sheer
Driving Pleasure” to make people realise the comfort and high quality with updated features in
the car. In the last 5 years, it has implemented various marketing strategies to mark a strong
brand image and position in the international market by offering variety of premium products for
increasing its sales. It has appointed Rob East as Corporate Sales General Manager to overlook
the BMW and MINI sales in UK (Frynas and Mellahi, 2015). BMW has become more
committed towards the ecology and society by creating value chain, comprehensive product
responsibility and to conserve resources as an vital part of its strategy. These were the strategic
direction that it has developed in the last 5 years and will continue to follow and implement in
the future to set an exemplary mark in the industry of luxurious cars.
TASK 2
The company operates in auto-mobile industry as well as provide premium financial and
mobility services. Strategic analysis is the process of researching the business environment in
which an entity operates. It is important for making decisions related to strategies which the
company desires to implement for smooth working of the organization. For understanding the
business environment and to identify the key factors of change, BMW conducted PESTLE and
SWOT analysis (Bailey and De Ruyter, 2012).
PESTEL
 Political factors- The political factors are the laws and regulations including the
restrictions applicable on the automotive industry at macro level. These factors impact
the willingness of a customer to pay for BMW cars and also the other matters. Since it
operates in global market through its 17 production unites in China, UK, India etc., BMW
group has to co-ordinate and comply with various regulations in each of the countries.