Corporate Entrepreneurship and Innovation Management Report 2022

Running Head: Corporate Entrepreneurship and Innovation Management
Corporate Entrepreneurship and Innovation Management
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The report is divided into two parts which comprise of analyzing eight different areas
of diagnostics framework. The chosen company for this paper is BMW Group of Companies.
There are eight separate parts of the framework and each of the framework deals with an
areas of the managerial functioning. The second part of the assignment deals with the
recommendation section which analyses to cater any three areas of the framework and
provide a valid recommendation for the chosen company.

2ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
Table of Contents
Introduction....................................................................................................................2
Overview of innovative performance over the past 5 years.......................................2
Existing capabilities...................................................................................................3
Organisation structured..............................................................................................3
Recruited and reward.................................................................................................4
Organizational processes............................................................................................5
Innovation challenges.................................................................................................5
External stakeholders.................................................................................................6
Uncertainty and failure...............................................................................................6
Exploratory and exploitative learning related to innovation performance.................7
Recommendation........................................................................................................7
Reference........................................................................................................................7

3ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
Introduction
The corporate entrepreneurship is required for any new business development, pricing
strategy, product designing or developing service inside the existing organisation in order to
create a value and generate greater revenue with the implementation of entrepreneurial action
and activities (Vizitiu et al, 2018). The aim of the report is to provide an analysis of the eight
diagnostic frameworks of entrepreneurial practice of the chosen company. The eight
frameworks is based on the existing capabilities of the company on the basis of innovation.
The framework further assists in analyzing the organizational processes, external
stakeholders of the firm, the recruitment and reward policy of the employee and the various
challenges faced by the company while inculcating innovation in their managerial activities.
The frameworks further consist of the exploratory and exploitative learning related to
innovation performance of the chosen company (Hoque, Gwadabe and Rahman 2017). Lastly
the second part of the report comprise of the recommendation section which will state the
innovation strategy on two to three diagnosis areas and provide examples from the company
and its competitors (Calleja 2017).
Name of the Company- BMW (Bavarian Motor Works)
Overview of innovative performance over the past 5 years
BMW is a German multinational corporation which produces luxury cars and
vehicles. The company was founded in the year 1916 by Camillo Castiglioni with its
headquarter in Munich, Germany (Shiu, Bonacina and Binninger 2017). The automobile has
marked it production under the market of various brands and some of them are Mini and
Rolls Royce and the motorcycle manufactured under the brand BMW Motorrad. The
company is known as the largest producer of motor vehicle with some 2,279,503 vehicles
produced. Over the past five years the company has formulated the innovation strategy as one
of the main achievement factors for the company (Kazadi Lievens and Mahr 2016). In the
ground of machinery and mobility BMW is talented to realize full potential and shows how
they can contribute towards progress and mobility in various areas. In the recent year BMW
has introduced the BMW Connect where the group of Companies is focused on individual
needs and caters to personal world of intelligent digital service where the users receives
proactive notifications (Pochhammer 2016). On the other hand the company’s engineers are

4ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
working on enhancing the mobility for tomorrow. It is also catering to introduce innovative
techniques for automated driving in new models.
Existing capabilities
BMW uses the Disruptive Innovation Theory which facilitates the company to create
new market value and market network and eventually disrupts the existing market and value
while it allows the company to establish the market, its product and finances (Frohman 2015).
In case with BWM it had inculcated the method of disruptive innovation theory and allows its
product to perform in lower scale when it is released and over time improve and bring in
innovative methods and add value in ways which will allow the company to overcome the
existing incumbent products (Dijk, Wells and Kemp 2016). This theory has catered the
company with uplifting the areas like sustainability technology, looking after the
environmental concern and considering the feedback of the employee and customers towards
the production and manufacturing areas (Amundsen 2017).
However BMW Group has recently introduced the Open Manufacturing Platform
were it is catering the technology framework and open community which can split the smart
factory solution diagonally the automobile and production sectors as it signifies to accelerate
future industrial development (Urbinat et al, 2018). The BMW Open Manufacturing Platform
allows the engineering manufacturers to work all together to break down the data and
overcome the challenges of propriety system and complex challenges which eventually slow
down its production (Kortmann and Piller 2016). By integrating the data and proven solutions
the manufacturers can unlock the manufacturing solutions more quickly and can be securely
benefit the contribution of other communities with their won IP and data.
Organisation structured
Organizational structure is an important formation of the company and this is the
process in which the firm accomplishes the goals and makes certain decisions to absolute the
task in order to achieve the company’s objective (Helmold and Terry 2017). At BMW the
organizational structure is highly complex and is reflecting a massive size of the industry and
its balance of its operation. The AG Supervisory Board sites the summit level of the
management structure and there are twenty members which organizes the four different

5ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
committees. Hence there are five meetings which the AG Supervisory Board conducted in
2015 and the aim of the meeting is to address the issues of a strategic nature (Kelly 2019).
The BMW Group’s managerial structure comprise of integrated apparatus of project based
arrangement. There team of engineers and employee pays special emphasis and focus on the
research and developmental aspects when it comes to launching a new car or any vehicle
series. According to the BMW Group Report the management has initiated innovation in their
functioning by constituting a comprehensive analysis of the business strategy and the report
further analyzes the comprehensive approach of BMW business (Kern 2015). It illustrates the
application based on the major areas of the strategic framework which caters to SWOT
analysis, Porter’s Five Force, Value chain and PESTLE.
Recruited and reward
The purpose of recruitment of talents and rewarding them within performance
management caters the purpose of congratulating the employee in order to motivate them,
reduce the turnover costing and retain employee level (Ratter 2018). BMW Group facilitates
its employee or entrepreneurs with an opportunity to work in a diverse area and come
together as a network of people of interdisciplinary teams who are committed to shape the
mobility of future. The opportunity is open to the software developers, mechatronics or
engineers they only have to follow one common element which is Passion. The company is
also looking forward to work with the course graduates of other fields who hold the ability to
shape the future of the automobile industry (Goffee and Scase 2015). The workers of BMW
are the applicants who are expected to offer the company with their innovative ideas and
work in an environment where the automobile history is written every day.
After the marketing and sales performance is recorded the company offers associate
discount plan where the employee gets an opportunity to purchase a BMW or MINI vehicle
of the employee choice at a special deducted rate or as a benefit package (Hanson, Melnyk
and Calantone 2017). However there is the facility of Pension Plan where the company offers
a range of choice to plan the future and denies the policy offered in Defined Contribution
Pension Scheme.
Organizational processes
The BMW Group is an integral part of the automobile industry’s innovation and
manufacturing process (Terrien et al, 2016). The aim of the proposed process flow of the

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BMW Group which is the Business Modeling Workflow as it assists the employee to
construct the business model activities (Kezadri et al, 2015). The company follows the
process of flow for business modeling actions development. The essential elements of the
company activities or process are as follows:
 Consideration for the definition of particular team for the achievement of the task.
 Presenting the process objectives (Hardoon and Shmueli 2015).
 The template guides the employee to relate with the mission and vision of the
business modeling activities guided by BMW.
 A proposition of artifacts is used to build in the same process (Taylor, M., 2018).
 Lastly it guides the business modeling in construction.
It is possible to build the systematic approach to promote the business modeling activities
(Dong and Koo 2018). The company based its definition with an intention of what, when and
how o accomplish the activities and promote the communication and understand between the
software developer and the manager of the business (Ouyang et al, 2015). However the
modeling activities of the business is related to knowledge acquisition and gathering
informing in order to map the information.
Innovation challenges
”Today’s manufacturing companies are faced with intensifying competition and a
turbulent economic environment" however BMW Group facilitates the creative innovation
and interaction between the different departments sites which is a key success factors.
Therefore the innovation in BMW X1 Series and BMW X2 series has a particular row of cars
but however the innovation was not appreciated by the public (Monden 2015). Lisa-Kristina
Wimbauer from the Department Product Management Compact Class of the BMW Group
had taken up the initiative to learn about the innovative challenges. It is important to know
the purpose of the challenges and find out new ways which will assist in overcoming these
challenges (Mace 2016). Hence with good aim and motive BMW has introduced first electric
40-ton truck. The company is developing the 40-ton truck in various cities as the innovation
transition licensed for the use of public over short distance. It had catered to keep in mind the
social and environmental constraints in mind and introduced these models where the truck is
quiet, generates virtually and CO2- neutral and does not pollute the environment (Syraya
2018).

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External stakeholders
The BMW vision is to “To be the most successful premium manufacturer in the
industry.” The BMW principles of quality and customer first mean to cater the needs of the
customer with safety, quality performance and also looking after the environmental
constraints features in the vehicles (Aris et al, 2015). The company seeks to their have
possession of goal and vision and in turn the company depends o their employee. The
mapping of innovation with the external stakeholders uses authority and the interest mix
which assist to identify the expectation of the shareholders and also affects the company’s
final decision. The mission and vision of BMW is customer based and the stakeholders
emphasizes on the consumer’s interest in automobile development (Rosenthal 2018). The
stakeholders think it is important to look after the incorporation of technology with some high
class automobile to create a suitable and enjoyable in driving experience (Mburu 2019). They
cater to attempt and portray themselves as a lifestyle icon by uniqueness and upgraded
technology in order to satisfy the customers. The key shareholders are the investor of the
company and the sources of it are working capital.
Uncertainty and failure
BMW uses the disruptive innovation model which caters to implementation of new
ideas instead of old ones. This model of innovation however facilities the manufactures to
seek and produce the cars which is the quickest and most efficient way. The challenges or
failure faced by the company was in China Market where there were potential opportunity
and risk factors (Hubmann et al, 2018). Therefore over a decade it has been China which is
winning in the automobile industry. This had catered as a challenge for the company to
increase its sales growth and replace by a combination of single digit growth and increase the
competition. The operation manager of the BMW Group has warned to take up the structure
and planning the approach towards rectifying the supply chain risk (Bergmiller 2015).
However the German car maker was unable to complete the production of the new luxury
brand in Munich and Leipzig because there was under supply of small critical components
which was used to make the electrical assisted steering (Cheqing and Aoying 2016). It had
designed to establish the supply chain which is preferred to establish the key components
such as engines and steering system. Therefore the BMW is one of the series of vehicle
which has manufactured and has also affected the supply chain disruptions.

8ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
Exploratory and exploitative learning related to innovation performance
One of the key components of BMW Group is its competitive advantage in the
knowledge of sharing the network between the suppliers and BMW (Hubmann et al, 2018).
The company gains and explores its knowledge to manufacture the successful vehicles for the
clientele and overtime built a strong association with its employee as well as connects with its
customers. Along with the competitive market the company has shared its tactics o the
production system by facilitating its employee with the opportunities of facility of purchasing
cars at lower rate and also applying for the pension benefits (Yodo and Wang 2016). The
innovative attribute caters the employee to not only perform their job built also offers them
with a ground where they can explore various ideas and experiment with them. On the other
hand it is a two way process for the business as well as for the employees as they are
gratitude with reward system and are paid above average. In addition to that the company
also offers with special benefits for health and accidental insurance and personal retirement
models and balanced work and personal life (Mdlongwa et al, 2017).
Recommendation
The recommendation section of BMW caters in three areas and they are
organizational structure, innovation challenges and lastly the reward and recruitment area of
BMW Group. The yarn of the automobile industry is the success story of each employee
working in the various department and together they formal network of shaping the mobility
of the future. Along with the rapid development there are certain areas which need to be
reconstructed or reformulated in order to function properly and fulfill the needs of the
customer. It is essential for the entrepreneurs to shape the future of the automobile industry
and look out to solve the challenges.
Organizational Structure
As a famous brand, BMW is catering the audience with some cars which are of high
mobility and has incorporated advanced technology. The business takes certain decision and
are committed to them personally this however allows the employee to work freely. In order
to maintain good relationship among the employee and within the employee from all levels it
is vital for the organisation o maintain an open door policy where the employees will be

9ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
allowed no matter from which level they belong can come up to the authority and grant its
petition or grievances. Hence it can be recommended that the company should provide with
training facility for the workers, engineers and other employee from different field so that
they can come together and communicate and it is also an integral part of the process. The
training session can delivered every fourth month where the employees can be taught
innovative way of delegating their work and obtain knowledge about the competitors and
other rival forms in the market. It should be the aim of the workers to make each day better
and brighter and present the company with various options of catering innovation. As the
organisation structure of BMW keeps it functioning complex it should structure its document
and maintain confidentiality and this will work best with each and every employee from top
to the lowest workers on the chain of command. Hence the company can also give out
multiple responsibilities to different departments or to the functional head to save and
maximize the utility of resources. The company can offer the maintenance of combine
bookkeeping and human resource management, sales and marketing administration and
information technology. Lastly in this framework it can be recommended that the individual
team leaders must create the business function and the activities and further ensure to staff it
accordingly.
Innovation Challenges
In order to bring in innovation there will be situation and circumstances where there
will be emergence of factors that will hamper the production of vehicles. Hence in order to
over the innovation challenge it can be recommended for BMW that the company can
introduce the facility of V2V communication. The V2V communication is a vehicle to
vehicle communication technology for cars. The US National Highway Safety
Administration has announced that it will take steps to enable V2V communication
technology for light car. The company should allow the vehicle to converse to each other and
in the end avoid many crashes altogether with maintenance of security data such as speed and
data spot ten times per second to improve safety. However it can also be recommended that
the company can develop pre-collision assist in detecting the technology. It will help the
driver to analyze the blind spot and the technology will assist to alert the driven when he or
she is not paying concentration on the road. In cases where the drives fall off to sleep and
does not reply back to the warning then this application can brake on its own. The assistance
is catered from two types of sensors. The first sensor is millimeter wave radar and the other is

10ENTREPRENEURSHIP AND INNOVATION MANAGEMENT
monocular camera mounted on upper inside part of the vehicle. However it will assist the
company to in collision of braking system which delivers instruction in an audio and visual
ways and also holds the factor of risk on a head on collision. This strategy of implementation
will help the company not only to raise it sales but there will eventually be an increase in
revenue also. This is because it is satisfying two main causes for the public who purchases
the car one is safety and the other is precaution from accidents.
Reward and Recruitment
It is true that the company provides a significant job opportunity for the people who
hold special expertise roles and has the ability to conduct innovative business measures.
Hence it can be recommended for BMW to improve its process of recruitment so that the
people who are employed can have the opportunity to work with the renowned company and
show their talent by catering innovative business ideas. The company should not only focus
on the academic background of the candidate while recruiting him or her but should place the
candidate in a situation where he or she can show its expertise skills and development in
which they have mastered in. The practical skill will be an example of how they will perform
their task in the company. On the other hand in order to maintain the retention level of
employee in the company the manger of human resource department must use a clear and
inclusive language which helps in avoiding the jargon and can clearly speak to the candidates
without any hesitation. However it can be commended that the company can start to organize
events out of country and allow the employee to organize these events. This will bring in an
interest within the workforce as they will conduct something out of their normal routine work
and can plan the entire event and place it for the higher authority permission. The trips or
events organized outside country will facilitate the company to maintain its retention level
and have some of its loyal employees. The expansion in the sourcing will help the company
to expand its awareness of its brand and can reach to more people. Therefore BMW must also
invest in sourcing tool which will help them to find and employee experienced employee.

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