BMW Mini: Big Decisions Under the Brexit Cloud - Case Study

This case study analysis examines BMW's strategic decisions regarding the production of the electric Mini car in the context of Brexit. The analysis explores the automotive industry's dependence on the European Union, the decision criteria for the Cowley plant, and the alternative options available to BMW. The study considers the pros and cons of electric car production, the perspectives of a UK country manager, and the CEO's global decision-making process. It highlights the impact of Brexit on the supply chain, tariff rates, and trade, emphasizing the importance of considering the EU's influence on business transactions and job opportunities. The analysis references various sources to support its findings and provides a comprehensive overview of the challenges and opportunities BMW faced during this period.

Running head: CASE STUDY ANALYSIS ON BMW MINI
Case Study Analysis on BMW Mini
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Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................2
Question 3..................................................................................................................................3
Question 4..................................................................................................................................4
Question 5..................................................................................................................................4
References..................................................................................................................................6

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Question 1
Based on the analysis of the case study named
BMW Mini: Big Decisions under the
Brexit Cloud, it was examined that the synergy of the car industry is recognised to be crucial
for the economies of scale of the United Kingdom (Hbr.org, 2019). The automotive industries
connected to the region of the United Kingdom are recorded to produce over 1.82 million
number of vehicles. Out of this number of cars, around 1.72 million number of vehicles were
identified to be passenger cars. The same was recorded to generate a turnover of
approximately £77.5 billion in the fiscal year of 2016 and providing employment to over
814,000 individuals. It was also researched that the car industry in the UK is highly
dependent on the European Union in the concern of the ideology of free trade (Gilpin, 2018).
Keeping these aspects into consideration, the UK government had left the concern regarding
the EU on the UK automotive industry so that there are no disruptions that arise in the supply
chain management from the tariff rate and the border control system. It was recognised that
there were few uncertainties that were known to be aroused from the decisions made by the
UK government in the concern of the decisions connected to the EU. Thus, the decisions
regarding BMW's iconic mini car connected to the EU was left alone in the hands of the
automotive industry to deal along with the decisions of the EU.
Question 2
The decision criteria concerning the production line for the electric minicar of BMW
were considered as the Cowley plant to cover an area of around 65,000 square meters to
manufacture the cars with 4600 number of employees working in the same. This
manufacturing operation of the mini cars was recognised to be a complex one. This is
because the team had decided to purchase the parts needed to manufacture the finished

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product from a variety of suppliers. Specifically, twelve-thousand different parts for the mini
car was to come from 500 different number of suppliers. Some of the parts were known to be
manufactured by the company of BMW itself like the sub-assemblies as well as the doors of
the car. The petrol engines were decided to be purchased from the BMW's plant that was
located in the region of Hams Hall near Birmingham. Ninety per cent of the necessary parts
were to come from the area of Continental Europe. This included the car bodies, fuel tanks
and centre consoles to come from the region of Germany, the harnesses of the car from
Romania, Poland imported the cooling modules as well as the diesel engines from the area of
Austria. However, the various number of truckloads, including small parts and parcels of the
car came from the city of North America as well as Asia.
Question 3
The alternative options in the concern of the production concerned to electric Mini car
had been recognised to have its own pros and cons for the relevant company of BMW. As
examined by the help of the study that the policymakers across the globe had been advocating
the synergy of electric cars as a practical approach towards a greener environment and a
replacement to the harmful gasoline cars that affect the environment in a drastic manner
(Altenburg & Rodrik, 2017). This turns out to be both an opportunity as well as a drawback
for the BMW Company because the same becomes responsible for manufacturing the best of
the mini car that would prove an adequate replacement to the gasoline cars and the same can
spoil the brand image of the company if there lies any default in the same respectively. Two
significant cons related to the concerned aspect was found to be the high level of taxation
charges over electric vehicles as well as the overage concerning the charging station
infrastructure. The best possible pros for the BMW was that the company had been in the

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field of developing the electric vehicles for over a decade of a period and have become
professional in the same.
Question 4
As the country manager connected to the country of the United Kingdom for the
concerned company of BMW, the advocating of the production of the mini car would not be
considered to be mandated to move on to Cowley, England (the movement is basically named
as
Brexit). This is because this particular region had been known to have certain disputes
with the European Union and therefore, the same would affect the business conditions as well
as the revenue earning of the company. Having conflicts with the European Union will lead
to the payment of high tariff and trade rates as well as disputes and high exchange rate in the
synergy of the international trade system (Richelson et al., 2019). Thus, being a country
manager of the United Kingdom, the production synergy of a BMW mini car should have
been stopped to move to Cowley.
Question 5
Being designated as the CEO of the BMW Company in the global nature, the
individual should proceed with moving on with the production synergy of BMW mini car in
the areas which are energetically connected to the concept of the European Union. Take, for
example, the land of France, Scotland as well as Northern Ireland. This is because working in
the regions established under the synergy of the European Union will help in the creation of a
better influential economy in the business market as well as creates a sense of harmony in the
established continent (Ghauri & Wang, 2017). Not only this, but the nations under the EU
will also help a business entity to improve the business transactions and considerations both
in the local as well as the international market (Drucker, 2017). In addition to this, better job

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opportunities are created for society, and therefore, the company gains the synergy of active
Corporate Social Responsibility.

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References
Altenburg, T., & Rodrik, D. (2017). Green industrial policy: Accelerating structural change
towards wealthy green economies. Green Industrial Policy.
Drucker, P. (2017). The age of discontinuity: Guidelines to our changing society. Routledge.
Ghauri, P. N., & Wang, F. (2017). The Impact of Multinational Enterprises on Sustainable
Development and Poverty Reduction: Research Framework. In International Business
& Management (pp. 13-39). Emerald Publishing Limited.
Gilpin, R. (2018). The challenge of global capitalism: The world economy in the 21st
century. Princeton University Press.
Hbr.org. (2019). BMW Mini: Big Decisions under the Brexit Cloud. Retrieved 7 August
2019, from https://hbr.org/product/bmw-mini-big-decisions-under-the-brexit-cloud/
W19045-PDF-ENG
Richelson, J. T., Abegaz, B., Dillon, P., & Feldman, D. H. (2019). The Challenge Of
European Integration: Internal And External Problems Of Trade And Money.
Routledge.