Organizational Management Report: BMW's Strategic Approaches

This report provides an analysis of BMW's organizational management, focusing on its strategic approaches, leadership roles, and responses to market dynamics. The report examines BMW's dual management approach, exploring how it balances core business with innovation. It identifies the roles of leaders as navigators, strategists, entrepreneurs, and global thinkers, detailing how they formulate strategies to meet challenges. The report also discusses the factors supporting BMW's ability to exploit existing and explore new opportunities, such as market size and relationship management. The analysis includes insights into BMW's competitive environment and its strategies for future growth, including the expansion of its electric vehicle market and adaptation to technological advancements. The document uses examples and references to support its arguments.

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Organizational Management
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1ORGANISATIONAL COMPLEXITIES
Question 1
The chosen organization is BMW (Bayerische Motoren Werke) which is also
commonly called Bavarian Motor Works is a German automobile, engine manufacturer and
motorcycle company which were founded back in 1916. It produces and own Mini Cars and
is a parent company of Rolls-Royce Motor Cars. However it is observed that the organization
is preparing for future and is focused in development of i3 and i8 which will be phased out
with the optimization of high tech and high cost fiber which will comparatively be replaced
with U15 which will arrive in 2022. However in 2021 BMW will introduced the iNext Halo
car and will be labeled as i61. Therefore it is transforming the business models and is also
looking forward to expand its market with competitive advantage. This can be stated with an
example as the organization is manufacturing electric X3 which will also be launched in
Beijing Show. For the coming years BMW it is preparing its production for i4 (G26) which
will carry an essential component as a battery powered and re-bodied as per 3 series within
the superior packaging and a cool looking cabin layout. BMW’s designs have been
consistently throughout its manufacturing phase.
Question 2
Based on the evidence to exploit and exploring the framework of BMW it can be
stated that the organization was catering the approach of dual management. Hence the
approach was surprising because it had supported the core business and it was an emerging to
create innovative models which required leadership and constant support from the operational
mangers. This was the reason why the leaders were incredibility hard to operate in the
process of dual thinking mode2. Therefore this process had raised the level of risk as it had
achieved higher results but had received significant rewards from the customers and
1 Blair, R., 1995. The Ghost of Albrecht: Caribe BMW, Inc. v. Bayerische Motoren Werke
Aktiengesellschaft. The Antitrust Bulletin, 40(1), pp.205-225.
2 Chu, C.N., Huang, T.Y. and Liu, S.S., 2017, May. Hedonic Pricing Method, the Third Law of Demand, and
Marketing Strategy: An Abstract. In Academy of Marketing Science Annual Conference (pp. 721-722). Springer,
Cham.

2ORGANISATIONAL COMPLEXITIES
management. When the operational managers took in charge of the ambidextrous approach
where they are forced to change and are focused on looking forward regarding the drawback
and the tensions that hampered the business. Another reason why the organization had
exploited because Audi its competitive rival is also performing equally well in the market.
Question 3
The roles played by the leaders in formulating the strategies are:
Navigator: in this role the leader works quickly and is clear about the deals and challenges
faced, take advantage of serious opportunities and also solves problem.
Strategist: this role of the leader enables to develop a long term strategy and also sets target
to match with the mission and visions of the organization. It also enables the team leaders to
direct its members towards the organizational objective3.
Entrepreneur: this characteristic enables the leaders to act as entrepreneurs because he or she
takes the advantage of the authority and also assist in expansion of the business.
Global Thinker: hence it is a vital role for the leader as it has to understand the types of
diversity in the company and respect the strategies ad action taken.
The leaders can deals with the challenges in future by creating an harnesses of their
skills so that the employee does not take advantage of the situation4. He or she must keep
introducing different methods of working because it will make the work more interesting and
constant innovation will be beneficial for both the management as well as for the clients.
Therefore the leaders can overcome the challenges in future by implementing a horizontal
model based on the information technology especially internet and collective intelligence.
3 Hess, T., Matt, C., Benlian, A. and Wiesböck, F., 2016. Options for formulating a digital
transformation strategy. MIS Quarterly Executive, 15(2).
4 Engert, S. and Baumgartner, R.J., 2016. Corporate sustainability strategy–bridging the gap between
formulation and implementation. Journal of cleaner production, 113, pp.822-834.

3ORGANISATIONAL COMPLEXITIES
Question 4
The factors of organization that supports the ability to exploit and explore the existing
and new opportunities are firstly the market size because most of the factors help in
evaluating the strengths and opportunities of the competitive firms. However on the other
hand the factor of maintaining proper relationship is also important as the business develops
the opportunity of creating bonds with the clients and also with the employee who facilitate
the proper functioning of the organization5. It is also vital to know the relationship the
business has with its investors because they are an integral part of the organization. In order
to explore the market the entrepreneur or the leader must create an ability to match the cash
flow. It is important to figure out how the balance sheet and the profit loss statement is
managed and should review the business plan. Lastly the organization must evaluate their
own business opportunity and bring out their needs and requirement.
5 Cegarra-Navarro, J. G., Soto-Acosta, P., & Wensley, A. K. (2016). Structured knowledge processes and firm
performance: The role of organizational agility. Journal of Business Research, 69(5), 1544-1549.

4ORGANISATIONAL COMPLEXITIES
Reference
1. Blair, R., 1995. The Ghost of Albrecht: Caribe BMW, Inc. v. Bayerische Motoren
Werke Aktiengesellschaft. The Antitrust Bulletin, 40(1), pp.205-225.
2. Chu, C.N., Huang, T.Y. and Liu, S.S., 2017, May. Hedonic Pricing Method, the Third
Law of Demand, and Marketing Strategy: An Abstract. In Academy of Marketing
Science Annual Conference (pp. 721-722). Springer, Cham.
3. Hess, T., Matt, C., Benlian, A. and Wiesböck, F., 2016. Options for formulating a
digital transformation strategy. MIS Quarterly Executive, 15(2).
4. Engert, S. and Baumgartner, R.J., 2016. Corporate sustainability strategy–bridging the
gap between formulation and implementation. Journal of cleaner production, 113,
pp.822-834.
5. Cegarra-Navarro, J. G., Soto-Acosta, P., & Wensley, A. K. (2016). Structured
knowledge processes and firm performance: The role of organizational
agility. Journal of Business Research, 69(5), 1544-1549.