De La Salle Lipa - BMW Strategic Management Paper: Analysis and Plan

This strategic management paper offers a comprehensive analysis of BMW, one of the leading automotive manufacturers. The paper begins with an overview of BMW's history, vision, and mission statements, followed by an environmental analysis using PEST and competitor analysis. Key success factors are identified, and a company analysis is conducted using the McKinsey 7S framework. The study includes financial ratio analysis, SWOT analysis, and the application of strategic tools like EFE, IFE, IE, TOWS, and QSPM matrices to formulate and evaluate strategic options. The paper concludes with recommended business strategies and an action plan designed to enhance BMW's performance and achieve its long-term objectives, providing valuable insights for business development and strategic planning.

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BMW’s STRATEGIC MANAGEMENT PAPER
STRATEGIC MANAGEMENT PAPER OF
BMW
A Strategic Management Paper
Presented to the Faculty of De La Salle Lipa,
College of Business, Economics, Accountancy and Management
In partial fulfillment of the requirements the degree of
BACHELOR OF SCIENCE IN ACCOUNTING INFORMATION SYSTEM
JAN PATRICK P. JORNAL
January 22, 2021

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BMW’s STRATEGIC MANAGEMENT PAPER
TABLE OF CONTENTS
TITLE PAGE 1
TABLE OF CONTENTS 2
LIST OF TABLES 4
LIST OF FIGURES 5
LIST OF APPENDICES 6
EXECUTIVE SUMMARY 7
INTRODUCTION 8
Background of the company 17
VISION/MISSION ANALYSIS 20
Vision Statement Analysis 20
Mission Statement Analysis 22
ENVIRONMENTAL ANALYSIS 24
PEST ANALYSIS 24
Other Factors 29
INDUSTRY COMPETITOR ANALYSIS 33
Industry Analysis 34
Competitor Analysis 38

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BMW’s STRATEGIC MANAGEMENT PAPER
Key Success Factor 38
COMPANY ANALYSIS 38
McKinsey’s 7’s Framework 42
STRATEGIC/LONG- TERM OBJECTIVES 45
STRATEGY FORMULATION 47
Generation of Strategic Options 47
Recommended Business Strategies 51
ACTIONS PLAN AND DEPARTMENTAL PROGRAMS 52
STRATEGY REVIEW, EVALUATION CONTROL 53
REFERRENCES 54

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BMW’s STRATEGIC MANAGEMENT PAPER
LIST OF TABLES
No. Title Page Page
1.1 History and Background 18
1.2 Line by line analysis of BMW’s mission 20
1.3 Line by line Analysis of BMW’s vision 22
2.1 PEST Analysis 23
2.2 Opportunities and Threats 32
3.1 Five Forces Analysis 34
3.2 EFE 37
3.3 Key success factor 38
3.4 EBIT Analysis 39
3.5 Financial Ratio 40
3.6 Net worth Analysis 41
4.1 Mckinsey 7S Framework 42
5.1 IFE 44
5.2 SPACE Matrix 47
5.3 IE Matrix 50
5.4 QSPM 51
6.1 Action Plan 52

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BMW’s STRATEGIC MANAGEMENT PAPER
LIST OF FIGURES
No. Title Page
1 Overview 9
2 Strategy One 10
3 Sustainability Goals 11
4 7S Framework 42

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BMW’s STRATEGIC MANAGEMENT PAPER
List of Appendices
No. Title
1 BMW
2 BMW’s Mission, Vision, Values
3 Content Analysis of Mission Statement
4 Quantitative Strategic Planning Matrix
5 TOWS Matrix
6 The History of BMW
7 Pestle Analysis of BMW
8 SWOT ANALYSIS

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BMW’s STRATEGIC MANAGEMENT PAPER
EXECUTIVE SUMMARY
BMW is one of the biggest car brands in the automotive industry in Europe. Hence, they also
competitively compete in the market internationally which they are able to meet their vision and mission
statement. Even though there are lapses when it comes with the mission statement, they undeniably
considered having an excellent rapid expansion of stores both local and international and exemplary
regarding their products and services offered. Also, BMW is one of the leading car chains.
The use of different matrices such as EFE, IFE, IE TOWS, QSPM and competitive analysis in
JFC has resulted in JFC having a strong brand image. As the JFC rapidly grows, they are not able to
forget how to make continuous improvement and implement optimal strategy in order to make the best
and be the number one in the market. However, there are also weaknesses and one of these is the lack of
use of marketing technology but they are able to adapt this in a small progress. Consequently, there are
other problems that serve as a hindrance to the strength of the BMW. It will be mentioned here in the
paper thoroughly.
Overall, the proponents come up with action plans that the entire BMW would be benefited.
Thus, per department would be able to participate in order to come up with excellent results and
productivity. This will serve as a benchmark into an exemplary success of the BMW which is related to
strategies proposed.

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BMW’s STRATEGIC MANAGEMENT PAPER
I. Introduction
The automotive industry is a major industrial and economic force worldwide. It makes 60 million cars
and trucks a year, and they are responsible for almost half the world’s consumption of oil. The industry
employs 4 million people directly, and many more indirectly.
Despite the fact that many large companies have problems with overcapacity and low profitability, the
automotive industry remains very strong influence and importance. The industry also provides well-
paying jobs with good benefits, has heavy linkages with supplier industries (which gives it an oversized
role in economic development), and has a strong political influence.
The BMW Group is considered one of the most successful companies in the world, primarily
manufacturing automobiles under its three brands – BMW, MINI and Rolls-Royce. BMW continues to be
a world class performer in luxury automobiles, with growth across all regions accounting for worldwide
automobile sales of 382,758 units in the first quarter of 2011 (21.3%increase from the previous year) –
achieving the best start to the financial year in the group’s history. With 24 production f acilities in 13
countries and a global sales network spanning more than 140 countries, BMW was well positioned as the
worldwide automobile markets continue to improve post-GFC, particularly with a 32.4% increase in the
Chinese automobile market in 2010– confirming its position as the largest car market in the world.
BMW’s success is attributed to its long-term thinking and responsible action, establishing a strategy of
ecological and social sustainability throughout the value chain, comprehensive product responsibility and
a clear commitment to resource conservation. A strategy of promoting high-performing engines, high -
recognition branding and high-profile racing has also been adopted in the early stages of BMW’s life,
which is still evident in the company’s culture to this day.

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BMW’s STRATEGIC MANAGEMENT PAPER
Figure 1 Overview of BMW

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BMW’s STRATEGIC MANAGEMENT PAPER
Assuming responsibility is an integral part of the
BMW Group’s core business vision. They are
convinced that the lasting success of any
enterprise in today’s economy comes down to
acting responsibly and ensuring social
acceptance. Global challenges such as climate
change and urbanization inspire and motivate us
to develop innovative products and services.
Figure 2 Strategy One
They achieve a competitive advantage by providing for- ward-looking solutions. Sustainability is an
integral part of our corporate Strategy NUMBER ONE > NEXT. Our strategy provides the practical
framework for the BMW Group’s long-term development and sets out the strategic approaches we will be
taking through to 2025. They are helping to take individual mobility into a new dimension, with electric,
connected and autonomous vehicles. In this process, our work focuses on electro mobility, autonomous
driving and digitalization and is geared to our customers’ needs. As drivers of innovation, we are commit-
ted to taking the leading role within the automotive industry in these areas.
To add value to our business, our environment and the society we live in, the BMW Group integrates
sustainability across the entire value chain and into all our basic processes. This covers everything f rom
the sustainability requirements for the procurement process and the design of our products through to the
development of new lines of business.

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BMW’s STRATEGIC MANAGEMENT PAPER
Figure 3 Sustainability Goals

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BMW’s STRATEGIC MANAGEMENT PAPER
Brands and Services
BMW is dedicated only to the driver. BMW
doesn’t just build cars. The brand’s innovations
create emotion, enthusiasm, fascination and
thrills.
BMW I offer sustainable, customer-oriented
mobility solutions without sacrifice.
Visionary BMW I electric vehicles lead the
way in alternative drive trains, lightweight
design and aerodynamics.