Question

- Identify how BMW are organized and why this organizational structure is used (explain a bit if you can what it looks like in that organization and why it is working (or not working) ).

Answer 1

BMW has a complex structure due to massive scale of operations and global business. The company has Supervisory Board at the top which functions as a strategic arm and takes company wide decisions which directly or indirectly affect the stakeholders and shareholders of BMW. Below the Supervisory Board, Board of Management is present which comprises of heads of various departments such as legal department, audit, corporate affairs etc. These departments govern the overall functioning of the organization and ensure that organization is performing smoothly. The entire team of these different departments fall under the Head of each department. Components of project based structure are also integrated into the BMW group organizational structure which takes into account various projects running into the organization.

This organizational structure is used in BMW since it is a vast organization and it is impossible to manage the organization without dividing it into various departments and groups headed by the Board of Management which in turn is headed by the Supervisory Board which takes strategic decisions on behalf of the company. Hence this organizational structure suits BMW and is in concurrence with the company's style of working.