Question

Evaluate BMW's operational performance and efficiency in terms of:

Value chain:

1. What parts of the value chain add the most value to BMW's performance? Which are competitive exposures? why?

Management quality:

2. How does BMW's management compare with competitors in terms of:

-New innovations/Innovativeness

-Management quality

Answer 1

BMW is one of the biggest Automotive brands in the world which is in top 3 most valuable Automotive brands as well. Company has been consistently improving its structure of operation in international environment and developing its criteria of being an ethical organisation by investing in green Technologies such as consistently developing Hydrogen based cars as well as implementing electric cars. Company is generating heavy profit from its operations structure due to wide availability of the product range as well as cars that are developed by its research and development team for consistent allotment of organisation. Company has successfully invested in its corporate social responsibility by implementing employee Health Management as well as programs that specifically promote balanced work life and produced zero waste at plants. Extremely skilled workforce where assembly plants are situated in USA and Germany directly create an effect in reducing the overall cost as well as increase its adaptability in the respective environment. Company has extremely big water bottle market in the world which cell excessive number of cars. United States China and Germany are the biggest market of a specific brand. Company does have a negative impact as it only deals in premium vehicles hence lower class is not capable of buying their vehicles which directly reduces the overall revenue. Company uses high quality luxury materials in their cars with a proper luxurious brand image which also decreases their overall effect of getting the low class in their value chain. Extremely low acquisition and strategic partnerships and their appropriate research and development increases the overall cost of development. Company can implement a structural change as company is getting highly benefited by its vehicles and vehicle design in international markets , this is specific vehicles are generating more than 50% of the total revenue generated by the organisation. These valuable items should have to be focused by the organisation at a very large scale which will definitely provide adequate level of support and development and increase their adaptability in the respective operational environment.

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