Category: BMW

1. Introduction

Bayerische Motoren Werke AG (BMW Group), the BMW tagline is “designed for driving pleasure” which is very popular among people. The company was founded on March 7th, 1916. Founded by FRANZ JOSEP POPP, KARL RAPP and CAMILLO CASTIGLIONE. The company headquarters are in Munich Germany. The slogans are “SHEER DRIVING PLEASURE” and “THE NEXT 100 YEARS”.

• Name

Bayerische Motoren Werke AG (BMW Group)

• Founded

March 7, 1916

• Logo

[image: ]

• Industries served

Automotive

Motorcycles

Financial Services

• Geographic areas served

Worldwide (over 150 countries)

• Headquarters

Munich, Bavaria, Germany

• Current CEO

Harald Krüger ( from May 13 2015)

• Revenue (Euros)

€97.48 billion(2018) , €98.678 billion (2017) 4.78% increase over €94.163 billion (2016)

• Profit (Euros)

€9.88 billion (2017).

• Employees

134 682 (2018)

• Main Competitors

Chrysler Group LLC, Daimler AG, Ford Motor Company, General Motors Company, Honda Motor Company, Hyundai Motor Company, Nissan Motor Company, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.

All the information above mentioned is taken from BMW official 2018 report and BMW site.

In this present generation competitive world, change or adapting to the current trend is a very crucial factor for the organization success. Now in automobile industries the electric vehicle are the latest trend and all the companies are trying to make automobiles powered by electricity, BMW has announced that they are going to make electric vehicles by 2025. Recently in Munich 21st March 2018 the CEO of BMW Harald Krüger has show cased the BMW i3 series electric powered vehicle as a glimpse that they are going to release the car in 2021. I want to discuss what change that the BMW has adapted in their whole organization to convert from fuel powered car manufactures to electric powered vehicle manufactures and autonomous driving, because the tesla is leading manufacture of electric vehicle so BMW also trying to be in the trend. The electric vehicle and autonomous driving is a disruptive technology where all the automobile companies are racing to achieve it with 100 percent efficiency. (Bloomberg.com, 2019) (Forbes.com, 2019)

Macro trends

The electric vehicle came in to light because of the hike oil prices and fuel resources will be consumed totally. Second factor is carbon monoxide or emission gas from the car which is very harmful and main cause for the greenhouse effect, and the third factor is innovation every company is trying to create a disruptive technology in order to gain a huge competitive advantage over their competitors.

2. Porter’s five forces for the internal analysis

The threat of substitute products

Threat of substitute product is high for BMW because BMW produces till now engine-based car models but recently all the competitors are transforming to produce electric or battery-powered cars. BMW has launched its i8 series hybrid car which has both fuel power and battery powered in the June 2014, BMW first hybrid vehicle. Automobiles can be easily replaced by motorcycles and bicycle’s, but BMW has its own motorrad(bikes). Public transport is also a huge substitute for BMW cars. (porter Analysis, 2019)

The threat of new entrants

Basically, the BMW is a high-end luxury car manufacturer, so it targets rich people, so for the new entrants is not that easy to give competition to BMW. Since tesla came in to the game it is giving competition to the whole automobile industry, but BMW has a very high brand power and customers are very loyal.

For new entrants huge capital, skilled professional workers are required and face many legal issues to launch. So the threat of new entrants is low for BMW. (porter Analysis, 2019)

Power of competitors

The power of competitors is very high because there are many companies like VW, TESLA, TOYOTA etc, are competing. So BMW invests a lot of money in research and development department (R&D) to create new innovations and technology. Actually, the electric cars are the new age of innovation where the fuel-based cars are completely replaced and now all the competitors are trying to achieve the competitive advantage. (porter Analysis, 2019)

Bargaining power of customer

The bargaining power of customer is very high because customers can easily shift and have lot of options in the market. The BMW should always pay attention to the customer needs and what they are expecting. BMW should always treat their customer loyalty in order to get the competitive edge. (porter Analysis, 2019)

Bargaining power of supplier

The bargaining power of supplier is low because BMW can easily replace their supplier as there a lot of options available. Now the BMW has signed a 1 billion worth contract with Samsung SDI for car batteries to keep up with the competitors (according to electrek.co). In this particular case the bargaining power of supplier can be high. (Lambert and Lambert, 2019)

3. PESTLE analysis

Political factor

• Brexit can be a dis advantage to BMW because U K government may impose tax on BMW cars as it is a German manufacturer.
• If the government in another country changes where the BMW operates it can cause risk to the investment.
• The import and export tax rates will effect BMW directly in their revenue.

Economic factor

BMW should make cheaper cars in order to capture the whole market as BMW makes only luxury cars and targets the rich people, but it should reach to the middle segment also.

The global economy fluctuation will effect the BMW in performance, valuation and profits. The tariffs will affect BMW directly because BMW has operations in more than 150 countries. (Frue, 2019)

Social factor

BMW operates in more than 150 countries, each country has its own culture the culture difference between countries is high. Bmw must try to adapt to the customers around the globe. Bmw have a lot of facebook pages (over 13 million pages), Instagram and twitter. Although social media integration is a key role to attract customers and know their preferences, BMW officials releases news or updates or responds to the followers in twitter but responds to the main issues it is a positive point for BMW. (Frue, 2019)

Technology factor

In the present competitive world for a company to survive it should be innovative and must be ready to adapt to the change. The adapting to the new technology or disruptive technology is very important for companies to survive. In this case tesla came up with a disruptive technology like manufacturing the electric cars and BMW earlier released a hybrid model now the company has announced that by 2021 all the BMW cars are electric powered, it is good for BMW to adapt to change and release announcement about the future. (Frue, 2019)

Legal factor

BMW till now has not faced any legal issues because all the law was fully accepted and followed by BMW very strictly. BMW asks the sub companies and suppliers to follow the rules very strictly. (Frue, 2019)

4. Critical success factor

BMW has a very high brand loyalty because of the quality of the product and precision of the work, where the customers have a very good impression on BMW. The readiness to adapt to the change is a very difficult task to global companies like BMW but they have adapted to every change and giving competition to their competitors. BMW invests lot of money in R&D for creating new technology, innovations and strategies to be ahead in the market. The BMW uses STRATEGY NO 1

• Access to technology and customers
• Profitability
• Shaping the future
• Growth

The BMW has increased its sales network by entering in Asian market (INDIA, CHINA). The size of the work force increased globally and expanding. The BMW always thrives to make new innovations which is a very good competitive edge to the company as the bmw has releases new conceptual cars and models every year ex BMW I3 which is a hybrid and latest the BMW new I series car displayed in Munich by the CEO which is going to be released in year 2021.

The external pressures is a very plus point for BMW because the bmw is always ready to adapt to the change and now the BMW has signed a billion dollar contract with Samsung SDI to buy batteries for the electric vehicle and BMW tied up with Volkswagen to launch twenty five lakhs plus battery power station in the whole Europe. These external pressures creating more work force and innovation which helps in the company’s growth. The disruptive technology like tesla has introduced electric vehicle which is a very high competition for BMW and all the other automobile industries, BMW has announced that from 2025 all the cars from bmw will electric powered which will bring a huge competition with tesla and BMW also planning to bring a disruptive technology like fully autonomous diving where it will be huge success to the company and the whole automobile industries. The BMW have some strategic issues like there is a very big organizational structure in the company like the board of the management consist of six highly professional managers and chairman of the board so the pinpoint of a problem in a company is low and it cannot be reached to the top management easily, so the BMW should give power and decision making to the middle management like each individual manager can be able to rectify their own team problem among them and later should be informed to the board. The feedback should be improved as the employers should give feed back to their higher authorities about the operation and performance. The communication among the departments must be improved as now the BMW entering into the electric vehicle field and every department participation is required by keeping them connected. BMW has introduced a new model of connection with other departments by keeping a meeting of all the departments head and the CEO directly interacts with them for every two months. The risk management of BMW is super because BMW takes an open sustainability audit every year where all the employers can see that and the employers can share their thoughts and ideas to the risk management department where each and every feedback is considered and they are presenting prizes or compensation to make the employers to involve much.

5. Organizational resilience

The BMW follows the MTBF mean time before failure to be more resilient. BMW have IT services also in order to face and withstand if any disruptive technology comes in to the market and BMW is trying to build up their customer loyalty which gives BMW to be more resilient. I suggest that BMW should follow some methods to be more resilient like early identification of risk, forecasting the change in the environment, do some risk compressive analysis and use some sustainable management tools. Which help BMW to be more resilient to the change or disruptive technology. As BMW should be more proactive to the change and can be easily adapt to the change

Not only does adaption plays crucial role in resilience but the climate and weather extremes also play an important role (Linnenluecke and Griffiths, 2010). Now a days all the companies are focusing on the economic factors such as competition and technology innovation, well bot one company need to be resilient it should focus and forecast on all factors. This is also called as disaster recovery which offers per disaster strategies to reduce or avoid costly downtime, stop vulnerabilities and to maintain a smooth operation even in the time of unexpected or additional breaches.

The BMW should be resilient in such a way that has to be adaptive to disruptive change and maintain the business operation continually, protect people, assets and overall brand image. (Harvard Business Review, 2019) (Linnenluecke and Griffiths, 2010)

6. Diagnostic model

The suggested diagnostic model for BMW is 7 S frame work. Which was developed by Robert Waterman, Tom Peters, and Julien Phillips in 1980. The 7s framework consist of 7 factors

• Structure
• System
• Style
• Staff
• Skill
• Strategy
• Superordinate Goals

The 7s frame work is more importance on the interconnectedness of all the departments, in this frame work if one department needs to be changed then all the departments are effected by that change which is good for organization. The frame work can be used to increase the performance of the company, forecast the likely effect of future changes in and out of the company, all the departments are aligned and we can also check how good is the proposed strategy with this frame work. (Palmer, Dunford and Buchanan, n.d.)

Structure refers to the Organisational structure. The way the organizations is designed and who should report whom. The structure gives the information about how the departments are divided, how the work flows through the departments. Why I suggested this model to BMW is that it has gone through a lot of change from fuel car to electric car, now the 7s frame (especially strtuture) works help the BMW to know how all the departments coordinate and how does the team player align and organize to the change happened in the company. It also allows to know about the communication gaps between the department, which is very helpful for a global company like BMW. (Mindtools.com, 2019)

System is used to know the daily activities done by the employees and to check weather the job is done in time. In BMW using this frame work they can detect the main system that’s running the company, where are the controls of the company and they can monitor it (the Verizon has made a dash board where all the managers use it know the how work done and any issues inside the company). This system framework is useful to the top-level management of BMW where they can know how the employees are working and did they reach the target and how the employees are reacting to the change. (Mindtools.com, 2019)

Style is the leadership style in the company, In BMW this frame works helps in knowing how effective the leadership is and how their subordinates are reacting like willing to cooperate or compete with the managers. (Mindtools.com, 2019)

Staff this frame work helps BMW to know what position or category is required in the team and are there any gaps in required competencies.

Skills are the abilities of the employees who’s working in the company. This helps BMW in giving training to the employees who are the part of a change and help the employees to be adaptive and professional. (Mindtools.com, 2019)

Strategy is the plan of action used in the company to improve their competitive advantage and goals. BMW should use this frame work to develop a new strategy before adapting the strategy and after the change is adapted also. It helps to know how to achieve the intended goals, the strategy should be built in such a way that it should deal with competitive pressure and how the customer needs or demands are met. The BMW should adjust their strategy with respect to environmental issues. (Mindtools.com, 2019)

Superordinate goals it is the vision of the company and BMW have announced their vision such that by 2025 they will launch all the electric and green cars. (Mindtools.com, 2019)

So for the BMW I suggested this model because it has advantage mentioned in the above and also this 7s frame work is used to self-check with in the companies for the gaps.

7. Conclusion

According to the study I totally recommend BMW to use 7s frame work, BMW should be also ready for the environmental changes also to be more resilient. Adaption is most challenging task for the global company like BMW because it operates more than 150 countries so change cannot be easy until if the middle management is given power to take decisions so that it saves a lot of time to top management. Finally what I believe the most important aspects for the BMW success is their brand power, their relationship with customer and technology & innovation.

8. Bibliography

1. Bloomberg.com. (2019). Bloomberg – Are you a robot? [online] Available at: https://www.bloomberg.com/features/2019-bmw-electric-car-german-engines/ [Accessed 7 May 2019].
2. Frue, K. (2019). PESTLE Analysis of BMW: Shaping the automotive industry. [online] PESTLE Analysis. Available at: https://pestleanalysis.com/pestle-analysis-of-bmw/ [Accessed 7 May 2019].
3. Lambert, F. and Lambert, F. (2019). BMW signs $1 billion battery supply contract to support future EV production. [online] Electrek. Available at: https://electrek.co/2018/06/29/bmw-signs-billion-battery-supply-contract-future-ev-production/ [Accessed 7 May 2019].
4. Porter Analysis. (2019). Porter Five Forces Analysis of BMW|Porter Analysis. [online] Available at: https://www.porteranalysis.com/porter-five-forces-analysis-of-bmw/ [Accessed 7 May 2019].
5. Harvard Business Review. (2019). What Resilience Means, and Why It Matters. [online] Available at: https://hbr.org/2015/01/what-resilience-means-and-why-it-matters [Accessed 7 May 2019].
6. Mindtools.com. (2019). The McKinsey 7-S FrameworkEnsuring That All Parts of Your Organization Work in Harmony. [online] Available at: https://www.mindtools.com/pages/article/newSTR_91.htm [Accessed 7 May 2019].
7. ComputerWeekly.com. (2019). BMW gears up IT resilience with private cloud infrastructure. [online] Available at: https://www.computerweekly.com/news/2240205641/BMW-gears-up-IT-resilience-with-private-cloud-infrastructure [Accessed 7 May 2019].
8. Press.bmwgroup.com. (2019). BMW Group Annual Report 2018. [online] Available at: https://www.press.bmwgroup.com/global/article/detail/T0293372EN/bmw-group-annual-report-2018?language=en [Accessed 7 May 2019].
9. Equitystory.com. (2019). [online] Available at: http://www.equitystory.com/Download/Companies/BMW/Quarterly%20Reports/DE0005190003-Q2-2018-EQ-E-00.pdf [Accessed 7 May 2019].
10. Evarts, E., Contributor, E., Contributor, E., Contributor, J., Editor, B., Contributor, E., Contributor, E. and Editor, B. (2019). BMW plans 12 all-electric models by 2025. [online] Green Car Reports. Available at: https://www2.greencarreports.com/news/1122188_bmw-plans-12-all-electric-models-by-2025 [Accessed 7 May 2019].
11. Bmw.de. (2019). BMW i Modelle: Übersicht Elektroautos | BMW. [online] Available at: https://www.bmw.de/de/neufahrzeuge/bmw-i.html?bmw=sea:59052874027_kwd-299858606523&gclid=CjwKCAjw2cTmBRAVEiwA8YMgzTYNoY9oKiQBZt0Ce29cUoCd6BPb27AJWZd1_ADzYwax6KEqLjexoRoCtjoQAvD_BwE [Accessed 7 May 2019].

Assessment question:

Analyse marketing audit and its usefulness. Using SWOT framework conduct a basic marketing audit of Nando`s (or any other organization of your choice) analysing its environment, current marketing performance and strategy. (LO2-40%)

The company selected for this project is Bavarian Motor Works, otherwise known as BMW.In this report includes a swot analysis (strengths, weaknesses, opportunities and threats).

BMW is a German multinational company that produces automobiles and motorcycles. The company was founded in 1916 as a manufacturer of aircraft engines, which it produced from 1917 until 1918 and again from 1933 to 1945.

Automobiles are marketed under the brands BMW, Mini and Rolls-Royce, and motorcycles are marketed under the brand BMW Motorrad. In 2015, BMW was the world’s twelfth-largest producer of motor vehicles, with 2,279,503 vehicles produced.

BMW is headquartered in Munich and produces motor vehicles in Germany, Brazil, China, India, South Africa, the United Kingdom, the United States and Mexico. BMW has significant motorsport history, especially in touring cars, Formula 1, sports cars and the Isle of Man TT.

The SWOT analysis framework involves analysing the strengths and weaknesses of the business’s internal factors, and the opportunities and threats of its external factors of performance Through this analysis, the weaknesses and strengths within a company can correspond to the opportunities and threats in the business environment so that effective strategies can be developed.

SWOT Analysis

BMW strengths:

BMW is a well-known company with a high status branding that has a very high recognition factor.

BMW has advertised their cars to consumers through media and film industry greatly over the years showing that their cars are built for all classes.

Another Strength is that they have high budget to invest which can pay for labour, services, or product research. This means that BMW is a profitable company who has enough money to invest.

They also have highly skilled labour, as BMW is a big company they need skilled labour to make their products because BMW is a branded company, if the labour is poor the products will be cheap and they can loose customers. To make customers they have to invest more. The more they invest, more they make profit.

BMW is known as one of the automobile manufacturing companies that produce luxurious types of cars. However, a huge amount of expenditure is being used for employing experienced labor in order to produce vehicles of a higher quality compared to its competitors like Mercedes Benz, Toyota and Volkswagen. Due to the fact that most cars in BMW are made with premium automobile parts and requires skilled workforce, BMW’s products tend to be priced higher in contrast to their competitors in the automobile manufacturing industry

BMW weaknesses:

• Research and Development.
• High prices.
• BMW is a well-known company with a high status branding.
• Customer needs.

BMW is known as one of the automobile manufacturing companies that produce luxurious types of cars. However, a huge amount of expenditure is being used for employing experienced labor in order to produce vehicles of a higher quality compared to its competitors like Mercedes Benz, Toyota and Volkswagen. Due to the fact that most cars in BMW are made with premium automobile parts and requires skilled workforce, BMW’s products tend to be priced higher in contrast to their competitors in the automobile manufacturing industry

BMW opportunities:

• Innovation and Alliances.
• Diversification.
• New Technology.
• New Line.

BMW threats:

• Chinese Manufacturers.
• Rising Fuel Prices.
• Mercedes and Audi.
• Recession.

Brand value is closely related to brand recognition and its positive reputation, which means that BMW brand is one of the most recognizable automotive brands. BWM has a reputation of producing perfectly engineered vehicles, which offer luxury driving that few other brands can offer.

High brand recognition helps the company to introduce related product and services to the market faster and without huge advertising expenditure.

BMW has created a high expectation putting them in the spotlight. If one of the products loses its brand image then the whole group can lose its brand image. They have few Opportunities such as that they can merge with other international companies and promote their products. They can enter a new market providing low end cars. BMW’s threats are Chinese car manufactures producing similar cars. Being a company of such high calibre such manufactures should not be a threat to them and they should be able to ensure their customers of their product.

BMW Group pursues product differentiation business strategy and differentiates its vehicles on the basis of design, performance and advanced features and functionalities. Moreover, high level of integration of information technology and internet, as well as, electromobility represent solid grounds of BMW Group competitive advantage. At the same time, BMW Group has certain weaknesses that include a lack of portfolio diversification with only three brands, a high level of vulnerability to economic crises due to the premium pricing strategy and the lack of strategic partnerships with other businesses within and outside of automobile industry.

Assessment question:

Carry out research and present information on a Nando`s targeted marketing segments. (LO 3 -30%)

The STP model is useful when creating marketing communications plans since it helps marketers to prioritise propositions and then develop and deliver personalised and relevant messages to engage with different audiences.

• Segmentation: The process of dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes.
• Targeting: The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter and maintain a marketing mix intended to meet the needs of that group. Targeting is the step that follows segmentation.
• Positioning: A process that influences potential customer’s overall perception of a brand, product line, or organisation in general. Position is the place a product, brand or group of products occupies in the consumers’ minds relative to the competing offering.

BMW segmentation, targeting and positioning can be specified as the base of the marketing efforts of the company. BMW, as well as, any other business entity has to divide population into different categories according to a set of certain criteria and develop products and services that are particularly attractive to this specific group. This marketing process is known as segmentation, targeting and positioning. Segmentation, targeting and positioning is important because businesses cannot offer products and services that are attractive to all members of population in an equal manner. Segmentation implies dividing potential customers into different groups according to certain criteria such as age, social class, lifestyle etc. Segmentation can be divided into four types: demographic, behavioral, and psycho-graphic.

There is many ways to segment the market, such as:

• * Geographic segmentation: region, country size, city size, density, climate * Demographic segmentation: age, gender, family size, family life cycle, income, occupation, education, religion, race, nationality * Psychographic: social class, lifestyle, personality
• * Behaviour segmentation :purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness state, attitude towards product

The BMW segmentation would look like that:

Geographic: All world

Demographic:Age between 30- 65+; gender male and female; family size 3-4; family life cycle singles, married with and without children; income £ 30000+; occupation professionals and technical, managers; education university, postgraduate, professionals; religion; race; nationality

Psychographic: Social class: middle class, upper middles, lower uppers; lifestyle achievers, strivers; personality ambitious, successful.| Behavioural| Purchase occasion regular occasion; benefits sought prestige, comfort, quality, reputation; user status regular user; loyalty status strong|

BMW Group has a strategy of targeting their customers by using segmentation. Geographically, BMW Group targets the areas that are more industrialized like Europe, North America, some parts of Asia and Africa i.e. China and South Africa. More than 70% of sales of BMW cars are recorded in Europe and North America.

Assessment question:

Analyse current marketing mix strategies employed by Nando`s and make recommendation to improve its current marketing mix to appropriately target its marketing segments. (LO5 – 30%)

The marketing mix is the set of controllable tactical marketing tools that an organisation blend to produce the response it wants from the target market. The marketing consists of everything the organisation can do to influence the demand for its products and services. The many possibilities gather into four groups of variables known as the Four P’s: product, price, place and promotion. More recently, two further P’s were added — process and physical evidence.:

BMW Product

BMW Group is engaged in development, manufacturing and the sale of engines as well as all vehicles equipped with those engines. BMW Group owns and sells its vehicles under the following three brands: BMW, MINI COOPER, ROLLS ROYCE.

The company pursues product differentiation business strategy and maintains 13 research and development centres in five countries. Vehicles produced under BMW Group brands belong to the premium segment and accordingly, they have highly efficient and reliable with advanced set of features and capabilities. BMW leads the automobile industry in electromobility and the brand is also famous for achieving a high level of integration of internet and digitalization in its vehicles.

Bmw Place

BMW Group has about 6,000 dealerships and sales representatives in 150 countries globally. The worldwide distribution network currently consists of around 3,310 BMW, 1,550 MINI and 140 Rolls-Royce dealerships. In China alone, around 60 BMW dealerships were opened in 2015.The dealership and agency network for BMWi comprises about 950 locations. As it is illustrated in figure below, China, USA and Germany represent the largest automobile markets for BMW Group and accordingly, these countries accommodate the largest numbers of dealership offices and representatives.

Bmw Promotion:

The promotional and advertising strategy in the BMW marketing strategy is as follows:

BMW has been a world-renowned brand for over half a century. The company has been a strong advertiser of its products and other offerings. The promotional strategy as a part of its marketing mix focuses on aggressive advertising using media channels like TV, online ads, billboards, print ads etc so that it can create a continuous brand awareness. BMW has been a close sponsor for various rally racing events and other sports events. The company also promotes many celebrated sports teams and rally racers. BMW has been a constant participant in various international rally races for a long time. They have been a successful team at the F1 races on numerous occasions.

Apart from the F1, BMW has also been a strong contender at the Superbike racing category. Since the beginning of its motorcycle manufacturing in 1923, the company has been actively participating in various racing events. Apart from the participation, the company has been a major organizer of such event globally. These events have led to BMW being recognized as a fast and reliable automobile over the years. Moreover, due to the huge fan following of such racing events across the globe, BMW has found an effective way to reach out to newer markets. Hence, this conclude the BMW marketing mix.

BMW People:

• BMW has people working under its sales team that play a vital role in its marketing efforts. These people have been trained in persuasive techniques, but also to show respect to the business customers taking into consideration their preferences.
• BMW has people working in its customer service department. These are contacted by customers in case of any issues within the product, and these people guide customers through the process of getting the issues resolved. These people are trained to respect the customers and try their best to get their issues resolved.
• BMW has people working with suppliers to obtain raw materials. These people play a vital role in maintaining or improving the quality of the final product produced.
• BMW has people working at retail stores who help the customer on site, by answering any questions or helping them decide the product that best suits their needs.

BMW Process

• BMW to make sure that its products are always available at retail stores has systems installed where retailers can notify when their inventory levels are low. BMW provides them with more products while ordering its productions to replenish its stock. This ensures that products are always available to customers when needed.
• BMW has an online delivery process, where orders are received in the computer system and based on these orders, the relevant product from the inventory is shipped to the delivery service provider.
• BMW is actively involved in researching market opportunities in order to understand customer needs. It also develops understanding regarding customer needs through feedback collected at store, its helpline or social media pages.

BMW Physical Evidence

• BMW sells its products in a distinct color packaging that easily identifiable on retail shelves. These are placed on special shelves provided by the company, which also have a distinct color and design. This makes it easier for customers to locate such shelves in busy retail stores.
• BMW has an online website that is user-friendly and allows customers to view its products in high quality images taken from various angles.

BMW should collect feedback from its customers regarding its packaging so that it could improve on this.BMW should set up its own stores where it provides a shopper-friendly environment and ambience, encouraging its customers to purchase its products.

BMW should undergo trainings for its sales force, customer services and purchasing people as these play a vital role in delivering value to the customers.BMW should provide incentives to its sales force through bonuses for meeting targets, or through commissions for the sales made. BMW should hire people that show respect towards customers, and are committed to the company.

BMW has 24 hours hotline number to help in communication with the company exclusively for certain model customers. They have a website for online communication. They believe in listening to customers when they are “with” you.

BMW strives hard to find out what their customer need are and works hard to wards fulfilling them. They believe that it is important to satisfy customer needs to keep customers happy and satisfied.

BMW also realizes that all the costs taken to design their cars are also to be included in the cost of the car. They have retailers selling their cars in different regions/countries at different prices based on the acceptable customer cost for that region.

The UK has an important role to play within the BMW Group. It is the only place in the world where all three of BMW Group’s brands – BMW, MINI and Rolls-Royce Motor Cars – are represented by manufacturing operations. BMW Group employs around 8,000 people directly in the UK with an additional 14,000 in its 147-strong Retailer network representing BMW and MINI brands. The company has invested nearly £2 billion in its UK operations since 2000, and the UK is BMW Group’s fourth largest sales market in the world

References:

1. https://en.wikipedia.org/wiki/BMW/
2. https://www.bmw.co.uk/en/footer/experience-bmw/about-us.html
3. https://www.bmwgroup.com/content/dam/bmw-group
4. BMW Group (2016). Annual Report 2016. Available at: https://www.bmwgroup.com/content/dam/bmw-group-websites/bmwgroup_com/ir/downloads/en/2015/12784_GB_2015_engl_Finanzbericht_Online.pdf Accessed 7th December, 2016
5. Interbrand (2016) Best Global Brands 2016. Available at: http://interbrand.com/best-brands/best-global-brands/2016/ranking/ Accessed 7th December, 2016

Introduction

Bayerische Motoren Werke AG, also known as BMW, is a German based automobile manufacturing company founded in 1916 by Franz Joseph Popp, Karl Rapp and Camilo Castiglioni. Today, it is considered one of the best companies of the car industry and it is owned by the parent company BMW Group, which is also known for owning other luxury brands such as Mini and Rolls-Royce. It operates 30 production and assembly facilities in 14 countries and is present in more than 140 countries. BMW started off as an aircraft manufacturing company but due to the consequences of the First World War, they switched into motorcycle production and later on, entered a new sector which was the automobile manufacturing. Today, BMW is known for becoming one of the world’s most popular automobile brands.

BMW has always been trying to create value that best suits customer’s needs. It is known for being a brand that does not strive to serve all segments of the automotive industry. Therefore, it rather concentrates on targeting the premium segment at a global scale. This premium segment is comprised of individuals and households who eagerly look for automobiles that transmit high quality, luxury and performance standards. They are known to be professionals or executives who belong to the middle-upper class and whose income is high.

They are determined and ambitious and loyal to the brand. Moreover, BMW is also known for creating value through its high investments in R+D. They want to provide its customers to choose from a diversity of models which include world’s latest innovations and high-quality standards. For example, BMW was the first one in its segment to manufacture electric cars thus reducing the consumption of CO2 emissions.

In addition, BMW is well recognized for having the best security systems in all its models. As BMW’s goal is to offer maximum safety, the company has applied intelligent security systems in order to protect passengers from serious injuries in case of accident. BMW tries to differ itself from conventional security systems by applying a system which has the capacity to react at the speed of lights due to their decentralized structure of the system.

The reason why we have chosen BMW is based on the fact that we are very familiar with the brand and its very well known worldwide. We decided to focus on BMW’s procurement division since it’s key in a company’s supply chain. By doing some research, we identified that most companies underestimate its importance and therefore, we thought BMW was a potential company to analyze.

Corporate Strategy

Companies define corporate strategies in order to fulfil its company’s objectives while achieving a competitive advantage. BMW’s objective is to become number one in the automotive industry. They seek to inspire people while developing tomorrow’s individual premium mobility.

With respect to BMW’s competitive advantage, it is built upon five different aspects. First, the company ensures to offer the best customer experience. Due to the strong relationship and understanding BMW has with its core customers, all products and services are based on their needs and desires.

BMW strives to create and design products where customers can feel emotionally attached to them and highly satisfied. Second, BMW is an aspirational brand. To increase its brand value, the company constantly performs a thorough analysis of its design and its perception of the brand in the market. Due to the creation of new technologies, BMW foresees future opportunities. Therefore, it strives to innovate and implement new technologies in its future products and services. In addition, BMW’s aim is to inspire all those people who work for and with them.

As a result, respect and integrity are 2 fundamental values that are considered when directing BMW’s associates. Finally, BMW has an active role in the different communities in which they operate. They are responsible for each of the actions they perform and always achieve positive and excellent results.

As mentioned before, BMW’s priority is to offer the best customer experience. To do so, its strategic approach is based on the idea of taking BMW to the next level. Due to the constant changes’ companies face today in this modern world, BMW strives to adapt to change by taking advantage of today’s new innovative technologies, digitalization, and sustainability. They are willing to exploit every single opportunity that comes on their way in terms of transformation and become the most innovative company in its industry.

Their aim is to keep growing and offering its customers world’s latest innovations. For future years, BMW will focus its core business on aligning sustainable mobility with technological changes in its product portfolio. This means that BMW will invest on improving customer relationship and getting customers familiarized with these new upcoming technologies, which in turn will create new market standards. BMW’s strategic approach involves the following aspects: brand & design, technologies, customer experience & services, digitalization, profitability.

How is BMW´s supply chain strategy aligned with the company strategy?

As mentioned in the previous section, BMW follows a strategy where the customers are seen as the most important stakeholders. Following their Customer Oriented Action philosophy, customers are taken into consideration from the beginning to the end of the value chain. As stated by BMW, growth, shaping the future, profitability and access to new technologies and customers are the four core goals of their corporate strategy, which are replicated in their supply chain strategy.

Car manufacturing is one of the most complicated industries to build a proper functioning and efficient supply chain. The demand for customization, complexity of the product, assembly line with thousands of different pieces and different regulations are only some of the reasons behind the intricacy of the supply chain.

In addition, BMW is well know as one of the world’s most premium brands with some brands such as Mini & Rolls Royce under their holdings. They can only keep such brand reputation by maintaining their quality through continuous innovation and improvement. The brand is known for their wide variety of customization options, this strategy mainly focuses on customers, they want to offer their clients a car on demand. In order to do so efficiently, they use MySAP communication. MySAP is a supply chain wide communication platform which connects suppliers, manufacturer & distributors. By doing so the company is able to satisfy customer preferences, shortening lead time while reducing stock costs. This is only possible communication is effective among all parts of the supply chain. Following these two practices, BMW attracts potential customers by customization and quality assurance.

BMW’s supply chain has two main pillars and areas of continuous work. The first of them is the assurance of quality and minimization of risk along the supply chain. This does not only improve the quality of their production but reduces huge potential losses. The second is to continuously improve supplier relations and work closely with them in order to improve their service and ensure all specifications are met.

Examples of their strategy to take on the newest technologies can be extracted from the platforms they use. In addition to their communications tool MySAP, BMW uses the latest technologies in sourcing. The e-sourcing platform ASTRAS eRFX, allows BMW to source, track & evaluate their potential suppliers for every new purchase. With a 4 step process the company is able to offer new contracts, receive bids, retrieve data about the different bidders from their databases and finally make a choice among them making sure all the requirements and specifications will be met.

Finally, BMW is taking a more sustainable approach to their production, taking into consideration the direction of the world and the latest concerns. Not only they apply to themselves but require their suppliers to follow some quality standards along with strict sustainability requirements. In most cases the company will investigate even further and take into consideration the suppliers of their own suppliers. This will be further explained in another section of the paper.

Build-to-order

The automobile industry background, nowadays, is quite distinctive and fast-driven with a constant change in customer´s needs. Disruptive technology has allowed the car manufacturers to boost their product line in order to cover a greater customer portfolio.

BMW has adopt a “[footnoteRef:1]designing to defer product differentiation strategy” aligned with a build-to-order production. The reasons behind these implementations are: [1: Mathews, S. (2015, July 28). Analysis of BMWs Global Supply Chain Network – its production – distr… Retrieved April 4, 2019, from https://www.slideshare.net/SachinMathews1/analysis-of-bmws-global-supply-chain-network-its-production-distribution-sourcing-strategies-and-mechanisms]

• Pull service to enable customers to build their car with their personal preferences increase marketing efficacy
• The demand is dedicated to an adaptable supply chain boosts production efficiency
• To create a steadfast, consistent and personalized service environment moves away from a mass-production logistics
• BMW´s customer relationship is shared across the entire company, therefore it is not located uniquely in the dealers´ area more devoted service.
• Dealing with uncertainty is strategically placed in the safeguard and information management area avoid waiting, till the finished good inventory, to solve any issues.
• Little condensed in dealer´s stock quantities avoid having excessive stock control in the finished goods inventory.
• Cooperative and receptive, in order to mitigate long lead times in the supplier area.

Value-added production system

BMW has implemented this system in order to make the most of the chain from product demo, through progress, manufacturing/procurement and distribution. The main purpose is to diminish any waste, in order to reduce expenses. BMW covers it through [footnoteRef:2]lean and a fast production process while guaranteeing their brand´s quality. Lean management in BMW is characterized to detect precisely any issue and deliver quicker solutions. [2: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-future-of-the-automotive-supplier-industry-outlook.pdf]

BMW supply chain strategy is delivered in an adaptable and responsive way not only thanks to lean management, but also to the connection between [footnoteRef:3] “value-stream mapping” and the 5s (sort, simplify, sweep, standardized and sustain). This services are being fulfilled by their constant update in disruptive technology. This permits the company to react to changes in customer´s needs (e.g. hybrid cars due to Kyoto´s protocol). Resultantly, this system enables to boost the improvement in their expense´s structure, quality and productivity per product. [3: Mathews, S. (2015, July 28). Analysis of BMWs Global Supply Chain Network – its production – distr… Retrieved April 4, 2019, from https://www.slideshare.net/SachinMathews1/analysis-of-bmws-global-supply-chain-network-its-production-distribution-sourcing-strategies-and-mechanisms]

Reverse Logistic Network

This logistic area is key for BMW in order to boost their competitive advantage in the market. They implement this strategy in two areas of their supply chain:

• “Closed-loop” is a production mechanism in which all the feasible resources are employed on the same process.
• “Post-industry-loop” is a production mechanism in which the company recycles materials, such as containers, for their manufacture.

Distribution Network

The company uses a selective distribution strategy, which new cars can only be sold through BMW dealerships. The central purpose of this distribution channel is to expand accessibility to the customers and add value through dealers that are in charge of providing additional expenditure of promotional purposes on top of ad campaigns that BMW carries out. Handling delicate showrooms in order to deliver unforgettable buying experience and provide after-sales services are some of the values dealers add on BMW cars.

Following their Customer Oriented Action philosophy, they are investing in technology to deliver agility to customers and reduce the lead time of their orders. The focus is on applications such as logistics robots, autonomous transport systems at plants and digitalisation projects for an end-to-end supply chain that are already being implemented worldwide in logistics at BMW Group plants. They rely on a global supply network and close cooperation with numerous logistics service providers. The Connected Supply Chain (CSC) program significantly increases supply chain transparency. It updates the plants material controllers and logistics specialists on the goods location and delivery time every 15 minutes. This transparency enables them to respond immediately if delays appear likely and take appropriate steps early to avoid costly extra runs.

Moreover, BMW Group is also seeking for achieving sustainability by their logistics. They aim at reducing truck CO₂ emissions by 40% by 2030 and to be completely emission-free by 2050. Due to that, the company is devoting effort to acquire CO₂ – efficient modes of transport. More than 60% of all new vehicles already leave production plants by rail. Although, it is still necessary to use trucks on certain in-and-outbound logistics routes, BMW Group is already using natural gas and electric trucks in cooperation with logistics service providers to reduce emissions from these truck journeys.

Supplier network and Management

With more than 300 different companies in North America, Canada and Mexico, the manufacturing of BMW relies on a wide and efficient supply network characterized by its working skills, experience and talent. They not only supply their products but are also keen on looking for alternatives to improve and achieve the highest quality products & processes that will improve the overall company and drive it to the top.

Regarding BMW’s overall supplier network, they work with around 12000 suppliers in 70 countries, being Germany and Western Europe the main providers. The wide variety of suppliers that they work with, have led them to create the BMW Group Supplier Sustainability Standard so all of them equally comply with all the social and environmental standards that BMW has implemented.

BMW is considerate when talking about their sustainability and therefore they focus on two main areas in order to be efficient, well focused and chase improvement.

First of all, BMW seeks to reduce risk and therefore they are very cautious with the projects that may create risky environments. They are very careful with the pieces supplied and the processes that they encounter when supplying them. As sustainability is a crucial part of their process, they audit every single supplier that they think might breach the norms in order to prevent any negative circumstances. To better prove the importance of sustainability for the BMW Group, we can state that they recognize it as one of the main pillars that identify the company.

Secondly, BMW takes advantage of every opportunity given and therefore work with their suppliers in order to achieve the best and most efficient returns. Also, they take care of their stakeholders as BMW likes to be involved in several initiatives which gives value to stakeholders.

Next, we will explain some activities that BMW uses regarding its supply in order to reduce costs and achieve better results.

BMW has also started initiatives in order to penetrate new developing markets where they will source their products locally. This will enable them to focus on their products faster and an overall increase in value. Also, the fact that products are sourced locally, costs can be reduced. This comes with trade-offs, as lower costs can come with the disadvantage of reduced materials. As products are sourced locally, the materials enabled for the processes can be reduced and therefore BMW would have to comply with what that country has available.

Not only does BMW outsource products but they also use “Just in Time” systems. These products will arrive to the exact point they are needed in the assembly line. This way they will reduce costs from inventory and production which will benefit overall company productivity. The trade-offs regarding this system could be the fact that they might be short on products as they don’t have storage.

To conclude, we can state that BMW’s supply network is extensive and that they give great importance to their suppliers and costs saved/incurred.

Conclusion

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The Mercedes Benz S500, manufactured by the German automobile manufacturer Mercedes Benz has been described as one of the most advanced technological productions in the automobile industry. This new S500 looks smaller and slimmer than earlier models, measuring about 1.3 inches narrower and more than two inches shorter. The Audi A8 is an executive luxury car that is also produced by a German automobile manufacturer by the name Audi. It is a great car and offers stiff competition to the Benz S500. One of the models in this range is the Audi A8 4.2 FSI that combines the sportiness of the BMW and the engineering power of the Mercedes to give it a very muscular feel.

Another range of luxury vehicles is the BMW 7 Series manufactured by the BMW Company, another German automaker.

The current series is available in two models, the E65 standard-wheelbase and the E66 extended-wheelbase that feature the first kind of iDrive system in the BMW group of automobiles.

Statement

The Benz S500 is characterized by soft contours, gently sculpted hood line, and sweeping headlights that give it that trim and sleek appearance. Front and rear seats are very firm and supportive and are covered in very rich leather upholstery to give the driver a relaxed feeling even after a long drive. Its integrated system, referred to as the Cockpit Management and Data (COMAND), has various buttons that are used for the operation of various gadgets in the vehicle. Varying weather conditions are measured using exterior sensors in the control system, and there is a satellite-operated navigation system that is displayed from a T.V.-like screen (Hagin Tom 2007).

The Benz S500 is powered by a V8 modular with a liter capacity of 5.0 liters.

The engine type is a SOHC Z4 valve with a size of 303 Cid/4966 cc and has 339 pound-feet of torque and a 302 horsepower that launches very well, giving it an impressive 0-60 mph times. An automated five-speed transmission helps the driver to gain more control, and for sport-shift points and slippery roads, there is a Winter-sport button. Although all these qualities cannot eliminate accidents, the system greatly helps the driver to avoid potential problems. Prices range between $90,000 and $145,000. In performance, the Benz S500 is quite fast on the road at 90mph to 110mph and has also displayed lightning-quick reaction either when parking or even driving aggressively (Hagin Tom 2007).

The Audi A8 4.2 FSI has a petrol-powered engine of 4172 ccs and a 90-liter tank that is very useful on long journeys. The fuel system is DI, Bore 84.3mm, stroke 93 mm, 40 valves, 335 @6500 ps @rpm, Horsepower, and a Torque of 429.9@3500 NM@rpm. The engine performs greatly and in a very refined manner, and the 4WD gives it superb transmission during the gear shifts. The price ranges between $70690- to $120995.

It has exceptional features such as the Quattro four-wheel drive and adjustable suspension that give it an advantage over other cars. Other features include an innovative defogging system, automatic air conditioning that has a four optional channel system, electromechanical parking brake, and a Bose Surround Sound System. The Audi A8 4.2 FSI has very comfortable features such as power leather seats, door locks, mirrors, windows, and power seats. Other features are Moon and Sun Roofs, AM/FM radio, CD players, and cassette players.

The safety features include key-less entry, Anti-lock braking system, driver and passenger airbags, child safety lock, front and rear airbags as well as an anti-theft system (Ghosley Steve 2007).

The BMW 7 Series range of vehicles have an iDrive is used to control most of the car’s features that include audio, climate, and common settings, navigation, and suspension, even though most automotive writers have criticized this system as too complex. Features include a generous bonnet, long wheelbase, and splendid roofline curves, perfect harmony, exclusive luxury, and sporty performance that all combine to offer a driving experience that is unique.

The BMW 7 series also has quite excellent features in the control system, such as the Dynamic Drive, which helps minimize body roll and gives an electric damper control. Other features include power door locks, mirror and seat, Moon and Sun Roofs, AM/FM Radio, CD player, superb leather seats as well as excelled air conditioning.

The engine is a 2993 cc, Horsepower 160@400 Ops@rpm, Torque 500@1750Nm@rpm, Z4 valves, six-cylinder configuration, and valve gear operation is DOHC. All these features combined produce quality, refinement, excellence, and class in one package. Safety features are similar to those of the Audi, but the anti-theft system is optional.

Prices range between $75,800 and $ 122,000. (HDFC Bank 2007-2008).

Conclusion

Unlike the Audi A8 and BMW series, the Benz S500 does not have the joystick system of control and just scanning for a radio station can be annoying.

Like the Audi, the Benz S500 has an air system to stiffen or soften the ride in case one wishes to adjust its suspension settings, and this is done by use of a button on the dash. The interiors of BMW 7 series, Mercedes, and Audi don’t have much difference, but differences only exist in the make. All three types of vehicles are luxury vehicles that display a very awesome exterior which has been well designed to conceal awesome kind of wheel power. The seats in all three types of vehicles are leather made and they display a lot of comfort and especially the driver’s seat. The Benz S500 has a lower engine capacity as compared to the Audi A8 and BMW 7 series giving the other two types a better chance in long distance driving. When it comes to engine power, the Benz and the Audi have more powerful engines than the BMW. The Benz S500 is more expensive than the other two types that have a close price range.

References

HDFC Bank(2007-2008). BMW 7-Series 730 Ld (Diesel). Web.

Ghosley Steve(2007). Audi A6 4.2 FSI Quatrro. Web.

Hagin Tom (2007). New Car/Review. Mercedes Benz S500. Web.

The problem of environmental pollution and its prevention are essential elements of criminology. The recent investigations of BMW and Volkswagen are one of the many examples of misdeeds done to nature (Neslen, 2019). BMW was irresponsible in following strict rules regarding emissions, which shows that the given company attempts to avoid minimizing its impact on pollution. However, these kinds of incidents are becoming common across all car manufacturers and producers. Therefore, effective global legislative regulations have to be implemented to monitor the emission rate.

The BMW case can be seen through the theory of “broken windows” because car companies trespass the laws. After all, competitors might get away with it. According to this theory, if one entity commits a crime and escapes justice, others will try to do the same to profit (Leclerc, Chiu, & Cale, 2014). The routine activity theory may also be applied towards the given case because it states that the crime occurrence does not depend on poverty or inequality.

Prosperity and development can contribute to and increase crime rates because they provide more opportunities for a crime to be committed (Melo, Pereira, Andresen, & Matias, 2017). The implementation of numerous regulations on emission across the globe multiplied the instances to trespass these laws.

However, effective and functional policies can be put into practice to decrease environmental crime instances among car companies. The conflict of interests’ issue is crucial because designing policies to be profitable and attractive has high significance (Groff, Taylor, Elesh, McGovern, & Johnson, 2014). If a new emission regulation is aligned with the interests of BMW, the company gains and benefits from following the policy. Therefore, the corporation will not undermine laws, which are created to preserve the environment and nature of pollution.

References

Groff, E. R., Taylor, R. B., Elesh, D. B., McGovern, J., & Johnson, L. (2014). Permeability across a metropolitan area: Conceptualizing and operationalizing a macrolevel crime pattern theory. Environment and Planning A: Economy and Space, 46(1), 129-152.

Leclerc, B., Chiu, Y. N., & Cale, J. (2014). Sexual violence and abuse against children: A first review through the lens of environmental criminology. International Journal of Offender Therapy and Comparative Criminology, 60(7), 743-765.

Melo, S. N. D., Pereira, D. V. S., Andresen, M. A., & Matias, L. F. (2017). Spatial/temporal variations of crime: A routine activity theory perspective. International Journal of Offender Therapy and Comparative Criminology, 62(7), 1967-1991.

Neslen, A. (2019). BMW, Daimler and VW charged with collusion over emissions. The Guardian. Web.

Introduction

The goal of advertisements is mainly to communicate to an audience and to entice them to buy their product or service. The goal does not stop with the mere conveyance of a message. Ads have the main objective of arresting audiences’ attention. Brand of the product is the value proposition between the user and the unique experience offered by the product (Rucah Humnabadkar, Mather and Vogel). Brands display a vital relationship with its design. In the same manner, the designs of ads are relevant to the culture and experience of the brand.

BMW

The no-nonsense print caption says it all “Congratulations to BMW for Winning World Car of the Year 2006.” It is factual and simple, credible and true- just like the product it advertises. This is an important statement in a print ad of a well-known car-manufacturing firm, a single sentence that more or less sounds like a eulogy coming from BMW. Moreover, there is the familiar logo—the four perfect circles intertwined together forming a chain link. Indeed, this is the symbol of another brand of car: Audi. This Audi ad asserts the value of its brand with respect to another brand, that of its fierce competitor, the BMW.

Even more, the very inclusion of the statement “From the Winner of Six Consecutive Le Mans 24 Hour Races 2000-2006” is designed to undermine the rather prominent award bestowed upon BMW, the “World Car of the Year 2006.” The advertisers opt for a silver color in order to create a unified feeling of class and style.

Audi: Congratulations to BMW for winning World Car of the Year 2006. From the Winner of Six Consecutive Le Mans 24 Hour Races 2000-2006.

Absolut

Liquor companies generally create the impression in their advertisements that drinking is fashionable, that it is a perfectly enjoyable social act. On the other hand, many companies fail to comply with the corporate responsibility of informing the public of the repercussions of irresponsible drinking. As stated earlier, the constant exposure to liquor ads, especially among immature youths, may directly impact the formation of awareness about liquor and alcoholism.

This 1997 Ad Absolut Vodka Ice Silhouette Woman Herb Ritts ad says it all and in a very sensual manner. The woman in the bottle has a subliminal effect on any man who drinks it since he is stimulated to imagine an image of a sexy woman everytime he drinks that. It is effective in its use of the blue background of the serene sea which is quite opposite how one can behave after drinking it. The blue hues that uses are enough to create the feeling of being calmness and the drink in the dark of the night.

1997 Ad Absolut Vodka Ice Silhouette Woman Herb Ritts.

Avon

Avon is a company that uses colors to its advantage. The products themselves use a lot of colors that lure clients to buy the products. The beauty products naturally employ colors, brilliant, glossy, surprisingly loud, multi-colored print ads. In this Witherspoon ad, Avon makes use of her popularity and the wholesomeness of her face, even her reputation to highlight the products’ credibility. It uses bright pink highlights emphasizing the model’s flawless skin and red lipstick.

She is not the ideal beauty one would think of and this is what the ad wants to portray to all women so that even if they have flaws on their face (like Witherspoon’s quite elongated chin), people can still manage to look beautiful because of Avon even to those who do not have perfect features. Indeed, Avon’s mission is highlighted here as it empowers women from all walks of life to buy the products that would make them stunning. There is the implication that when one uses Avon products, one can transform from ordinary to ravishing.

References

Cognitive Dissonance Theory. 2008. Web.

Rucha Humnabadkar, M.Des., John Mather and Craig Vogel. The Role of Design in Establishing a Brand: Three in-depth Case Studies. 2003. Web.

Advertising refers to all the actions implemented by a commercial or industrial enterprise to promote its products or services in order to boost the volume of sales. Its sole purpose in the first place is to attract attention and influence consumers’ choice. We can clearly distinguish two types of advertising. These are commercial advertising and brand advertising. The first seeks to publicize a product and convince the audience that the product is better than those of competitors.

Hence, it encourages consumers to purchase a product. The second type of advertisement focuses on the image of the company and its reputation. In the world of advertising, we can also distinguish the means and media used for different media advertising campaigns such as posters, television commercials and billboards. Therefore, an advertising campaign is aimed at a target and it relies on a hook to attract public attention.

The oldest forms of advertising signs were painted or engraved on buildings at a time when printing did not exist. Today, advertising has a very important place in our society because it alters the behavior of human beings. The world of consumption is not limited. This essay explores and analyzes advertising appeals employed by advertisers when promoting their products and services. Besides, advertising strategies used by a BMW automobile company have been analyzed as a case study in the essay.

The BMW i8 advertisement presents a powerful commercial idea. The impression that HIV/AIDS and cancer have been cured is depicted in the advertisement (“BMW i8” par. 2). The advertisement is also accompanied by a lyrical tune that compels the targeted audience to desire listening to it continuously. For an advertisement to work, it must reach the public. The latter is the purpose of any campaign. For the above piece of advertisement, the advertiser had to identify and understand the motivations of consumers purchasing top class cars in order to adapt the message that transforms the product into an object of desire. According to Craig, there are four major theories of advertising strategies that may be used to target and influence consumers (3).

The BMW advertisement is persuasive and informative. Craig observes that this type of advertising is meant to convince or persuade consumers that a particular product is superior to others. The advert can be considered to be rational. The above advertisement also attempts to convince buyers that they will satisfy their luxury need once they buy the classy car. This advertising aims to inform the audience by explaining the advantages of a BMW car.

However, such an advertising strategy has been widely criticized. Indeed, we find that an individual does not always act rationally. Craig explores the economics of TV advertising especially when the aspect of gender is brought into picture. The BMW advertisement is inclined towards gender. It creates a mental image of a beautiful young lady who is similar to the car being advertised. Standardization of products is not easy when this type of advertisement dominates consumer market (Craig 5). When consumers reject the influence generated by this type of advertisement, it may lead to significant loss in terms of advertising costs.

The above piece of advert is also suggestive. This strategy is based on psychological need. It appeals to the inner desires of individuals desiring to own the car. According to Fowles, “an advertiser must strive to cut through the considerable commercial hub-bub by any means available-including the emotional appeals” (16). The advertisement also appeals to meaning. This type of advertising strategy gives the power to imagine because it unconsciously influences the targeted market to buy the product. Hence, consumers will not purchase a product owing to a good reason but simply because they feel a need that is not necessarily justifiable and has not been satisfied (Fowles 18).

BMW’s advertising is also mechanistic in nature. This advertising theory states that economic habits of a consumer is not always rational. This behavior allows passive buying especially when a TV or online commercial program is run continuously for a long time. Craig asserts that “programming manipulates gender portrayals to please the audience” (4). In other words, potential buyers of the BMW car can easily be influenced to adopt a reflex habit. Mechanistic advertising creates an automatic response from the targeted customers. The process involves the ubiquity and identity of the product and/or brand being promoted. Critics have denounced this view owing to the poor image and publicity anchored in people.

Besides, it can also be argued that the BMW advertisement is projective or integrative. This type of advertising is aimed at a well-defined social category. It enhances the standards of people by designing a product where the brand is promoted. The advert also arouses a desire among consumers to assert their social rank by buying and owning a BMW car.

The various strategies highlighted above have been applied through the functional models of consumer behavior theories. Freud and his famous theory of inconsistency led to the establishment of the psychoanalytic model. Moreover, the advertiser of the BMW car does not only promote the qualities of the product. The product is made visible in order to improve the imagination related to its appearance. There are several methods to achieve the latter. Examples include using celebrities, facts and figures, rehearsals, jingles and sound effects, bright colors, eye-catching text, meaningful words while playing images of family happiness, exciting scenarios, or even a feeling of being “cool” or relaxed (Fowles 19).

After analyzing the BMW’s piece of advertisement, it is equally prudent to conclude on a number of issues raised. To begin with, emotional appeals are used by advertisers because they easily arrest communication and assist in drawing close attention of the audience. Second, emotional appeals illuminate the inner desires of consumers. Use of mental and physical images often delivers a greater meaning to a piece of advertisement than words. From the BMW’s advertisement, it is possible to meet various needs of the audience. A typical example is the need for affiliation. The advertisement depicts that individuals who are connected to the product are highly likely to be successful in life.

The emotional appeals of advertisement discussed in the article by Fowles are often the main targets of advertisers. In any case, it is not possible to convince consumers to buy certain products if their emotions have not been influenced. Affiliation needs can be vividly brought out in advertisements through images of people celebrating together and being connected with other influential personalities across the board. It is indeed factual that advertisers usually target our unmet desires when launching their promotional campaigns. However, a series of procedures are necessary in order to accurately recognize and analyze advertisements.

First, do not ignore product information. Besides, consider the viewing angle. Taking photos of the subjects from below may not be appealing most audiences. It is more appealing to photograph subjects from above in order to increase the appealing nature of an advertisement. Besides, understand the target consumers in order to boost appeal of advertisements directed to them. Every advertisement should make only one appeal in order to avoid excess diffusion of ideas.

Works Cited

BMW i8, 2014. Web.

Craig, Steve. Men’s Men and Women’s Women: How TV Commercials Portray Gender to Different Audiences. 1992. Web.

Fowles, Jib. Advertising’s Fifteen Basic Appeals. N.d. Web.

Introduction

The advertisement picked up by me is that of BMW cars in general, that appears in different magazines and commercials in conveying the message to potential buyers about why a BMW car is the ultimate attraction for those looking forward to an overall excitement as conveyed by the picture. Every aspect of the car buying decision and the later experience of enjoying the car is portrayed in the advertisement, all of which is evident from its detailed analysis as under.

Main body

Upon seeing the advertisement one is instantly taken to a different state of mind which brings in compelling feelings of excitement and wonder as to what exactly the ad is trying to convey. All viewers of the ad will ponder in their thoughts by associating themselves with the character who is experiencing exciting moments with the creation of sensual desire that is then associated with the BMW car. Immediately there is feeling of credibility about the brand in conveying that here is one car that has the potential in bringing about the much desired excitement as related to sensuality.

There are various elements to the ad in portraying different aspects that appeal to the human psyche. The first impression is that of a young and beautiful couple sharing intimate moments, and along with the pictorial depiction of this aspect is the picture of the BMW car staring him right in the face thus implying that what he is enjoying is the car. The early morning rising sun as seen from the window signifies the start of the day meaning that such experience with the car starts first thing in the day. The neat and clean bed on which they are lying conveys the neat interiors of the BMW car, and the perfect bodies of the two characters in the ad clearly indicate similar perfection of the car. The writing on the ad in saying that it is the ultimate attraction gives away the motive in that there is nothing better than the BMW car. Hence the pictures and the copy are perfectly balanced in conveying the desired message. Surely the ad follows a systematic pattern in making every aspect of the picture to be associated with the kind of experience the car can provide in terms of ultimate comfort, excitement and perfection. The arrangement of the ad suggests that the car is perfect in all respects.

There has been lot of expertise put into the advertisement in regard to white space. There is very little text written in it which is not too crammed with text and graphics giving clear indication of an excellent design. The ad has lot of white space but it is very much in the context of the reader visualizing his aspirations as being materialized by associating himself with it. The basic function of too much white space in this ad is justified since the element of the advertising design warranted the same. The ad had succeeded in creating an ambience of clean sensuality and class coupled with perfection as depicted from all aspects of the pictures and minimal text used.

The only sign and symbol present in the advertisement is the BMW logo that goes a long way in depicting that the advertisement is not an effort to enhance the sexual sensuality in people but that it is associated with the BMW car that has been advertised. All the excitement and perfection depicted in the ad is to convey that such an experience is definitely associated with the BMW car, and that the presence of its logo, placed quite prominently is clear evidence of the same.

The figures in the ad are that of a young couple; both are perfect as far as their bodies are concerned, they are in a very composed position signifying that they are in full control and that they are relaxed in what they are doing. The man’s face gives away the sense of admiration in his glances which are directed at the face of the girl which inevitably is shown as a picture of the BMW car, thus signifying that his admiring gestures are directed at feelings towards the car and not towards the girl. Obviously the glances of the young man are a token of the sense of admiration of the car in as much they would have been in admiration of a girl with such a beautiful figure. Obviously also, in as much as the man is intimately connected to the girl in the picture, he is also shown to be connected in the same manner with the car.

The setting in the ad conveys an atmosphere of serenity and relaxation as conveyed by the picture and it is significant in that the BMW car is perceived as implying the same kind of significance with all those who own it.

The plot of the ad clearly gives away the motive of the couple in enjoying some intimate moments that will be full of excitement and satisfaction. The ad depicts a stage when the couple is all set to share intimate, sensual and exciting moments and that there is no expectation or inclination on their part to get disturbed in any way. They are looking forward to share relaxing moments, and the fact that the girl’s face depicts a picture of a BMW car, is clear indication that the car too will give similar experience to its buyer.

The language used in the ad is minimal in saying that the car is “the ultimate attraction”. However, these words have been used very tactically in conveying the hidden meaning to all those who view the ad. On the face of it the reader is first made to understand that the girl is the ultimate attraction, but upon shifting the glance towards the face one realizes that the same fatal attraction is implied for the car in conveying that it will entail similar excitement. The text is certainly not informative, because an ad is supposed to evoke emotions in attempts to alter behavior. In this context the emotion conveyed is clear in owning the car as a prized possession as much as what is depicted amongst the couple. The wordings as also the pictures do connote a double meaning but they are simple to understand. The first set of meanings are inferred from the face of the ad after viewing the picture, and the second meaning instantly dawns on the viewer that this is pertaining to the BMW car. There are no quotations in the advertisement.

The immediate effect of the typeface in the ad is to register in the viewer that there is nothing other than the BMW car in being “the ultimate attraction” for any person who is excited by seeing the picture of the ad and that just as the picture excites and changes the mental state, so will the car prove to do.

On the face of the ad there is no picture of a car but from the logo it is clear that the ad pertains to BMW cars. The logo is placed so that one gets to know that the ad is for BMW cars. There is a picture of a car placed on the girl’s face in clear indication that the car is of the same significance as that of the young girl in bringing the beauty and excitement in one’s life. The car plays a vital role in the life of most Americans in that it is almost a necessity in commuting to different places for work and pleasure. The use of the car in the ad is very much consistent with its role especially as portrayed in the ad. There is lot of competition in the automobile market and car manufacturers have to be very creative in luring and attracting customers into buying their cars. With the kind of competition in this sector, advertisement is a very effective means to change consumer opinion in their favor, and it is in this context that the advertisement is in the nature of appealing to the sensual feelings in associating it with the BMW car.

Photography is the core strength of the advertisement design in this ad. The positions and the placement of the subjects have been done so as to create the right lighting and color effects in creating a focus that is in keeping with the desired impact that the ad is to create amongst its viewers. The lighting is focused on the couple and other things in the room are comparatively dimmer, in keeping with the aim to make the facial expression and body textures clearly visible to convey the meaning behind the ad. It was essential to create such effects because otherwise the message would not have gone through.

The ad depicts an open taboo free society that is open to these types of advertisements which may not be acceptable and tolerated in conservative, communist and Islamic countries.

Evidently the ad does not suggest any standard for family life but it is clear in portraying the importance and relevancy for beauty and gender relationships in stressing such roles for meeting one’s aspirations. The ad attempts to reinforce the importance of one’s status as being directly related to the importance given in one’s relationships and emotions.

This advertisement is very different as compared to other car ads since most of the car ads invariably depict a model of the car in question in attempts to highlight the technological and comfort aspects as also in being specific about the subject matter of the ad. The advertisement is unique for BMW since most of its other ads specifically give pictures of the car.

The ad appeals to the internal desires of the car customer because it is human tendency to associate his desires with what he considers as being very important. Intimacy and a nice companion are internal aspirations of every young man and if the car can be portrayed as complying with such an aspiration, the advertisement will certainly appeal to the consumer who will give a second thought to the advertised brand, and then perhaps go ahead in buying it.

Conclusion

The advertisement appears in the print media and particularly in glossy magazines read by the high end customers who have the financial capabilities to reach up to their aspirations in meeting their emotional requirements.

References

Al Ries, Jack Trout, Positioning: The Battle for Your Mind, 2000, Mc Graw Hill.

Berger, Arthur Asa. “Sex as Symbol in Fashion Advertising and Analyzing Signs and Sign Systems.” Reading Culture: Contexts for Critical Reading and Writing 2nd. Ed. Diana George and John Trimbur, eds. New York: HarperCollins, 1995.

Jon Steel, Truth, Lies and Advertising, Wiley, 1998.

Marc Gobe, Emotional Branding: The New Paragigm for Connecting Brands with People, 2001, Allworth Press.

Richard Bayan, Words That Sell, 1987, Mc Graw Hill.

Thomas O Guinn, Advertising and Integrated Brand Promotion, 2002, South Western College Publishing.

Introduction

This paper provides a detailed scrutiny of BMW Central Building. The award-winning architect, Zaha Hadid, who was selected from more than 100 entries from other world’s leading architects following an open request to submit a building design for the company, designed the BMW Central Building. Before the erection of the structure, the plant had three disjointed houses, which assumed an important position in the construction process of the company. The three buildings separately housed the production of raw auto bodies (645,000 square feet), the paint shop (270,000 square feet), and the final assembly hall (1,075,000 square feet) (Jodidio 2).

The construction of the Central Building allowed the three buildings to be joined into a single complex. The competition for the construction of the Central Building aimed at attracting designs that would allow the buildings to be joined. In fact, the building complex would also house the administrative division of the company. The selection of Zaha Hadid’s design was informed by the evident creativity that allowed the bringing together of manufacturing, blue collar, and white collar roles in the company in a seamless manner (Kochan 111). It allowed visitors to interact with both administrative and manufacturing segments of the company. The complex is now the central nerve for the production facility in Leipzig Production Plant.

The company’s move to expand and modernize its production location in Leipzig was in line with its desire of cementing its position as a central car producer in Germany and across the world. Other competitors such as Audi and VW had already modernized their production facilities. All the key developments in the Germany automobile industry have allowed the country to position itself as a leading origin of top-notch vehicles to compete in the global automobile industry.

The BMW Central Building is noticeable from the previous structures on the location by its vibrant geometry that looks like the lightning lock. Further, interstitial rooms on the structure are set to suit court squares that add magnificence to the house. Employees and visitors all enter through the same door where an overhead conveyor for car bodies greets them since uncompleted car bodies zoom past the production line (Wittenburg 328).

The employees experience being part of the larger enterprise in the way the manufacturing and administrative roles are interconnected. Divisions were not apparent since the entire close to 800 workers in the Central Building from the boss to the apprentice has an indistinguishable computer unit. Concisely, the BMW Central Building is an indication of the power of modern architecture and technology.

Location of the Building

The BMW Central Building is located in Leipzig, Germany (Wittenburg 327). The building is part of the manufacturing complex for BMW, which is dedicated to the production of BMW 3 Series with a capacity of more than 650 vehicles per day. The plant is located on a 250-ha site in the capital (Bonfinger, Mayer, and Wollmershäuser 99). The plant, which combines the production processes and the daily administrative roles, employs more than 5,500 employees, thus making it the largest single employer in the town.

The plant was established in 2001. Its choice was informed by various reasons. Firstly, the plant is strategically situated between two main roads, namely, A9 and A14 autobahns. In addition, the municipality, which is a crucial location for other automobile production facilities such as Audi, is home to specialist personnel (Jodidio 8). Further, as a central industrial center, the city has an elaborate logistical providers and suppliers of input materials for the production of cars among other industrial activities.

The City of Leipzig is the fourteenth largest metropolis in Germany in terms of population. It is crucial to note that the capital is purposefully located in 160 kilometers from Berlin. Its location near Berlin makes it an important destination for many manufacturing companies that seek to expand their production capacities outside Berlin. The metropolis has a population of about 540000 people while its larger urban zone has a population of approximately 1.1 million residents (Gannon 12).

The metropolitan is located at the confluence of two rivers, namely White Elster and Parthe, and hence a further reason why it is strategic for key production companies due to the availability of water. It has an extensive history of being business heart since the times of Roman Kingdom. It is also located at the convergence of two main historical business paths, namely, Via Regina and Via Imperii. During World War II, the city was a significant urban center for East Germany. Its status as a cultural and economic center declined after the collapse of the country from the devastations of the war.

The town has experienced principal modifications, including the reinstallation of past structures and the destruction of others to pave a way for the construction of recent houses that now are characteristic of the municipality. It is also viewed as one of the most modern and livable cities in Germany. This situation is fueled by the influx of top-notch companies that wish to utilize its strategic location as a manufacturing hub in the country. The metropolis is served by foremost transport infrastructures, including road, rail, and air (Kochan 113). Its extensive transport network has eased the movement of people to and from work, hence further strengthening its position in the country (Gannon 9). It is also connected to other cities such as Berlin through a rail and road system, which further ensures that its strategic location is further strengthened.

The company is not only a primary production hub of BMW but also for other car manufacturing businesses such as Porsche and Audi. In 1921, the Versailles Armistice Pact authorized the company to stop its manufacture of planes. In 1921, the company shifted to the production of motorcycles before it evolved into automobile production in 1928. In the 1950s, the company ran into financial difficulties that made it almost functionless.

However, after overcoming the challenges of the time, the company managed to grow rapidly into one of the world’s leading vehicle manufacturers (Spencer 5). In addition, the town is currently the central base for DHL, the world’s leading parcels and logistics organizations. It relocated its activities from Brussels landing field to the Leipzig/Halle Airstrip (Jodidio 6). The metropolis is also the base for the European Energy Trade in Europe. Concisely, the location of BMW’s Plant in Leipzig is informed by strategic reasons that support the Germany automobile maker’s push for becoming the world’s leading auto manufacturer.

Culture and Society

The City of Leipzig is among the earliest developed regions in Germany. It was firstly recorded in 1015, meaning that it may have existed before the 11^th century. In addition, it was first recognized as a capital and market in 1165. Over the centuries, the metropolis has been a key location for many events that have helped it to shape Germany, as it is today (Gannon 13). These events and the importance of the metropolis are well documented while others are evident in the culture and society of the location.

Firstly, the town is viewed as a principal architectural center that combines designs through the ages. For instance, the historical downtown of the metropolis features the renaissance style that traces its origins in the 16^th and 17^th centuries. There are evident houses from the baroque architectural period that signify the town as an important historic trade location and an attraction for rich merchants (Spencer 21). At least 30% of the city’s houses have the historical style of the Grunderzeit Era.

The economic boom in Germany in the 1990s ushered a new era of architectural designs that have now put the capital as a modern region in the country. Indeed, the period and housing boom of the 1990s was further facilitated by tax breaks, which followed the reunification of Germany (Kochan 113). Buildings that display its evolution from as early as the 16th century to the modern-day architecture dot the municipality where the BMW Central Building is a key part of the modern or 21^st-century architecture.

The metropolitan is also a central musical center in Germany. Historically, the Church has played a crucial role in the development of music in the municipality. For example, one of the key people in the development of music in the country was Johann Sebastian Bach who worked with the St. Thomas Church Choir from 1723-1750 (Wittenburg 329). Felix Mendelssohn also opened “the first musical conservatoire in Germany in the City of Leipzig” (Gannon 23). The conservatoire is currently part of the University of Music and Theater Leipzig where students are taught about music. The university attracts students and musicians from all over the world. These developments show the importance of the town as a musical location.

The city is a significant location of modern art. It has played an important role in defining Germany’s contemporary arts. For instance, the launch of Neo Rauch five years ago at Leipzig was a crucial step towards strengthening the municipality as a main arts base (Jodidio 9). The Grassi historical facts base further provides a vital art anthology from the metropolis, including the Ethnography Gallery and the Musical Apparatus Exhibition as an evident fete of the historical significance in Leipzig.

The municipality is also a key educational hub in Germany. For instance, Leipzig University, which was formed in 1409, is one of the world’s oldest institutions of higher learning. It has trained main scholars and Nobel Prize winners (Spencer 42). Indeed, the current Chancellor of Germany, Angela Merkel, is an Alumnus of the University. However, the institution has a conservable population of only 30,000 learners. The Germany Foundation of Journalism is part of the Leipzig Institution of Higher Education. It has further trained many writers in the contemporary period (Jodidio 46). Other notable universities in the city include the University of Music and Theater Leipzig, Leipzig University of Applied Sciences, and several research institutes owned by the Max Planck Society.

The town’s population and economy depend on the manufacturing sector, which is very vibrant as compared to other sectors. For instance, the capital is the hub of many manufacturing companies such as BMW, Porsche, and others, which employ thousands of people. However, other foremost companies such as DHL, financial service companies, and other small retail companies also contribute to the economy of the metropolis.

Amazon is also located in the metropolitan as its hub in Germany and Eastern Europe. Due to its excellent economy, it attracts both professionals and technical people to serve the various segments of the economy. Further, its people have some of the highest incomes in the country (Gannon 26). Its elaborate infrastructure and strategic locations are the key factors for attracting the influx of manufacturing companies. Lastly, due to the vibrancy of the economy, it currently enjoys the leading position as having the best quality of life for its people in Germany.

Construction of the Building

The construction of the BMW Central Building was part of the strategic plan of BMW of modernizing its operations by not only adopting new technologies but also its facilities to reflect its chief goals of becoming a leader in innovation in the automobile segment. The building is part of a larger manufacturing complex, which is responsible for the production of BMW 3 series vehicles (Jodidio 14). The process of the construction of the building began with a call for architectural designs, which would merge the three existing building complexes into one structure to bring together the manufacturing and administrative roles in a manner, which would allow the employees to recognize their role as part of a larger company.

In many cases, companies separate their administrative functions from the manufacturing segment, thus leading to the two segments existing unmindful of the other. Thus, BMW sought to overcome the problem by trying to bring together the existing building complexes, which had separated the roles of administration and manufacturing (Wittenburg 336). The call for the architectural designs attracted more than 25 award-winning architectural firms to compete for the design, which would take BMW’s Leipzig Plant to the next level. After long-standing deliberations, the design by Pritzker Prize, the award-winning architect, Zaha Hadid, was chosen in 2002.

The construction of the building began immediately after the BMW’s management board adopted the winning design. The award for the construction of the building went to Arge Rohbau and OBAG/Wolf & Mueller GmgH (Gannon 3). The structural engineer of the construction of the building was AGP Arge Gesamtplanung.

The construction of the building utilized the leading technology in architecture. To realize the complex design, the project was steered by well-experienced engineers. The budget of the building was more than $30 million, thus adding a significant cost to the more than $1 billion complexes that were already in place (Jodidio 4).

The groundbreaking ceremony of the building was done in March 2003 after the contracts for the central construction companies were awarded and all the necessary paperwork and financing was discussed. The assembly began with the Steel construction, which was completed in January 2004. In March 2004, the enclosing of the building and the roofing was completed (Wittenburg 327). In September, the car park was completed. The car park is located in front of the housing complex for ease of access by the employees and members of the public. In September 2004, the Central Building was completed. In May 2005, the landscaping of the area was completed. The building was opened for use.

Concisely, the completion of the building complex brought together the manufacturing, the pub, and administrative roles of the company. Presently, the building is one of the best architectural designs and monuments in Germany. Indeed, in line with the company’s design to bring people into the picture, the building attracts numerous people who seek to experience the architectural prowess depicted in the building. The building has won numerous awards since its completion.

Building the Structure Today

It is worth noting that the Central Building at BMW’s Leipzig Plant is a contemporary structure, which has lasted only ten years since its inception. The building was constructed at a time when computer technology was gaining momentum in the construction and architecture industries. Since the establishment of this structure, many developments have been made in the construction and architecture technologies. Firstly, if the construction of the building took place today, it would have taken a shorter duration due to the advancement in the construction technologies that allow construction process to be undertaken in a shorter duration.

In addition, it would have taken less labor due to the advancement in the construction machinery, which can replace many people while doing multiple tasks. On the other hand, the architectural design would have utilized new technologies that are provided through software such as CAD, which allows the designs to be completed on computers with higher precision. Concisely, although the building is still contemporary, the fast technological developments seen today would have allowed a faster completion and a more elegant design than what the technology of the time offered. It would have probably cost less due to more utilization of machinery and technologies that replace the costly human labor.

Conclusion

Based on the expositions in the paper, it suffices to declare the BMW Central Building an important depiction of the company’s quest of becoming a leader in its operations. The building, which cost more than $30 million, was finalized in 2005. It was part of Zaha Hadid’s architectural designs. The designer out-performed more than 25 other architectural entries of the time. In the end, the building brought together people, employees, and manufacturing processes in a seamless way that allowed BMW to position itself as a technological leading company in its operations.

Works Cited

Bonfinger, Peter, Eric Mayer, and Timo Wollmershäuser. “The BMW model: A new framework for teaching monetary economics.” The Journal of Economic Education 37.1 (2006): 98-117.Print.

Gannon, Todd. Zaha Hadid: BMW Central Building Source Book in Architecture 7, Princeton, CA: Princeton Architectural Press, 2006. Print.

Jodidio, Philip. Architecture and Automobiles, Shanghai, China: Images Publishing, 2011. Print.

Kochan, Anna. “BMW innovates at new Leipzig assembly plant.” Assembly Automation 26.2(2006): 111-114. Print.

Spencer, Douglas. “Replicant urbanism: the architecture of Hadid’s Central Building at BMW, Leipzig.” The Journal of Architecture 15.2(2010): 181-207. Print

Wittenburg, André. “Building an integrated IT governance platform at the BMW Group.” International Journal of Business Process Integration and Management 2.4(2007): 327-337. Print.

Case Background

Tom Dunn was appointed the new service manager for Sharpe BMW, a BMW dealership based in Michigan. He faced numerous challenges in his new post because the dealership’s customers were losing confidence in the firm’s ability to satisfy their expectations.

These problems were impacting negatively on the firm’s operations. The firm’s Customer Satisfaction Index scores were below the national average. The firm needed to carry out several changes in its internal operations to regain the competitive edge it used to have in the market.

Dunn together with the service director, Bob Deshane formulated a proposal, which would enable the firm carry out several improvements in its internal technical functions. This approach was needed to make the firm’s Customer Satisfaction Index improve (Subramanian 497). The bonus payment plan proposed, intended to make the firm’s technicians more motivated in their duties to enable them achieve quality outcomes in their performance.

Some technicians felt that the plan was noble but the bonus payments offered were very little to make any impact. Other technicians thought the new plan was good because it encouraged them to improve their own performance at the workplace. Dunn had a difficult task of coming up with strategies that would help Sharpe BMW increase its revenues in the market.

He also needed to improve the firm’s customer service ratings by changing customers’ perceptions regarding the quality of service offered by the firm (Subramanian 498). Therefore, this compelled Dunn to come up with customer service strategies to change the way technicians performed their duties at the workplace. The firm’s service department was very important to its long term operations because it determined the level of competitiveness the firm was going to have in the market.

Case Analysis

Dunn looked at different factors in the firm before deciding the most appropriate course of action the firm needed to follow to improve its services. He reviewed different customer charges clients pay whenever they bring their vehicles for servicing. He noted that the Customer Satisfaction Index was not being given the necessary attention it deserved by different stakeholders in the firm. He felt that the firm’s focus should be on the quality of service it offers its clients, to help it become more competitive in the market.

Dunn’s was not satisfied with the CSI scores because he felt that ratings made by customers regarding the quality of service offered by the firm were not good enough. He had noted that the dealership’s CSI score was below the national average, of 91%. This was an indication that Sharpe BMW needed to do more to improve its image in the market (Subramanian 500). He wanted Sharpe BMW to offer customers the best service compared to other BMW dealers operating in the area.

Deshane had noted that disparities in the way technicians were paid for performing two different jobs. The labor market for technicians had experienced a lot of changes, which made it difficult for several dealerships to hire and retain highly skilled technicians. Technicians had to go through rigorous certification programs, which made them demand high hourly wages. Dunn noted that the firm needed to train its dealers constantly to make them achieve high standards in their performance, which would make them more competitive.

BMW technology was constantly changing and the firm’s technicians needed to be kept abreast with the latest technological changes, which would benefit them at work. However, there was another matter of concern, which needed to be addressed (Anderson 78). There were disparities between customer pay and warranty pay, which influenced the amount of hourly wages technicians earned in the firm.

Deshane proposed that technicians whose CSI rating surpassed 91%, needed to be given a 2%-3% monthly bonus payment on top of their hourly wages. He argued that this showed the quality of their performance was high. This approach would help the firm assess the contribution of each individual technician in the firm. Deshane had noted that this approach was different from the labor practices of other dealerships in the area. He believed that this would make technicians more committed to the firm.

Dunn’s terms of employment stated that he needed to help the service department surpass the average national CSI score of 91%, to earn a bonus on his earnings. Dunn had managed to create positive relationships with technicians and other stakeholders in the firm. This made it easy for them to collaborate with him on different aspects of service delivery that needed improvements. Dunn’s employment background made him suitable for this role because he was effective in managing customer relationships (Anderson 87).

Dunn was in support of the new system which Deshane had proposed in the firm. He understood that the firm had to increase its service revenues and this was only possible if it improved its internal systems. However, some employees felt that the bonus plan proposed by Deshane was not adequate and they needed an improvement in the payment terms which had been outlined by the plan.

Most technical employees supported the plan because they felt the management was working harder to improve their welfare (Cummings and Worley 24). They felt that the management had begun to recognize their contribution to work and they needed to build on this to achieve positive outcomes. Dunn was keen to build on this trust to improve relationships between management and staff.

Implementation Plan

Dunn needs to consult technicians to understand their issues before implementing the bonus payment plan. He needs to call a meeting with them to explain to them what the company feels needs to be achieved to make it possible for the firm to move in a positive direction. The disparities in customer payment and warranty payment jobs need to be ironed out to motivate technicians to work harder in their assignments.

The firm needs to review the amount of money paid for warranty jobs because this can discourage technicians from working hard. Technicians who do more warranty jobs earn less compared to those who do jobs paid by customers directly. This disparity makes more technicians to prefer customer jobs over warranty jobs and this is the reason that has made the firm to register poor CSI scores (Cummings and Worley 28).

In conclusion, the firm needs to increase the average repair time for each BMW to 2.6 hours to motivate technicians to improve their performance. This will help iron out pay disparities that exist to ensure that the bonus payments they get are enough. The firm should maintain Deshane’s plan of giving technicians who exceed the average CSI score in their performance by 2% to 3%. This will improve the firm’s performance in the market.

Works Cited

Anderson, Donald. Cases and Exercises in Organization Development & Change. London: Sage, 2012. Print.

Cummings, Thomas, and Christopher G. Worley. Organization Development & Change. Mason: Cengage Learning, 2009. Print.

Subramanian, Ram. “Sharpe BMW Case Study.” Case Research Journal (2002): 497- 503. Print.