Managmen.process of BMW

BMW

DRIVING PLEASURE LIES BETWEEN THE HEAVENS AND THE ROAD.

Company’s profile BMW-Bayerische Motoren Werke AG  (BMW),

(English: Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company. Based in Munich-Bavaria, Germany.

BMW AG originated with 3 manufacturing company RMW(Rapp Motoren werke), BFW (Bayerische Flugzeug werke) & FFE (Fahrzeug fabrik Eisenach).

RMW, the Aircraft engine manufacturer, was bought by Franz Joseph Popp, the owner of BFW and changed its name to BMW, who then merged BFW into BMW in 1916.

BMW became an automobile manufacturer in 1929 when it purchased FFE and launched very first BMW car , the BMW Dixi.

It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars.

BMW produces motorcycles under BMW Motorrad and Husqvarna brands. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands

It also operates an aircraft engine division under the brand name of Rolls Royce.

It has 24 production facilities spread over 13 countries and sells its products in more than 140 countries

Company’s profile contd…..

About BMW India Private Limited

On 29 March 2007, BMW India officially opened its production plant in India at Chennai in Tamil Nadu to sell cars exclusively to the Indian market.

Headquartered in Gurgaon (National Capital Region) Haryana,

BMW India is a 100% subsidiary of the BMW Group.

Till September 2010, BMW Group has invested 110 crore (1.1 billion) Indian Rupees.

BMW India, saw 73 per cent growth in sales during the year.

Enjoys over an 40 per cent share of the luxury car market in the country, which is estimated at around 15,000 units per annum.

BMW India Continued..

India was among the top three markets for BMW after China, which saw over 80 per cent growth, and Korea

The BMW Plant Chennai produces the BMW 3 Series, BMW 5 Series sedans and the BMW X1 in petrol and diesel variants.

The BMW Plant Chennai has the capacity to produce 8000 units per year on a single shift basis.

BMW India has also established an International Purchasing Office (IPO) at its headquarters in Gurgaon

BMW has 24 dealerships in India,

BMW’s MISSION “To become most successful premium manufacturer in the

car industry” “To build new and strengthen existing customer relationship”

“To enrich customers’ lives, by making BMW ownership a most pleasurable experience and tailoring products and services to suit individual lifestyle.

BMW’s Vision• Uniqueness through diversity.• Associate growth & development• Involvement in community • Excellence through quality & innovation• Leadership • Teamwork• Mutual respect• Taking risks• Courteous• Responsive • Efficient

BMW’s OBJECTIVES• To provide the best relaxing place for their worker to

help them get motivated.

• To provide best service to the customers and hope to do business again.

• To work with the Educationalist (The BMW education program) to support and help raising the quality of learning.

• To provide special training for its workers, encourage its people to develop their professional and personal skills

• It enable them to reach their goals.

• To improve fuel economy of their cars through its research and development.

• It will respond to political development for programme of environment improvement.

• To recycle their products that has failed.

BMW’s Culture• There are 4 types of organizational culture :-

1) Role culture – Best suited hierarchal structure where every employee plays a set ‘role’ and acts according to its rules and regulations.

2) Task culture – A team working on a specific project.3)Power culture – An organization based around a central

powerful figure.4)Personal culture – Administrative back up for an

individual.

BMW has a “Role culture”.• It has divided its business into various functions & these are

put in hierarchal order such as production director, production managers, supervisors, technicians & operatives.

• In BMW’s culture the job description is just as important as person who fills it.

GROWTH PERCENTAGE FROM 2009 TO 2010

BMW 5 Series; 36%

The BMW X1; 100%

BMW 7 Series; 25%

BMW X5; 15%

BMW X6 ; 11%

MINI brand ; 8%

Rolls-Royce ; 171%

BMW 5 SeriesThe BMW X1

BMW 7 SeriesBMW X5

BMW X6 MINI brand

Rolls-Royce

0

50,000

100,000

150,000

200,000

250,000 238,454

100,000

65,814

102,178

46,404

234,175

2,711

175983

0

52680

88851

41667

216538

1002

UNITS SOLD IN 2010 UNITS SOLD IN 2009

INCREASE IN SALES OF UNITS

BMW 5 Series10%

The BMW X127%

BMW 7 Series7%

BMW X54%

BMW X6 3%

MINI brand 2%

Rolls-Royce 47%

PRODUCT RANGE IN MARKET

FUTURE GROWTH PLANS

BMW group aim to achieve an EBIT margin of over 8% in automobile segment .

In India, BMW plans to open a dealership in Ludhiana in collaboration with Krishna Automobiles and the team of service engineers will have been trained in Singapore, Malaysia and Germany.

Up to 1200 jobs will be created in the dealer and service network by end of 2012 by BMW India, and investment in India will be increased to 180croreby the end of 2012.

The company's got a short-term five-year plan of achieving annual sales of 1.8 million vehicles by 2012,

It will have another eight years to reach annual sales of 2 million by 2020.

• BMW plans to launch the 1-Series.

• In a first move, two models will be launched under the new sub-brand from 2013 – the BMW i3 and BMW i8.

• The company is expected to launch the BMW M2 not before 2014.

• The company is also launching the BMW 2 Series Coupe and Cabrio in 2013.

•The company will also develop a Z2 and M2 model.

•The new showroom will be located •in Dhandari Kalan, G.T. Road

UPCOMING

MANAGEMENT STYLE

• There are 3 types of Management style

1. Autocratic Management – • These managers tell workers to do as they are told &

don’t prefer to take any feedback.

2. Consultative management – • These managers consult other people before making a

decision rather than just himself or the company.

3. Democratic Management – • These managers involve workers in their decisions.

They tend to listen to ideas and ask them to contribute.

• There are 2 types of democratic management.

I. Management by Objectives – • Managers provides resources & allows day to day

decisions to be made by staff.

I. Laissez – fraie- • which means ‘let it be’ in this managers are not

aware of what their staff does . Some people enjoy this freedom but others might get frustrated.

BMW’s MANAGEMENT STYLE

• It has a “democratic management”.• BMW’s individual and teams are given

responsibility to make decisions. BMW team is held accountable for the decisions they make.

• The management is comfortable allowing others to make decisions and as a good overall understanding of the decisions that are being made, and gets a regular feedback on the team or individual.

• But still the management is confident that the responsibilities given to the respective teams will be done wisely.

• In terms of branding, BMW is known in the automotive world for three things. • One of which is the more recent facelift and redesign

of its models that divided the motoring critics into

“love-it-or-hate-it” camps.• Its logo and the numerical nomenclature used in the

naming of their vehicles.• The BMW features the companies letters against a

black circle with an image in the centre.• The BMW features blue and white panels which

represents the movement of an airplane propeller.

BMW’s BRANDING

The actual origin of the colors is much simpler:

• The blue and white panels are from the flag of Bavaria, as BMW stands for Bavarian Motor Works.

•

The letters that follow the letters on BMW automobiles also have some manufacturer-specific meaning.

•

While on most vehicles an 'l' after a model name would dictate liters or a base-model, with BMW the letter stands for long wheelbase.

•

If the 'L' precedes the numerical identity, it indicates that the car is a luxury variant

EMPLOYEE RETENTION• Employee orientation – Various seminars &

competencies are given to focus on the improvement of the skills of employees.

• Evaluation performance – performance evaluation is done for the employees so that they could be motivated to work harder or learn from mistakes.

• Respect & Trust – Showing Respect and trusting the employees is the most important part for this company.

• Leading by example – Setting up examples or a goal to their employees & lead them towards it.

• Independence – Giving the freedom to their employees in making decisions on their own or as a group.

SALARY/COMPENSATION• The remuneration paid by the BMW Group is very attractive

and competitive level compared with other companies.

• Fixed Salary - Each employee receives a fixed remuneration of 12 monthly salaries. There is no difference in remuneration between male and female employees.

• Company bonus - BMW AG provides bonuses along with their fixed remuneration with participation in the corporate result. The amount of the company bonuses paid out is based on the overall result of the company.

• Individual bonus - Besides the teams’ overall achievement, BMW also reward employees’ individual performance via certain salary components. The amount depends on the result of the evaluation carried out by their superior.

• Retirement benefits - In times of uncertainty, the company pension plan increasingly gains in importance.

• BMW offers its staff attractive pension models that are executed according to the specific market’s structures.

• Additional benefits - Depending on local requirements or a person’s classification, BMW offer employees additional benefits such as

1) Favorable conditions on vehicles, 2) Collective accident insurance for executives or 3) Additional insurance coverage for health

services in India and China.

BRAND RECALL

MANAGEMENT FUNCTIONS

• Planning• Organizing• Staffing• Directing• Control

In December 2010

Comp. to previous

year

Up to/incl. December

2010

Comp. to previous year

BMW Group Automobiles

141,358 +14.2% 1,461,166 +13.6%

BMW 115,570 +10% 1,224,280 +14.6%

MINI 25,359 +38.3% 234,175 +8.1%

Rolls-Royce Motor Cars

429 +16.9% 2,711 +170.6%

BMW Motorcycles

3,764 -29.8% 98,047 +12.3%

BMW Group sales in / up to December 2010 at a glance

PRODUCTION•In 2006, BMW produced 1,366,838 four-wheeled vehicles, which were manufactured in five countries

•In 2009, it manufactured 1,258,417 four-wheeled vehicles.

•In 2009, BMW Motorrad produced 82,631 motorcycles.

Country Make Cars (2006)

Cars (2008)

Models

Germany BMW 905,057 901,898 Others

United Kingdom Mini 187,454 235,019 All Minis

Rolls-Royce 67 1,417 All Rolls-

Royce

Austria BMW 114,306 82,863 BMW X3

USA BMW 105,172 170,741 BMW X5, X6

South Africa BMW 54,782 47,980 BMW 3-Series

Total 1,366,838 1,439,918

SALES (BMW-BRAND)

Year Total

2000 822,181

2001 880,677

2002 913,225

2003 928,151

2004 1,023,583

2005 1,126,768

2006 1,185,088

2007 1,276,793

2008 1,202,239

2009 1,068,770

Vehicles sold in all markets according to BMW's annual reports.

 BMW and India:

Two success stories – one future.

•The BMW company needs innovative employees.

•Due to the growing higher automobiles market BMW will its expand operations, thus resulting to large scope of employment for students.

•BMW India offers exciting challenges to individuals who have determination, vision and ambition.

• If you are graduate or professionals with tertiary qualifications and professional experience Then join BMW and take responsibility from day one. Your future career at BMW is open for your development because you can actively help to shape your own prospects.

SCOPE FOR IIPM STUDENTS

3 series Rs.23,95,000

6-Series  Rs.91,20,0006-Series Coupe  Rs.79,90,000

7 Series  Rs.82,50,000M3 Coupe   Rs.74,50,000

M5 Sedan - Rs.1,00,80,000

M6 Convertible  - Rs.1,35,00,000

M6 Coupe  Rs.1,25,00,000

5 Series  Rs.37,00,000

6 Series Convertible - Rs.95,00,000

X1   Rs.22,00,000

X3 Rs.41,20,000X5 Rs.53,20,000

THANK

YOU