Some of the work i have done

Strategic Plan for BMW

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Strategic Plan for BMW

Introduction

Strategic planning is a management activity carried out in an organization so as to focus resources and energy, to ensure that the organizations stakeholders and employees work towards the goals set by the organization. It also helps an organization to assess results and align the organization to changes within the market (Balanced Scorecard Institute, 2014).A strategic plan is, therefore, a document that effectively communicates the organizations goals. It highlights the actions that are required to achieve these goals and all other elements that are required so as to achieve the set goals.

Bavarian Motor Works (BMW) is a German auto company that began manufacturing cars in 1928. The first car produced by the company was the Astin seven in 1929. It has been amongst the leading auto car makers with technological advancements in the auto industry since the early 60’s. It has been ranked eleventh of the world’s most valuable brands by the Forbes magazine in 2014 (Forbes, 2014).

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There are a number of research methods that one can use in strategic planning. The best model for the BMW group would be the alignment model. This model is used to enhance or fine tune an organizations strategy. The BMW group is a well-known brand, and the alignment model would enhance the use of the organizations resources coupled with the organization’s mission so as to get the best possible results. The first stage in this model for the BMW group would be to outline the resources programs and areas that need support. For the BMW group, we would need to work on a few factors. The first would be a high-cost structure of the company. BMW mostly hires auto workers in Germany and the United States. The reason for this is to ensure that they get the most qualified skilled auto workers in the market. Hiring skilled workers is a good objective for the organization as it ensures that quality products are produced by the organization. For BMW, the company should look for ways of maintaining the quality standards that it is known for whilst working towards ways that can assist it to reduce the cost of production as this are high. This is partly due to the operational costs which include the company’s wage bill. The cost of the parts used in the production can also be reduced with advancements in technology (Behrmann, 2014). The first step shows how the company can improve its internal environment. The source of such information would be financial journals.

The second step in the alignment model is identifying the areas that need to be adjusted to enhance achieving the organization’s goals. For BMW, the area that should be considered is the diversification of the brand portfolio. The company primarily manufactures premium automobiles and is prone to face challenges in a market that is facing financial recession. For example during the recent financial recession the company had a drop in its sales as its automobiles are targeting the high-end market.

The third step is to find ways to implement the recommended adjustments. If the company manufactures more cost effective brands or partners with a reputable firm to produce these automobiles, it could shield itself from such events in the market. The second and third steps examine the external environment the company is facing. The best source of such information would be from the financial returns filed by the company as they include such information. The finals step is to include the adjustments recommended in the strategic plan for the company.

Conclusion

The company’s mission statement is “One Premium Success from Three Distinct Visions” this means it produces premium vehicles that offer a premium experience and at a premium price. This model has worked well for the company so far. A closer look at the company below will show us the areas that the company can improve.

BMW has a number of strengths this include its strong brand identity, excellent customer service which assists retain and win over customers. The company also has strong leadership that has helped it maintain its lead in the market. The company’s weaknesses are; the high cost of production and operations. The company has a weak portfolio in that it has not diversified its products it currently only manufactures three brands. The company’s major threats in the market are increasing costs in sourcing raw materials and the negative effects from exchange rate fluctuations. The opportunities for the company are its expansion to electro-mobility with the manufacturing of the i3 and its increasing presence in China one of the emerging markets.

References

Balanced Scorecard Institute (2014). What is Strategic Planning?. Retrieved from http://balancedscorecard.org/Resources/Strategic-Planning-Basics

Forbes (2014). BMW Group. Retrieved from http://www.forbes.com/companies/bmw-group/

Behrmann, E. (2014). BMW-Backed Researchers Closing In on Cheaper Carbon Fiber. Retrieved from http://www.bloomberg.com/news/2014-10-09/bmw-backed-researchers-closing-in-on-cheaper-carbon-fiber.html