Organisations, Analysis and Policy


To: Senior Management

From: Group Accountant

Date: 2nd May 2005

Subject: BMW Organisational Research andHuman Resources Policies

This report will provide a detailed research of BMW'scurrent corporate and business appraisal research. This will help to identify the company'scurrent durability, weaknesses, opportunities and threats. This will help thecompanies decision producers understand where the organisation is currently. The reportwill also critically examine BMW's recruiting policy as a key area of theorganisation. We will spotlight how BMW has strategically taken care of immediately thedrivers for change in terms of its framework, carry out and performance. Finally, offer recommendations for the future development and advancements in humanresource management, and exactly how those will effect on its organisational structure, conduct and performance.

Company Background

The BMW Group is really the only manufacturer of cars andmotorcycles worldwide that concentrates completely on premium criteria andoutstanding quality for many its brands and across all relevant sections. With all the brands BMW, MINI andRolls-Royce Motor Automobiles, the BMW Group has been focussing on picked premiumsegments in the international automobile market because the year 2000. In thesucceeding years, the launch of the BMW 1 Series meant an extension of themodel range in the high quality segment of the low middle class and the BMW 6Series have moreover in the portion of the top Coups and Convertibles. TheMINI marque was launched and production started in the Oxford plant in 2001. In2003, the BMW Group assumed marque responsibility for Rolls-Royce Motor unit Cars. At the same time, the Worldwide Head Office and Manufacturing Plant inGoodwood, GB, was built. (

AnInternal and commercial analysis in terms of power, weaknesses, opportunitiesand dangers (SWOT) will assist in gaining an understanding of where BMW iscurrently in conditions of strengths and where improvement is required within thebusiness and what outdoor environmental threats it could face as well as what newopportunities are available to the business in the brief and medium term.

Figure 1:BMW SWOT Analysis


  • Diverse ranges of Products - BMW, Little and Rolls-Royce
  • Strong Cash Flow Position
  • Increase turnover and trading profits
  • Strong Balance Sheet
  • World's leading SUPERIOR QUALITY Automobile Manufacturer
  • Brand Awareness
  • Human resources
  • Capabilities to turn resources into advantages


  • New Products
  • Market change to globalisation
  • Innovation & Alliances
  • Customers demand change to convenient and relevantly cheap cars
  • Diversification
  • New Technologies in Automobiles


  • Perception of High Prices
  • Customer disinterest
  • Environmental issues: Pollutions
  • Buyer sophistication and knowledge
  • Substitute products or technologies


  • New & existing competition
  • Volatility in Price of Fuel
  • New legislations
  • Consequences of the essential oil crisis
  • September 11th
  • Economic recession
  • Market switch to globalisation
  • Takeover bids
  • Far-East Automobile companies expansion
  • Extremely high competition for customers and resources

The Five Makes Model

Figure2: Five Causes Model - ACCA Paper 3. 5 (2001)


Threats from

Potential entrants



Bargaining power




Bargaining power


Threats from



Porterexplains that we now have five forces inherent in a market, that will jointlydetermine the intensity of competition and success of BMW and theautomobile industry. The foremost is the hazard posed by new entrants, the highcapital expenses and self confidence of customers stand for significant barriersto access and the market is also very sensitive to reputation. However, the emergentof low cost manufactures do present a significant hazard (as illustrated by amount2). There can be an opportunity in the low price/ low market (fast) sector. MaybeHyundai or Daewoo could consider adding an inexpensive sport saloon. The second is the threats from substitutes, as thereare many make and model of other premium branded autos, hence, Jaguar, MercedesBenz, Audi etc. The 3rd drive is the risks from the bargaining electric power ofbuyers, is this strong for both BMW and the entire vehicle industry with alarge quantity of alternative suppliers, hence, the intense pricing strategy. This results in a very strong competitive rivalry on the market. This isintensified consequently of little if any differentiation in the basic productoffered. Finally the hazards from the suppliers bargaining ability, this isfairly lower in the auto industry, due to dual sourcing strategies, using arange of choice sources of supply for parts.

The five pushes analysis gives an improved understandingof the degree of competition within the business enterprise environment. The analysisshows that the automotive industry is highly competitive, with buyerspossessing and exerting an extremely powerful influence to the lot ofsubstitute brands open to them.


In reaction to a changing business environment BMW isbeing more business and service target. Before decade the organisation hasbecome much more proactive, coping with new concepts to be more serviceand customer concentrate oriented. The structure of the company has beenredefined to cope with the new means of operating. Organisational structuredefines important romantic relationship within the business for reaching businessobjectives. At the same time it helps to specify the new business culture withinBMW. Culture is available with the imagination and hearts of BMW's employees andcontributes to business strategies of the organisation. Therefore, BMW's humanresources policies are critical in the organisations composition, carry out andperformance.

Competitive stresses on BMW and countrywide economies haveincreased markedly in recent ages. Therefore, organisations are constantlychanging, as powerful entities have arisen at the international level, theEuropean Union being a good example and multinational firms increasinglydominate particular areas such as automobiles. New tournaments are emerging andforcing older companies to look at or reform to endure. Different structuresaffect how human resources are been able. BMW like all otherbusinesses require the same basic human resources activities like recruitment, development and training, appraisal and compensation systems, and control andfeedback mechanisms. Organisational buildings are influenced by culture. Employees have strong feelings to the organisations they improve. Germanfirms have inherently a flat, less rigid constructions. The McKinsey 7 'S' modelis often used to identify all the areas that define an organisation. Structure, Style, Personnel are three such areas.

BMW has an equal opportunities nothing erotic discriminatingculture within its organisation. BMW actively helps young feminine executivesand offers females insight into the field of technology. BMW also offersextensive training for all level of staffs; BMW Group's Trainee PromotionProgramme (TPP) supplies the perfect combo of theoretical studies andpractical work. BMW Group trainees acquire benefits in addition to theirpay, other interpersonal payments such as holiday and Christmas bonus products, meal andtravelling expenditures subsidies, health program and Personal computer training.

BMW cases that it generally does not see its personnel as a cost factorbut as an important performance factor. Also the employees are referred to as'associates' alternatively that works. BMW in its recruiting policy claims thatany policy that is not oriented towards its associates will lead to negativecost results in the long-run.

As a future-oriented company, we seek to follow anexemplary, creative and associate-oriented human resources policy, makingsignificant efforts to business success through our human resourcesactivities. The human resources policy of the BMW Group is an integral featureof our overall corporate insurance plan in both tactical and operative decisions. (Corporate and business appraisal (or SWOT evaluation) involves the inner appraisal ofthe organisation's durability and weaknesses and an external appraisal of theopportunities and risks available to organisations in competition within industry.

  • More than 7000 students trust us to do their work
  • 90% of customers place more than 5 orders with us
place an order

Latest posts

Read more informative topics on our blog
The Educational Curriculum INSIDE THE Philippines Education Essay
Education The educational curriculum in the Philippines is low in comparison to other countries. Other countries are able to find out more advanced...
The Ecotourism In Scotland Travel and leisure Essay
Tourism Hospitality and travel and leisure are very closely linked; every time a tourist comes to Scotland there are lots of restaurant and hotels to...
Corporate Social Responsibility: Targets and Concepts
Business Abstract Corporate Social Responsibility is a management principle whereby companies integrate social and environmental concerns in their...
A Personal Reflection AROUND THE ITM Information Technology Essay
Information Technology I have been in information technology industry for a long time. I have first-hand information technology experience especially in...
The Theory Of Mcdonaldization Commerce Essay
Commerce McDonaldization is the process where the concepts of the junk food industry have come to dominate an increasing variety of organizations in...
The Interpretation Of Life Quotes
Philosophy As you all know most of us are here in this planet for a while only and our life or being blessed as a individuals is a gift irrespective of...
The Sex Appeal In Advertising Mass media Essay
Media Through the years we have found a diversity advertising resources for offering products which were calling the attention of the costumers, to be...
Impacts of Tourism Deregulation and National Security
Marketing National security is definitely an issue going out with back to as early as when man started out arranging himself in contemporary society....
Homogeneous And Differentiated Product In Microeconomics Economics Essay
Economics The economic issue in this observation involves the concept of homogeneous and differentiated product in microeconomics According to Lindeman...
Check the price
for your assignment
we accept
  • Visa payment system
  • MasterCard payment system
  • Payoneer payment system
  • PayPal payment system
Money back
100% quality
Plagiarism free writing service