On

Group Name: Pioneer

Group Members
Sl. Number Name Id Number
1. Md. Arshadul Islam 14133003
2. Mohammad Khairul Islam 14133004
3. Md. Sajib Kazi 14133006
4. Md. Shoaib Hossen 14133013
5. Ibnul Haider Talukder 14133019
6. Md. Abubokor Siddiky 14133026
7. Md. Rouhan Mottaky 14133027
8. Sujan Banik 14133033
9. Md. Mofazzal Hossain 14133042
10. Sabbir Hossain Tanim 14133055
 Introduction:

• BMW is a German luxury vehicle, sports car, motorcycle, and engine

manufacturing company founded in 1917. It is one of the best-selling luxury
automakers in the world. The company headquartered in Munich. BMW is the
parent company of Mini and Rolls-Royce Motor Cars. The company produces
motorcars under the BMW Motorsport division and motorcycles under BMW
Motored, and plug-in-electric cars under the BMW-i sub-brand and the
"performance" model designation within the regular BMW line-up.
Founders of BMW:

Karl Rapp Camillo Castiglioni Franz Josef Popp

 Present location
BMW announced in 1992 that it would build a 1,150-acre (4.7 km2)
manufacturing facility in Spartanburg County, South Carolina, United States to
strengthen its international production system. The plant opened in 1994. The
$2.2 billion plant, which employs 8,800, is one of the company’s global five-
plant production networks.
 Reasons for changing production location
outside of Germany:

• Geographical factors had to be examined because thousands of automobile

parts needed to be delivered from both domestic and foreign suppliers. In
order to keep the supply chain cost down, it was decided that the new
location should have ample highway/interstate excess and be reasonably
close to a port from which both supplies and finished automobiles could be
easily transported.
• Another considerations way to easy access to an airport for BMWs
executives travelling back and forth to its headquarters in Germany.
• The final location factor was government related. BMW wanted to move to
a locating that was “business friendly” in terms of making concessions on
issues such as infrastructural improvements, tax abatements, and employees
screening and education programs.
The overall goal was to make the relationship between BMW and the local
community as mutually beneficial as possible through coordinated
improvement effort.
After a three and half year search process that’s stringently evaluated the ten viable
options across these location factors. BMW finally decided to build a new 2 million
square foot production facility in Spartanburg, South Carolina. The final decision was
made based on a good match between the aforementioned selection criteria and the
environment in Spartanburg.
As a global company, the BMW Group operates 31 production and assembly facilities
in 14 countries(Such as: Austria, Italy, Russia, Egypt, South Africa, UK, Brazil,
Thailand, Malaysia, Indonesia, China, India.) and has a global sales network in more
than 140 countries. As of December 2016, the BMW Group had a workforce of
124,729 employees.
 Factors affecting the location of
a business
Market
Govern Raw
-ment materials

Factors
Waste Transport
influencing cost
disposal
location

Cheap
Safety
land
Labour
 BMW designs its own cars

Towards the end of 1930, BMW attempted to introduce a new front axle with
independent wheel suspension for both their models, the BMW 'Dixi' 3/15
DA4 and BMW 'Wartburg' DA3, but this resulted in accidents with the
prototypes because of construction faults.
Six-cylinder cars
• In 1933, BMW introduced the 303. Larger and more
conventional than the AM-series 3/20, the 303 used BMW's
new M78 engine, making it the first BMW automobile to use a
straight-6 engine.
 Other BMW car models

• BMW 1-Series, 3-Series, 5-Series,6-Series 7-Series, E28, E34, E39, E60, X1,
X3, X5, X6, M3, M5, M6, X5M, X6M, 5-Series GT i3 and i8.
BMW latest car
 Analysis: BMW manufacturing crisis and reasons
for changing manufacturing location outside of
Germany.

First crisis for BMW AG – WWI aftermath

• Winter 1918 factory closure-

The Commissioner for Demobilization with responsibility for Bavaria
ordered the closure of BMW’s Munich plant with effect from 6 December
1918.

• Return of Castiglione and merger with BFw-

On 20 May 1922, Castiglione bought the BMW name and engine-building
business from Knorr-Bremse for 75 million reichsmarks. Bayerische
Flugzeugwerke (BFw) into BMW and established BMW's factory and
headquarters at BFw's premises.
Second crisis for BMW AG – WWII aftermath

• By the end of the war, the Munich plant was completely destroyed.BMW
sites in eastern Germany were seized by the Soviets. And BMW was banned
from manufacturing motor vehicles by the Allies.
• The company's factory at Eisenach was taken over by the Soviet Awtowelo
group.
• These were sold under the BMW name with the BMW logo affixed to them.
To protect its trademarks, BMW AG legally severed its Eisenach branch
from the company.
Third crisis for BMW AG – a company for sale

• By 1959, BMW was in debt and losing money. The Isetta was selling
well but with small profit margins.
• BMW's supervisory board, proposed a merger with Daimler-Benz.
The dealers and small shareholders opposed this suggestion and
rallied around a counter-proposal by Dr. Friedrich Mathern, which
gained enough support to stop the merger.
• By 1963, with the company back on its feet, BMW offered dividends
to its shareholders for the first time since World War II.
 BMW SWOT analysis
1. Strengths-
• Brand reputation
• Environment friendly vehicles
• Quality products
• Highly skilled workforce
• Corporate Social Responsibility
(CSR)
• Strong brand presence in China
2. Weaknesses-
• High cost structure
• Weak brand portfolio
• Perception of high prices
• Too few acquisitions and strategic
partnerships
 BMW SWOT analysis
3. Opportunities-
• Increasing fuel prices
• Positive attitude towards “green”
vehicles
• Expand brand portfolio
• Changing customer needs.
4. Threats-
• Intense competition
• Rising raw material prices
• Decreasing fuel prices
• Growing euro exchange rate.
 Reasons for which BMW is so successful brand
• Well there are several reasons behind its success, most important one is
quality. It excels in quality and technology both - sheer driving pleasure.
So, overall BMW represents a luxurious experience. It has also got a strong
brand image.

• It invests in technology and quality. However, the perception of the brand is

mainly that of a luxury brand. Recently, it started introducing some low
priced variants like its bike which is going to be introduced to developing
markets.

• Quality and reliability are also strong points behind BMW success today.
They believe in excellence in everything they do: service, product quality,
customer relationships.
 Reasons for which BMW is so successful brand

• In a design point of view, marketing the products is BMW's strong point.

The 1, 3, 5, 6, 7 Series are all different and they each carry a different
character, whereas Audi car designs are all similar, especially the front and
Mercedes is even worse. Product variation cannot be under-estimated.

• BMW spends around 25% of their profits into Research and development
and it is because of BMW that put so much of their innovations and
improvements.

In conclusion, a company must know what the public wants and must
maintain a keen interest in the relationship with their customers and value
their thoughts. That's why BMW is where it is today, so far ahead of the
others.
The key success factors thus of BMW can be summarized as

• Business model of BMW

• Technology

• Brand image

• Sustainability
☼ Recommendation and Conclusion

BMW Company is one of the leading manufacturing companies in the

world. It could have identified the location facilities and applied those
facilities in the company. It has become so rich only because of changing
the location from Germany to Spartanburg County, south Carolina, United
States. The same company is earning more profit than before for cheap
labor, proximity to customer, proximity to supplier and environmental
facilities etc. So we can say that every company should consider the
location factor when starting a business like the BMW Company.
Thanks To All.