Last Updated 05 Aug 2021

BMW Strategic and Operational Plans

Category Bmw, Sustainability
Essay type Research
Words 718 (2 pages)
Views 359

Mobility is a number one focus globally as we continue to look for mobility solutions. We are currently living in times of economic uncertainty. To meet these challenges BMW must create strategic and operational plans to increase sales, develop new and profitable areas of activity and sustainability along the entire value chain and in all basic processes, which will create value to the company, the environment and society.

Based on the SWOT analysis BMW’s strengths are as follows: a very reputable brand who manufactures vehicles that are environmentally friendly using quality materials thus they have less recalls than the competition. BMW is committed to environment protection, their employees, the community at large and sustainability programs. On the other hand BMW’s weaknesses are as follows: high costs as they manufacture quality cars, high prices since their luxury quality cars require quality materials and highly skilled labor and weak brand portfolio since they only sell BMW, MINI and Rolls-Royce.

The opportunities available to BMW are: high fuel prices which will create a need or demand for the BMW Hybrid and hydrogen cars, consumers’ awareness of the negative effects to air pollution caused by cars fueled by petrol and diesel which will increase the demand for BMW’s environmentally friendly vehicles and there is also an opportunity for BMW to expand its brand portfolio to meet larger consumer markets.

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The threats facing BMW are intense competition on pricing and an oversaturated luxury car market, rising prices of raw materials and the growing EURO exchange rate since they earn part of their profits outside Europe as fluctuations in the exchange rate will squeeze profits. BMW believes that sustainability management is an investment in the future success of the company. They leverage new business opportunities, minimize risks and seek to overcome social and business challenges. Their sustainability strategy is applicable worldwide which aims to establish sustainability along the entire value chain and in all basic process (BMW Group, 2013).

It is BMW’s corporate strategy that every project must be measured in terms of sustainability. As a globally active automobile manufacturer, BMW Group takes responsibility for the environment, as well as for the social interests of employees and society as a whole (BMW Group, 2013). BMW Group believes that sustainable mobility must support quality of life and economic prosperity. At the same time, the potential damage to the environment associated with individual mobility must be kept to a minimum.

BMW Group is committed to sustainability in many ways: from its responsibility to the environment and reducing CO 2 emissions, to looking after the needs of its employees and the societies in which the company operates. All BMW production sites adhere to uniform environmental standards. BMW Group manufacturing facilities are either certified according to the international environmental management system ISO14001 or in full compliance with the European Eco-Management and Audit Scheme (EMAS II). BMW Group was the first major automobile producer to achieve this.

BMW EfficientDynamics is a range of related technologies that reduce fuel consumption and emissions, while at the same time improving performance. The program is at the heart of BMW's pledge to reduce its average CO 2 emissions in accordance with the voluntary commitment agreed by the European Car Manufacturers' Association (ACEA). As an automotive company, BMW Group is concerned with the safety of all travelers and for this reason, one of the key aspects of the company's social commitment for many years has been its involvement in the promotion of traffic safety projects all over the world.

In the UK, BMW Education has developed the resource Safe on the Street as part of BMW's commitment to road safety (BMW Group, 2013). BMW engages in ongoing dialogue with its stakeholders. It is a very important learning process for the company. They fulfill their responsibility by using targeted dialogue to gain various perspectives and input on relevant topics from the stakeholders, to identify trends and key topics at an early stage and to enhance acceptance for the corporate activities and decisions.

The stakeholders’ perspectives are that fuel consumption and CO2 emissions are still most relevant for the automotive industry as a whole as well as for the BMW Group. Environmental and social standards in the supply chain as well as resource efficiency and recycling management are also considered very important topics for both the automotive industry and the BMW Group (BMW Group, 2013).

BMW Strategic and Operational Plans essay

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