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BMW expansion in China - Research Paper Example

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Recent recession has destroyed the financial backbones of many of the American and European countries whereas Asian region, especially East Asia or countries like China, India, Korea etc escaped from recession without causing much injuries to its economies…
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BMW expansion in China
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Download file to see previous pages It is said that the global wealth is slowly shifting from the European and American region to the more heavily populated Asian region at present. Many of the prominent companies in the world are now looking towards Asian region for growth or expansion prospects. China and India seem to be the number one and two targets of prominent American and European companies. China is the most heavily populated country in the world at present. Moreover, China is growing more rapidly than any other country in the world now and many people believe that China may replace United Sates in near future as the topmost economic power in the world. According to Keidel (2008), “China’s economy will surpass that of the United States by 2035 and be twice its size by midcentury” (Keidel, 2008). “The inflation rate in China was last reported at 4.4 percent in October of 2010. From 1994 until 2010, the average inflation rate in China was 4.25 percent reaching an historical high of 27.70 percent in October of 1994 and a record low of -2.20 percent in March of 1999” (China Inflation Rates, n. d) (See Appendix for more details). Moreover, “during 1997–2005, the PRC’s average annual growth rate in real GDP was 8.9%. During the forecast period of 2005–2010, it was assumed that the PRC continued its historical growth trend of 8.9% per year” (Mai et al, 2010, p.5). ...
Even though huge population was a big barrier in front China’s march towards economic growth, they succeeded in converting this barrier in to a blessing and economists forced to rewrite many of their economic principles. Now China is a prominent labor supplier for the rest of the world. Even though Mao is still believed as a prominent leader in Chinese history, Deng was the actual leader who put bases for China’s rapid economic progress. Mao was adamant about communist principles whereas Deng succeeded in giving practical definitions to communism in China. In short, China is the most rapidly growing country in the world at present and most of the prominent companies are now focusing more on China for expansion prospects. The BMW Group in the US reported March (2009) sales of 21,125 vehicles, a decrease of 22.9 percent over the 27,404 vehicles sold in the same month of 2008. For the first quarter, The BMW Group also reported a year-to-date sales volume of 51,244 vehicles, down 25.2 percent, compared to 68,529 vehicles sold in the same period a year ago (BMW Sales Remain Low Down 26.8% - Mini Sales Decline 15.9% In March) BMW was a leader in automobile manufacturing till a couple of years before. However, same thing cannot be said about BMW at present because of the huge competition it faces from other automobile manufacturing companies along with the technical problems of tis vehicles. America and Europe were the most important markets for BMW earlier. However, the financial problems in these regions forced BMW to shift its focus towards more prosperous Asian region. This paper analyses how BMW was developed and is evolving in China, focusing more on areas like Positioning for Greater Global Competitiveness, Improving Globalization of Markets and ...Download file to see next pagesRead More
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I never thought 3750 words essay could be written in such a free manner. I loved the background of this essay. Will definitely use it for my own work!
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