Implementing Management Changes in BMW - Essay Example

Implementing Management Changes in BMW Abstract Change is inevitable in any organization to gain competitive advantage over others in the industry. Planning and implementing organizational changes is no easy task as re-engineering a company is a great challenge for its leaders. This research paper will explore the various stages of changes, leadership requirements and employee co-operation necessities required to make any major change in an organization a success. The German automobile doyen BMW is chosen as the platform of the research.

The paper begins with a literature review available regarding organizational change. It continues to explain the challenges faced in BMW while implementing the strategies discussed practically. A research is done by collecting feedback from the employees on how effective they consider change management is. A conclusion which provides recommendation on change management is presented at the end. Introduction The ever increasing competition in the automobile industry forces all the major brands to re-structure their marketing and management strategies to gain maximum profit.

These changes started to occur in the early 1980's in companies like Ford and General Motors. The automobile industry then considered it as a survival strategy rather than a tool to gain competitive advantage (Shimokawa, 1994). Organizational change management started to gain widespread momentum after the recent economic downturn. Several companies like Ford followed the path of massive downsizing while a few companies like BMW which implemented organizational change in an effective way were able to maintain their profits without cutting down their manpower even during the grimmest times.

They searched for new markets and introduced premium cars at a low cost, by establishing production houses in countries like China and India to control production costs. BMW is the only premium car maker to produce and market BMW 3-series and 5-series models in China locally. They have invested over 459 million Euros in a Chinese plant producing their MINI series cars which will be marketed in China alone. They have joined hands with Brilliance China Automotive Holdings Ltd to do the same (Welch, 2004).

Taking a closer look at their change management strategies will help other companies manage similar situations effectively. Purpose of the Study The study analyzes how BMW can use organizational change and management effectively to stay as a dominant force in the market and keep expanding constantly. It also highlights certain successful change management processes followed in BMW. Limitations of the study The research relies heavily upon various external data available in the internet and other related sources.

The employees who took part in survey showed little understanding of the explained concept. The line managers and the upper management view organizational change as something inevitable that will be imposed during grim situations. They look back to switching to older methods of working rather than looking upon the concept of organizational change as a tool of growth. This attitude makes them contribute very little to research regarding organizational change. There is a general hostility prevailing among the employees regarding any change as they feel it hard to come out of their routine and adapt to new practices.

Literature Review Automobile industry operates under immense pressure today. The business market has changed enormously after globalization due to very strong competition, amazing