Misconceptions of BMW Contract - Essay Example

The premium segmentation has enabled BMW to produce well-built and superior cars that have, in return, drawn the attention of numerous customers in the world market and, have also retained the loyalty of the existing buyers. The high-quality vehicles have, therefore, led to an annual increase in sales and hence profit growth. BMW models exist in different sizes. Since it deals with the manufacture of cars, this company is likely to procure materials such as metals, rubber, hammers, glasses, leather, mirrors, paints, fuel, overalls, stationery, wet cells, and the necessary tools for the assemblage of the cars. Some of the misconceptions that may come into play in this German company is all the private sector companies have similar terms and conditions when contracting a dealer. This misconception may create a dispute between BMW and the supplier of its raw materials, leading to the termination of a contract. The misconception of terms and conditions may create a disagreement with international customers. However, the reality is that there has never been a universal or global set of terms and conditions that govern all private companies during contracts.