Leadership and Management at BMW - Essay Example

?Running Head: Leadership and Management: BMW Leadership and Management: BMW [Institute’s EXECUTIVE SUMMARY The purpose of thisreport is to provide a detailed analysis of the BMW current market position and what future strategies its executives for further growth can adopt. This report will help the decision makers to evaluate the current and future positioning of the company under the company’s current market analysis with respect to its strengths, weaknesses, opportunities, and threats. The reports also highlights the structure, conduct and performance of the company’s human resources and finally recommend the strategic steps that can be taken for further improvements relating to management, development and implementation of organizational plan. Table of Contents EXECUTIVE SUMMARY 2 Table of Contents 3 INTRODUCTION 5 Size and Ownership 5 Service / Production 6 BMW Vehicles 6 BMW Motorrad 6 BMW Series Vehicles 7 Competitors 7 Environmental Standards of BMW 8 Environment Friendliness 8 BMW Benchmark 9 MONITORING ENVIRONMENT THROUGH MARKET ANALYSIS 9 PEST Analysis of BMW Group 9 Political Factors 9 Economic Factors 10 Socio-Cultural Factors 10 Technological Factors 11 PORTER 5 FORCES 12 Intensity of Competitive Rivalry 12 Threat of New Entrance 12 Threat of Substitute 12 Bargaining Power of Buyers 13 Bargaining Power of Suppliers 13 BMW SWOT Analysis 13 Strengths 13 Weaknesses 14 Opportunities 14 Threats 14 BMW Industry Publications 15 BMW’s Tactical Planning for Human Resource 15 Positioning Strategies of BMW Group 16 KEY BUSINESS CHALLENGES 17 MANAGEMENT AND LEADERSHIP 18 McKinsey 7S Framework 19 Strategy 19 Structure 19 Systems 20 Style 20 Staff 20 Shared Values 20 BURKE LITWIN MODEL OF ORGANIZATIONAL CHANGE 21 External Environment 21 Mission and Strategy 21 Leadership 21 Organizational Culture 21 Structure 22 Systems 22 Management Practices 22 Work Unit Climate 22 Tasks and Individual Skills 22 Individual Needs and Values 23 Motivation 23 Individual and Organizational Performance 23 POSSIBLE RECOMMENDATIONS 23 CONCLUSION 24 REFERENCES 25 INTRODUCTION The word BMW is the abbreviation of Bavarian Motor Works. The BMW group is one of the most successful automobile companies of the world. It is ranked third efficient car manufacturer worldwide after Porsche and Toyota. At first, there were three companies named Rapp Motorenwerke, Bayerische Flugzeugwerke, and Fahrzeugfabrik. BMW group is the German’s largest automobile company. It came into being when these three companies amalgamated into a single automobile company established in 1917, almost 90 years back the business of the company started with the production of aircraft engines and now in the 21st century, it has expanded its business form the manufacturing of engines up to the complete vehicles. BMW group has the most famous and highly valued brands of the automobile industry named BMW, MINI, and Rolls-Royce. The head quarter of BMW group is present in Munich, Bavaria Germany. The head quarter controls and manages the overall performance of the company in over 150 countries (Schlegelmilch, Lehbrink, & Osterroth, 2011, pg 45-54). Size and Ownership The ownership of the company is in the hands of three personnel Stefan Quandt with 17.4% shares, Johanna Quandt with 16.7% shares and Susanne Klatten with 12.6% shares (Schlegelmilch, Lehbrink, & Osterroth, 2011, pg 56-67). Since its establishment, BMW group has focused on the excellence in engineering and it is the only reason that it has expanded its growth and profit margin as compare with its other competitors. BMW group has almost 12 research and development centers all over the world in order to realize the market trends and create innovative automobiles as required by the consumers. The credit of all of its success goes to the R&D and consumer informed innovations as on average basis the company invests 2300 pounds on each car for research and development. In 2007, BMW group splendidly increased its sale up to 8%, Rolls-Royce by 26% and Mini by 18% (Schlegelmilch, Lehbrink, & Osterroth, 2011, pg 56-67). Service / Production The production network of BMW group is worldwide; it facilitates the customers to get the manufactured vehicles quickly and conveniently. BMW group has 23 production plants all over the world that has created eloquent competitive advantage for the company. Its production plants are in Germany, Austria, South Africa, USA, China, and Britain. Proper use of resources without wasting them is the key factor on which the BMW group focuses a lot. More than 70,000 employees are engaged world wide in this production process to ensure the high quality performance and gratification at workplace. Besides production, in several countries assembling of its automobile parts take place as well. The countries having assembling plants include Indonesia, India, Malaysia, Russia, and Thailand (Lewin, 2004, pg 34-42). The BMW group also keeps the environment friendly production process by not wasting the resources excessively. Used water is recycled for further usage. Similarly, the management has directed employees to turn on the energy-using components only when needed to save energy. BMW Vehicles The top most valued vehicles of BMW group are as under with their distinct features and competitive advantages: BMW Motorrad The brand name of BMW motorcycle is “Motorrad”. K1200S: it features an engine with “125KW, electronically adjustable front, and rear suspension. Sports bike include BMW S1000R, BMW K1300S, BMW F800S and so on” (Bladon, 1985, pg 23). The future models that the company will introduce in 2013 include: F700GS: suitable for all riders with “speed 192km/hr, 798cc engine, and ABS standard. F800GS: specially designed for short riders and women. Speed of 200km/hr, 798cc engine, and 6-speed gearbox” (Maguire, 2005, pg 102). BMW group has also sponsored many sports events in order to make its market value. BMW group has officially sponsored London 2012 Olympics. It has also made six years sponsorship deal wit the United States Olympics Committee in 2010. It is also very noticeable that 20 BMW powered vehicles have won the international races. Besides international competition, BMW group has a good experience of touring car racing as well (Maguire, 2005, pg 102). BMW Series Vehicles The smallest car launched by the BMW group is the 1-series. The 3-series was debuted in the market as compact executive cars. The X-series is mid sized SAV (Sports Activity Vehicle launched by BMW group). X-series includes X1, X3, X5, and X6. Competitors The major rivals of BMW group are Porsche and Toyota. The Mercedes Benz and Lexus are providing the same level of luxurious car manufacturing and are competing very efficiently and effectively in the market. However, BMW group has continued its leading position in the market ever since, BMW group is still scoring the top position as compared with Mercedes Benz and Lexus. BMW group has increased its sales up to 6.5% in 2010. On the contrary, Mercedes Benz has decreased its sales by 1.9% and Lexus by 7% (Maguire & Marion, 2011, pg 108). The consumers will to spend more of their incentives on to the buying of luxurious cars have also increased their sales level. According to analysts, the reason behind the successful sales of BMW group is that they provide their old inventory at a cheaper price before introducing the new version, the entrance of X3 in market has almost tripled their sales. This is one of the ways to secure the company’s sales form the rival Mercedes Benz and Lexus. BMW group has more than 50 competitors world wide that include GM, Hyundai, Nissan and Suzuki. Environmental Standards of BMW There are certain internal and external factors that make up the environment of company and help it to carry out its daily operations. BMW group like many other multinational companies have settled some environmental standards according to which BMW group proceed its day-to-day activities. Environment Friendliness BMW group has always preferred work that provide high quality service to consumer and that do not have any negative impact on the environment. The manufacturing process and technological progress all reflects the company’s positive attitude towards the environment and its safety (Cohen, 1996, pg 71-76). BMW group pays a lot of emphasis on the effective and efficient use of the resources with out wasting time or money. The company shows a lot of concern about the environmental hazards. Moreover, has signed the Charter of the Sustainable Development. In addition to it, it has applied latest technologies in he vehicles to minimize noise emission and reduce fuel consumption. The infrastructure and design of vehicles are in such a way that they can be recycled to make other things. BMW Benchmark The basic objective of the BMW group is to have profitable growth along with greater customer value as compare to its competitors. In the start of 2000, the company increased its sale by almost 9% and its turnover rate was about 15%. The production of the BMW vehicles is on the concept of providing luxurious automobile to the customers and the company is constantly working to increase the technological advancement and further improver the living standard of its customers. For this purpose, BMW group consider its employees not as the workers but as the key to its successful journey. BMW group is setting its new benchmark to manufacture and distribute an automobile within 10 days. The new cars that will satisfy this benchmark will use hydrogen engines for a healthy and unpolluted environment (Cohen, 1996, pg 88). MONITORING ENVIRONMENT THROUGH MARKET ANALYSIS BMW group is one of the best and leading luxurious automobile manufacturers in the world. The BMW group’s market consists of superb and excellent passenger cars and motorcycle market. PEST Analysis of BMW Group By the PEST (political, economic, socio-cultural, and technological factors) analysis, we can easily understand the macro environment of the BMW group. Political Factors Recently, “EU law” has passed prohibiting the carbon-emitting cars. It means that BMW group has to review the manufacturing of its cars according to the EU law. The company has to invest its research and development efforts to yield greener technologies that can manufacture such vehicles and engines that are environment friendly. The BMW group is now promoting its greener image by its new passenger car that uses hydrogen as fuel. The company has advertised this new engine technology with the name “Efficient Dynamics”. Recently its promotion campaign has started in UK. His latest technological advancement has increased the overall cost of the BMW group. Economic Factors Another influencing environmental factor is the overall economic activities that greatly influence the market. The economic recession has greatly affected the market of BMW group. Financial crisis has decreased its profit margin. The fall in price of Dollar as compared with Euro has also put adverse effect on the sales. Fluctuation in the currency prices along with the increase in the price of raw material has made it quite difficult for the BMW group to maximize its profits in the current scenario (Hubbard & O'Brien, 2009, pg 209-215). On the other hand, increase in price of fuel has compelled consumers to buy the vehicles that reduce fuel consumption. Overall, inflation in the world has decreased the demand of luxurious automobiles. People are more attracted towards the cost benefit vehicles that the small companies offer to them. Imposition of high taxes on the luxurious automobiles is also a hindrance in the way of purchasing. Socio-Cultural Factors In previous decades, the concern of people when buying an automobile was on the quality and its durability. In those days, the automobile companies use to manufacture vehicles with long lasting life. In the current scenario, the picture has changed. People demand has changed from durability to versatility. Now-a-days people want stylish automobiles with great looks rather than the quality. Their concern is about the perceived value of the car in the society and they change their car as soon as any other new fashion icon car comes in the market. So now BMW group works on providing its customer luxurious lifestyle with their highly perceived valued cars. They design the automobiles that are more appealing for the customers and build powerful brand images to attract its brand conscious customers. Due to diversification in the target market of BMW group, the company has to make different strategies for every country. The economic, cultural and social environment of different areas are different therefore different products can satisfy their needs and BMW group understands it very much so it provides the related and demanded models in each target market. As people are now more concerned about the environmental pollution, therefore the company is proving “eco-sustainable cars” (Hubbard & O'Brien, 2009,pg 318). Technological Factors Nowadays, technology has become a key factor to increase the customer demand and sustainable growth in market. People want more safer, luxurious, and comfortable automobiles. Technological advancement has become a strong competitive advantage in the recent world. Customers are more interested in the vehicles with alternative fuel consumption like hydrogen and electricity. BMW group is investing huge amount of its profits in the research and development measures to promote and encourage technological advancement in its automobiles that act as a symbol of prestige and competitive advantage for BMW group. On of the best example is the addition of iDrive in the BMW 7-series. PORTER 5 FORCES This five forces analysis gives a better understanding about the presence of tough competition in the automobile industry. This analysis shows that the market is highly competitive and there is a great influence of customers in the market due to presence of large number of substitutes. It jointly shows the potential competition that BMW group can face and the profitability that BMW group can avail if it takes proper measures to sustain its position in the market (Klein, 2007, 12-19). Intensity of Competitive Rivalry The intensity of rivalry is quite high for BMW group. BMW group has sustained its competitive advantage over its competitors by continued innovations in its vehicles and timely advancement in the technology. The company has used its superb production, excellent advertising campaign as a concrete barrier to stop it from being out of industry. Threat of New Entrance This threat is very low for all the luxurious vehicle manufacturing companies including BMW group. The reason behind this is that the fixed cost and initial investments are very high due to which any new comer will either drop the idea to enter or will move to some other business. Besides the cost, the company is having very close and friendly relationship with its existing customers and their customer loyalty to specific brands is so high that they will never consider any other vehicle to be tested. Threat of Substitute There is a medium level of threat about the substitute to the BMW group. The positive points are that the customers are loyal, but there is no switching cost, therefore, their attention can be diverted towards other offers as well. Similarly, current trend of changing things so quickly may also act as a threatening factor. Bargaining Power of Buyers This threat is also of medium level. Large companies buy large volume of vehicles for their business purpose and their switching cost is not too high, therefore, there is always an uncertain condition about the customer as they can replace the product with a close substitute. Bargaining Power of Suppliers The power of suppliers is quite high, as they know that the vehicles of BMW group are differentiated products that are highly valued in the market. Attractiveness in the BMW vehicles is their JIT (Just in time) production that facilitates the customers largely. BMW SWOT Analysis An internal analysis in terms of the BMW group’s own strength and potential weaknesses will help to understand where the company is currently present. The external analysis of threats will help the company to prevent itself form the potential attacks of its competitors whereas the opportunities present in the market (if availed) will help the company to attain its short and medium term profits (Vuskane, 2010, pg 3). Strengths Strong cash flow position Strong brand image Diversified range of differentiated products- BMW, Mini and Rolls- Royce Strong Research and Development capabilities Efficient usage of human resource High productivity of employees Strong innovative technologies used in vehicles Proficiency to turn resources into advantages Weaknesses Presence of substitutes in the market High prices Sophisticated buyers Consumers disinterest in Asian market Lac of environment friendliness due to pollution Opportunities New technologies in automobile industry Globalization Innovations Debuting of new products Expected growth in Asia Increase in demand of luxurious cars Threats Existing competition and potential competitors Great competition to take over customers and resources Economic recession Fluctuation in fuel prices Volatility in currency Legislation for environmental protection BMW Industry Publications BMW group provides its publication about the company’s strategic planning, current market situation, and business information, manufacturing and designing techniques, recycling methods, production manuals and human resource function and impact on the company’s sustainability. In addition to it, manuals on the BMW vehicles, investors’ relation (annual report showing its financial position, interim report), responsibility (sustainable value reports), research, and development (innovations) is also available. These manuals are available globally on the internet that is free of cost. These publications help the customers to get knowledge about the BMW group so they can rely on the company’s performance and it increases the company’s perceived value in the eyes of the target market as well. These publications are available in the PDF (Portable Document Format) and can be easily downloaded form the official website of the BMW group. BMW’s Tactical Planning for Human Resource It is the need of the current business world that in order to sustain in the market one should innovate its product as well as its human resource to facilitate the customers and expand its market share. BMW group has also focused on the need of time and as compared with the past decade, it has be come more customer oriented and deals with new concepts to provide excellent service to its customers. The company has redefined its organizational structure to deal with new operating mechanism. The company is also changing the existing culture of the company’s employees so that they can contribute more in the new strategies of the organization. For this purpose, the company has set such human resource policy that can contribute to the organizational performance maximization (Maguire M., 2007, pg 3-8). Like any other business, BMW group has the same basic human resource activities that include hiring and firing (recruitment process), training and development of its employees, appraisal and remuneration of the employees according to their performance and at last, the check and balance mechanism. BMW group believes on the equal employment opportunities to all regardless of their creed and culture. The only criterion for recruitment is the skills of the individual in the relative field. No sexually discriminated environment exists within the organization. Females also have the chance to excel and promote according to their capabilities. BMW group also provide training facilities to its employees. The BMW group for the enhancement of the skills of employees organizes trainee Promotion Program (TPP). These programs give both the theoretical knowledge as well as the practical implementation in the business world. As a future acknowledged company, BMW group has made a far-sighted ad creative human resource policy to meet the future business challenges, achieve its strategic and operative goals and to compete with the rest of the firms existing in the market with the vision to motivate its employees for further excellence. Positioning Strategies of BMW Group Recently, the BMW group is working on the “Number ONE” strategy that stands for New Opportunities and New Efficiency. It means that the company is focusing mainly on the opportunities available in the market, and to increase the labor efficiency to get maximum customer value. The focus of the BMW group is on the development, enhancement, production, and marketing of its luxurious vehicles. Moreover, the company is providing financial services for the business customers as well as for the private sector (Elliott & Percy, 2007, pg 56). KEY BUSINESS CHALLENGES A key challenge faced by the BMW group is the manufacturing of the automobiles according to the environmental standards as mentioned in the EU law. The law has strict rules about the emission of the carbon dioxide gas from the vehicles. Thus in the recent years, BMW group is facing the challenge of EU law. Before the launching of any new vehicle in the market, the company has to check vehicle’s after effects on the environment. The company is also facing technological challenges as many smaller companies are also competing to get a place in the race of technological advancement. Quick adaption, stealing, and copying of technologies is present instead of patents and copyrights. Hence, in the current scenario BMW group has to secure its work as well. Operational challenges are also present in the market. Customers prefer to buy from where they get maximum benefit in lesser time. Therefore, skillful labor is also the need of time immediately (Thornton, 2003, pg 66-69). Another simple question that turns into the challenge for the BMW group is what does the customer actually demand? Afterwards the question arises how to make the delivery of the exact thing possible? In order to answer this question, BMW group need to do market research and take a general survey about the need of the customer. Once the customers’ need is understood properly then the company’s duty is top fulfill the demand as quickly as possible. Some other challenges are: Preventing corruption Management of human resource Stakeholder’s needs Control over the supply chain management Strengthening compliance control MANAGEMENT AND LEADERSHIP BMW group has strong relationship with its employees. Both the company and employees have full trust on each other are sincere for the welfare of one another. Top-level management has clearly set the expectation and direction for the employees based on performance management. Several mangers lead teams to carry out the operational tasks with continuous improvement in the quality. Knowledge sharing is also a very common culture within the enterprise due to the timely job rotation of the employees that take place after every two years (Pearce & Robinson, 2009, pg 29-36). Supervisory board and a board of management run the BMW group. The setting of strategic direction is the responsibility of supervisory board while the management board works to achieve the day-to-day goals of the company. Ten members of the supervisory board are the employees of the BMW group while the other ten are the investors. BMW group believes that in order to achieve sustainable market position the strong bonding between the employees and management is compulsory. The company believes that if inadequate facilities are available to the human resource then the company cannot get success for a long period. BMW group has about hundred models for work at different timings. This helps the employees to select the timing on which they can work most efficiently. The reason behind the company’s leading position in the market is its qualities of coordination with employees and self-organization. The company has allowed working teams to take decision for the tasks they are assigned with. The teams can deal with the problems that arise during the work in the way they think is the most effective one. The responsibility for the work quality is of the team for the logistics, quality assurance, and its maintenance. The company provides excellent training to the team for better team performance (Manion, 2011, pg 34). The reason behind the BMW group leadership is its highest rate of innovation in the automobile industry. BMW group has the most talented and experienced engineers and scientists at the well-equipped research centers. BMW group is the leading automobile company but today the company is facing many challenges regarding increased customer expectation, currency fluctuations, and market downturns. McKinsey 7S Framework Strategy BMW group has adopted the innovation strategy to strengthen its position in the automobile market and no doubt by the adoption of this strategy it has increased its sale up to the sale of two million vehicles per year. Recently, BMW group is working in the new strategy named as “Number one” which stands for “New opportunities and New Efficiency”. This aim of this strategy is to avail the new opportunities that exist in the market and to become more efficient in the eyes of the customers in order to get leading position in the market and to have an extra characteristic feature over its competitors. Structure The basic organizational of BMW group is made in such a way that it can plan the best strategy to complete the work in time. The corporate and brand development division ensures the planning and the exact implementation of the strategic plans. The second division is of the Purchasing and supplier network whose responsibility is to minimize the expenses and lower the cot of raw material used. According to the Chairman of the Board of Management of BMW group, proper implementation of strategic plan is possible when the organizational structure is capable of handling it even in complex situations. Systems The control system of the BMW group is of high efficiency. The company ensures that all the information that is necessary to control the system (both internal and external) of the organization is available to the authorized person on time. All employees get the sufficient training to carry out their duties properly and employees have the training of risk awareness as well to understand the market positioning. There is no bureaucratic style of decision-making by the top-level management only. Employees can take necessary decision regarding their operations that can be efficient to maximize the output (Maak & Pless, 2006, pg 56). Style Style refers to the culture of the BMW group. BMW group believe on the equal employment opportunity to all. There is no discrimination based on religion, gender, or culture. The company is open to adopt any good idea that comes in the mind of any employee regardless of their grade. The culture of BMW group shows mutual respect for all the employees and customers. Staff BMW group considers its employees as a competitive advantage over the other competitors. The company hires competent people and the management ensures the fulfillment of their rights very decently. Proper remuneration, healthy working environment, job security, retirement allowances and on job trainings are some of the key factors that attract people to get job in the BMW group. Shared Values The chief goal of the BMW group is to prove itself as the leading company of the premium automobiles and services for the customers. The company has greatly achieved its mission up to a great extent and as all profitable institutions; its purpose is to maximize its profits. The new financial year has broken the record of previous years’ profits. BMW group has shown the best financial progress in the first quarter of 2011. The earning has crossed the limit of 1.2 million Euros in the first quarter and is likely to grow more in the coming months. BURKE LITWIN MODEL OF ORGANIZATIONAL CHANGE This model assists to study the environment of a particular entity in detail. The application of this model is to modify the system of the organization. Burke Litwin Model as applied on the BMW group based on the 12 organizational variables is discussed below: External Environment The outer environment is full of competition for BMW group. Continuous efforts in the field of technology and innovation are compulsory to sustain the market position otherwise; competitors will capture the customer value in no time. Mission and Strategy The clear vision of the organization is to get a leading position in the market regarding the manufacturing of the premium automobiles, and no doubt, BMW group has successfully attained this position (Clarke, 1996, 89). Leadership The supervisory board controls the strategic planning. In addition to it, the relationship between the employees and the management is so good that implementation of the plans take place smoothly without any haphazard. Organizational Culture The work environment of the BMW group is very coordinated. Employees have equal rights without any biasness. Structure BMW group has made teams within the organizations that are allowed to take prompt decision about their related work for maximum efficiency. This creates a sense of responsibility among the employees and they focus more over their work performance. Systems The basis for recruitment process is on the skills of an individual and similarly the performance appraisal and reward is for those employees who deserve it. Management Practices The managers plan the strategies and then the employees implement them. The managers provide a detailed explanation of the work, possible practical implementation, and coping with the problem that might arise during the work. If needed then the mangers also provide proper training manuals to the employees for better understanding. It is also the responsibility of the mangers to take care to avoid the wastage of the resources. Work Unit Climate The behavior of the staff and their inter-relationship is of respect, trust, and honesty towards the organizational motives. All members within a team and other teams work in a coordinated manner without disturbing or interrupting each other. Tasks and Individual Skills BMW group hire right person for the right place. As a finance officer must have proficiency in accountancy, marketing personnel need to have excellent communication skills; H.R personnel must have management skills. Moreover, job rotation is a part of the organizational activity that helps to understand that where a person can better contribute according to his skills and personal interests. Individual Needs and Values BMW group also focus on the employees job satisfaction so they can better perform at the workplace and that will ultimately result in job enrichment. Proper remuneration, better work environment, allowances and bonuses, proper leaves when needed are some f the primary factors that help to increase the employee satisfaction with his/her job. Motivation BMW group also identifies the organizational behavior (from 1 to 10) that mostly affects the employees’ motivational level. Every employee may have different reason to get motivation; therefore, it is the responsibility of the organization to provide all the above-discussed factors positively to its employees. Individual and Organizational Performance At last, the BMW group needs to have a check and balance on the over all performance of the employees and organization regarding profitability, productivity, quality, customer satisfaction, allotted budget and expenses and efficiency of work done. POSSIBLE RECOMMENDATIONS It will be a good opportunity for BMW group to expand its market in Chinese market as well. Launching of an entirely new product in China can be a good entrance based on cost leadership. 1-series or 3-series can do well in the Chinese market. As Ansoff Matrix declares, diversification strategy can be a good one to enter in the Chinese market (Taylor & Dimbleby, 2001, pg 77). The most dangerous factor for BMW group in the current scenario is the availability of automobiles at a cheaper rate by its competitors. Moreover, due to the increase in oil prices people will tend to buy cheaper vehicles that will consume lesser fuel. BMW group must need to take measures to cut its cost so that it can provide its automobiles at a cheaper rate or else the competitor companies will capture the entire Asian market with the eye-catching prices CONCLUSION Analyses show that the BMW group has attained a very charming position in the market currently. In order to sustain its position and customer value, the company needs continuous technological advancements and debut of new vehicles to attract the customers. After having a look at the market analysis, the paper has acquired a clear picture about the current position of BMW group and its expected future position, therefore, after comprehensive analysis, the recommendation for the BMW group is that it should focus on the cost cutting of its vehicles to attract more customers in the Asian market. In addition to it, extension in the current range of product is also necessary. The debut of new product with low cost can be an attractive tactic or the emerging markets. REFERENCES Bladon, S. 1985. BMW. New York: Gallery Books. Clarke, R. M. 1996. "Road and Track" on Bmw Cars. Cobham: Brooklands Books. Cohen, J. 1996. BMW M-Series and Performance Specials. Osceola, WI: Motorbooks Internat. Elliott, R., & Percy, L. 2007. Strategic Brand Management. Oxford: Oxford Univ. Press. Hubbard, G., & O'Brien, A. P. 2009. Economics. Chicago: Prentice Hall. Klein, A. 2007. Marketing Plan - BMW 1. New York: GRIN Verlag. Lewin, T. 2004. The Complete Book Of BMW. 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BMW Business Strategy - An Overview. Chicago: GRIN Verlag. Read More