B2005 International Business : Automobile Assessment Answers

Answer:

Long Term Recommendations

Bayerische Motoren Werke AG or more popularly known as BMW is one the world’s most sustainable automobile company. They are one of the top automobile manufacturers who get featured in the list of the best automobile organizations every year. To maintain their current strategic position and ensure their future, BMW must depend on maximizing their profits. In order to sustain their position in the market as a premium luxury car manufacturer, it is imperative for BMW to look into new areas inside the automobile industry.

For BMW, some long term recommendations are as follows:

1. BMW must reduce costs so that they can maximize their profits. Their mission statement declares that they wish to do so by attempting to reduce employee numbers and the expenditure amount in research & development. Instead of doing that BMW must focus on reducing the manufacturing costs of their cars and invest more in research & development.
2. BMW requires focusing more on targeting women and the safety and practicality of their manufactured vehicles. Most of their models are male-dominated, especially the 3 Series, being constant with the mid-level luxury sedan section. Capturing a substantial female consumer segment would help BMW in gaining market share in opposition to their competition in the market. Apart from the market segment consisting of young, working women who are looking for an exhilarating automobile, BMW must also target the demographic segment of older females who hold a considerable decision making power inside their families.
3. BMW must additionally invest more in those technologies that are at the same time cost efficient and fuel efficient so that their performance lines are improved. It would additionally help them to compete in the market with new cars that are better on gas.
4. In the long run, BMW must look into investing in emission reduction technologies. They are aware of the current environmental and health hazards taking place in the world, and their investment in this concern would benefit the environment, the society and lead a large number of customers to the company.
5. For development of their future strategic position, BMW must look into collaborating with other major automobile manufacturers so that they can continue being a leader in the automobile manufacturing industry and develop their brand image and value.
6. For strategic positioning in the market, it is important for any organization to expand their business and explore new markets or new target audiences. BMW can follow the same strategy and widen their strategy by adding smaller cars like Mini Cooper to their assortment and simultaneously increase the numbers these cars that are cheaper in price in comparison with the bigger variants.
7. Automation as a technological breakthrough has been a great help to the automobile industry. Linking its future with robotic systems would further simplify and specialize the mechanisms of the industry and make the operations smoother and specific to needs. It can improve competence and production for the car manufacturers, reducing costs too and improving consistencies. Making the whole manufacturing process automated for BMW would help them employ human workers sporadically and reduce mishaps. The implementation of robotics would open the doors to a world of possibilities for BMW and better their precision and speed.
8. BMW ought to concentrate on decreasing the utilization of oil by replacing the fuel with different sources, for example, power and solar energy. BMW is as of now placing endeavors around there, yet the concentration ought to be more accentuated because of the quick changes in this industry. Moreover, because of the development of innovation, practically every gadget, for example, mobile phone and TV, is getting to be "smart," and automobiles are no special case. Along these lines, shoppers will look for more thoughtfully created works other than fundamental elements of an automobile.Subsequently, automobiles should be "smarter" and BMW ought to likewise adjust to this modification in the car business.

Short Term Recommendations

For BMW, some short term recommendations are as follows:

1. BMW is an internationally acclaimed organization. The directorate and the partners need to choose the right individual for the right job - contracting talented and learned individuals to perform in the association. The executives of the BMW need to play out their obligation to control the quality and to incorporate more innovation to perform in the assembling procedure or in the dispersing procedure.
2. The risk management framework anticipate and tend to the diverse sorts of risks in the organization like fuel rate changes, world financial subsidence, natural catastrophes and the risk management division. It ought to have full learning about how to make the association more beneficial in the worldwide market or how to overpower this sort of risk. BMW can possibly turn out to be a really global pioneer in the event that they spread their units of two wheeler countries.
3. BMW must invest in preparing integrated end-to-end campaigns so that they can increase their customer interactions, which would in turn build a loyal customer base and improved brand identity.
4. BMW must enhance the quality models of accessories with the goal that the clients will see acknowledging value of the vehicles and may not react contrarily to upward price alteration but instead acknowledge true quality. This might be a straight alternative to maintain both sections of the overall industry and make profits to hold up its potential improvement and advancement prospects.
5. The association must plan to make use of its adaptableness purpose viably to have the capability to acclimate to the varying business condition to withdraw from being discovered in situations where it can't vindicate itself from troubles out of compounding market condition. They are supposed to make use of their diversification strategies to go into new markets on the earth via active promoting that may bear benefits. They may go one more mile by presenting after sales service maintenance for extra length or miles protected. This would elevate their reflection and would work outstandingly in finishing their core focus of delivering and presenting the most elevated number of automobiles. This achievement would mean elevated overall incomes.
6. BMW can engage in franchising to expand their business in areas where they cannot directly reach out to. Franchising would help BMW increase sales volume while reducing expenses and probable risks. With this BMW’s brand identity would increase without investing much.

References

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Cavusgil, S. T. (2015). Attitudes Towards Auto Maintenance and the Extent of Do-It-Yourself Activity. In Proceedings of the 1982 Academy of Marketing Science (AMS) Annual Conference (pp. 498-501). Springer International Publishing.

Dill, K. (2016). The World's Most Sustainable Companies 2016. Forbes.com. Retrieved 30 March 2017, from https://www.forbes.com/sites/kathryndill/2016/01/22/the-worlds-most-sustainable-companies-2016/

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