Principles of Management: Company Profile

BAYERISCHE MOTOREN WERKE (BMW)

1.Origin

Bayerische Motoren Werke AG (English: Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1916 by Karl Friedrich Rapp. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW producesmotorcycles under BMW Motorrad and Husqvarna brands.

BMW Headquarters in Munich, Germany

2.History

BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1916. After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted, followed by automobiles in 1928–29.

The circular blue and white BMW logo or roundel evolved from the circular Rapp Motorenwerke company logo, from which the BMW Company grew, combined with the blue and white colors of the flag of Bavaria. The logo has been portrayed as the movement of an aircraft propeller with the white blades cutting through a blue sky.The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.

The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float. BMW acquired the Hans Glas Company based in Dingolfing, Germany, in 1966. It was reputed that the acquisition was mainly to gain access to Glas' development of the timing belt with an overhead camshaft in automotive applications.Glas vehicles were briefly badged as BMW until the company was fully absorbed.In 1992, BMW acquired a large stake in California based industrial design studio DesignworksUSA, which they fully acquired in 1995.In July 2007, the production rights for Husqvarna Motorcycles were purchased by BMW.BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise.

In June of 2012 BMW was listed as the #1 most reputable company in the world by Forbes.com. Rankings are based upon things like “people’s willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.”

3.Milestones

1910-1920

1916 - Establishment of BMW.

1921-1930

1922 - Company relocation and new beginning.

1923 - BMW R 32 – the first BMW motorcycle.

1931-1940

1934 - Aero-engine manufacture becomes autonomous.

1936 - Establishment of the “Shadow Plant” Allach.

1941-1950

1941 - BMW in World War II.

1942 - Forced labour at BMW.

1945 - Reconstruction difficulties.

1945 - The Munich plant is dismantled.

1951-1960

1951 - The BMW 501. The first post-war BMW automobile.

1961-1970

1961 - The New Class makes a breakthrough.

1967 - New location: the plant group Dingolfing.

1969 - Motorcycles to Berlin.

1971-1980

1971 - BMW Kredit GmbH.

1972 - BMW starts up in South Africa.

1972 - The founding of BMW Motorsport GmbH.

1973 - The BMW headquarters and the Museum.

1973 - Worldwide creation of sales subsidiaries.

1981-1990

1985 - BMW Technik GmbH.

1987 - BMW starts up in Regensburg.

1991-2000

1994 - BMW goes to the USA.

1994 - Acquisition of the Rover Group.

1998 - Rolls-Royce comes to BMW.

2000 - The Eberhard von Kuenheim Foundation.

2000 - The BMW Group establishes a new trajectory.

2001-2010

2001 - The MINI – Premium in the small-car segment.

2003 - Rolls-Royce Plant Goodwood.

2003 - Rolls-Royce Motor Cars launches new Phantom on the market.

2004 - The BMW 1 Series – Driving pleasure for the compact class.

2005 - The Leipzig Plant starts up production.

2007 - Opening of BMW Welt.

2007 - Takeover of the Husqvarna brand.

2007 - Strategie Number ONE.

In autumn 2007, BMW Group adopts the Strategy Number ONE with its four pillars: “Growth”, “Shaping the future”, “Profitability” and “Access to technology and customers”. It aligns the BMW Group with two targets: to be profitable and to enhance long-term value in times of change. The mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.

4.Vision & Mission

Vision:BMW Vision Efficient Dynamics. A vehicle that previews tomorrow’s driving pleasure using today’s technology.

Mission:To make BMW Group the world’s leading provider of premium products and premium services for individual mobility.

Slogan: Sheer Driving Pleasure.