BMW Automobile Term Paper

PAGES
2
WORDS
547
Cite
Related Topics:

BMW Investor Analysis It is recommended that investors sell BMW AG stock for short-term strategies. BMW has had a recent increase in profit margins and has had success in developing markets and this performance is represented in the current market evaluation. However, it is unlikely that BMW can maintain this performance in the short-term for a variety of reasons. One of the largest contributing factors to this position is that emerging markets such as China are not predicted to continue to demand BMW at the present growth rate.

BMW AG was not at all immune to the global downturn and world demand for luxury goods and services, like those that BMW manufactures, were some of the hardest hit industries. Many, if not most, of the world's largest automobile experienced losses during this period while some went bankrupt and were restructured. However BMW's stock price rebounded...

...

The recessionary rebound has translated into higher demand for the stock which has driven the price up recently.
Figure 1 - BMW AG Five-Year Stock Performance (BMW Group)

BMW was able to recover from the recession so quickly because of two key developments in operations. First BMW was able to improve its profit margins without negatively influencing sales volumes. Although BMW was noted as less resilient than other A rated companies during the peak of the recession according to S&P, the increases in profit margin performance has boosted stock value performance well above that of pre-recession levels (Reuters). As a result S&P upgraded BMW's rating to positive from stable and affirming the ratings at 'A-/A-2'.

Another factor that helped BMW…

Sources Used in Documents:

Works Cited

BMW Group. Share price performance. 27 October 2011. Web. 27 October 2011.

Reuters. TEXT-S&P revises BMW outlook to positive. 15 September 2011. Web. 26 October 2011.


Cite this Document:

"BMW Automobile" (2011, October 27) Retrieved April 16, 2024, from
https://www.paperdue.com/essay/bmw-automobile-116492

"BMW Automobile" 27 October 2011. Web.16 April. 2024. <
https://www.paperdue.com/essay/bmw-automobile-116492>

"BMW Automobile", 27 October 2011, Accessed.16 April. 2024,
https://www.paperdue.com/essay/bmw-automobile-116492

Related Documents

Automobile and Consumerism The automobile has completely revolutionized consumer culture. From being a novel invention that very few could afford to own, to becoming the number one purchased product in the United States, the automobile has not only changed the way that individuals travel independently, it has also altered the advertising industry. Advertising is the mechanism by which consumers are able to become aware of the products that are being made

The Series 3 cars are conservative in appearance, but their variety of body types will appeal to a wide range of consumers. Several of the Series 3 models are lower in price than other BMW cars and might therefore appeal to younger, upwardly mobile market segments. The touring models will appeal more to large families or those who want larger vehicles, whereas the coupe and convertible will appeal more

automobile industry is highly competitive. BMW had temporary set-backs caused by competition from Lexus, Acura and Infiniti in the late 1980s, but rebounded to claim a significant position in the luxury/performance segment. BMW expects its new Z3 Roadster to engage in competition with other luxury car import manufacturers such as Porsche and Mercedes. The automotive industry is mature and market share is critical to survival. Consumers are less brand-loyal

All of these attributes together fuel a high level of mastery of their jobs, a critical element in job satisfaction (Sull, 2007). Finally the aspects of personal and work outcomes, which include high internal work motivation, high satisfaction with work and low turn-over indicate that BMW employees have found competency in their work. The reliance on transformational leadership techniques in terms creates a sense of purpose throughout the company.

Of course, BMW also hoped to take advantage of Rover's 13% market share in the UK. BMW has always placed a heavy emphasis on improving its logistics: "Even before the establishment of its U.S. plant, BMW was spending several hundred million dollars annually in North America to procure parts and materials for its German-made vehicles. Although transportation costs were higher, exchange rates and lower production costs made them cheaper

The James Bond tie-in ensured that this message was received strongly by the target audience. The Nieman Marcus promotion and Central Park promotion strongly reinforced this message. Everything was tied to the Bond promotion and all supported the aspirational message, including the product itself. In terms of distribution, the company knew that it was going to need to rejuvenate dealer interest in BMW, given that they had just made a