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SWOT Analysiss – BMW Human Resources Policy

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Administrations, Analysis and Policy


To: Senior Management

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From: Group Accountant

Date: 2neodymiumMay 2005

Capable: BMW Organisational Analysis andHuman Resources Policies

This study will supply a elaborate analysis of BMW’scurrent corporate assessment analysis. This will assist to place the company’scurrent strength, failings, chances and menaces. This will assist thecompanies determination shapers understand where the administration is now. The reportwill besides critically evaluate BMW ‘s human resources policy as a cardinal country of theorganisation. We will foreground how BMW has strategically responded to thedrivers for alteration in footings of its construction, behavior and public presentation.

Finally, offer recommendations for the hereafter development and betterments in humanresource direction, and how those will impact on its organizational construction, behavior and public presentation.

Company Background

The BMW Group is the lone maker of cars andmotorcycles worldwide that concentrates wholly on premium criterions andoutstanding quality for all its trade names and across all relevant sections. With the trade names BMW, MINI andRolls-Royce Motor Cars, the BMW Group has been concentrating on selected premiumsegments in the international car market since the twelvemonth 2000.

In thesucceeding old ages, the launch of the BMW 1 Series meant an enlargement of themodel scope in the premium section of the lower in-between category and the BMW 6Series did similarly in the section of the big CoupAA©s and Convertibles. TheMINI trade name was launched and production began in the Oxford works in 2001. In2003, the BMW Group assumed marque duty for Rolls-Royce Motor Cars.At the same clip, the Worldwide Head Office and Manufacturing Plant inGoodwood, GB, was built. (

AnInternal and corporate analysis in footings of strength, failings, opportunitiesand menaces ( SWOT ) will help in deriving an apprehension of where BMW iscurrently in footings of strengths and where betterment is required within thebusiness and what outside environmental menaces it may confront every bit good as what newopportunities are available to the company in the short and average term.

Figure 1: BMW SWOT Analysis


  • Diverse scopes of Products – BMW, MINI and Rolls-Royce
  • Strong Cash Flow Position
  • Increase turnover and trading net incomes
  • Strong Balance Sheet
  • World ‘s prima Premium Quality Automobile Manufacturer
  • Brand Awareness
  • Human resources
  • Capabilities to turn resources into advantages


  • New Merchandises
  • Market displacement to globalization
  • Innovation & A ; Alliances
  • Customers demand alteration to more comfy and relevantly inexpensive autos
  • Diversification
  • New Technologies in Cars


  • Percept of High Monetary values
  • Customer neutrality
  • Environmental issues: Pollutions
  • Buyer edification and cognition
  • Substitute merchandises or engineerings


  • New & A ; bing competition
  • Volatility in Price of Fuel
  • New statute laws
  • Consequences of the oil crisis
  • September 11Thursday
  • Economic recession
  • Market displacement to globalization
  • Coup d’etat commands
  • Far-East Automobile companies enlargement
  • Highly high competition for clients and resources

The Five Forces Model

Figure2: Five Forces Model – ACCA Paper 3.5 ( 2001 )

Menaces from

Potential entrants


Dickering power




Dickering power

Menaces from


Porterexplains that there are five forces inherent in a market, which will jointlydetermine the strength of competition and profitableness of BMW and theautomobile industry. The first is the menace posed by new entrants, the highcapital outgo and assurance of clients represent important barriersto entry and the market is besides sensitive to repute. However, the emergentof low cost industries do present a important menace ( as illustrated by figure2 ) . There is an chance in the low price/ low economic system ( fast ) sector. MaybeHyundai or Daewoo could see presenting a low cost athletics barroom. The 2nd is the menaces from replacements, as thereare many brand and theoretical account of other premium branded autos, therefore, Jaguar, MercedesBenz, Audi etc. The 3rd force is the menaces from the bargaining power ofbuyers, is this strong for both BMW and the full car industry with alarge figure of alternate providers, hence, the aggressive pricing strategy.This consequences in a really strong competitory competition in the industry. This isintensified as a consequence of small or no distinction in the basic productoffered. Finally the menaces from the providers dickering power, this isfairly low in the car industry, due to double sourcing schemes, utilizing arange of alternate beginnings of supply for parts.

The five forces analysis gives an improved understandingof the grade of competition within the concern environment. The analysisshows that the automotive industry is extremely competitory, with buyerspossessing and exercising a really powerful influence to the big figure ofsubstitute trade names available to them.

BMW Human Resources Policy

In response to a altering concern environment BMW isbeing more concern and service focal point. In the past decennary the administration hasbecome much more proactive, covering with new constructs to go more serviceand client focal point oriented. The construction of the administration has beenredefined to cover with the new ways of operating. Organisational structuredefines of import relationship within the concern for accomplishing businessobjectives. At the same clip it helps to specify the new concern civilization withinBMW. Culture exists with the heads and Black Marias of BMW ‘s employees andcontributes to concern schemes of the administration. Therefore, BMW ‘s humanresources policies are critical in the administrations construction, behavior andperformance.

Competitive force per unit areas on BMW and national economic systems haveincreased markedly in recent decennaries. Therefore, administrations are constantlychanging, as powerful entities have arisen at the international degree, theEuropean Union being a good illustration and transnational corporations increasinglydominate peculiar sectors such as autos. New competitions are emerging andforcing older companies to follow or reform to last. Different structuresaffect the manner in which human resources are managed. BMW like all otherbusinesses require the same basic human resources activities like enlisting, development and preparation, assessment and wages systems, and command andfeedback mechanisms. Organizational constructions are influenced by culture.Employees have strong feelings towards the administrations they work for. Germanfirms have inherently a level, less stiff constructions. The McKinsey 7 ‘S ‘ modelis frequently used to place all the countries that make up an organisation.Structure, Style, Staff are three such countries.

BMW has an equal chances none sexual discriminatingculture within its administration. BMW actively supports immature female executivesand gives females insight into the field of engineering. BMW besides offersextensive developing for all degree of staffs ; BMW Group ‘s Trainee PromotionProgramme ( TPP ) provides the perfect combination of theoretical surveies andpractical work. BMW Group trainees receive many benefits in add-on to theirpay, other societal payments such as vacation and Christmas fillips, repast andtravelling disbursals subsidies, wellness programme and Personal computer preparation.

BMW claims that it does non see its staff as a cost factorbut as an indispensable public presentation factor. Besides the employees are referred to as’associates ‘ instead that works. BMW in its human resources policy provinces thatany policy that is non oriented towards its associates will take to negativecost effects in the long-run.

As a future-oriented company, we seek to prosecute anexemplary, originative and associate-oriented human resources policy, makingsignificant parts to concern success through our human resourcesactivities. The human resources policy of the BMW Group is an built-in featureof our overall corporate policy in both strategic and operative determinations. ( Corporate assessment ( or SWOT analysis ) consists of the internal assessment ofthe administration ‘s strength and failings and an external assessment of theopportunities and menaces open to administrations in competition within industry.

Cite this SWOT Analysiss – BMW Human Resources Policy

SWOT Analysiss – BMW Human Resources Policy. (2017, Jul 23). Retrieved from https://graduateway.com/swot-analysis-essays-bmw-human-resources-policy/

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