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BMWs Strategy - Essay Example

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BMWs Strategy

From the marketing side three developments make the need for information greater now than in the past: global marketing, the customer-oriented marketing approach and the nonprice competition.
Information transforms the financial decisions governed by the numbers into business decisions based on the probability of alternative strategic assumptions thus it requires that the business has formulated a strategy and this strategy and its assumptions are challenged. Therefore, the organization needs to continuously innovate in order to remain and become antagonistic.
The management requires sales data especially up-to-the minute reports on current sales. It needs to have accurate data on stock levels of products, it needs information on customer profiles (financial and personal data), on marketing expenditure, on customers' perception about the company and its products, on industry sales and market shares, on staff's training needs, on financial aspects of the company (debts, loans, cash-flow, budgeting etc.), on R&D and on production line requirements.
The BMW Group follows the efficient dynamics strategy i.e. the environmental friendly car production and the customer orientation. Thanks to the use of flexible working methods and working-time accounts, the BMW Group directs its production capacities highly efficiently to changes in demand on the various sales markets.

Identify an example of each of strategic, tactical and operational decisions which might be/have been taken by your chosen business. Explain why these decisions are respectively strategic, tactical and operational. 18 marks

According to BMW's public announcements the strategy of the group is the following:

"Number ONE- The BMW Group Strategy
The Board of Management has devised a new corporate strategy: Number ONE.
Number ONEexpresses our claim to leadership, its letters O, N and E stand for Opportunities, New and Efficiency: we want to make the most of new opportunities and achieve new levels of efficiency. Essentially, the name Number ONE stands for everything we do in relation to our strategic realignment. The time has come to act."

The strategy and the vision of BMW Group are depicted in details at the diagram below:

(BMW's internal file:2008)

Strategic decision is the customer oriented marketing policy and the achievement of further market penetration. It is a strategic decision since it sets up the basis for the tactical and operational decisions. For 2008, BMW' strategy remains focused on customer satisfaction and the stability of dealer organization.

Tactical decision is the achievement of customer satisfaction and market penetration through the alignment of sales volume in specific markets to actual demand and the car -customization according to the customers' needs.

Operational decision is the reengineering of internal procedures and especially of the production process in order to maximize customer satisfaction and therefore achieve the strategic decision of market penetration.

Identify examples of information likely to be needed to take ...Show more


Our today's society is information based. Information is data endowed with relevance and purpose. Converting data into information requires knowledge. The companies that possess superior information and knowledge can have competitive advantage. They can choose their markets better and develop superior marketing plans thus becoming better than their competitors.
Author : langeverett
BMWs Strategy essay example
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