BMW Group

2037 Words5 Pages

1. Introduction
The purpose of this essay is to provide a complete analysis of BMW Group. First, some background information about the company will be provided for a better comprehension of this study. Next, BMW will be assessed from a microeconomic point of view: its demand curve, organisational structure, customers, suppliers, strengths, weaknesses and its operating environment. Then, this firm will be reviewed in context of its sector from a macroeconomic perspective and more specifically its market environment, followed by a PEST analysis of other external factors such as GDP, interest rate, cost of raw materials. This study will be further quantified by a ratio analysis in order to evaluate BMW’s financial health. In the end you can find a conclusion and also a bibliography, which can be used as further reading material.
2. Overview of BMW
Bayerische Motoren Werke AG, shortly known as BMW, is a German manufacturer of luxurious automobiles and motorcycles. BMW group is not simply one name: it is also the parent company of other premium brands such as the MINI, the Rolls-Royce and the motorcycling company Husqvarna. For the purpose of providing a maximum of details, this essay will just focus on the automobile part of BMW as it is more significant than the motorcycle segment and since they have a lot of overlapping factors.
3. Microeconomic analysis
BMW, like any other oligopolistic firm operating under competition (will be detailed in chapter 4), will face a kinked demand curve (fig 1). Since BMW operates in a market with few firms and highly differentiated products, it will have an inelastic demand for its products as there are no close substitutes. In other words, BMW has some market power, which is the ability to raise...

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...bmwgroup_com/investor_relations/finanzberichte/_pdf/BMW_Group_AR2010.pdf http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/investor_relations/finanzberichte/_pdf/BMW_Group_2009_EN.pdf http://www.bmwgroup.com/annualreport2008/_downloads/BMW_Group_2008.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2007/pdf/BMW_Group_Complete_2007.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2006/pdf/gb2006_gesamt_en.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2005/pdf/gb2005_gesamt_en.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2004/pdf/gb2004_gesamt-en.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2003/pdf/gb2003_gesamt_en.pdf http://www.bmwgroup.com/bmwgroup_prod/publikationen/e/2002/pdf/gb2002_gesamt_en.pdf

Word count: 2006* (excluding bibliography, images) -> make picture of table texts to reduce to 2000.

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