Running Head: BMW
BMW is considered one of the most successful companies around the globe. The
company has been in existence since March 1916, where it operated as a German motor vehicle
manufacturer and was later renamed to Bayerische Motoren Werke in 1922. The company has
continued to grow and expand in different regions across the globe over the years, making it an
international organization. BMW has a significant contribution to the world economy and plays a
vital role in the world market.
Operational practices for BMW Group
Technological advancements resulting in rapid innovation constitute a significant issue
that has affected the operations of BMW. Competing companies such as Tesla have embraced
technology and provided the customers with more advanced car models, Tesla, for instance, has
developed self-driven electric cars that have been very successful in the market. BMW has,
however, maintained a lot of consistency in its car manufacturing; this has made the company
maintain a high market share (Hiremath et al., 2017). BMW needs to embrace the technological
changes and develop a more innovative model to remain ahead of market competition.
The BMW group manufactures vehicles under its three brands, namely, MINI, RollsRoyce, and BMW. It is recognized as a worldwide performer in the manufacturing of high-class
vehicles. Its global growth and expansion in different countries have enabled BMW to increase
its sales (Bubna & Wiseman, 2016). The company has 31 production facilities that are
operational in 14 countries. That has enabled BMW to serve a broad market through operation in
different countries hence covering a more extensive customer base. The many production
facilities have made it possible for the company to enhance its production activities in order to
ensure enough production of vehicles to meet the rising customer demand.
Critical Issues in the BMW Group
The BMW Group is currently experiencing several challenges in numerous areas of its
operational activities. International trade conflicts have adversely affected the activities of the
group, mainly because of the company operations in different regions across the world (Kotler &
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