Notes

Introduction of BMW

The main aim of this assignment is to discuss the problems as well as opportunities faced by "Bayerische Motoren Werke" better known as BMW in the current business industry and it is also considered a giant in the global automobile industry. BMW was officially inaugurated in 1916, making it one of the oldest automobile companies in the world.

the BMW had been growing to its highest brand values by spreading its presence in vast geographical locations all across the world. In the year 2018 BMW has approximately sold over 232,505 units were sold in the BMW group automotive allowing it to earn around 110 billion pounds from its annual financial reports and this earning is only from cars that are produces by BMW and BMW also produces many other vehicles like bikes and sports cars like some of the best formula 1 racing cars with the best safety material like carbon fiber body. The net income of the entire BMW is estimated at around 250 billion pounds. This company is also known for hiring a massive workforce of more than 150,000 that its estimated workforce has spread all over the world. And one of the most advantages of BMW is it had been diversifying its resources in every aspect unlike its competition Mercedes Benz and Audi clearly focusing on luxury vehicles. In recent years the company is also encouraging to experimenting in all types of things like increasing the use of eco-friendly items like recycled material by 2030 and BMW had been implementing things like electronic automated vehicles such as iNEXT,i4, and iX3 to reduce the issue of global warming.

Challenges faced by BMW:

Currently, there are three main challenges faced by BMW management. These are a few of the major challenges that have been given below:

TECHNICAL TRANSITION :
Although BMW has launched a few of the best electric cars like i4, iNEXT, and i3 as premium EV cars trying to reduce emission, but however there are several issues that are faced by these vehicles until now the vehicles should be recharged after every 800 to 1000 km this is the major flow in this vehicles for now and the higher authorities of the company lack technical knowledge in improving these vehicles in any aspect as per the report published in HOD of the R&D department, it would take at least more than 3 years for mitigating these issues( Danielis et al .2020).



Technical transition: Although BMW has launched iNEXT and iX3 as its premium electronic vehicles, aiming to reduce emissions, however, there is a massive technical issue in these vehicles. For now, the vehicles have to be recharged after covering only 800 to 1000 km. This is a major flaw in these vehicles. For now, the higher authorities of the company lack technical knowledge in improving these vehicles. As per the reports published from the HOD of the R&D department, it would take at least 3 more years before mitigating these issues (Danielis et al. 2020).
Price hikes in developing new types engines: The global automobile engines are witnessing a fast transition from BS4 to BS6 engines. However, as per the accouchements made by the representatives of the company, this transition is proving to be quite expensive to manufacture. It is important to understand that the engines of every BMW vehicles are highly refined even in the cases of B4. Hence, making new transitions would increase the development costs for the company (Bohnsack et al. 2020).
Appropriate levels of inventory: This challenge is known to maintain its consistency for a long time for BMW. The primary cause of this problem lies in the supply chain management of the company that makes often delay in supplying the raw materials required by the company.