In this article, we will see the BMW vision and mission statement analysis.
The company overview
History
‘The ultimate driving machine’, has been what it is since world war 1. Just like many prevailing big businesses who did not start with what they are currently operating in, BMW is no different. BMW in its initial years was predominantly known to be engaged in building aircraft, built-in motor vehicles, and jet engines providing them as armaments to the German army in world war 1.
Then came the ‘Treaty of Versailles’, as a result of which the company had to adopt a reactive strategy to the change in circumstances for its survival. The company began producing engines, motorcycles, and cars as the ‘Treaty of Versailles restricted the production of aircraft and other vessels.
About
The Bayerische Motoren Worke (closely translated into English as Bavarian Motor Works), has a long legendary legacy and stories to tell. The kingpin of the automobile industry was once the producer of kitchen appliances and utensils and only standalone engines in its financial testing times. From kitchen appliances to aircraft to high-end luxury vehicle brands it has seen it all. And now, over the years, it has rightfully claimed to be the second most valuable brand on the planet and has redefined the true meaning of traveling in luxury.
The world’s leading premium manufacturer of automobiles and motorcycles was founded by Franz Josef Popp, Karl Popp, and Camillo Castiglioni in 1916 and currently has under it the two premium British brands – Mini and Rolls Royce. The company has a headquarters in the German state of Bavaria the colors of the flag of which are shown in the logo of the company.
The company was also largely engaged in designing train and airplane interiors along with providing premium financial and innovative services.
The mission and vision statement analysis
The mission statement
‘TO BECOME THE WORLD’S LEADING PROVIDER OF PREMIUM PRODUCTS AND PREMIUM SERVICES FOR INDIVIDUAL MOBILITY.
This two-line statement speaks volumes about the existence of the company in society and as to what it strives to achieve.
To become the WORLD’S…
The German luxury automobile company does not want to limit itself to the German state of Bavaria, nor does it talk about being the best in Germany, it has a mission to serve the purpose of the entire world! And as a matter of fact, it is capitalizing on the same by opening plants in new geographical spaces to be able to have a wider customer reach. Currently, it has 43 sales subsidiaries and financial services locations worldwide, 31 production and assembly plants in 15 countries, and 12 countries with research and development locations.
World’s LEADING provider…
BMW sure was the world’s leading luxury automobile brand only until the fellow German competitor, Mercedes-Benz took over and reserved its position on the top. BMW now sits in the 2nd position worldwide and is striving to regain its position as the world’s top luxury carmaker by increasing its market share and revenue.
Provider of PREMIUM products and services for individual mobility…
‘Premium’ is what BMW is all about, right from its British luxury brand subsidiaries to its niche inherent features inbuilt in its products.
BMW provides top-class cars, but what you may not know is that it produces few models that appeal to security and military personnel, politicians, and celebrities as certain car models are built to ensure high safety, these are known as armored vehicles.
The company produces 3 different levels of protection car models – security, security +, and high security. These are categorized into different prize scales according to individual requirements. These armored cars are so strongly equipped that they can take a bullet fired from an AK 47 assault rifle from a distance of 10 meters and keep on rolling and also a blast from a hand granite.
The company also produces custom-built cars with a remote software upgrade and security plan which is an innovative idea of unlocking or locking your car doors and managing activities internal to the vehicle. It is an application of the ‘Internet of Things’ (IoT). It has a software-enabled car device that can be operated through handheld devices such as mobile phones and tablets etc for easy operations and preventing carjacking offenses. But, the whole purpose of this innovation has been defeated, when the German road transport agency found out the bug in the software configuration which could easily be targeted and used to the advantage of the hackers to enter into the car system.
BMW also has electric cars under its operations, this compliments the mission statement which is generally drafted for society as a whole, for sustainability purposes the company had first launched its electric car in the year 1972, the 1602E. It ran 37 miles per charge, it has launched electric cars one such includes visionary BMWi which is a sustainable electric vehicle with light-weighted design and aerodynamics.
Few other innovations also include flame throwers installed at the edges of the car on either side for protection purposes, this became a part of the production process due to the riots and increase in crime rates in South Africa. (which was back then the first production international site out of Germany).
The vision statement
‘TO BE THE MOST SUCCESSFUL PREMIUM MANUFACTURER IN THE INDUSTRY.’
It is amazing how a one-liner statement could depict a whole lot about the vision of an entire company.
To be the MOST SUCCESSFUL PREMIUM manufacturer…
The company wants to be the ‘Most’ (superlative and above all) and successful in its operations of premium products and services. It takes a tremendous amount of effort and innovations time and again to survive and be relevant, and it would be safe to say that, over the years BMW has delivered in terms of innovation for quite a long time.
Few of its innovations over the period of time include –
– Development of specialized battery cells, to improve the longevity, increase energy density, and hype up the range of the battery, and legalize the operational life of the vehicle.
– BMW Group has joined hands with its fellow leading automobile Japanese producer Toyota Motor Corp to develop a power transport system based on hydrogen fuel cells which adds as one step towards sustainability.
– And innovative, intelligent material mix resource-efficient production techniques, increase in digitalization, and installed AI applications have moved a step further for cutting down costs and overheads and sustainable production.
– It has also achieved several milestones over the years such as in 1923, BMW announced its first motorcycle which can be branded as a revolutionary step to survival due to restricted production of aircraft. The first motorcycle was called the R32, until then the company only supplied engines rather than complete vehicles.
– Another great innovation in the history of the company was that of post-war innovation of the first BMW car, BMW 501, although it was not a commercial success, it restored BMW’s status as a manufacturer of high-quality cars.
Sustainable development
A company’s intention should not merely be to make profits or a materialistic motive, it should have a sense of responsibility towards the society and environment as a whole. And BMW is one such company, BMW is the pioneer of sustainability in the automotive industry. In 1973 it became the first company in the automotive sector to appoint an environment officer, since the year 2001 it has committed to United Nations Environmental Programme (UNEP) and later also started working with United Nations Global Compact (UNGC) and the cleaner production declaration.
The company has been successful in lowering the carbon dioxide emissions of its newly sold vehicles in Europe by forty percent between 1995 to 2019. It has been ranked under the category of the only sustainable automotive company in both Europe and the world by Dow Jones sustainability indices rating.
The company’s strategy includes long-term thinking, ecological and social sustainability with increased recycling of residues and a clear commitment to continuing resources, reducing vehicles fuel consumption and emission.
The company is focusing more on digitalization and artificial intelligence-related systems both installing in the vehicle systems and for production activities which indirectly lowers the cost of production but more importantly, it indirectly reduces the negative production externalities by going digital instead of installing and producing man-made equipment.
Further, the company is also known to produce electric vehicles that run solely on batteries, this helps in the reduction of fuel usage and smoke emissions. Now, contrary to people’s presumption that electric vehicles are not a viable option for commuting purposes… just for the record, the BMW produced electric vehicles guarantee long distances with just one dose of charge, for example, BMWi is a light weighted vehicle with aerodynamics and long battery life.
Conclusion
The Bavarian Motor Works, despite the innovations over the years, has slowed down a bit in recent years due to the lack of groundbreaking innovations for which it is famously known. It has lost its title of a top luxury automotive brand in the world to its fellow German automotive producer Mercedes-Benz due to lack of change and innovation in the company spectrum. BMW has been operating under monotonous conditions for recent years and has shown a downward trajectory and negative cash flows, and has recorded the lowest number of deliveries in the year 2019. Its market share and revenue diluted in comparison to that of Benz.
But despite all of this, we all know what this German kingpin is capable of, the company will redeem itself and fight back to regain its position. BMW is the world’s largest manufacturer of innovative mobility services and has a global sales network around 140 countries!
The company has a workforce of 120,000 plus employees (as of 2020) and sales revenue north of 112 billion dollars. The company’s also successful for the fact that it concentrates on the most crucial and fundamental area of business, the customers. The company has a customer-centric approach with a huge emphasis on the requirements of customer needs. It strives to cater to the customers of today and tomorrow by delivering hope and strengthening customer relationships.
The company has a rich legacy of hand craftsmanship, meticulous attention to detail, and supreme quality. At BMW, the significance is laid on the enhancement of driving experience, because at Bavarian Motors Works they sell driving pleasure as driving is more than just a verb, it is an emotion! All in all, the brand is true ‘The ultimate driving machine’!
FAQs
1 – What are the business reporting segments under BMW?
ANS – The German company reports under 4 business segments namely automotive, motorcycle, financial services, and other entities. For example, the proceeds come from premium cars, BMW Motorrad, leasing and financial services, and its other subsidiaries such as ‘Designworks’ respectively from the segments.
2 – What are the core values of the BMW company?
ANS – The core values of the company include responsibility, appreciation, transparency, trust, and openness which has kept the running for over a century in the automotive industry.
3 – Who are the major competitors of BMW?
ANS – The current big competitors include Mercedes, which has surpassed BMW in market share and revenue, and others including Ford Motors, Tesla, General Motors (Cadillac, Chevrolet, GMC), Volkswagen, and Toyota (Largest automobile producers in the world).
4 – Does BMW provide financial services too?
ANS – Yes, the company also provides financial and leasing services. The segment is operated under the company segment ‘BMW Group financial services’, such as the financial services sector of the company is operated in more than 54 countries in the world. It helps facilitate stimulating transactions of the company with prospective customers by as provision of products and financial services to help finance the purchase of the product is happening with the same entity for retail and commercial customers and has a portfolio of more than four million leases and credit financing contracts.
Reference
- BMW group company GROUP COMPANY
- BMW group forbesGROUP FORBES
- Wikipedia
- BMW group annual reportGROUP ANNUAL REPORT
- BMW group segment report, business report, financial report
