BMW G localisation Assignment
BMW G localisation Assignment is a solution of BMW G localisation Assignment in which we discuss Developing business and best technology in the auto industry
BMW is a well known organisation in the world for the auto maker and though serving to the premium customer segment. The Corporate strategy adopted by BMW is such that it has implemented both global as well as local elements in the workings of the company which have helped the company to understand the local operational issues and cultural issues. Though company is well known for the brand name and best engineering technology in the auto industry but more than all this Glocalisation strategy adopted by company also helped them in resolving various regional issues and perform better in those regions.
Ques1. What are the elements of BMW’s corporate strategy that have contributed to its success as a global corporation?
Answer: Corporate Strategy can be defined as the “Predefined way in which all the operations of a corporate firm work in order to achieve the set goals and objectives”. The Corporate strategy of the firm need to be highly flexible and should incorporate all the changes which are critical as per the demand of the situation in which it operates (Treacy and Wiersema, 2003, pg 13).
According to Henry Mintzberg (2004, pg 43) corporate strategy can be defined as the mean which shows the way to go from here to there. In other words corporate strategy of the company is always unique and very much dependent on the mission and vision of the company. Or in other words it can be said that corporate strategy is defined as per the future expectation of the company about the aims and objectives.
According to Kenneth Andrews (1999, pg 44) corporate strategy can be defined as the pattern of decisions making in any organisation which determines objectives of the company and shows the principle policies of the company. There is a definite plan of action by the firm in order to pursue all the objectives of the company. And the plan of action has to be decided by the series of decision making in order to achieve the set objectives of the company.
The Elements of the corporate strategy of the company which have contributed to the success of global corporation are as follows:
|Sr. No.||Element name||Importance||Contribution to success|
|1||Mission Statement||Mission statement of the company provides a target of the company where it has to reach||High|
|2||Vision statement||It provides the directive path for the target finding||High|
|3||Leadership style||Leadership style of the management decides what way company will achieve its target||High|
|4||Situation assessment||Situation assessment provides the actual assessment where company and its competitors stands in the market||Middle to high|
|5.||Competitive advantage||The Competitive advantage of the BMW is its technical expertise and premium customer segment||High|
As per the definition given by the Henry Mintzberg the corporate strategy of the company should define the way which company want to travel. Hence the mission which company want to achieve should be fulfilled with the help of the corporate strategy of the company. Mission Statement: The Mission statement of the BMW is “To become most successful premium manufacturer in the car industry”. Hence it shows that clearly company want to cater to only the premium car segment of the automobile segment and want to be the most successful company in the automobile industry (Robert, 2003, pg 14). Also the company want to become the most successful company in auto segment with the help of some particular innovations which are the differentiation points which company has and provides advantage to the company over its competitors.
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Vision statement: The Vision statement of the company specifies how they want to fulfil their aim of the most successful company in the automobile industry. It says that “Uniqueness through diversity, Leadership, taking Risk, courteous”. Hence company want to achieve the uniqueness with the help of the diversity which it is trying to achieve through the technological innovations in their products (Tregoe and Zimmerman, 2000, pg87). BMW is very ahead of its competitors in terms of the technological innovations which company has brought in their cars especially in terms of the engine making as the company is trying to develop the Hydrogen driven engine instead of the conventional petrol and diesel engines in the car.
BMW G localisation Assignment
Leadership Style: Also leadership management is their other unique feature, company is trying to build the proper leadership element in their employees and the diversity which company has adopted is in terms of the Glocalisation in which company will tend to build the right mix of the global as well as local leadership in their worldwide operations (Steiner, 2009). Hence company is trying to operate its outstation centres through the employees of the local countries so that they can understand the lower level managers and needs of customers better than the other managers of the company which are not from the same local country.
Situation analysis: Also the corporate strategy is about assessing the demand of the situation and acting accordingly. So BMW is having the corporate strategy in which company before building any designs of their vehicles try to assess the needs and requirements of the customers to which company want to cater to through various market research techniques. These market research techniques enables the company to develop the right mix of the skills and abilities in the company so that they can fulfil the requirement of the customer and at the same time they can be ahead of all their competitors in terms of understanding their customer’s needs.
Competitive advantage: Competitive advantage of BMW is its technical expertise with which company has survived and has been positioned in the premium customer segment. This competitive advantage of BMW is a major part of the corporate strategy of the company.
Summary: The Elements of corporate strategy of the company should be very specific as they guide the path for the success of the company.
Ques2. How did BMW enact its corporate strategy in Thailand keeping in mind the local culture?
Answer: The BMW has the main motto of inculcating the leadership among the local employees of the each countries since company understand the importance of local employees in terms of understanding the needs of customers and employees of the company. In Thailand, company has adopted a major shift in terms of developing the element of Glocalisation which is not present presently.
The Corporate strategy of the company was such that the company adopted the various cultures in themselves and sue to which in every culture it become very easy for the company to operate. The Team meetings carried out by the company in order to share the experience of various employees for the various regions also helped the employees to get aware and behave in different cultures. BMW also make use of the SWOT analysis at various places where its market position was not very strong and identified reasons for the weak conditions and improved on the culture adoption for that.
Top management has taken a very crucial decision in which the Thai employees would be at the key position in the Thailand. The Move taken by the company is due to the reason that the top management has to deal with the various local elements in any country which are customers, employees and government. And the local people who are given the second level management position in the company would be comfortable to deal with the customers, employees and government in their home countries, these leaders can understand their needs better and solve the issue in better way than a person which does not belong to that place.
BMW always acted by respecting the local values and culture of Thailand and company was not known as the harm to environment in the country. One of the major example of this event was the environmental standards used by the company in Thailand in order to make the vehicles which were same as the environmental standards used in Germany hence company respected the environment and culture in Thailand.
One of the other major reasons why BMW was so successful in the Thailand market as well was the strength of the product and brand name of the company. Some of the positive points which helped the company to differentiate them from the other vehicle manufacturers were as: high quality products, high class buyers, good work culture, and technological innovation, environment friendly and strong brand name. BMW from its inception was known for producing to high quality products so as to cater the premium customer segment only hence due to that the product quality maintained by the company is always on higher side.
The Customer segments which BMW was having was also very highly educated and were having the enough knowledge about the products and usage as well. Hence it becomes easy for the company to capture the local market very fast since customers were known about the product and it was easy to reach to the target customers of the company (Tregoe and Zimmerman, 2000). The Work culture adopted by the company was very good as company appointed many of second level managers from the Thailand itself and also the working culture was good in terms of employee welfare hence the customers were having very high ethical perceived image for the company which helped the company to associate with its target customers. The Environmental standards followed by the company also proved very beneficial for them as one side company got the image of environmental protective company and at the same time their cars cleared all the regulations imposed by the local environmental regulation authorities.
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Another major important USP of the company was its technological innovation which makes BMW apart from all other brands of the car since company was having very good command on the technological innovation in terms of the engines used in the cars and other parts of the car as well. Hence the vehicles manufactured by the company were assumed to be always equipped with the best of technology present in the auto industry. The Brand image of the company was another selling point for the company since from the time being company was enjoying high reputation in auto industry which attracted the customers towards the BMW products.
Summary: Culture adoption in different countries was the key to success for the Glocalisation strategy of the company.
Ques3. Explore reasons why BMW encourages its top management echelon to be in a continuous learning mode vis-à-vis national culture?
Answer: The Top management Echelon here means the major agenda of the company on which company was banking in order to get successful. The Top management echelon for the company was the second level managers of the company which were directly reporting to the CEO of the company. BMW was having the clear objective that the second level managers of the company would be selected from the local nations only and the understanding behind this logic was that the local nation manager can understand and fulfil the needs of the customers, employees and government of the local county only instead of the managers of the other countries.
The Major reason for the top management of the company to be in continuous learning mode is that basically company want the people which posses the intra-cultural management capabilities and that capabilities will help the company to excel in the multi cultural environment. Company in order to develop the cross culture learning and problem solving process among their managers started a unique initiative in which selected international management trainee across the world would be visiting the Thailand and these management trainees will work and operate on the working operations in the Thailand (Steiner, 2009). Every day the management trainees will have to analyse various issues related with the BMW operations in Thailand and based on the analysis of the management trainees they will have to provide the recommendations which would be implemented further for the improvement of the operations.
BMW G localisation Assignment
The Top management of the company laid so much emphasis on the Glocalisation was due to the fact that management decisions are very important in any organisation and these decisions are also related with the background of the person which defined the capability and capacity of the person to understand needs of the customers (Porter, 2006). Hence if Glocalisation would be inculcated by the management then the general decision making process of the company would improve further and thus faster and better decision making process will take place in the company.
An ideal strategy for any company should be a mix of the local as well as the national culture of any organisation. The mix of the two traits is essential since both are dependent upon each other and without one the importance of other quality will not be there. Hence the local as well national traits has to be there. Since local culture help the top management to manage the customers, employees and government of the particular country. Learning the local culture will be beneficial for the management since it will connect the management from the local customers as well.
But at the same time top management should know the importance of the national culture as well. As BMW is multinational organisation and the operations of the company in various countries should have the same kind of similarity in them. So the standardisation can be brought in the company with the help of inculcating one national culture which its top management needs to be follow in the organisation.
The Employees of the company needs to learn and adopt various things which they are not aware of. The Cross culture problems faced by the employees would be one of the toughest issues which they need to be resolved very quickly (Porter, 2006). Hence the employees of the company have to be well equipped with the various cross cultural problems.
Company was more focused on the localisation part of the business along with the nationalisation business. Company was having the view that managers must understand the local as well as national cultures since company like BMW should follow the practices organisation wide in that process the nationwide cultures would be used and a standard process can be implemented in complete organisation (Hart, 2007). But as company caters to different nations the local customer needs and wants can only be identified and fulfilled only if the local person or manager is assessing the needs and want of the customers. Hence the local managers of the company are better in terms of understanding the demand of the local customers.
The Skill set of the managers should be such that they can manage the national as well as the local employees of the company so in order to develop that level of managerial skills and efficiency among the managers of the company then company will have to expose them to the national as well as the local culture as well then only the right mix of the two can be used to control the employees of the company.
Summary: The Top management echelon of the company was the people who have the capability for the multicultural issue management.
Ques4. Suggest ways BMW may further refine its intercultural approach to strategy formulation and implementation?
Answer: The Present approach followed by the company in order to deal with the intercultural issues is working very well as the company is successful in understanding the demand and needs of the key stakeholders such as the customers, employees and government. But still the management can be made so that it can best assess the demand of the customer and employees and successfully satisfy the needs of the customers.
So company still needs to take the corrective measures in order to improve the intercultural approach of the company which will help the manager’s to understand the local as well as the national aspect of the management of the company’s operations. Some of the major changes which can be implemented in order to deal with the intercultural issues are as follows:
- BMW cultural philosophy: Company needs to recruit the candidates which possess the characteristics as per the philosophy of the BMW only.
- HR Policies: In order to improve the strategy formulation and implementation process of the company it needs to adopt the HR policies which can select the employees with good characteristics and personal qualities so that the candidate can easily understand the work culture and philosophy of the company. Such HR policies will help the company to have the candidates which will be able to handle the intercultural issues easily.
- Cross country assignments: BMW can adopt the methodology of cross country assignments for their employees. It can shift its employees on frequent basis so that they can understand the culture of other countries and after spending adequate time employees can handle the local customers and employees of a country.
- Succession Planning: Succession Planning is one of the best option which can be used in order to resolve the inter-cultural issues since the employees which are working with the company from the long time should be given the higher positions as they can understand the philosophy and culture of the company better than other employees which are selected from outside the company and has not worked so long with the company.
- Training and development: The Training and Development can help the employees of the organisation in grooming them and can bring their leadership traits. The Leadership traits of the employees can help them in managing the employees and customers in inter-culture organisations (Steiner, 2009). Hence there should be some training and development modules designed as per the company’s requirement which should provide proper knowledge and make employees accustomed to the intercultural situation handling and problem solving as well.
- Understanding the needs of the customers and employees: The Culture and philosophy of the customers changes with the country hence different countries has different culture and philosophy and on order to serve the customer as per their requirement company needs to understand the needs of the employees and customers in better way (Porter, 2006). Understanding the needs of the local employees and customers will help them in carving out their strategy as per the requirement of the situation in local markets and the company will be able to develop the intercultural issues easily.
- Local talent: The Best possible solution to for intercultural strategy formulation and implementation policy is selecting the candidates from the local county only. Since the local country employees are best to understand the culture of their own country and they will be able to connect with the local customers better than the other employees of the company which do not belong to the same country.
- Understanding local traits: Each country inculcate some local traits in their citizen. Hence company needs to understand these local traits of the people in order to chose the right candidates (Hart, 2007). For example Thai people are considered to be best for leadership qualities and fairness is their another traits hence understanding the local traits of the employees can help the company to chose the mangers from within the local country which can lead the company accordingly.
- Headhunters: Headhunters can be another better option for recruitment of the local employees of any country. The Headhunters can help the company in identifying the local talent so as to resolve the intercultural issues of the company. Headhunters can be very helpful since they can help the company in recruiting the candidates with desired cultural and capabilities which company can’t recruit themselves.
- Two level control mechanisms: Company should have two control mechanisms in which it can implement multiple level control for the managers, first level of control mechanism will start from the direct supervision which would be done from the local employees of the company and would only be uni-cultural only. First level of control mechanism would be more for the low level managers of the company which can be easily driven through the local middle level management employees of the company. The Second level of the control would be driven with the help of rules and procedures of the company.
The Second level management control process would be more for the middle level management of the company. They will have to follow the set rules and procedures of the company which have been framed and followed organisation wide. These rules and procedures would help in bringing the uniformity in the organisation.
Summary: Company can refine its intra cultural approach by refining the human resource policies of the company.
Conclusion: BMW has adopted the Glocalisation strategy which has proved successful for the world-wide operations of the company. In order to improve the company’s performance various corporate strategy elements of the company such as mission, vision and leadership style has contributed a lot. Also the intra-cultural adaptability of the company has proved its major advantage for success in foreign countries. Company has always required its employees to be become intra-cultural managers. And company is trying to align its human resource strategy so as to make the candidates accustomed to intra-cultural functioning.
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