Strategic Business Functions at BMW

Task 1: Business functions, process and challenges

Introduction

The business operation is the strategy of having the organisational output and values of the organisational assets and capabilities to sustain in the business and secure future sustainable development. Business operations in the planning of managing inner working process through which the managers and the leaders of the organisations aim at transforming the input into the output so that the companies can deliver he quality goods and services to the customers in long run (Hill, 2017). The aim of the report is to manage the operational management in the organisation BMW to implement effective planning so that it is easy to manage the BMW production plant successfully. Through this report, it is easy to discuss the activities of the operational management strategies as well as develop proper organisational planning to achieve success so that the companies can deliver high quality goods and services to the customers in long run. The study also focuses on the key operational activities such as management of warehouse and machineries and enhancing the organisational capabilities through developing strategic planning as well as managing the core functions like marketing and sales product and service development and business operation management for achieving organisational success. In addition to these, the study also focuses on support functions such as finance and accounting as well as human resource management which are also other important activities of the business under the business operation management for delivering quality products and services to the customers for creating values for them as well as enhancing the organisational values in long run. The study also aims at evaluating the process such as transformation of resources into goods and services, and inputs to the processes like materials, information, customers, and resources: facilities and staff. Proper evaluation of the 4V strategy including volume, variety, variation and visibility are also represented for understanding the business operational management in the BMW production plant where the managers and other staff members can work collaboratively for creating values for the organisation. The challenges of managing business operational management are also critically analysed for understanding the performnace objectives of the organisation. After evaluating the operational management, it is possible to acknowledge the connection between the operational management and strategic planning of the organisation to achieve the organisational objective.

Business functions

BMW is a reputed German multinational company producing automobile and motorcycle and the firm has been established in the year of 1916, 103 years ago. The company is efficient in serving the customers across the globe, where the organisation aims at managing the quality of their products and services for satisfying the customers through delivering quality automobile products according to the expectation and preferences of the customers in the market. The major products of the company are luxury cars, motorcycles and engines. Total number of employees in the organisation is more than 134682, who are efficient to manage the business operational activities to meet the customer’s demand. In addition to this, the organisation is efficient in creating profitability and enhancing the sales volume of the company where the revenue of the firm in the last year was approximately €97.48 billion and the production output of the BMW in the last year 2018 was 2541534 vehicles. The company tries to expand their services through enhancing the business operational activities at the BMW production plant in the Oxford, United Kingdom. The target of the company is to be profitable and to enhance the long term values from the technological, structural and cultural perspectives and in this regard it is necessary for the mangers to develop effective strategic planning for achieving success in near future and fulfil the mission of the organisation which is to become world’s leading provider of the premium products and premium services for individual mobility within 2020 (BMW, 2019a).

It is necessary to discuss the business functions of the brand through which the company tis to improve their strategic planning to achieve the pre-specified objective of the firm. The core business functions are such as marketing and sales, product and service development and business operations and the support functions are such as accounting and finance and human resource management. The major business functions of the BMW are evaluated further,

Marketing and sales:

Marketing and sales management is one of the effective business operational activities through which the companies try to promote the brand and improve the brand visibility in the market (Ansoff et al., 2018). Through marketing and sales management strategy, it is possible for the organisations to enhance the sales activities and promote the organisational products in the market. Through the social media advertisement, direct email to the customers and social campaign, the organisations at improving the brand visibility in the market and retain the customers for the organisational products. In this regard, BMW aims at the high-end customers with high income so that they can afford the luxury cars. In this regard, the promotion of the products like luxury cars and motorcycles through the social media marketing and sending direct email is effective strategic planning for managing the business operational management where the firm promote the cars in the market and retain the customers for ling run. The organisation in this regard tries to manage the products with safety and security and maintain availability of the products to meet the customer’s demand. Faster response to the test drive request and providing efficient services to the customers reduce the waiting period for the customers and this plays a crucial role in improving trust and loyalty among the customers. The company BMW also provides training and development program to the sales representatives of the organisation through which it is posisbel to enhance loyalty and trust an which further enhances the service quality of the business in long run.

Product and service development:

Product and service development are one of the important factors through which the organisations develop effective planning to manufacture quality products and efficient services for the customers so that it is easy to create values for all the customers in the market worldwide (Uhl, and Gollenia, 2016). In this regard, the concept generation of the cars, enhancing creativity in designing the cars and innovative techniques inside the cars are the major strategies for manufacturing luxury cars which are able to meet the expectations of the customers in the market. In this regard idea generation of the products, managing the warehouse, implementing information and communication technology (ICT) for enhancing communication and enterprise resource planning (ERP) are effective technological implementation of the business through which he organisation BMW tries to manage their production plant, warehouse and distribution of the raw materials at the product sites for effective manufacturing of the products. In addition to these, services play a crucial role in retaining the long-term customers for the organisational products where managing customer’s feedback. Providing test drive to the customers and cooperating with them for choosing the right cars as per their expectation and budget will be helpful for the company BMW to improve trust and loyalty among the customers and strengthen their customer’s base for long run.

Business operations:

Under the business operation management, the companies in the recent years focus on the cross functional collaboration, enhancing communication, managing people and sustaining growth as well as data management, strategic planning and managing organisational culture which are effective to achieve the organisational success (Nicholas, and Steyn, 2017). In this regard, the company BMW also focuses on data management through implementing cloud computing system and software in the data base management so that they can manage their stakeholders in long run where the stakeholders of the company such as customers, employees, suppliers and distributors of the raw materials and final goods also, managers and government so that the company can manage their business operations and enhance organisational growth in near future.

The support functions f managing the business are such as,

Accounting and finance:

Managing accounting includes the billing information, managing performnace and process improvement as well as financing includes managing budgets, capital investment for the production plant, managing the stockholder’s requirements and managing high return on investment so that the company can manage the production plant in the UK and enhance growth through manufacturing the quality products int he company which would be effective to meet the customer’s satisfaction. For managing the accounting and finance, the company maintain proper yearly budget plan and forecast the capital investment for managing the production plant in the UK as well as there are experts in managing the billing process for maintaining the raw materials and final products of the company.

Human resource management:

Human resource management is an important effective strategy for enhancing the organisational operational management where it is a support activity for maintaining the business functions in which the managers and the leaders are aiming at managing the staff members, engineers, technicians and managers in the organisation who are contributing with their full potential for achieving high growth of the business (Webb, 2017). For managing human resource and enhancing the organisational capabilities, the organisation BMW focuses at creating values for them by providing high salary structure, enhancing their creativity and innovation, giving performance related pay to the staff members and the mangers, as well as manging organisational culture to work with collaboration an communication, respecting each other’s decision and maintaining harmony and freedom. These strategic planning of the business of the BMW is effective to manage the product plant by retain the staff members and the human resources such as engineers, managers and technicians to manage the production plant and manufacture quality cars for the customers worldwide.

Process of the business at BMW production plant

The business process management is also necessary for the organisation through which it is easy to manage the operational activities of the firm. Under the process innovation, the organisations try to transform the inputs into output through developing effective production plant as well as enhancing innovation and creativity which in turn helps to the firm to achieve the pre-specified objective. In this regard, the input processes are such as material, customers, information management and resources are facilities and staff who are able to transform the inputs into its output of the company. Through the business operational process, the organisations can create values and, in this regard, 4v is effective way to analyse the volume, variety, variation and visibility of the organisation which are contributing factors to achieve success. The materials play a crucial role in producing quality output and in this regard, BMW utilise quality materials, innovative design, effective engines to produce the luxury cars for the customers. In this regard, information technology (IT) plays an important role to manage the production plant of the company BMW. The major reassures of the organisation are the facilities of the company as well as the staff members who are efficient to handle the operational activities of the production plant. In this regard, the major contributing factors of the business are such as raw material, the automobile parts of the BMW, technology at the production plant and the staff members who manufactures the final product of the company. Managing the customer’s feedback, providing efficient service to the customers and improving trust and loyalty among the customers by delivering quality automobile products are also effective strategic planning of BMW to improve process innovation and retain long term loyal customers. In this regard the 4v can be described as,

Challenges for managing the business operations at BMW

It is important for the organisations to manage the process design of the products and services of that the performnace objectives of the organisation including quality, cost, reliability, sustainability and corporate social responsibility can be managed well. In order to manage the quality of the products of the BMW, it is necessary to maintain quality raw materials, inputs of the materials for manufacturing the outside of the cars, quality engines and other automobile parts that are reliable and sustainable for the customers to meet tehri expectations. Product specification of the BMW and variation of innovative techniques presented in the car are effective strategy of managing the performnace objective of quality. However, there are certain issues such as error in production design, lack of skill and knowledge of the technicians, inefficient of the staff members ad lack of productivity which further deteriorate the quality of the products and services provided by the company BMW to the customers. In addition to theses, it is necessary to manage the cost of the production to gain high profitability as well as deliver the quality cars to the customers at affordable price. The products and fracturing activities of the cars at BMW is costly due to high end technology, latest innovation and creativity in designing the cars and use of quality raw materials and other automobile parts. In this regard, another challenge for the company is that high cost of the production and manufacturing the cars which raises the final price of the cars and that is why the company BMW targets the high and customers with high income level so that they can afford the luxury cars produced by BMW.

Additionally, flexibility is necessary in the organisation where the company BMW needs to maintain wide product range with different models of the cars, frequently establish new products and services and maintain volume and delivery adjustment to meet the high expectations of the customers. In this regard it is also challenging for the company to manage the product variety and high product range with latest innovation and creativity as it is costly to maintain the operational activities of product development such as product design, approval of the design, using quality raw materials and automobile parts, appropriate engineers, market development for promoting the cars and customer management which are expensive for the company and which needs proper capital investment (Smith, 2017). In addition to this, speed is necessary where the organisation BMW focuses on responding the clients instantly and supporting them to choose the right car as per their requirements and preferences and in this regard low waiting for test drive and cooperation and communication with the customers increases the speed of the delivery of the quality cars to the customers. In this regard, there are also some challenges such as increasing lead time, taking high time for delivery due to inefficient of the staff members and distributors to ready the final products and lack of management of warehouse of managing the quality of the cars. These are challenging for the BMW to manage the production plant and improve speed and flexibility for long run. In addition to these, on the recent era of globalisation, it is the responsibility of the companies to manage the environmental sustainability and enhance the positive environmental footprint so that the company can manage the productional plant without any ethical issues (Wheelen et al., 2017). In this regard, it is challenging for the company to reduce the greenhouse gas emission due to high power used in producing the automobile parts, as well as waste management which are necessary for sustaining in the business and securing future sustainable development for the company. Other challenges for managing the business operational activities at the BMW are lack of cooperation and collaboration among the team meber4s as well as poor communication which raise difficulties to manage the production plant and improve the organisational culture to work as a team with proper sharing of the knowledge and skill. Additionally, lack of capital investment and inefficient in managing the data are also other challenges which deteriorates the speed of the operational activities of the company. Inefficiency of the staff members and lack of technical skill of the engineers and technicians are also other challenges where lack of providing training and development program and poor research and development will deteriorate the variety of the products where the company BMW fails to manage the product variety and maintain the cost of the new products.

Conclusion

It can be concluded that, the organisation BMW focuses on developing effective strategic planning for managing the operational activities of the business to maximise the performnace objectives of the firm as well as meet the mission statement of the company. In this regard, the business functions of accounting and finance and human resource management, as well as marketing and sales, product and service development and business operations are the contributing factors through which the organisation BMW can achieve success in near future in the global automotive industry by enhancing their operational activities as well as securing future sustainable development by managing product range, variety of the products, marketing and sales management, improving customer’s trust through providing efficient service ad customer’s feedback management, free test drive as well as latest innovation and creativity and managing the staff members.

Task 2: Business operations and strategic planning

Introduction

The strategic planning is about setting the directions of the business for managing the business operations, functions and process to develop proper strategy to achieve the pores-specified business goals and objectives (Nickols, 2016). The aim of the study is to discuss the synergy between the operational management and strategic planning where these are inter linked to secure future sustainable development of the firm. Through this study, it is possible to discuss the implementation of business strategy, supporting and driving the strategy as well as the five performnace objective of the firm in the BMW through which the company aims to achieve success in future by becoming a leading company in the global automobile industry.

Implementation of business strategy

Implementation of the business strategic planning in necessary which reshape the business operational activities where the company BMW aims at gaining customers experience and strengthening customer’s base in long run as well as improving business excellence to achieve number one position in the automobile industry as well as gain high competitive advantage over other competitive firms operating in the market (Cokins, 2017).

In this regard, the strategic implementation depends on the business operations management where for gaining customer’s experience, the company implements the strategy of innovative marketing and sales where providing training to the sales representative to serve the customers in a better and unique way, promoting the luxury cars with attest innovation through social media advertisement and e-mail marketing and social campaign of BMW will raise the marketing activities through which they can achieve trust and loyalty among the customers and develop effective strategy of retaining long term customers for their products and services. Hereby, implementation of the strategic planning is mainly reshaping the business operations through which the strategic gaol of the company BMW can be achieved. Providing proper hob description, communicating the business goals and mission and vision of the BMW as well as performnace appraisal to the employees are effective planning for strategic implementation at the production plant of the BMW where the technicians, staff members and engineers try to contribute their full potential to achieve the organisational success (BMW, 2019b).

Supporting business strategy

For supporting the business strategy at the production plant in the UK, the company BMW needs to enhance internal and external communication through implementing ICT and GPS system where the managers and the leaders of the production plant can communication with all the staff members as well as predict the market demand by interacting with the customers. This is an initial stage for supporting the business strategy of the organisation. Additionally, improving cooperation and convincing the managers of the production plant are also necessary where the leader of the BMW need to develop proper organisational culture with harmony, encouraging the employee’s creativity and motivating them with proper performnace rewards will be effective to support the business strategy and these activities are also crucial for resolving the challenges of internal conflicts, resistance to change and cultural diversity at the production plant of the BMW, situated in the UK (BMW, 2019b). In order to support the business strategy of the BMW, it is necessary to improve the operational activities at the production plant and for which it is necessary for the managers to arrange effective training and development program for improving the knowledge and technical skill for the staff members so that they can perform better and implement the business strategy efficiently for achieving future success of the company. Hereby reward program for the employees managing health and safety at the workplace, motivating the staff by providing high return on investment as well as managing the organisational culture, proper capital investment and arranging training program are the major support activities for implementing the business strategy at the production plant of the BMW in the UK.

Driving business strategy

Driving the business strategy is also important through which the company can implement the strategic planning through enforcing different drivers such as technological innovation, promotion of the business through social media, continuous performnace management at the production plant, managing the employees and suppliers, delivering quality products for creating values for the customers and enhancing innovation and creativity for managing the product range at the BMW. These are the driving factors that drove the business strategy and enhance the operational activities of the company for achieving success.

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy (p. 55). Boston: Pearson.

Driving five performnace objectives

Both the manufacturing and service industry focus on enhancing five performnace objectives through strategic planning implementation, the company BMW also focuses on strategic implementation of managing quality of the final cars and maintain the economies of scale for managing cost of production by increasing the numbers of car production at that production plant. Apart from that maintaining reliability and speed of the production and distribution of the quality cars are also necessary to maintain for the business to impellent effective strategic planning and achieve success through fulfilling performnace objectives (Cassidy, 2016). On the other hand, the company BMW also focuses on responding the customers instantly and cooperating with them for choosing the right car models as per their preferences and expectations. Quality service, after sales service and improving trust and loyal among the customers are also effective planning for managing the performnace objective in delivering the service of the BMW.

Conclusion

Managing the business operational activities are effective for implementing and diving the strategic planning of the BMW where the major strategies of the company is to strengthen the customers base of the business, becoming a leading organisation in the global automotive industry and gain highly competitive advantage. In order to implement these strategic planning, the driving factors are such as technological innovation and creativity in developing the product design, use of quality raw materials and automobile parts for producing the final cars as well as managing human resources at the production plant and maintain the customer by delivering quality services successfully.

Reference List

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