Strategic Analysis Of The BMW Group

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The BMW Group has set course for a successful future with its strategic realignment. The Group’s strategic direction up to 2020 is clearly defined: The BMW Group is the world’s leading provider of premium products and premium services for individual mobility.

Return on sales target of 8 to 10 percent in Automobile segment
The future strategy focuses on ensuring the company’s long-term success and safeguarding its independence. The BMW Group has set ambitious interim targets for the first five years: Automobile retail is supposed to rise to more than 1.8 million vehicles by 2012. During this period, the company plans to increase deliveries in the motorcycle business by 50 percent to 150,000 units per annum.

Profitability takes priority over
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In order to safeguard pensions, pension obligations inGermany will gradually be funded out in three phases over the next few years.

Reithofer: In principle, acquisitions will be kept on the agenda
The BMW Group explored all of the options for future growth during the strategic review, including potential acquisitions or the creation of a fourth brand. However, this would require the new automotive brand to be a perfect fit for the company and its strengths. Moreover, rising unit figures would have to result in a decline in unit costs and thus lead to economies of scale. The new brand would have to at least make the same positive contribution to earnings as the existing automobile business. However, an in-depth analysis found that none of the evaluated automotive brands currently meets these requirements.
Nevertheless, the BMW Group does not generally rule out further acquisitions. Accordingly, the successful acquisitions of the tradition-rich Husqvarna brand and its sporty profile have enabled the BMW Group to attract new and younger target groups in the Motorcycles
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With its Efficient Dynamics development strategy, the BMW Group has gained a significant edge over competitors, for example in reducing carbon emissions.

Their strategy will lead the BMW Group through some fundamental changes.
1. They will consistently align the BMW Group to achieve profitability and increase value over the long term.
2. They will create the basis for ensuring the Group's long-term growth.
3. They will share the company's success with our shareholders to a greater extent.
4. They will start a program to tap into efficiency potential amounting to billions.
5. They will engineer new technologies in the field of mobility within the scope of an innovation initiative.
6. They will focus even more on our customers. They will be the benchmark for all our

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