BMW Group Case Study Example | Topics and Well Written Essays - 1750 words

BMW Group - Case Study ExampleThe limited meshworks earn by the company were due to the model life-cycle factors which significantly enhanced the car sales volumes. During this period, the BMW ag base interchange less than 350,000 automobile units, which includes BMW, Mini and Rolls-Royce. The figure of the units sold was less than 5percent against the units sold in the previous year. During the modern-day year, more than 1,200,000 units were sold in the market which is approximately 2percent greater than previous years figure. The financial performance of the group is intemperately restricted by the market conditions for the motorcycle business the conditions are regarded as severe and essential for the market. The sales of the motorcycles produced by BMW restrain shown similar trend, during the third gear quarter of the running play year the sales volume is almost equivalent to the sales of the previous year. The units of motorcycles sold in the market were less than 3pe rcent of the figures sold in the previous year. The financial crisis has been responsible for the negative impact of the BMW group. In the wake of international economic crisis, the customers have practiced reluctance in procurement of the automobiles unit, the third-quarter revenues reported by the company, decreased by 8.6 % to euro 12,588 million. During the running economic recession, the company was able to collect revenues of euro 40,425 million, which was highest than the figures of than the figures of the previous year. The variation in the foreign exchange evaluate was also responsible for the improvement in the revenue generation, the BMW Group revenues for the nine-month period were up by 5.1percent. The BMW group was controlled its expenses, and residual expenses have been eliminated, the company increased the cumulative amount of expense recognised for additional risk of exposure provision for residual value and bad debt risks to a total of euro 1,037 million. The bri ef financial candidate for the BMW group for the third quarter of the running year is reduction in the earnings by euro 258 million, avail dropped by 60percent to euro 387 million. The pre-tax earnings of the BMW group were truncated by the external factors, pre-tax profit stood at euro 279 million for the third quarter, the amount is 63percent lower than one year earlier, while that for the nine-month period fell to euro 1,522 million (Citigroup, 2008). The net profit earned by the company stood at euro 298 million for the third quarter. The running economic recession has severely dampened the financial outlook of the company for the years to come (Bilgen, 2004). The business conditions are not encouraging, the market is volatile, and this has deteriorated come along for the BMW Group over the past months. The financial crisis has escalated, and there is strong possibility of this recession will lawsuit noticeable reduction in consumer spending in numerous markets (Citigroup, 2 008). The BMW group is yet to experience the environmental challenges the growing understanding of the consumers about green house gases emission has developed reluctance among the customer to originate goods which shall be detrimental for the environment. The BMW group is trapped by significant level of volatility on the financial and commodity markets, this poses the risk of even greater uncertainty. The purchasing power of the consumer has depleted, private consumption and consumer bureau have dipped perceptibly, particularly in the USA and Europe.