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

BMW Group - Case Study ExampleThe limited get aheads earned by the participation were due to the model life-cycle factors which significantly enhanced the car sales volumes. During this period, the BMW group change 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 contemporary 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 severely dependant by the market conditions for the motorcycle business the conditions ar regarded as severe and crucial for the market. The sales of the motorcycles produced by BMW have shown similar trend, during the terce quarter of the hurry 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 3percent of the figures sol d in the previous year. The financial crisis has been liable 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 rates 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 set downs, and residual expenses have been eliminated, the company increased the cumulative amount of expense recognised for additional try provision for residual value and bad debt risks to a total of euro 1,037 million. The brief financial outlook for the BMW group for the third quarter of the running year is lessening in the earnings by euro 258 million, profit 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 further for the BMW Group over the past months. The financial crisis has escalated, and there is strong possibility of this recession will cause noticeable reduction in consumer spending in numerous markets (Citigroup, 2008). The BMW group is yet to experience the enviro nmental challenges the growing understanding of the consumers about green house gases emission has real reluctance among the customer to acquire 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 confidence have dipped perceptibly, particularly in the USA and Europe.