Intercultural management: BMW

Résumé du document

In this document, I deal with companies' inter-cultural management processes for which cultural differences have been a barrier or source of competitive advantage, affecting their success in international business environment.

In choosing the BMW Company, an international one, we will see that the history, evolution, structure, and policies are the base of each global operation, its scale and scope. Indeed, BMW is a European company that is making concerted efforts to address the issue of inter-cultural management. Its efforts have resulted from its multinational operations. This company has managed to carve out an enviable niche market for itself in the premium segment of the automobile industry through technological innovation.

Following the internationalization process, BMW is confronting the cultural differences of each market across the world. This analysis consists of the central issue related to cultural differences, a statement of the main problems, an analysis of each problem or issue, and a recommended course of action.

Extraits

[...] Finally, to increase the management processing, BMW could create ad hoc websites, local radio broadcasting from cities of the North and the South; something which could link the global BMW workers and increase the internal intercultural understanding. This would contribute to an even greater presence of minority languages in global communication. Young technicians and professionals in the BMW's worker diaspora could become the cultural entrepreneurs of this type of projects. To conclude, global companies such as BMW requires managers possessing intercultural management skills. These skills can be learnt, just like other behavioral science skills like leadership and team spirit. [...]

[...] For example, look at the actual Group formation which comprised managers from Germany, the United Kingdom, the United States, the Caribbean, Austria, Australia and Switzerland. These managers were formally presented with an opportunity to form a network which positioned them well as they have been able to draw on each other's resources, in order to collectively analyze BMW's international business cases and consolidate the expansion of the company's worldwide operations.[5] Issues At the end of the 90s, BMW was buying back the local license to market its automobiles from a leading Thai-Chinese business family. While managing its international strategy, the company experienced intercultural problems. [...]

[...] In fact, after setting up strategies at the industry level, BMW progresses in formulating and implementing strategies at the international level. The company evolves approaches pertaining to international trade and negotiations in which we cannot forget the governments of countries' importance concerning the companies, such as BMW. In parallel, the BMW's global strategic co-ordination is facilitated through sophisticated multinational customers, the presence of multinational competitors, intensity of investment and technology, pressure for cost reduction, universal needs, and access to raw materials and energy. [...]

[...] This gives significant advantages for the company in the international market. The BMW Group currently has 17 production facilities in several countries: Assembly The BMW Group currently engages in the assembling process with the help of external partners in the following countries: Jakarta, Indonesia; Kaliningrad, Russia; Cairo, Egypt; Kuala Lumpur, Malaysia; Rayong, Thailand; Chennai, India. Sales and marketing BMW Group's marketing subsidiaries are present in the following countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Great Britain, Greece, Hungary, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Russia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand and U.S. [...]

[...] This strategy inspires the company's structure and it plays a vital role in the decision-making process. With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its places of interest set decisively on the premium sector of the international automobile market. To achieve its aims, the company knows how to deploy its strengths in the automotive industry. The strategic objective is clearly defined; the BMW Group is the leading provider of premium products and services for individual mobility. [...]