BIMO Assessment: BMW Car Manufacturer
1. BMW, an abbreviation for Bavarian Motor Works, is a multi-national company that produces high quality cars and motorcycles. BMW was founded in Germany, and has expanded into new markets worldwide in a number of countries such as South Korea, the USA and the UK.
2. There has been an important strategic decision recently undertaken by BMW. This is to produce two new cars; an off-road vehicle and a versatile crossover vehicle.
This is considered to be a strategic decision because:
It is very unstructured ? meaning that it is not a routine decision to make e.g. ordering a new batch of stock. Decisions like this are made infrequently.
Chief executives and chairmen of the company make these kinds of decisions. BMW chairman Helmut Panke, described the two new cars as "Totally different to anything BMW has offered in the past"1. This quote shows that the decision is risky, as it is something different to what is usually offered, and shows that it can either have a large positive or negative effect on the company, depending on the success of the two cars.
Tactical decisions are medium-term goals set by a business. Examples include setting a budget to which funds on development of the two new cars should be spent on. This demonstrates that tactical decisions combine and form stages, which lead to the accomplishment of the organisation's strategic objectives. 2
Operational decisions are day-to-day activities carried out by a business. A number of these decisions make up the tactical decisions within a business. An example of an operational decision is setting up a daily or weekly production schedule to be carried out 2, such as producing the actual cars or researching the market the new cars w ...