Recent Past Strategies of Bmw

they can hatch even the most unorthodox ideas for making better Bimmers or boosting profits" (Edmonson, 2006).

Recent past strategies of BMW:

The world economy suffered a major setback in 2008 and 2009. In the period up to summer the primary causes were the high prices of raw materials and the consequences of the recession on the US property market. In the second half of the year, however, the downturn worsened due to the massive impact of the financial crisis. The problem was not confined to the USA, but caused a crisis of confidence on financial markets worldwide as well as a massive reduction in lending volumes. The situation led to major disruptions in the real economy. Especially during the second half of the year, consumer uncertainty resulted in a cutback in spending, affecting nearly all of the world's major car markets. In many countries, car sales volumes plummeted compared to the previous year.

The British economy also performed weakly over the course of 2009, contracting by 4.8 % compared to the previous year. As in the USA, the crisis in the UK was mainly characterized by sharply declining property prices, high levels of private debt, rising unemployment and weak consumer spending. Despite the persistent weakness of the British pound, structural deficiencies in the industrial sector prevented the British economy from rallying as global trade picked up.

Due to this recession, BMW company decrease the prices of its cars in the UK and others countries.

The BMW Group reduced production volumes in 2008 in line with lower demand on the car markets. In total, 1,439,918 BMW, MINI and Rolls-Royce brand cars were manufactured by the BMW Group's worldwide production network, a reduction of 6.6 % on a year-on-year basis. The BMW brand accounted for 1,203,482 units (- 7.6 %).

The BMW Group's workforce was reduced by 7,498 employees (- 7.0 %) during the financial year 2008 to stand at 100,041 employees at 31 December 2008. This is largely due to the implementation of previously reported measures to reduce the size of the workforce and the sale of business units in 2008. The workforce reduction programme resulted in a sharp rise in the employee fluctuation ratio at BMW AG.

The use of hybrid technology is enabling the BMW Group to realize potential efficiency improvements. The BMW Group is developing a comprehensive hybrid modular system in order to provide the optimal solution for each model - the Best of Hybrid.

For the purpose of sale increase, the BMW Group continued to expand its model range in 2008.

Company reduced the dividend on share due to the financial crises in 2008 and reduced the capital expenditures as well.

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