Bmw Drives Germany

International Business

BMW Drives Germany
By
Peter Gumbel

Assignment by Matthew Jackson
Table of Contents: Page
1. Assignment Cover Sheet 3
2. Question Summary 4
3. Question 1 5 - 8
4. Question 2 9 - 10
5. Question 3
3.1 11 - 13
3.2 14 - 16
6. Question 4 17 - 19
7. Bibliography 20 – 23
8. Appendix A 24
9. Appendix B 25 Surname: Jackson
First Names: Matthew William
Student Number: 102531
Subject: International Business
Assignment Number: One
Date Submitted: 2008.06.12
Submission: Second
Postal Address: PO Box 704 Shelly Beach 4265
E-mail: [e-mail]
Contact Numbers: W 039 315 0151 H 039 312 0055 Cell 0832834460
Course/Intake: MBA Year Two – January 2008

I hereby declare that the assignment submitted is an original piece of work produced by myself.

Matthew Jackson
7512235009088 2008.06.12 Question Summary Sheet

1. Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this change in attitude and policy.
2. Explain the benefits to the German economy in BMW’s decision to maintain and improve its manufacturing operations in Germany.
3. If BMW wanted to extend its manufacturing operation into a developing Southern African country, explain what your recommendations would be to their CEO with regard to:
3.1: Factors to consider prior to the formulation of a global strategy? E.g. Culture, Negotiation, etc.
3.2: The strategy that BMW should utilize. Justify
4. Analyze the Global Competitive environment in which BMW operates and rank their position in the industry. Question 1:
Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this

Bibliography: Admam, R.P., Lunnan, R. and Ramanauskas, G. (2007) FDI and the Transformation from Industry to Service Society in Emerging Economies: A Lithuanian – Nordic Perspective. Engineering Economics 51(1), pp. 22 – 28. Agiomirgianakis, G., Asteriou, D. and Papathoma, K. (2006) The Determinants of Foreign Direct Investment: A Panel Data Study for the OECD Countries. London: City University Department of Economics, School of Social Sciences. [Author unknown] (2008) Tax haven says Germany is being a bully. Business Times, Durban, 2 March, p. 24. [Author unknown] (2007) NAAMSA Annual Report[online] BBC News. (2000, May 12). Analysis: Europe’s car industry[online]. available from http://news.bbc.co.uk/1/hi/business/746306.stm. [Accessed February 26, 2004]. Bernhardt, K. & Kinnear T. (1994). Case studies in marketing management[online]. New York: Irwin. BMW Corporation (2004), Available from http://www.bmwusa.com/Joy/Drive/Technology/ISIS.htm. [Accessed February 26, 2004] Chesami, B.E Düthmann, A., Hohlfeld, P., Horn, G., Logeay, C., Rietzler, K., Stephan, S. and Zwiener, R. (2006) Arbeitskosten in Deutschland bisher überschätzt – Auswertung der neuen Eurostat-Statistik.pdf, IMK Report(11). Hoover’s Online. (2004) Bayerische Motoren Werke AG Factsheet[online]. Available from http://www.hoovers.com/bmw/--ID__41758--/free-co-factsheet.xhtml. [accessed February 26, 2004] Hurn, B.J Javorcik, B.S. (2004) Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages. The American Economic Review 94(3), pp. 605- 627. Kiley, D. (2004). Driven Inside BMW, the Most Admired Car Company in the World[online]. Retrieved February 18, 2004. Available from http://www.wileyeurope.com/WileyCDA/WileyTitle/productCd-0471269204.html [Accessed 24 February 2008] Lin, X Matjekana, K.S.M. (2002) Foreign direct investment flows to the SADC region in a globalizing economic environment. MA Dissertation. Stellenbosch: Faculty of Arts, University of Stellenbosch. Machaka, J. and Roberts, S. (2003) The DTI’s New Integrated Manufacturing Strategy? The South African Journal of Economics 71(4), pp. 679-704. Murtagh, P. Dr. (2004). Industrial Structures and Competition[online]. Available from http://www.shef.ac.uk/~mcn/6050/lectures/6050_lec04_industrial_structures.pdf [Retrieved February 23, 2004] Nunnenkamp, P Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press. Radosevic, S. and Rozeik, A. (2005) Foreign Direct Investment and Reconstructuring in the Automotive Industry in Central and East Europe. Working Paper. London: School of Slavonic and East European Studies. Robinson, C.G. (1986) Strategic Management Techniques. 1st Edition. Durban: Butterworths. pp.156 – 158, 178, 179. Rodrigues, C. (2001) International Management: A Cultural Approach. 2nd Edition, Cincinnati, Ohio: South-Western College Publishing, Thomson Learning Sharma, B Straub, D. (2004). Industry Analysis of NE firms[online]. Available from http://www.cis.gsu.edu/~dstraub/Present/GEM8800/2002/4indus6.pdf [Retrieved February 24, 2004] Streak, J Thompson, A.A and Strickland A.J (1987) 4th Edition. Texas: Business Publications Inc. pp. 129 – 133, 168. Tay, H.K Hourly labour costs in 14 EU Member States, 2004 (in €) The table ranks 14 EU Member States according to hourly labour costs in the manufacturing and services sectors separately and for the combined total, 2004 (in €) Source: IMK Report, 2006 Appendix B