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Essay / Research Paper Abstract
An 8 page memo written to Karl Gerlinger, president of BMW North America, dated December 31, 1992 (before BMW established manufacturing operations in the US). The memo is based on Harvard case #9-593-082, set at the end of 1992 when BMW’s management was seeking a method of achieving its goal of selling 100,000 BMWs in the United States annually. In 1992, that figure was 66,000. The memo suggests that BMW build a manufacturing facility in the US, proceeding to outline the benefits of such a decision, which include lower fixed and variable costs than possible to attain in Germany, as well as opportunity to avoid US import tariffs on foreign cars. Bibliography lists 2 sources.
Page Count:
8 pages (~225 words per page)
File: CC6_KSbmwNoAmerica.rtf
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Unformatted sample text from the term paper:
Subject: Assessment of BMW North Americas Position This report is in response to your
request to assess the situation facing the BMW company at the present time, with specific attention to the U.S. market and the part that BMW North America can be seen
as playing in BMWs growth throughout the world. All of us are well aware that BMW in Germany has determined that U.S. annual
sales volume should be at or near 100,000 units by 1997. While that goal seems daunting at first glance, it should be noted that U.S. volume has increased to
66,000 units in 1992, an increase of 13,000 units over 1991s total of 53,000 (Dolan and Matthews, 1993). It is yet unclear how much of this increase can be
attributed to the ending of the 1991-1992 recession. Analysts appear to be split in their opinions of whether the recession has indeed ended. In any case, it is
significant that BMW experienced such increases in the midst of any recession; the fact that the company made such impressive strides is more than only significant. Current Competition
This appears to be particularly true in light of the fact of entry of the Japanese into the luxury market. Lexus and Infiniti are
and will remain competitors in our market, but it appears that our most significant competition will continue to lie with Mercedes-Benz. This position was not certain in the late
1980s, particularly in 1987 when a national newspaper announced, "Whats In - Lexus. Whats Out - BMW" (Dolan and Matthews, 1993; p. 1). The increases of the past
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