Bmw Case: Essay
Globalizing Manufacturing Operations
This case focus on the dilemma that the president of BMW Manufacturing Corp., Al Kinzer, faced in 1995 in relation to BMW's new plant at Spartanburg, South Carolina and a dramatically increased demand in the U.S. market for the Z3 model.
To study the BMW case, the background information and role of new plant at Spartanburg will be described at the beginning. Secondly, the 3 alternatives options will be analyzed and compared accordingly to determine a proper conclusion. Finally, the recommendation will be presented with various considerations.
BMW was found in 1913 by Karl Rapp as an aircraft engine design shop. After WWI, it started building …show more content…
There are 4 major factors driving BMW's globalization,
Global market forces
The pressure created by Japanese or foreign competitor pushes BMW to be more competitive in price in the U.S. market, and further to be more competitive in worldwide later. Surely, the U.S. is the largest market but not the only market. If there were any opportunities created by other foreign markets, then the U.S. facility would be a successful model to help BMW entering other countries.
Since the U.S. has above averaged vehicle industry background, hiring skilled labor is not a difficult thing. The transfer of engineers would be held