Business Decision Making: This Dissertation Is An Example of A Student's Work
Business Decision Making: This Dissertation Is An Example of A Student's Work
Business Decision Making: This Dissertation Is An Example of A Student's Work
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BMW has its sales subsidiary in Gurgaon, Delhi to develop its dealer network in India. BMW has
established 14 dealers all over India. Mumbai is one of the largest cities of luxury car market
segment in India. The SIAM (Society of Indian Automobile Manufactures) has reported that
BMW's sales have grown by 12.76% to 1,020 units in July, 2009. The report also says that BMW
has increased its sales by 43% to 3,000 units in 2010. BMW has future plans on increasing their
dealership in eight more cities of India. BMW's management team can understand the taste of
the Indian consumers based on the research conducted in Mumbai, India. Mumbai being the
economic capital of India had the largest number of buyers of luxury cars in India. BMW had
opened its first assembly center in Chennai in 2007 by seeing the potential growth in Indian
market. BMW is really caution about its product launch in Indian markets because they just don't
want to sell cars based on their brand value, but they wish to create better brand value by
serving their customers with luxury cars with top of the line features, amazing performance and
competing prices. BMW had surprised all its rivals by launching Rolls Royce cars in Indian
market after studying the economic growth in India. But they still haven't launched the cars of
brand Mini because Indian customers are not ready for expensive small cars. BMW has always
tried to make their cars on the basis of an idea of being practical and contemporary which has
helped them succeed in luxury car segment in India. The firm has also made cars which are fuel
efficient and eco-friendly (working on hybrid technology) has boosted their brand value and has
helped them find many new customers.
http://automobiles.mapsofindia.com/cars/bmw/
1.1.2 Aim for the Research Project
The Aim for the research topic is to find out in which market segment should BMW make
expansions (produce new models) in Mumbai.
1.1.3 Objectives
The objectives for my research are to gather primary information for the research through
Descriptive or Survey Research Design with the help of a questionnaire, secondary information
via the staffs of the car companies and through companies sites, and conclude by research
analysis and present it as a report to the BMW's management team.
1.2Research
Leedy (1985) defines research as the manner in which we attempt to solve problems in a
systematic effort to push back the frontiers of human ignorance or to confirm the validity of the
solution to problems others have presumably resolved.
Activities
Preceding Duration
Activities
(days)
A. Outline a questionnaire
None
2 Days
1 Day
5 Days
2 Days
1 Day
3 Days
H. Prepare Report
G and E
1 Day
1 Day
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Male { } Female{ }
80-100 { }
** All the Information given by you will be used in a research. Your identity will never be
disclosed. Thank you for your time and for being a part of this survey.
Diagram 2: Gender
The second question is a general question asked to check how much the Indian people prefer to
drive their car. The data collected showed that 95% of the people prefer driving their cars and 5%
of the people do not drive their cars.
People who like driving their car (Yes) = 95 People who don't drive their car (No) = 5
Type of Car
Age Group
Sedan
Class Interval
20-30
15
10
30-40
20
15
40-50
10
50-60
45
35
20
a. Sedan
Class Interval (Age)
Frequency
Cumulative Frequency
20-30
15
15
30-40
20
35
40-50
40
50-60
45
Total
45
Quartiles
Nth Value = = 45
Q1 =
Q2 =
Q3 =
Quartile Range
QR = Q3 - Q1 = 39 - 18 = 21 years
Quartile Deviation
QD = = 10.5 years
b. SUV
Class Interval (Age)
Frequency
Cumulative Frequency
20-30
30-40
15
20
40-50
10
30
50-60
35
Total
35
Quartiles
Nth Value = = 35
Q1 =
Q2 =
Q3 =
Quartile Range
QR = Q3 - Q1 = 47 - 32 = 15 years
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Quartile Deviation
QD = = 7.5 years
c. Sports Car
Class Interval (Age)
Frequency
Cumulative Frequency
20-30
10
10
30-40
40-50
50-60
Total
20
Quartiles
Nth Value = = 20
Q1 =
Q2 =
Q3 =
Quartile Range
QR = Q3 - Q1 = 38 - 18 = 20 years
Quartile Deviation
QD = = 10 years
x f fx
(x - xx )
(x - xx )
f(x - xx )
20 - 30
25 15 375
-10
100
1500
30 - 40
35 20 700
40 - 50
45 5
225
10
100
500
50 - 60
55 5
275
20
200
1000
45 1575
3000
Mean = xx = = = 35
Variance = = = 66.67
Standard Deviation = = = = 8.16
Coefficient of Variation = = = 0.23
b. SUV
Class Interval
x f fx
(x - xx )
(x - xx )
f(x - xx )
20 - 30
25 5
-14
196
980
30 - 40
35 15 525
-4
16
240
40 - 50
45 10 450
36
360
50 - 60
55 5
16
256
1280
125
275
35 1375
Mean = xx = = = 39.28 = 39 (approx.)
Variance = = = 81.71
Standard Deviation = = = = 9.04
2860
c. Sports Car
Class Interval
x f fx (x - xx )
(x - xx )
f(x - xx )
20 - 30
25 10 250 -7.5
56.25
562.5
30 - 40
35 6
210 2.5
6.25
37.5
40 - 50
45 3
135 12.5
156.25
468.75
50 - 60
55 1
55
506.25
506.25
22.5
20 650
1575
Mean = xx = = = 32.5
Variance = = = 78.75
Standard Deviation = = = = 8.87
Coefficient of Variation = = = 0.27
XY
21
25
525
441
625
22
30
660
484
900
22
30
660
484
900
23
35
805
529
1225
24
40
960
576
1600
24
40
960
576
1600
24
100
2400
576
10000
25
80
2000
625
6400
25
95
2375
625
9025
10
27
45
1215
729
2025
11
28
35
980
784
1225
12
28
95
2660
784
9025
13
29
50
1450
841
2500
14
29
50
1450
841
2500
15
29
35
1015
841
1225
16
30
40
1200
900
1600
17
31
55
1705
961
3025
18
32
65
2080
1024
4225
19
32
75
2400
1024
5625
20
32
55
1760
1024
3025
21
32
40
1280
1024
1600
22
33
45
1485
1089
2025
23
34
70
2380
1156
4900
24
34
80
2720
1156
6400
25
35
100
3500
1225
10000
26
35
75
2625
1225
5625
27
36
35
1260
1296
1225
28
36
25
900
1296
625
29
36
65
2340
1296
4225
30
37
60
2220
1369
3600
31
37
70
2590
1369
4900
32
37
85
3145
1369
7225
33
38
95
3610
1444
9025
34
38
55
2090
1444
3025
35
39
70
2730
1521
4900
36
40
65
2600
1600
4225
37
40
25
1000
1600
625
38
41
30
1230
1681
900
39
44
40
1760
1936
1600
40
48
50
2400
2304
2500
41
52
55
2860
2704
3025
42
55
85
4675
3025
7225
43
56
95
5320
3136
9025
44
58
60
3480
3364
3600
45
59
40
2360
3481
1600
Total
1567
2590
9182058779171900
Correlation Coefficient = r =
r=
r=
r = = = 0.16625701 = 0.17 (approx.)
SUV
Age Pricing
No. of
Group Range XY
People
(X)
(Y)
21
35
735
441
1225
23
45
1035
529
2025
27
45
1215
729
2025
27
55
1485
729
3025
29
65
1885
841
4225
31
75
2325
961
5625
31
70
2170
961
4900
32
80
2560
1024
6400
32
85
2720
1024
7225
10
35
35
1225
1225
1225
11
35
45
1575
1225
2025
12
36
50
1800
1296
2500
13
36
60
2160
1296
3600
14
37
45
1665
1369
2025
15
37
55
2035
1369
3025
16
38
60
2280
1444
3600
17
38
60
2280
1444
3600
18
38
65
2470
1444
4225
19
39
40
1560
1521
1600
20
39
60
2340
1521
3600
21
40
80
3200
1600
6400
22
41
90
3690
1681
8100
10000
This dissertation is
an example of a
student's work
Disclaimer
23
43
100
4300
1849
24
43
45
1935
1849
2025
25
44
50
2200
1936
2500
26
45
70
3150
2025
4900
27
45
75
3375
2025
5625
28
47
85
3995
2209
7225
29
47
85
3995
2209
7225
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30
48
25
1200
2304
625
31
51
35
1785
2601
1225
32
55
50
2750
3025
2500
33
55
50
2750
3025
2500
34
57
60
3420
3249
3600
35
59
85
5015
3481
7225
Total
1381 2115
8428057461139375
Correlation Coefficient = r =
r = = 0.141265802 = 0.14 (approx.)
Sports Car
No. of
People
XY
21
65
1365
441
4225
23
60
1380
529
3600
24
75
1800
576
5625
24
85
2040
576
7225
25
75
1875
625
5625
27
55
1485
729
3025
28
60
1680
784
3600
28
80
2240
784
6400
29
90
2610
841
8100
10
29
100
2900
841
10000
11
31
75
2325
961
5625
12
32
55
1760
1024
3025
13
35
70
2450
1225
4900
14
36
80
2880
1296
6400
15
37
75
2775
1369
5625
16
39
75
2925
1521
5625
17
41
60
2460
1681
3600
18
43
65
2795
1849
4225
19
45
75
3375
2025
5625
20
52
80
4160
2704
6400
Total
649
1455
4728022381108475
Correlation Coefficient = r =
r = = 0.035049038 = 0.04(approx.)
2.3 Conclusion
3. Use data from the case study Generico Inc' given
and analyse and produce information in appropriate
formats for decision making by the organisation.
3.1 Report on Proposed New Marketing Strategies for
Generico Inc
To: Stephen Daniels, V.P. of Marketing of Generico Inc
From: MR. AB
Status: Confidential
Date: 1st May, 2011
METHOD
The following methods for collecting data were used:
1. Gather information from its customers (major manufacturers of electronic products) since
Generico Inc.'s target market is demand driven.
2. Gather information from Consultancy Firms who can predict the market growth of the
electronic assembly machine's market and suggest new market strategies to survive the
stiff competition.
3. Gather information from foreign customers to develop products as per their need.
FINDINGS
The data collected from various sources was analyzed and accordingly new marketing strategies
were drawn by the author:
1. The firm conducted a meeting every month with its customers to gather the necessary
information to develop product design which is addressing quality (as manifested in
accuracy, simplicity, speed, and reliability), innovation, service (second to none by
Generico field service engineers, not outside contractors), and price.
2. The information collected from the Constancy Firms gave the firm the option to tap new
markets and customers with their innovative state of an art design' machines.
3. The information collected from Consultancy Firms and from the customers provided the
firm with the information on how to cut down marketing and other costs to survive in a
competitive market.
4. The information from the Consultancy Firm can help the firm to have foreign collaboration
which will help them develop new markets and new products to improve marketing
strategies.
V CONCLUSION
The report thus concludes that Generico Inc. can gather data through many sources (Primary &
Secondary) and can be used by the V.P. of marketing department and plan out new marketing
strategies. The information is collected through a range of sources like consultancy firms,
customers and collaboration partners. This report will help the V.P. in his decision making as
appropriate analyzed information is provided to him through this report by the author. The new
strategies will help the company to develop new markets and new products for their future
strategies to improve marketing.
$0
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$31,516
$40,000
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$40,000
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$40,150
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$120,000
$48,783
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$200,000
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$240,000
$70,367
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$360,000
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$400,000
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$480,000
$79,000
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$560,000
$79,650
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$680,000
$95,223
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$760,000
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$800,000
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$880,000
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$920,000
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$1,135,840
$18,400,000
$2,651,580
$36,200,000
$3,913,440
$54,000,000
$4,906,940
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With the economy recovering on a broad footing, we were able to record a sharp rise in the
number of cars sold. Sales volume growth gathered even more momentum during the second
half of the year. In total we sold 1,461,166 BMW, MINI and Rolls-Royce cars worldwide during
the year under report (+13.6%), and thus achieved one of the best sales volume performances in
the history of the Group.
Our Motorcycles business performed well in 2010 despite continuing unfavourable market
conditions. A total of 110,113 BMW and Husqvarna brand motorcycles was sold worldwide, 9.7%
up on the previous year's figure.
The Financial Services segment also made an important contribution to the success of the BMW
Group and 3,190,353 credit financing and lease contracts were in place with dealers and retail
customers at 31 December 2010 (+3.4%).
Updated March 15, 2011
http://geschaeftsbericht.bmwgroup.com/2010/gb/en/facts-and-figures-2010/managementreport/review-of-the-financial-year.html
German luxury car maker BMW today said it hopes to clock over 2.7% growth in 2011 sales to
over 15 lakh vehicles globally, including a 'good double-digit growth' in India, where it sold 6,246
units in 2010.
The company, which reported 19.3% increase in revenue to euro 60.47 billion in 2010 and a net
profit of euro 3,234 million, however, said putting up a full-fledged plant in India is a long way to
go as volumes are still low.
"We sold 1.46 million vehicles globally in 2010 and plan to sell more cars in 2011 than before significantly more than 1.5 million. We aim to reach new record sales with all three brands, BMW,
Mini and Rolls-Royce," BMW Chairman Norbert Reithofer told reporters here.
He said the company had sold 1.22 million BMW vehicles 2.3 lakh Mini and 2,711 units of RollsRoyce in 2010 recording 14.6%, 8.1% and 170.6% growth respectively over the previous year.
Germany, US, China and UK were the key markets for the auto major, even as the company
recorded "dynamic" growth in many smaller markets such as Brazil, Russia, India, South Korea
and Turkey.
Commenting on sales target in India, BMW Director (Marketing) Ian Robertson said the company
would look at high double-digit growth for the current year.
To keep pace with that, the company has accordingly increased its Chennai assembly plant
capacity to 10,000 units per annum from 8,000 earlier.
We think India has reached to a position where market would be developed very quickly. Now,
there is a good momentum. The Indian economy is also in a good shape," he said, adding
"demand is very strong and we see a good double-digit growth in the Indian market for the
current year".
Asked if that would prompt the company to set up a manufacturing base in India on the lines of
Brazil, where BMW is actively considering setting up a manufacturing facility after recording good
sales in the last two years, he said, "We need to have an economy of scale. At the moment,
Indian market is relatively small compared to the global scale. I think it is too early to say. The
market is still very low".
Robertson, however, added that in the next two-three years "we can see some growth and next
could see some development on the plant".
As a practice, BMW first sets up an assembly plant in a potential market and depending on the
feedback of that market, it upgrades to a full-fledged manufacturing plant.
BMW also plans to double its dealership network in India by the end of 2012, he added.
BMW India announced on Monday that it has maintained its lead in the luxury car market for the
second year in a row. In 2010, the German carmaker sold 427 units more than compatriot
automaker Mercedes-Benz.
The company's total sales rose 73 per cent in the year to 6,246 units, largely on the strong sales
of its sedans 3 series sales doubled in the year to 2,432 units and the 5 series sold 2,403
units. With other popular models such as the 7 series saloon and X5 SUV selling 535 and 228
units, respectively, the company held on to a 40 per cent share of the segment. In 2009, BMW
sold 3,619 units 369 units more than Mercedes-Benz.
Last month, BMW also launched its cheapest model in India the X1 crossover at a starting
price of Rs 22 lakh. With rival Mercedes-Benz's product prices starting at a higher Rs 27.75 lakh
(C-Class), BMW hopes that the X1 would help it retain pole position this year. The company,
which entered India in 2007, currently assembles the X1, 3 and 5 series sedans at its Chennai
plant.
Mercedes-Benz India sold 5,819 units in 2010, registering a higher growth over BMW in the year
at 80 per cent. The largest volumes were garnered by the E-Class (2,490 units) and C-Class
(2,070 units) sedans, while the SUV range of M-Class, GL-Class and R-Class sold 523 units in
total. Mercedes-Benz assembles the C, E and S class sedans in India.
The third German competitor in the segment Volkswagen group company Audi came third
on sales of 3,003 units in 2010. With sales rising 81 per cent in 2010, Audi India expects more
than 50 per cent growth in 2011. The company is also expected to launch the new A6 and A8 L
(extended wheelbase) sedans this year.