BMW_Strategic_Audit - Strategic Audit BMW 1 Running head...

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Unformatted text preview: Strategic Audit: BMW 1 Running head: STRATEGIC AUDIT: BMW Strategic Audit: BMW [Author’s Name] [Institution’s Name] Strategic Audit: BMW 2 Table of Contents Strategic Audit: BMW 3 Strategic Audit: BMW CURRENT SITUATION Current Performance Strategic audit of any company and organization is a systematic activity that requires much concentration, focus towards the prime goal and a continuous critical evaluation free from external and internal pressures. Current performance of BMW is second to none as compared its previous fiscal and annual years. But last year the overall growth in all over the world is outstanding. Now at BMW, the growing glossary of organizational general and financial performance is full of such phrases as organizational activity-based costing, accountability, value-based management, boardroom performance, strategic audit, results-oriented performance management systems, and economic value added. For fiscal 2005 (ended 31 December 2005), BMW registered sales of EUR46,656m, up 5.2% over the previous fiscal year. This has been a new high for the group, which recorded a strong sales volume growth during 2005. However, currency exchange rate fluctuations had partially offset the group's sales for 2005. The group's profit before tax for fiscal 2005 stood at EUR3,287m, decreasing by 9.1% over the previous fiscal year. The group's higher car sales during 2005 and its efficiency improvement measures were offset by currency fluctuations, raw material price increases and also by the increased competition in the international car markets. The group recorded a net profit of EUR2,239m during the year, a marginal decline of 0.1% from fiscal 2005. (Fred David 2005) The Automobiles segment recorded sales of EUR45,861m in fiscal 2005, a growth of 7.8% over fiscal 2004. The growth in sales of the segment was mainly due to an improved product mix coupled with higher sales volume across the company's BMW, MINI and Rolls Royce brands. This segment's profit before tax had decreased by 5.9% from fiscal 2004 to Strategic Audit: BMW 4 EUR2,976m during 2005. However, there was a rise in the sales of its Motorcycles segment, which grew year-on-year by 18.9% to EUR1,223m in fiscal 2005. This segment recorded profit before tax of EUR60m during fiscal 2005, up 93.6% from 2004. This segment benefited from a product initiative that was launched in 2004. The Financial Services segment generated revenues of EUR9,408m during fiscal 2005, an increase of 14.4% over fiscal 2004. In the second quarter of fiscal 2006 (ended 30 June 2006), BMW Group posted sales of EUR13,193m, up 8.5% over the second quarter of 2005. The group's sales, which increased mainly due to the improved performance in its Automobiles and the Financial Services segments, was partially offset by the lower sales reported in the company's Motorcycles segment....
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This note was uploaded on 11/29/2010 for the course MANAGEMENT EM-14793 taught by Professor Lindaryaan during the Spring '08 term at Windsor.

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BMW_Strategic_Audit - Strategic Audit BMW 1 Running head...

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