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Internal Assessment of BMWOrganization Chart (Current and Revised)
Bavarian Motor Works7When conducting an internal assessment, the first factor to take into consideration is the internal organization. How is the management set up? Is there one main boss or multiple bosses? The internal structure can sometimes even determine the success of the company. Looking at BMW’s organizational chart, it is definitely visible that there is a lot going on with a lot of different people. Although BMW is already very successful, it is possible that improving the organization of their internal structure could help reduce any miscommunication problems and enhance relationships within the organization.BMW’s current organization chart, represented in Figure A, represents one president at the top of the hierarchy. There are a total of nine people who report to the president. One of the people that report to the president is the Executive Director. The executive director has 10 peopleunder him or her, one being a group who also reports to the president, the volunteer staff. There are a couple issues with this organizational structure. First, there are entirely too many people reporting to the president. Secondly, there is a group of people reporting to the president and the executive director. Having two different bosses can be confusing and result in miscommunications. It is also redundant to have a group report to the president and someone elsethat also reports to the president.Changes to BMW’s current organizational chart can only be beneficial to the company. The first revision in place is to add a middleman position to the higher level of the hierarchy. This person will be known as the Chief Executive Office, or CEO. All directors currently reporting to the president will now report to the CEO, who will then report a summary of the information to the president. The second revision in place will be for the volunteer staff to solely report to the executive director, if there are problems that need to be addressed by the president, the executive director will be able to relay the information accordingly. Also, if there are any
Bavarian Motor Works8major volunteer events that the president requires, the executive director will also be able to relaythat information. A summary of these revisions can be found in Figure A.1.These revisions will help the president keep things organized. The president will also be able to save time by hearing a summarized report from one person instead of a detailed report from eight. This will save any miscommunication and confusion for the volunteer staff on who toreport to and what the order the priorities should be in.Financial RatiosOver the years, many factors have changed for not only regular consumers, but also big businesses. As the years have progressed, and economies fluctuate, costs rise and fall. BMW has been impacted by these fluctuations, though not in an extremely harmful way. Over the last four years, BMW has seen a decrease in both categories of the liquidity ratio. These categories, both