BMW cars have an unmistakably personality and an obsessive care about the feeling of driving, thus their slogan “the ultimate driving machine”. This creates a bond between the car and the driver that may last for a lifetime. These three magic letters stand for Bayberries Motormen Worker, or in English, Bavarian Motor Works. The “Motor” is the core of this acronym and is the foundation; the key part around which BMW builds every product. 1913 Not everybody knows that BMW started as a manufacturer of aircraft engines.
In October 1913 Karl Frederica Rap establishes “Rap-Motorbike” in a former bicycle factory near Munich. Rap was an engineer who arises through the Daimler system and “Rap-Motorbike” was set up as a subsidiary of “Flukier”, an airplane maker. He started manufacturing his own aircraft engines UT unfortunately they suffered from problems with vibrations. Karl Frederica Rap Close to Rap ‘ s factory, Gustavo Otto, the son of the inventor of the four-stroke internal combustion engine, set up a business building small aircrafts.
Otto enjoyed great success with “Gustavo Flugmaschinefabrik”. Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets.
With this in mind, a wide-ranging product and market offensive was initiated in 2001 , which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position. The company’s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‘best’ in the world, and the company continues o launch a stream of innovative products as part of its battle with German peer Mercedes to be the world’s largest luxury car maker.
Bum’s focus on engineering excellence allied to leading-edge design continues to drive successful, profitable expansion. In 2007 BMW sales increased by 8%, Mini by 18% and Rolls-Royce by 26% with, for the first time ever, over 1000 of the super luxury cars being produced in one year. To further this growth, a host of new models is being launched, including the Mini Coalman and the new sport utility vehicle, the BMW XX – the world’s first SUB coupe. While the Coalman reinvents views on vehicle access, the XX is an excellent example of BMW innovation at work.
It combines the safety and convenience of a four- wheel-drive with the on-road performance of a sports car and is designed to appeal to the driver who enjoys a commanding driving position, but also savors the characteristics of a sports car. With its stretched coup© silhouette and pronounced performance design, underpinned by hybrid engine options, as previously achieved with the XX and the XX in allied markets, the XX is the latest instance of BMW changing perceptions of what a car should provide – for its assigners and its driver alike.
At its heart, it restates an aspiration for driving that is both exclusive and yet also available to the mass market. BMW has also been at the forefront of introducing new IT options to enhance the driving experience. Starting with the drive first introduced in the 7-series, BMW Connected Drive is now available across most models and is adding greater functionality. After being one of the first to offer the capability for MPH connectivity and incorporate IRS feeds including weather information, in 2007 BMW teamed up with Google to offer a PC driven route planning service.
Of course this level of innovation does not come cheaply and a key challenge going forward will be to keep research and development costs under control. During the last five years, BMW average annual R investment has been around ?2,300 per car, compared with ?1 , 700 spent by arch-rival Mercedes. Alongside the examples above, much of the money has gone into the car maker’s Efficient Dynamics programmed aimed at making engines more efficient, improving aerodynamics, reducing weight and capturing energy during braking.
As the numbers clearly show, BMW is a mass market player but one that successfully sees focused innovation to build and maintain the aspiration driving experience for many. Through a constant stream of consumer informed innovations, the company has moved ahead of its peers and future sustained and profitable growth is widely predicted. Innovation scorecard: BMW “Corporate Social Responsibility’ With businesses focusing on generating profits, sustainability was not a popular concern among companies up until recently.
Now, in an era of globalization, multinational corporations (those that conduct business in more than one country) and local businesses are no longer able to conduct destructive and unethical practices, such as polluting the environment, without attracting negative feedback from the general public. With increased media attention, pressure from non-governmental organizations, and rapid global information sharing, there is a surging demand from civil society, consumers, governments, and others for corporations to conduct sustainable business practices.
In addition, in order to attract and retain employees and customers, companies are beginning to realize the importance of being ethical while running their daily operations. The corporate response has often meant an adoption of ‘a new unconsciousness’, and this has been known as Corporate Social Responsibility (CARS) since the sass. As stated by the department of Trade and Industry in the United Kingdom, CARS represents “the integrity with which a company governs itself, fulfills its mission, lives by its values, engages with its stakeholders, measures its impact and reports on its activities”.
Although most people appreciate the recent advancement of CARS, some argue that corporations are still not doing enough or are only acting in self interest. These people say that multinational corporations are acting ethically in areas that are highly regulated, such as North America, UT at the same time, they are acting in an opposite manner in other parts of the world (such as using cheap or child labor). In addition, while corporations must have good CARS policies in order to maintain their reputation, they are also expected to maximize profits for stakeholders such as shareholders, employees, and customers.
Therefore, people argue that businesses do not put in a sufficient amount of resources to achieve what they have promised in their CARS policies. In any case, companies are now expected to perform well in non-financial areas such as human rights, business ethics, environmental policies, corporate intrusions, community development, corporate governance, and workplace issues. Some examples of CARS are safe working conditions for employees, environmental stewardship, and contributions to community groups and charities.
The problem is that many companies that claim to be socially responsible often do not live up to such a standard. Because CARS is becoming more commonplace among corporations, there are concerns that some companies promote an image of CARS whether or not they have a true strategy in place and the results to show for. Accountability and transparency are key to conducting business in a responsible manner. According to FORBES Magazine, it has been mentioned as BMW Corporate Social Responsibility ranked as 4th among all the leading companies worldwide.
To BMW Manufacturing, Corporate Social Responsibility means being a catalyst for change. We strive to set examples for those we work with, for, and around with high standards of environmental management, corporate giving, and maintaining a diverse workforce. We are proud to be in South Carolina, and we appreciate the many different relationships we have established here. Through education, environment, and other philanthropic efforts, we carry out our pledge to diversity. As citizens of both the global corporate economy and the Upstate community, we integrate these commitments into everything we do at BMW Manufacturing.
We support dozens of local and statewide organizations, including our most visible initiative, the annual BMW Charity Pro-Am presented by KEYNES Corporation. Every partnership is an instrument of change. Each contribution is a reflection of our principle. Corporate Giving: Over $30 million through 2012 47% to education 35% to the community 18% to the arts Paris Mountain Program In 2002, a gift of $100,000 from BMW Manufacturing Co. Helped convert a sass outhouse into a state-of-the-art education center at Paris Mountain State Park, one of South Carolina’s oldest state parks.
Today, the historic stone bathhouse is home to the park’s curriculum based Discover Carolina program. Inside, educational facilities and exhibits showcase the park’s extraordinary natural community. BMW gift was one of the largest in the public-private partnership. Environmental Partnerships Nature Conservancy: From Stump house Mountain to Forty-Acre Rock, The Nature Conservancy is dedicated to preserving the plants, animals and echo-systems of the Upstate. And BMW is dedicated to helping. As an annual corporate partner with the Nature Conservancy, BMW is playing a key role in maintaining the raw beauty of our region.
Palmetto Conservation Foundation: Economic growth and quality of life are not mutually exclusive. The Palmetto Conservation Foundation has been proving that since 1989. The group works to allow South Carolina’s communities to grow and prosper while maintaining their unique quality of life. At BMW Manufacturing, we think a non-adversarial approach to growth makes sense. That’s why we created the BMW Conservation Award. This award is given annually to individuals who have made lifetime intrusions to protecting South Carolina’s natural, historic and cultural resources.
South Carolina Wildlife Federation: BMW has teamed with the South Carolina Wildlife Federation in a variety of ways. Our on-going corporate sponsorship of the SCOFF helps develop and preserve natural habitats throughout the state. As a member of the Wildlife and Industry Together (W. A. I. T. ) program, the BMW facility is serving as a model for on-site conservation. Gas to Energy Project In early 2003, four turbines located at BMW Manufacturing Co. ‘s Energy Center came alive with the combustion of methane gas piped in from the nearby Palmetto Landfill.
At that moment, the facility environmental leadership, again, broke new ground. Inside the Energy Center, the methane gas is used to turn the turbines which supply about 50% of the total energy demands for the BMW campus. In 2009, BMW replaced the original four turbines with two new highly efficient turbines. The new turbines increase the electrical output from 14% up to almost 30%. Implementation of the new landfill gas program reduces CO emissions by 92,000 tons per year or the equivalent to the benefit of planting over 23,000 acres of trees annually (roughly 30 times the size of New Work’s Central Park).
To date, the project has saved BMW an average of $5 million annually in energy costs. The new turbines installed in 2009, should return an additional average annual cost savings to BMW of up to $2 million. Analysis for Consumers and Employees as Society BMW is strongly committed to the environment protection, employee and community well-being and sustainability programs. The company invests large sums in employee health management, programs promoting balanced work life, sustainability requirements for its suppliers and producing zero waste at its plants. Recycling Programs Office recycling:
A production campus as big and busy as ours has the potential to generate a significant amount of waste. At BMW Manufacturing, we make sure that potential is never realized. Led in large part by our associates, we’ve adopted an aggressive recycling program that forces us to think about everything from how we use paper to the Styrofoam cups that hold our morning coffee. Thanks to this employee-driven program, we are able to recycle about 94% of all waste generated; both in the office and out on the plant floor everything from surplus wood, plastic, and paint to cardboard boxes, aluminum cans, and fluorescent light tubes. Bottles and Cans:
With about 7,000 people working on site, the factory goes through a good number of aluminum cans and plastic drinking bottles. The factory compresses and bales these items and sells them to recycling groups. The money received for the sale of the material is then donated to local charities. Packing Materials: Working together, BMW and suppliers have designed returnable shipping containers. This little innovation has allowed us to reduce the cardboard, wood and other packaging waste per vehicle. As more and more BMW suppliers sign on to participate in the program, the environmental impact is being felt far beyond our plant grounds.
In the Cafeteria: Another change has been from Styrofoam to “Environing” food containers produced locally by Disposed-o. These containers do not use the normal HOC blowing agent. Instead, the containers are made by using CO, which is a much more environmentally friendly manufacturing process. Paper, Cardboard, and Plastic: About 7,000 people work on site and go through a ton of paper, plastic and cardboard each month, literally. By placing recycling bins in every conference room, throughout the break rooms, and in the cafeteria, we’re able to significantly reduce the amount that ends up in the local landfill.
The material elected is then packaged into bales and sent to recycling centers. Money from the recycled materials is given to the community. Vehicle Recycling: We begin with the end in mind the very end. Every BMW we manufacture is thoughtfully designed to be dismantled after a lifetime of use and the parts recycled for use in a brand new BMW. This kind favored thinking created Bum’s first Recycle and Dismantling Center in Landsman, Germany in 1990, long before the concept of echo-friendly production was fashionable. Since then, it has been implemented here in the U. S. Here the well-worn components, fluids, and metal of old BMW find new life. Solid Waste Recycling: In the course of building over 1 ,OHO customized vehicles a day, there’s bound to be a lot of waste. At BMW Manufacturing Co. Sending that to the nearest landfill is not a desirable option. In fact, for all non-regulated waste, BMW. Ms plant in South Carolina has achieved a Zero Waste-to-Landfill status. Here are other ways we have found to recycle our solid waste: Cardboard: From dashboards to cotter pins, much of what is used in the assembly process arrives in cardboard boxes.
During the course of a year, millions of pounds of cardboard come into our facility. Nearly every bit is recycled to produce… Hat else… More cardboard. In fact, a number of BMW suppliers use the same recycled cardboard to ship their products back to the factory. Wood: Some items are too large or fragile to be shipped in cardboard and are sent via wooden shipping containers. There is also an abundance of wooden pallets used to stack and move a variety of parts and components. All this scrap wood is sent to a local mulch factory and eventually finds a home in someone’s garden or business landscape.
There is also quite a bit of large, useable timber. This is sent with care to Habitat for Humanity where it finds a very special home indeed. Metal and Miscellaneous: Not often, but occasionally, metal components such as door panels and underbred parts do not pass muster and are scrapped. These parts are 100% recyclable. Once in a great while, an entire car is rejected. 85% of the car’s material can be recycled. Metal from the vehicle body is compressed at the factory (optimizing the amount of material per shipment) and sent to a local recycling group.
It is then reprocessed and used to produce different metal products, some of which may even be used again in our plant. If a material cannot be recycled, Bum’s waste specialists look for ways to reuse the waste. Tires are sent to a cement kiln where they are used as fuel. Paint sludge is also utilized as waste energy for other production facilities. And, as is the case with all waste contractors used by the factory, these facilities are regularly audited to ensure the material is not being used in an environmentally harmful manner.
