BMW Group’s non-physical assets including the brand name
right, goodwill and licences the firm holds.
Leased products 25,914
Products which BMW Group leases out to dealers and customers,
such as cars.
Property, plant and equipment 15,113
Includes BMW Group’s land, buildings and production equipment.
Liabilities (€m)
Pension provisions 3,772
Benefits paid to former BMW Group employees and their dependants.
The pension amount is dependent on factors such as length of service, current
laws and salary of the former employee.
Other provisions 3,411
Includes social expenses, long service payments and employee
pay increases based on performance.
Current tax 1,237
Amount owed to the taxation authority.
Equity (€m)
Capital reserves 1,990
Reserves created by non trading activities of BMW Group.Capital
reserves are usually long term reserves and the funds cannot be distributed among
shareholders.
Revenue reserves 33,167
Are the opposite of capital reserves in that they are
reserves created by trading activities of BMW Group, usually short term reserves
and can be distributed amongshareholders.
Subscribed
capital 656
This one I'm such on. I'm not sure if it is the same or
similar to share capital. If anyone has any ideas could you please let me know?
Also it took me a long time to get my head around this and I'm still a little confused. So if anyone has any comments or constructive criticism for me it would be much appreciated.
BMW Group’s annual reports stress the importance of the Asian
market. It is therefore unsurprising that in recent news they have announced the
opening of a new driving centre in Korea. BMW Group already has two of these
centres one in the US and one in Germany. The centres allow driving enthusiasts to come and
undertake a range of driver training programs, including safety training and intensive
race track training. The driving centre in Berlin, Germany boasts a driving
area of 1,600 hectares making it the largest of its kind in Europe. The new
centre in Korea will open to the public in August. Although it won’t be as
large as its European counterpart, for the first time in Asia car lovers with be able to experience the BMW and MINI brands in a fully interactive environment. According to the Economic Times BMW Group
will be investing a total of 75.5 million US Dollars into the project up until
2020. This spending is consistent with BMW Group’s promises in their annual reports
to invest in Asia.
At first I found BMW Group’s reports to be overwhelming, there
is a lot of information to take in. However, after looking over them a few times
the information becomes relatively clear. Much of the critical information is repeated
throughout the report in a number of different ways. So if you have difficulty
understanding something the first time it is often repeated later in the
report. I also found the glossary very helpful. There were some terms and
abbreviations I was unfamiliar with however I was able to look them up. For
example I had not heard of the Deutscher Aktienindex (DAX) but was easily able
to check the glossary and determine that it is the German Stock Index. Other than
that my lack of knowledge regarding automotive parts meant I had to look some
terms up. Although I’m sure someone with a better understanding of cars and
motorcycles would find the information very simple to understand. Once I had
familiarised myself with the reports I found they were well set out and the
headings were clear and simple, making it quick and easy to find
information.
Areas of importance
Reduce CO2 emissions
and fuel consumption
BMW Group appears to be highly concerned with reducing CO2 emissions and fuel
consumption in the vehicles they produce. All three reports stress the
importance of minimising environmental impact and how BMW Group is aiming to
lead the way. Efficient Dynamics is one of the important strategies utilised by
BMW Group. The reports boast that Efficient Dynamics combines efficient engines
and a lightweight design to reduce fuel consumption and CO2 emissions. Below is an
excellent YouTube video created by BMW USA explaining Efficient Dynamics.
The 2011 report especially highlights BMW Groups commitment
to improving the efficiency of their vehicles. During 2011 the company’s expenditure
increased. The report explains that this was due to increased research as well
as the opening of a new carbon fibre manufacturing plant, which would assist in
the increased manufacturing of lighter materials for vehicles, with the aim of
reducing fuel consumption and CO2
emissions.
Sustainability
All three reports also outline the importance of sustainable
manufacturing and BMW Group’s high environmental and social standards. For the
past 15 years BMW Group has maintained its position as one of the top three most sustainable carmakers
worldwide, according the Dow Jones Sustainability Index.
Key challenges and
how they are met
Oil and raw material prices
One of BMW Group's main challenges appears to be the price of
oil and raw materials. The reports explain that the price of crude oil remains
high due to conflicts occurring in the Middle East. While certain materials
such as steel decreased in price during 2012, the price of other metals
continues to rise. BMW Group has two main strategies in place to address this
issue. Firstly, the commodities markets are closely monitored. Seconding, BWM
Group establishes secured price agreements with raw material producers.
Economic environment:
The current economic environment
is another challenge the BMW Group faces. The reports stress that the instability
of the world economy and the debt crisis in Europe could affect car and
motorcycle sales. However the company appears to be successful in meeting this
challenge. BMW Group has a large economic market covering the three main
economic regions. Because of this the company is not dependent on one region
and a lack of sales in one area is often made up for in another. Also BMW Group’s
production centres are located in various countries across the world. Therefore, the company is able to quickly adapt to world economic changes by adjusting where
their products are produced.
Bayerische Motoren Werke Aktiengesellschaft commonly known
as BMW or BMW AG was founded in 1916 as Bayerische Flugzeugwerke AG (BFW) and originally
produced aircraft engines. However, following theFirst World War and the production
ban under the Versailles Armistice Treaty the company began manufacturing railway
brakes and inboard engines. In 1923 BMW produced its first motorcycle the R 32
and in 1928 became a car manufacturer.
Based in Munich, Germany BMW Group is now one of the most
successful car and motorcycle producers in the world. BMW Group includes the brands
BMW, MINI, Rolls-Royce and Husqvarna motorcycles. BMW Group has 28 manufacturing facilities in 13
countries as well as 12 research and innovation centres in 5 countries around
the world. The company employs 110,351 people as of December 2013.
