The first example of this is the commitment from senior management to continually offer profit sharing even during the years that the company struggled to stay in business. This illustrates one of the core aspects of transformational leadership which is a continual commitment to their core values and retaining trust through authenticity and transparency (Hirst, van Dick, van Knippenberg, 2009)
BMW Case Study Describe the culture at BMW The culture of BMW AG is one that combines both transformational and transaction-based leadership styles in an attempt o create an optimal balance of vision and discipline so innovation can be maintained. The transformational aspects of leadership are powerful catalysts for any company being able to transform their visions into reality (Mancheno-Smoak, Endres, Potak, Athanasaw, 2009)
Reducing input costs and improving technology can maximize profits but so can a new production and marketing strategy. "The diversification provided by having production capacity in various countries reduces an automobile manufacturer's economic exposure" to risks particular to a nation or region (Kim & McElreath 2001)
This balancing of production needs according to regionalized demand has been shown to provide significant rewards as well. For example, these authorities add that, "Interestingly, Mercedes went from 100% home production to 90% over the period, and slightly surpassed BMW in overseas production on a percentage basis" (Kim & McElreath, 2001, 22)
, Inc. A wholly owned subsidiary of Toyota Motor Corporation (Lexus Investor Relations, 2011) and is currently the world's largest automaker (Marr, 2010)
Compared to the end of the financial year 2010, the increase was 1.6% (BMW Second Quarter Report, 2011, p
Compared to the end of the financial year 2010, the increase was 1.6% (BMW Second Quarter Report, 2011, p
This balancing of production needs according to regionalized demand has been shown to provide significant rewards as well. For example, these authorities add that, "Interestingly, Mercedes went from 100% home production to 90% over the period, and slightly surpassed BMW in overseas production on a percentage basis" (Kim & McElreath, 2001, 22)
0T) engine rated at 211 horsepower and 258 pound-feet of torque is not going to out-perform a 300-horsepower turbocharged 3.0-liter six-cylinder engine (Matras 2009)
The rear wheel drive option does make BMW a superior option according to Stein (2010). BMW has a "performance-oriented rear-drive architecture that most competitors have never fully adopted," (Stein 2010)
, BMW can easily shift part of its production to the other and thus increase the number of "exports to countries where the real exchange rate has risen" (Kim & McElreath, 21). Joint ventures or partnerships and mergers are also a solid method for minimizing global financial risks (Choi & Prasad, 1995)
Many hedging instruments or techniques are available and work well to ensure a company manages risk reasonably. Multiple factors affect a firm's exposure to financial risk including operational activities and the strength of the dollar compared with foreign currency (Kim & McElreath, 2001)