How Spanners Car LTD and BMW Differ In Form, Aim and Shareholders Structure

Paper Type:  Course work
Pages:  7
Wordcount:  1883 Words
Date:  2022-04-04

Introduction

The global development strategy is a broad concept relating to the level of development from local based company to the multi-national based company. Businesses strive to grow from local, regional and up to international to expand their market and productivity. In this case, Spanner Cars Ltd is a UK-based family company, and it does not serve the global market, but only the British market. In comparison to Bayerische Motoren Werke AG (BMW), which produces the similar product as Spanner Cars Ltd, it is a Germany company, and it serves international market having its distributors and car assembly plants around the world. In regards to global development strategy, the following research seeks to focus on the current operation of Spanner Cars Ltd together with its ambitions to grow internationally, in counter comparison with BMW.

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How Spanners Car LTD and BMW Differ In Form, Aim and Shareholders Structure

Spanner Form

The Spanner Cars Ltd is a private limited company since it is a UK family-based automotive manufacturing company that only specializes in cars; the company only operates and sells in the UK markets; however, it imports most of its raw materials which it manufactures into the final product.

On the other hand, BMW is the acronym for Bayerische Motoren Werke AG or in English, Bavarian Motor Works. It is an public limited company company based in Germany, and it specializes in manufacturing the motor vehicles as well as the motorcycle. It is known to be the word largest premium car manufacturer, and it is also the parent company of the M Rolls-Royce car brands, and, formerly, Rover as well as the BMW-mini.

Aim

In regards of the company's aim, the Spanner Cars Ltd. aims at growing from the UK-family based Car Company into a multinational company that it is situated in the areas where it can get its raw materials without extra expenses to boost its profitability. Besides, the BMW aims at establishing innovative approaches and tools in the areas of Mentoring, built on the already existing material and knowledge nurturing the correlations between the generation with benefits of creating employment to the people and also for the SME's competitiveness (Aims & Objectives | BMW - Be a Mentor in the Workplace. (2018).

Shareholders Structure

The shares of Spanner Cars Ltd. are majorly dominated by the chairman of the company together with the two brothers as well as their old family friends, each one of them having at least 25% of the total share capital. The remaining income is generated from the bank loan of PS100,000 which makes up 50% of the initial business capital.

As for the BMW, shareholders are the ones who own the stock and claim to the BMW Company; they were either inherited by their heir or worked for it. The company's share is distributed among the people who own the stake then the other is by the investors of the company. Who owns the take at the BMW? Stefan Quandit is one of the wealthiest people in Germany; he takes 17.4% of the company's stake, Johanna Quandit is the second biggest stakeholder in the company owning 16.8 percent. The rest of the remaining company's stake is owned by other people each one of them taking 5% making a total of 53.3 of BMW's shares (Archokdo.com. 2018).

The Effect of Various Interested Parties Towards the Business Aims of Spanners Car Ltd and BMW

The aims of both the Spanners Car LTD and the BMW are influenced by the interest parties in the various manners. The Spanners Car LTD is affected concerning the raw materials that it requires in the manufacturing of its final products, the producers of the raw materials are not based within the UK where they operate; instead, the company has to stretch further and get its raw material from countries such as China and Germany. The producers of the raw materials being the company's interesting part, it affects aim of increasing its productivity and having fewer production costs and recurring costs. Secondly, the shareholders affect the aims of the company, the share capital that is generated from the Spanners Car LTD shareholders is limited, and hence it restricts the expansion of the company to operate in the international level.

While the BMW interested party that affects its aim is the insurance agency, the BMW is yet to settle on of the suitable insurance partner that they will be leaning on in case of a particular financial loss that they might incur. However, Christian Clauss, BMW's Connected Drive project manager maintains that "We don't know who will be our partners... we are pleased and overwhelmed by the response of third-parties that are interested" (Mobility Finance. 2018).

Secondly, are the distributors of the BMW auto motives and the motorcycles, the pricing factor has become an issue in the market where the distributors influence the price of the auto motives by elevating it on the market.

The Structure of Spanners Car LTD and BMW

Large automotive Companies have a robust organizational structure that guarantees firm and smooth operation of the company and easy to counter the competitors in the market and stay on the top of innovation. However, that is not the case for Spanners Car LTD where its administrative structural form is comprised of 20 workers who are either the relatives or relatives of the family who have various engineering and business qualification and live in the local areas with their families. The BMW seems to be having an organized and unbiased form; it is one of those companies that have a tall, sophisticated organizational structure, characterized with several management layers that depicts the more advanced reporting structure that incorporates every employee with their respective responsibility towards the achievement of the company's vision, mission, and objective. The BMW leadership structure reflects the business's massive size as well as the global scale regarding its operation. The BMW AG Supervisory Board sits at the helm of the organization structure, and it further has four different committees made up of 20 people. The suppliers of BMW closely collaborate regarding research, growth, production as well as marketing. The team members are distributed to various BMW facilities and different tier partners across the world in a matrix-like fashion. The BMW Group offers "Plantivity" as the measure of their B2B-Portal to the Suppliers and Employees.

The Ways These Companies Are Set Up To Satisfy Their Aims

Before the setting of the business, the entrepreneur has to set his aim of venturing into the market, and every time there is the need of reviewing the aims especially because the trend in the current market is dynamic and also innovation is growing at a tremendous rate. In that case, both the Spanners Car LTD and BMW have their defined aims to achieve to gain its completive advantage over their competitors and make considerable profits.

In the case of Spanners Car LTD regarding the set strategies to satisfy its aims, the company is hoping to expand its operation from a UK-based company only serving the British customers to the multinational where they will be serving other various countries. Second, the Spanners Car LTD is settling at its new area of operation where it will be close to the source of raw materials hence reducing the marginal cost, and production cost hence as the means of reducing expenses and minimizing the profit and at the same time making their products affordable to the customers. Third, Spanners Car LTD is working in the way that it can generate more capital that can meet its financial needs that are aimed at boosting its production and meeting the core set aims of the company.

Conversely, BMW is always determined to fulfill its aims, with long-time and short-time milestones. To satisfy that, BMW is working on enhancing its brand image, hoping that it will lay the foundation for the success of the BMW Group. Also, the company believes that maintaining the core value of innovative technology, quality, performance, exclusivity, reliability and customer satisfaction. The BMW's slogan is a clear indication on the company's homepage Bmwgroup.com. (2018), i.e., "The Ultimate Driving Machine" and "Sheer Driving Pleasure" gives us an overview of the marketing strategy it adopts. "Identify potential and encouraging growth. Knowing what we represent. Recognizing where our strengths lie and making the best use of every opportunity. Goals we have attained are in essence the point of departure for new challenges". The BMW mission statement is defined as "to be the most successful premium manufacturer in the car industry.

Explain How Two Different Types of the Market Might Affect These Two

The two companies, Spanners Car LTD and BMW Group, operate in a diverse market; each one of them is affected by the markets they are operating. The markets that they are operating vary depending on the particular goods that they are producing and the market they are serving.

According to the types of market description by Ostrom (2010), the market that both the Spanners Car Ltd and that BMW are operating is free market economy where the buyer and the seller meet and sell without the government restriction; however, there is a bit of command market economy where to some extend the government regulate the quantity manufactures, and exported.

Explain how the performance of the two companies and their interested parties is affected by government, legislation and cultural factors.

Regarding interference from the government, legislation, and cultural factors, both BMW and Spanners Car Ltd are nearly equally affected, hence affected the interest parties as well as the shareholders.

Taxation is one of the major government policies that have a profound direct effect on the business because it targets the amount earned by the companies. Pulver, (2012), shows that the increase in the corporate taxed focuses on the business profits, hence affecting the cost of the automotive being sold; consequently affecting the interested parties.

The change of the regulation by the legislation affects the interested parties, whereby the increase in the minimum wage and the VAT all affect the price of the final product, and so are the interested parties. This affects the ability of the company to archive their aims (Klapper, Lewin, and Delgado, 2011).

Comparison of the Goals of Certain Commercial Operations in China and Germany for Spanner Cars

Most successful commercial operations that make both Germany's and China's to elevate at a lucrative trend is their innovative automotive industry. Chinas automatic companies such as Beijing Automotive Group, BYD, Guangzhou Automobile, SAIC Motor, and others can produce their product at a lower production cost hence making it affordable for their customer and increasing their profitability and reduce recurring expenses; they have a common goal of producing more units to meet the market demand. Whereas Germany is known for producing most prestigious automotive in the world such as Audi, BMW, Ford-Werke GmbH, Mercedes-Benz, Opel, Porsche and more others, they have a common goal of manufacturing smart cars that are highly innovated best quality that worth the price. In comparison, the goals of Spanner Cars Ltd is to reduce the production cost, minimize the expenses and maximize profit, and operating internationally

Assessment of the Impacts of Various Interest Parties on Spanner Cars

Customer: they are the ones who purchase the final product hence making the company earn the profit, they include, buyers and consumers.

Supplier: they are the ones who get the final product...

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How Spanners Car LTD and BMW Differ In Form, Aim and Shareholders Structure. (2022, Apr 04). Retrieved from https://proessays.net/essays/how-spanners-car-ltd-and-bmw-differ-in-form-aim-and-shareholders-structure

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