Spartanburg Plant Investment by BMW AG

Bachelor Thesis from the year 2003 in the subject Business economics - Supply, Production, Logistics, grade: 1,5, Hogeschool Zeeland (Economics), language: English, abstract: Inhaltsangabe:Abstract:§In the pursuit of success, higher profit, gaining market share and dealing with the challenges of day to day business. The big national companies, wherever they may be, have dreams and aspirations. As a CEO or General Manager of a big company; there is several objectives to achieve and strive for. Among them, on the top of any list, these will be some of them.§Get the most of the revenues and provide for the shareholders, it has in the recent years become more and more apparent, that the big companies seem to focus on shareholder value . This is often found in the US and is finding its way to the European continent. §Another primary aim is to expand and become bigger or at least as big the main competitor. There is several reasons and valid objectives; one being the natural instinct of any CEO or General Manager; to achieve success and become an even bigger share of the global market. Other reasons may be the search for new markets, for whatever reason, the need for cutting the production costs, to be closer to the customers or even to have access to new technologies or raw materials.§In this case study, we will deal with the issue of BMW AG s decision in the mid 90 s to go abroad. To settle on the US market, starting up a manufacturing facility.§There is a wide range of reasons, concerns and objectives to be dealt with prior to make that certain move, settling on foreign shores and setting up business. In order to understand what we are dealing with, we need to define multinational: Companies operating in multiple countries, but responding to local product-markets through more customized approaches §In order to deal and operate in that environment, that company is expected to have highly qualified resources and access to a wide range of information s; such as pricing, local laws and regulations, knowledge and understanding of the customer s need and preference s to name of few. The road that the company is about to embark upon, prior to going multinational, is full of risks in all sorts of different areas; such as political risks, financial risks, regulatory risks and risks dealing with competition.§There must be a solid research team ready at hand, being able to provide the management team, with the necessary information s and background information.§We will cast a light on the problems, benefits, motives and challenges regarding multinational business.§Zusammenfassung:§Die vorliegende englischsprachige Projektarbeit behandelt das Thema internationale Investitions- und Standortentscheidungen in der Automobilindustrie am Beispiel des amerikanischen BMW Werkes Spartanburg in South Carolina. §Ziel der Arbeit ist es, die Entscheidungskriterien für internationale Hersteller allgemein und am Beispiel von BMW herauszuarbeiten als auch die dazu korrespondierenden wirtschaftspolitischen Gestaltungs- und Förderungsmöglichkeiten am Beispiel des Bundesstaates South Carolina und der Stadt Spartanburg aufzuzeigen. §Dazu wurde die Arbeit in 3 Teile untergliedert. Im 1. Teil werden allgemein die Gründe, Ziele und betriebliche Auswirkungen internationaler Investitionsentscheidungen beleuchtet. Ferner werden Finanzinstrumente wie z.B. European Mid Term Notes und Euro Commercial Papers erläutert. §Im 2. Teil wird das Umfeld von BMW im Zeitpunkt vor dem Bau des US-Werkes analysiert und untersucht, warum im Zeitalter der Globalisierung Investitions- und Standortentscheidungen die Strategie Produktion follows the market zugrunde gelegt wurde. §Des weiteren werden die Kriterien von Investitions- und Standortverhandlungen untersucht: Auf der einen Seite die Vorteile, die BMW als potenziellen Investor von den politisch Verantwortlic...