HOW ALONG THE VALUE CHAIN OF BMW GENERATES VALUE THROUGH SOCIAL RESPONSALBILTY

ADRIANA AMORTEGUI FELIPE ACOSTA JORGE BOADA DANIELLA LONDONO SUAREZ

PROCESOS ADMINISTRATIVOS

JUAN CARLOS

UNIVERSIDAD DE LA SABANA 31 DE MARZO DE 2014

First of all we want to define the value chane being a set of stages where there exists an opportunity to contribute positively to the firms competitive strategy by performing some activity or process in a way that is better than the competitors, and so providing some uniqueness or advantage (Porter, 1985). The ongoing globalization of the goods and capital markets enables transnational companies to create global sales, production, and distribution networks. However, with this global network and the internationalization of economic activity comes a great responsibility to respect and safeguard the fundamental principles by which people live and work together with this being known companies are developing new ways and strategies to share value between customer and company here we want to show how the BMW Group manages its value chain but first of all a small back ground of the company and its business.

The company is based in Germany with its headquarter in Munich, Germany. BMW manufactures automobiles, aircraft engines, motorcycles, and other premium products Rolls-Royce, BMW mini. The company has a total of 23 production facilities around the globe in 12 different countries with representation in more than 140 countries. The company is famous for its world class luxury cars offered to international customers. BMW is considered as the world's leading and most leading premium manufacturer. In the year 2007, the company reported a net profit of 3 billion, with more than 222,875 mini units, 1,276,000 BMW brand cars, and 1,010 Rolls-Royce cars. BMW AG, has employed more than 107,000 (2007) employees throughout the world (Fleischmann & Herbert, 457-523), knowing the magnitude of the company theres no doubt that it has a big social impact where its brands have a presence either with its customers workers or suppliers. OUR SUSTAINABILITY STRATEGY Having on mind the impact of the brand they developed a sustainability strategy passed in 2009 is derived directly from Strategy Number ONE and is applicable worldwide as the overarching strategy for all corporate divisions. The main aim is to establish sustainability along the entire value chain and in all basic processes thus creating added value for the company, the environment and society. We derive specific requirements and targets for each individual division from the sustainability strategy, which allow us to systematically establish sustainability criteria in all areas of the company.

Also BMW implements in the earliest stages of the supplier selection process, they make sure there future business partners uphold the same environmental and social standards

they have set for themselves because they know that, today, the value of a company is not measured solely by direct financial indicators but also by so-called non-financial performance indicators this meaning share value in other words whats good for society is good for business. OUR SUSTAINABILITY TARGETS So the real question here is what does BMW does to deliver a value chain how does it share value both economic and social and well BMW as an active member of the World Business Council for Sustainable Development and the UN Global Compact, they recognize that it is a global challenge to further increase their efforts on sustainable development. It is essential that they take a long-term approach. They intend to further expand their leading position and focus on the topics they can have most impact. With this in mind, we developed a target vision for 2020 in the year under report. This includes efforts in the areas Products and Services, Production and Value Creation as well as Employees and Corporate Citizenship.

Some of the sustainability targets that BMW want to implement to share value are resource consumption reducing it by 45%, reduce co2 emissions by at least 50% and some more sustainability projects we will explain ahead with more detail. BORN ELECTRIC BMW i stands for a holistic concept of sustainable and future-orientated mobility that uses visionary vehicles, a fully-networked infrastructure and innovative services to provide a new form of everyday mobility. BMW i is revolutionising automotive engineering with the first series-produced passenger cells made of carbon, components from BMW EfficientDynamics lightweight construction technology. Carbon is around 50 % lighter than steel and around 30 % lighter than aluminium, allowing BMW i to set new standards in lightweight construction while also completely offsetting the additional weight resulting from the high-voltage lithium-ion battery. At the same time, carbon is a high-tensile material with very versatile applications in construction that increases the safety of all passengers. The innovative BMW eDrive technology is the result of many years of BMW EfficientDynamics development work. Three key features deliver an unequalled emissionfree driving experience: the entire torque of the extremely agile electric motor is available virtually from a standing start, and uninterrupted acceleration is maintained up to the maximum speed. Innovative battery technology combines the ultra-powerful high-voltage battery with a cooling system that keeps the battery at the ideal operating temperature and boosts its performance and lifetime. The intelligent energy management system coordinates optimal interaction between the electric motor and the high-voltage battery with the goal of maximum performance with minimum consumption. Regenerative braking mediated by one-pedal driving extends the car's range. Together with the ECO PRO modes, the push of a button is all it takes to gear all car systems towards maximum efficiency and utilise energy reserves intelligently.

EMISSION-FREE INTO THE FUTURE Sustainability and BMW i. Reinventing mobility with sustainability in mind takes more than just a vision. You need answers to a plethora of emerging questions, the first of which is: Where does sustainability begin? The answer: in the same place it ends. Sustainability characterises the thoughts and actions of the BMW Group. Which is why the BMW Group is the Dow Jones Sustainability Index leader for the eighth year in succession, making it the most sustainable company in the automotive industry yet again. With EfficientDynamics, BMW has set itself the goal of continually reducing emissions while increasing driving pleasure. BMW i uses a wealth of innovative BMW EfficientDynamics technologies and goes even further: From design to production, from the useful life of the vehicle to its disposal, every detail is based on sustainability. Because sustainability is an attitude that doesn't have a beginning or an end. Redefining urban mobility means thinking far beyond environmentally-conscious and agile driving. The result: with its visionary design, the BMW i3 design defines the automobile of tomorrow. Its innovative BMW eDrive power train was designed in the scope of the BMW EfficientDynamics technology and is not only locally emission-free, but also offers an incomparable and nearly silent driving experience. The intelligent BMW ConnectedDrive Services bring you easily and conveniently to your destination.

The BMW i3 opens a new chapter of a visionary design language for BMW tailor-made for electric vehicles. The innovative LifeDrive architecture with carbon passenger compartment provides an especially roomy feeling in the interior (in part thanks to the absence of a centre tunnel) and is characterised by the use of high-quality, sustainable materials. The aerodynamic exterior design with opposing doors, the characteristic black belt and large wheels create a dynamic impression about the BMW i3's driving agility even when it's standing still. Born electric: with the BMW i Mobility Concept, everyday travel can be 100 % electric and a pleasure before, during and after each journey. Because BMW i thinks beyond the vehicle and leaves nothing to be desired with its innovative mobility services.

http://www.bmw.com/com/en/insights/corporation/bmwi/vehicles.html http://www.bmwgroup.com http://www.bmw.com/com/en/insights/corporation/bmwi/vehicles.html http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/svr_2012/nachhalt iges_wirtschaften.html