BMW BUSINESS
...th a new plant in Northeast China. BMW automobiles have been rolling off the assembly line in the new Shenyang plant, located in Liaoning province, since September 2003, the plant is a joint venture between the BMW Group and Brilliance China Automobiles for the Chinese market within several years. Production began with automobiles of the BMW 3 Series, followed by those of the BMW 5 Series. MINI must have a high market share and are selling in a fast growing market. It is obviously attractive they are doing well in a successful market. However, it needs to protect from competitors products. In addition, when the MINI reaches its peak of product lifecycle that is at the stage of development or even on the edge of saturation, the BMW Group has to develop new product or update it. Updating or innovation can prevent a decline in the product's sales. This circular process is a theorem in business. Finance of BMW Group: I see financial services as a key factor for success in today's mobile world. I have established an extensive product portfolio, which supplies expert information and advice for situations and questions relating to the finance sector. They provide the following services: (financing and leasing, asset management, dealer financing and company car pools). Finance is a significant aspect in business. It is always considered as the artery in business. A satisfactory in finance can determine the destiny of a business. The finance status of BMW Group in 2002-2003. The BMW Group recorded a good performance in its finance report. There is a general increase in its income. Comparing with the year of 2002, the revenue of BMW Group in 2003 had increased with 9.3% from $38,463 million to $42,282 million. There was a less percentage in its net profit that is 8.3% increase compared to the previous year, this is due to the increase in cost of sales, at 9.8%. Within cost of sales, the cost of materials increased less than, whilst warranty and goodwill expenses increased more than, the increase in revenues. On the other hand, its sales and administrative costs increased by 5.5%, which is also less than the increase in revenue. They represent 11.6% of revenues. In 2002, the ratio had been 12.1% as a result of expenses for the launch of the new BMW 7 Series and the MINI. As the principle of business, firm needs to promote its new product and spend more money on advertising because the more information consumers are given, the more influence cause to the sales of new product. On the other hand, people need time to consider whether the new product is high quality, and once they are satisfied with it, the new product reputation can be widespread by people. In this situation, its revenues may increase steadily. The BMW Group launched the MINI in 2001 so that its sales sand administrative costs took up about 12.2% of its annual revenue. Research and development expenditure has again increased sharply as a result of the continuing product offensive. According to the situation of more people is concern about the green environment; the BMW Group has systematically reduced waste and dangerous material used in production. At the same time, it has constantly improved its use of precious resources in all manufacturing processes. Now, the BMW is the worldwide leader in sustainable vehicle production. Ratio analysis is an examination of accounting data by relating one figure to another. This allows more meaningful interpretation of the data and the identification of trends. The future activities of the BMW Group can be predicted under doing the ratio analysis. Net Profit Margin (This ratio measures the relationship between the net profit and the level of turnover or sales made). It is given by the formula: (Net profit margin= net profit) Turnover (sales) * 100% According to the statistics above, the net profit of 2002 is $1,866,000 and the sales are 1,000,984, so the calculation of the net profit margin is 186%. The net profit of 2003 is $2,020,000 and its sales are 1,160,364 so that its net profit margin is 174%. BMW Group activities worldwide are co-coordinated from the corporation's head office in Munich. A city landmark, the "four-cylinder" tower at the Olympic park is the nerve cente...