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Innovation Performance and Capabilities

University: University of Chester

  • Unit No: 3
  • Level: Undergraduate/College
  • Pages: 11 / Words 2643
  • Paper Type: Assignment
  • Course Code: BM627
  • Downloads: 1056
Organization Selected : BMW


Managing innovation is a effective process that involve adoption of such techniques and process that help management to examine all opportunity that either foster or hinder the performance of organisation (Archibald,and Archibald, 2016). It can be possible through supplying innovative and new ways to face all the process so that final objectives could be achieved. The company which is included in this report is BMW, which is a well known brand of auto-mobile and offer different variety of products that include cars, motorbikes etc. They conduct several innovation process in order to establish competitive edge in market place. The report highlights the innovation history of BMW as well as its innovation performance and capabilities that help in establishing sustainable image.

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Organisation and Industry Overview

The organisation and its innovation history

Bayerische Motoren Werke is famous as BMW which is German based auto-mobile company. It was established by Franz Josef Popp in 1916. the headquarter of BMW is situated in Munich, Bavaria, Germany. There are around 105,800 employees who are dong work in this company for achieving desired goals and targets of an organisation. BMW is one of the largest and trusted auto-mobile manufacturer firm after Mercedes- Benz and Audi. BMW is the German international company which produce luxury auto-mobile and motorcycle for their people. BMW is the world twelfth largest manufacturer company which produced motor vehicles for the united kingdom people. The company is reported to increasing the manufactured specifically for meet with the market demand and requirements. Apart from this, the brand name involves in luxury auto-mobiles and motorrads, BMW will earning high level of success in various Formula races. They are innovate first car in 1966 which named as “Dixi” that is based on its Austin 7 model. In the year of 1992, BMW acquired huge California based share industrialised designing workplace for making development and manufacture in US (Brown and Osborne, 2012) .   

4Ps of innovation:

Product innovation - It is one of the most common form of innovation which help in improving and launching new product and services. For example, Bic ballpoint is an example of product innovation that has been getting benefits from huge improvement innovation for their real invention. BMW are developing and manufacturing car which attracting large number of customers towards specific features and designs in proper manner.

Process innovation - Innovation can mainly concentrate on processes by which goods can delivering or creating in better manner. There are various products that can be used in setting relief for developing that mainly focus on humanitarian for determining how existing goods can be used for fast level of changing settings. BMW is maintaining and controlling business operations and its functions for processing all systems in effective manner. This will mainly focus on company income and revenue for getting huge number of customer base and make development among buyers (Drucker, 2014) .

Position innovation - The third main focus of innovation includes repositioning of developed goods and procedures in particular context. Along with this, position based innovation define that changes and alterations in which how particular procedure and commodity can sensed and how they can be used in the company. If BMW will developing and manufacturing new car so they require to take position in the large market place which attracting large number of buyers in better manner. They also need to make proper innovation and improvement in their business operations and its functions.

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Unit 13 - Innovation - Pearson BTEC Level 5 - David Game College - HNC/D Assignment

Paradigm innovation - The paradigm innovation is based on metal model that will giving shape for an organisation regarding services and facilities. Paradigm innovation is the international humanitarian sector that includes enhancement in local ownership along with leading for situation for the alternate controlled outcomes.

The organisation existing innovation Performance and Capabilities

The auto-mobile industry and related organisation determine to set company administration that main aim is to getting desired goals and targets in better manner. BMW is the car manufacturing company which includes networking mobility and digital transformation for customer services or facilities. For understanding the performance capabilities, BMW required to evaluate present innovation in the current time period that can help in developing and improving their skills and abilities in the large market area (Evans and Johnson, 2013) . There are various recent innovation in present market:

Autonomous driving - BMW group are doing effective working in the mobility of firm. This is one of the major factor towards autonomous driving. They are make technological development and improvement in current changes. Apart from this, technological situations will offer the range of customers opportunities regarding safety, comfort and efficiency.  

Providing connectivity - With the work of BMW engineers, faster advancement has been made in making connection of vehicles along with their environment and other traffic factors. Apart from this, the customers can using and adopting innovation activities or functions for connecting mechanism, surroundings and cars with the help of unique BMW connected drivers services and apps.

Efficiency and electro-mobility - They need to make sustainability for actions and thinking of BMW group in the year of 1970. An organisation has been optimised countless manufacture process and also developed innovative techniques effectively (Feller, Finnegan and Nilsson, 2011) .

Therefore, understanding major activities and functions of innovation, an organisation can assess their innovation capabilities that can identify with the help of SWOT analysis that will directly impact on strategic development and improvement. After that, SWOT analysis of BMW are discussed as follows:


  • It is one of the valuable auto-mobile brand in the large world.
  • They have successful partnership in china.
  • Clear scheme for achieving future tendency and challenges


  • In BMW, poor auto-mobile brand portfolio with small product differentiation.
  • Improvement in debt levels


  • They can expand business in other location and area.
  • They have huge demand for autonomous vehicles.
  • Weakening euro exchanging rate
  • Frequency and timing of latest model belongings.


  • Enhancing competition in over the world of auto-mobile market place.
  • Increasing authorities rules and norms which can raise the costs.
  • US auto-mobile market will slow down.

On the basis of this, it can be analysed that strategies and dynamic capabilities outline with the help of BMW position against competitors. The innovation, quality assurance and technical skills developing their engineers more educated and suitable for the company. Various cars which can be classified with the assistance of trademarked safety and products features while making imitate possible (Herrmann and Herrmann-Nehdi, 2015). There are various number of resources which required for evaluate and determine that are described as under:


BMW includes innovation in their resources management and functioning that can changing in the specific period of time.

Physical resources - An organisation has highly skilled and talented manufacturing machines along with infrastructure production in more than 20 nations which expand in other locations. Along with this, they are providing e-stores which help in assessing person branding.

Financial resources - Company has wide leasing and financing range to their buyers for operating business. A enterprise has 27 euro billion income with 34% current liabilities. Firm invest around 20 euro billion in research and development department for collecting accurate data and information for making such requirements.

Human resources - Company prefer inclusion and workplace for diversify approaches that make innovative ideas of the firm. Firm has high skilled and educated employees assigning sophisticated system for maintaining wages or salary as per their skills and abilities.

Intellectual capital - BMW has innovative and unique identity that provide patent to petrol and gasoline cars to its invention. In current time period, company has trademarked and copyrights for their emission of innovation free and digitalisation system of such goods  (Inauen and Schenker-Wicki, 2011). Best assignment assistance at an affordable budget.

Strategic Capabilities

This can be refer as business abilities which organised competitive strategies that allow them for enhancing value for surviving in given time. With the help of VRIN framework, identification and management of strategic capabilities can be done that are discussed as under:

  • Valuable - Company can creating and making their values with efficient dynamic. Advancement of technology for building strong portfolio.
  • Inimitable - Their emission free and green technological with modern for diverse and unique from any other organisation.
  • Rare - Such framework and technologies are rare will creating different identification in the industry.
  • Organised to Exploit - BMW is advanced, structured and viable to exploit their resources and capabilities.

Therefore, this can define as better performance and inimitable resources and companies capabilities has been earning for adopting and managing all best suitable innovative methods and techniques as per their needs and wants effectively. Along with this, they need to maintain and manage all business operations and its functions in proper manner.

The BMW in 2018

The BMW is a German multinational company that  currently produces luxury auto mobiles, motorcycles and manufacture aircraft  engines (Laforet, 2011) . In present scenarios, they are producing  motor vehicles in several countries such as Germany, Brazil, China, India, South Africa, the United Kingdom and United States. They are dealing at global level and provide their product to customers worldwide. Their production outputs is around 2,691,423 vehicles and revenue is approximately €98.678 billion. This company has very good market share and achieving better profits in current scenario. It has €10.655 billion operating income along with €8.706 billion net income of the organisation. This company was established in the year of 1916, almost 102 years ago but in present time it has 129,932 number of staff members working on regular basis and contribute to run this successful company in proper way to generate better outcomes.

The company is utilising various kinds of innovative ideas and digital technology to manufacture more desired luxury vehicles to fulfil actual requirements of customers. They have many of attractive features that can attract new clients along with retaining the current ones to boost up profits of an organisation. BMW has several strengths as they have strong historical brand image, well recognised at global level, stylise & trendy, high technology and car dealer maintenance which helps them to provide an appropriate products or service to gain their satisfaction. It will support to improve productivity as well as profitability of the company. Several opportunities for BMW is about to expand range of models, CSR development and strong promotion campaign that render support to achieve better number of sales and customers to earn more profits (Owen, Bessant and Heintz, 2013) . This will facilitate to improve brand image in front of client that make people aware about benefits of products provided by BMW and influence citizens to prefer this company to make correct decision for purchasing luxury vehicles.

This company has certain weaknesses and threats which impacts negatively on organisational aspect while implementing fresh innovative idea for increasing features of motor vehicles rendered by BMW. They have several effective strategies to overcome with these problems and reduce issues efficiently. They are facing critics feedbacks due to interior material  and issue of high cost decrease number of consumers as every one is not able to buy such expensive products. Apart from this, increasing price of fuel, new strong competitors, declining of car popularity etc. are responsible for reducing productivity as well as profitability of an organisation. BMW have to determine current trends along with analysing other factors which may impacts on growth of business. This company has very popular brand but due to entry of few string competitive organisations, it is facing problems into grabbing more market share and achieving better growth in business. BMW have a policy or strategy of providing better customer service as driver of growth on the company (Ritala, Hurmelinna-Laukkanen andNätti, 2012). They have typical target customers from upper class  social group and positioned itself as symbol of quality, technologically advanced, high performance and exclusive auto mobile brand. It is recommended that they have to analyse various factors that are relevant to apply desired innovative techniques to gain better outcomes and grab more profit share in market.

THL124 Innovation Assignment


From the above prepared report, it has been concluded that innovation play a vital role in success of organisation as it helps in introducing new idea and thought so that final aims could be attained. The report highlights the case of BMW which has set example of managing innovation. There are several capabilities that has been adopted by this company which make them unique and distinctive from various competitors that are present in market place. There are several requirements that must be consider by this company to meet their future.


  • Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every Executive Team Must Know about Project, Program, and Portfolio Management. Auerbach Publications.
  • Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service organizations. Routledge.
  • Drucker, P. F., 2014. The Executive in Action: Three Drucker Management Books on what to Do and why and how to Do it. HarperBusiness.
  • Evans, J. D. and Johnson, R. O., 2013. Tools for managing early-stage business model innovation. Research-Technology Management. 56(5). pp.52-56.
  • Feller, J., Finnegan, P. and Nilsson, O., 2011. Open innovation and public administration: transformational typologies and business model impacts. European Journal of Information Systems. 20(3). pp.358-374.
  • Herrmann, N. and Herrmann-Nehdi, A., 2015. The Whole Brain Business Book: Unlocking the Power of Whole Brain Thinking in Organizations, Teams, and Individuals. McGraw-Hill Education.
  • Inauen, M. and Schenker-Wicki, A., 2011. The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management. 14(4). pp.496-520.
  • Laforet, S., 2011. A framework of organisational innovation and outcomes in SMEs. International Journal of Entrepreneurial Behavior & Research. 17(4). pp.380-408.
  • Owen, R., Bessant, J. and Heintz, M. eds., 2013. Responsible innovation: Managing the responsible emergence of science and innovation in society. John Wiley & Sons.
  • Ritala, P., Hurmelinna-Laukkanen, P. and Nätti, S., 2012. Coordination in innovation-generating business networks-the case of Finnish Mobile TV development. Journal of Business & Industrial Marketing. 27(4). pp.324-334.
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