Johannes-Cornelius Adari

The Spartanburg Plant Investment by BMW AG: Financial reasons for building the U.S. plant Johannes-Cornelius Adari

Bachelorarbeit, die am 18.01.2003 erfolgreich an einer Universität in Niederlande im Fachbereich Economics eingereicht wurde. 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