BMW expansion in China Research Paper Example | Topics and Well Written Essays - 3750 words

BMW expansion in China - Research Paper ExampleIt is said that the global wealth is slowly shifting from the European and American portion to the more intemperately populated Asian kingdom at present. Many of the prominent companies in the world are immediately looking towards Asian region for growth or expansion prospects. China and India seem to be the number one and two targets of prominent American and European companies. China is the most heavily populated province in the world at present. Moreover, China is growing more rapidly than any other country in the world now and many people believe that China may replace United Sates in near future as the topmost stinting power in the world. According to Keidel (2008), Chinas economy will surpass that of the United States by 2035 and be twice its size by midcentury (Keidel, 2008). The inflation rate in China was last reported at 4.4 percent in October of 2010. From 1994 until 2010, the average inflation rate in China was 4.25 perce nt reaching an historical gritty of 27.70 percent in October of 1994 and a record low of -2.20 percent in March of 1999 (China Inflation Rates, n. d) (See Appendix for more details). Moreover, during 19972005, the PRCs average yearly growth rate in real GDP was 8.9%. During the forecast period of 20052010, it was assumed that the PRC continued its historical growth trend of 8.9% per year (Mai et al, 2010, p.5). ... veritable(a) though huge population was a big barrier in front Chinas march towards economic growth, they succeeded in converting this barrier in to a blessing and economists forced to rewrite many of their economic principles. Now China is a prominent labor supplier for the rest of the world. Even though Mao is still believed as a prominent leader in Chinese history, Deng was the actual leader who put bases for Chinas rapid economic progress. Mao was adamant about communist principles whereas Deng succeeded in giving practical definitions to communism in China. In shor t, China is the most rapidly growing country in the world at present and most of the prominent companies are now focusing more on China for expansion prospects. The BMW Group in the US reported March (2009) sales of 21,125 vehicles, a decrease of 22.9 percent over the 27,404 vehicles sold in the same month of 2008. For the first quarter, The BMW Group similarly reported a year-to-date sales volume of 51,244 vehicles, down 25.2 percent, compared to 68,529 vehicles sold in the same period a year ago (BMW Sales Remain broken in Down 26.8% - Mini Sales Decline 15.9% In March) BMW was a leader in automobile manufacturing till a couple of years before. However, same matter cannot be said about BMW at present because of the huge competition it faces from other automobile manufacturing companies along with the technical problems of tis vehicles. America and Europe were the most substantial markets for BMW earlier. However, the financial problems in these regions forced BMW to shift its focus towards more prosperous Asian region. This paper analyses how BMW was developed and is evolving in China, focusing more on areas same(p) Positioning for Greater Global Competitiveness, Improving Globalization of Markets and