BMW AG _ ROVER COMPANY Final
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BMW acquired the Rover Company in 1994 for $1.35 billion in order to expand into new markets and take advantage of lower production costs in the UK automotive sector. However, the acquisition was not successful due to a lack of alignment between BMW and Rover's strategies and goals. Each company pursued different approaches to the market, and communication problems arising from linguistic differences between the companies hindered integration and delayed progress. The acquisition ultimately failed because BMW and Rover did not have a unified strategic vision and could not overcome cultural and language barriers between the organizations.
BMW AG _ ROVER COMPANY Final
- 1. BMW AG THE ROVER COMPANY Why did BMW AG acquired the Rover company ? 1 &
- 2. What does M&A mean ? 2 A merger is combination of two companies to from new company. Acquisition is the purchase of one company by another in which no new company is formed. (Investopedia)
- 3. About Companies BMW AG is a German automobile manufacturing founded in 1916. The company began life as a aircraft engine company in the early 1900s. The first BMW car Dixi sucessfully produced between 1928-1930. BMW is headquartered in Munich,Germany. 3 BMW D聴X聴
- 4. 4 The Rover Company was a British car manufactring company founded in 1878 as Starley & Sutton Co. Company products include bicycles and motorbikes. It produced its first car in 1904. Rover is headquartered in Whitley,Coventry, UK
- 5. Goal of Acquisition 5 In fact we will see two main goal for this acquisition; The first major factor BMW want to expand it own market. But market had very limited for sold own car. And BMWs executive described acquisition another company. The another factor is British car manufacturing sector have low level of cost if we compared German car manufacturing sector.
- 6. 6 BMW acquired the Rover Company in 1994 $1.35 Billion. The problems had began immediately; BMW want to expand its own market and Rovers executive prefered we must select specific price fields in market and also we must seperate automobile market by geographic region. THE ACQUISITION
- 7. 7 Another important problem for this deal linguistic differences between two companies. This problem created lack of communication problem and also delayed the integration in process.
- 8. Analysis 8 The acquisition wasnt succesfully because both of company didnt have same strategic plan for entire market . Each company tried to pursue their policy. In additional to both of company didnt speak same language in the process. The most important problem for acquisition.
- 9. 9 Thank you !